How can the labor market in Europe and the United States be changed?

It took sixteen years after the great financial crisis for the U.S. unemployment rate to return to its pre-war low of 3.5%. Even at that rate, however, millions of people were still unable to find decent paying jobs. Losing a job is not just a personal tragedy; it affects different groups of people in different ways. We are told that economic growth promotes prosperity for all, but for several decades now, a slow recovery without meaningful increases in employment has become commonplace. Moreover, work is increasingly extremely low paid.

When one considers who benefits from economic growth, the answer is alarming. After World War II, when the economy recovered after each recession, the vast majority of income went to the poorest 90% of families. Since the 1980s, however, this has changed, with the richest 10% settling for the lion's share of profits during the last four periods of growth. After the Great Recession, this trend was exacerbated, with real incomes for the poorest 90% of families continuing to decline during the first three years of recovery.

The aftermath of the Great Recession

Today, millions of people are still struggling to find any kind of gainful employment, and many of those who are working are earning wages barely above the poverty line. The median real income of the poorest 90% of Americans in 2017 was $34,580, down 2.2% from twenty years ago. Behind the dry numbers of unemployment and inequality are millions of stories of people facing job loss and unfair wages.

Maybe you or someone close to you has experienced this first hand. Perhaps you lost your job during the Great Recession or you graduated from high school but because of the cost of tuition decided to delay enrollment to save up. Maybe your children are grown and have left home and you want to get back into the job market after a long hiatus but don't know where to start. Maybe you've sent out hundreds of resumes, but even in a growing economy, you can't find a stable, well-paying job.

The reasons may vary: age, gender, skin color, or criminal record. Or maybe you are a person with a disability who is ready to work, but there are no suitable jobs available or offer humiliatingly low pay. For example, current law allows employers to pay such people as little as $1 an hour.

Today's economy continues to create inequality, leaving many on the margins - those who are looking for a chance to change their lives but face barriers that seem impossible to overcome.

Labor exchanges welcome you with open arms as you take additional courses, improve your resume, and practice interviewing. You give your best, but success remains somewhere over the horizon. Or perhaps you do manage to find a job, but it's again a low-paying position with no perks. You can barely manage your day-to-day expenses, and after much searching and stress, you have to decide what's more important: making it home in time for dinner or helping your kids with their homework. You're ready to work your hardest, but it seems that the work itself isn't ready to reciprocate.

Now imagine that you are lucky. Take your mind back to 2009: lines at the job boards, desperate unemployed people, and ads telling you not to even try to send in your resume. But maybe you're not the kind of person who fought for every penny. You have a job, albeit not an ideal one. The pay is modest, but the company promises a raise, you can support your family and finally afford a two-week vacation. True, there is one “but” - your boss is a real despot, but you tolerate, because there are few options.

The impact of technology and globalization

Such stories are not uncommon. In the US, EU countries and around the world, hundreds of millions of people are facing the loss of their jobs and livelihoods. This is not just a consequence of crises or “God's Providence” - it has become commonplace. The modern economy is accelerating this process: technological change and outsourcing are causing jobs to disappear permanently.

Although new jobs are created, there are never enough to meet demand, even in times of economic recovery. Many end up in precarious, low-paying positions. For example, in 2018, 6.9 million workers in the U.S. earned less than a living wage. For millions of Americans and Europeans, one job is simply not enough to move beyond survival.

What might a fairer system look like?

What if we revised our approach to economic goals and made sure that every job seeker had access to a decent job paying at least a living wage? How would this impact on people's lives, local communities and the wider economy?

Imagine that employment services offer not only the usual resources, but also create a database of state and municipal job openings where the minimum wage is, for example, $15 an hour. The job also comes with access to health care and quality childcare. You can choose to work full-time or part-time, and you can take advantage of additional services for personal and professional growth: training, certification, secondary education assistance, transportation benefits, counseling, and family-friendly programs.

We are talking about creating jobs at the local level - in self-governments or non-profit organizations - but the funding for such positions comes from the federal budget. This would reduce the time it takes to find a job while providing people with stability and support.

Job security offices not only help people find suitable jobs, but also offer higher paying job options in the private or public sector. As the economy grows, new job openings with opportunities for career advancement, flexible schedules, or telecommuting become available. As you learn new skills and experience, you choose a few interesting offers, leave your guaranteed position, and move on to more promising opportunities.

Conclusion

Guaranteed employment is not just a tool to fight unemployment, but a chance for society to rethink its priorities and create a fairer economy. This approach can not only improve the quality of life for millions of people, but also strengthen the resilience of local communities by reducing social inequalities and increasing economic stability.

When everyone is given the opportunity to work under decent conditions, with adequate pay and support, it lays the foundation for long-term prosperity. Ultimately, investing in secure jobs is an investment in a future where success is measured not only by economic performance, but also by the quality of life of each individual.