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Labour Market Comparison Effective Cross-border Co-operation for Development of Employment Growths in Arad and Békés County – Labour Market Comparison 2019 ROHU 406: CROSSGROWING Effective cross-border co-operation for development of employment growths in Arad and Békés County Békés County Foundation for Enterprise Development The content of this study does not necessarily represent the official position of the European Union. The project was implemented under the Interreg V-A Romania-Hungary Programme, and is financed by the European Union through the European Regional Development Fund, Romania and Hungary. Copyright © 2019 BMVA. All rights reserved. TABLE OF CONTENTS 1. EXECUTIVE SUMMARY ......................................................................................... 5 2. INTRODUCTION ..................................................................................................... 14 3. CONCEPTUAL FRAMEWORK FOR RESEARCH ........................................... 19 3.1. The labour market as an area of intervention ....................................................... 19 3.1.1. Production factors, supply and demand in the labour market ....................... 21 3.1.2. Unemployment and labour shortages ............................................................ 25 3.1.3. Employment and employment policy .............................................................. 31 3.2. System of cross-border cooperation ..................................................................... 37 3.2.1. Theories and principles of cross-border cooperation .................................... 42 3.2.2. Development, type and objectives of cooperation .......................................... 46 3.2.3. Legal administrative background of the cooperation .................................... 49 3.3. Institutional framework and services for employment promotion ....................... 56 3.3.1. Institutional system of employment ................................................................ 57 3.3.2. Labour market services .................................................................................. 63 4. QUANTITATIVE ANALYSIS OF THE EMPLOYMENT SITUATION .......... 68 4.1. Spatial delimitation of the research ...................................................................... 70 4.1.1. Countries of the research: Hungary and Romania ........................................ 72 4.1.2. Regions of study: Southern Great Plain and Western Romania .................... 84 4.1.3. The Counties examined: Békés and Arad ....................................................... 93 4.2. Population processes .......................................................................................... 100 4.2.1. Natural change in population ...................................................................... 101 4.2.2. Artificial population change ........................................................................ 109 4.2.3. Change of total population ........................................................................... 114 4.3. Population composition ...................................................................................... 116 4.3.1. Age structure ................................................................................................ 117 4.3.2. Disadvantaged groups on the labour market ............................................... 120 4.4. Basic economic data and performance ............................................................... 131 4.4.1. National economy ......................................................................................... 132 4.4.2. Households ................................................................................................... 135 4.5. Labour force activity .......................................................................................... 138 4.5.1. Employment rate .......................................................................................... 138 4.5.2. Region specific aspects................................................................................. 141 4.6. Employment capacity of economic sectors ........................................................ 146 4.6.1. Primary sector: agriculture ......................................................................... 146 4.6.2. Secondary sector: industry ........................................................................... 148 4.6.3. Tertiary sector: services ............................................................................... 149 4.6.4. Quaternary sector: research development innovation ................................. 152 4.7. Structural and regional characteristics of unemployment .................................. 155 4.7.1. Structure of unemployment .......................................................................... 155 4.7.2. Territorial differences in unemployment ...................................................... 160 4.8. Income and earnings of employees .................................................................... 164 4.8.1. Living standards ........................................................................................... 164 4.8.2. Distribution of income .................................................................................. 167 4.9. Business enterprises ........................................................................................... 173 4.9.1. Number, proportion and composition of enterprises ................................... 173 4.9.2. Business trend .............................................................................................. 177 4.10. The social, educational and health status of human resources ......................... 180 5. QUALITATIVE ANALYSIS OF THE DEVELOPMENT OF EMPLOYMENT GROWTH .................................................................................................................... 188 5.1. Main features of the research ............................................................................. 189 5.1.1. Research material ........................................................................................ 190 5.1.2. Methodology of research .............................................................................. 191 5.2. Results of the research ........................................................................................ 195 5.2.1. The results of the primary research ............................................................. 197 5.2.2. Related results of the secondary research.................................................... 203 6. CONCLUSIONS AND RECOMMENDATIONS ................................................ 206 6.1. Labour market trends and actors ........................................................................ 206 6.1.1. Demographic trend ...................................................................................... 206 6.1.2. Total national economy performance and sector relationships ................... 208 6.1.3. Unemployment .............................................................................................. 210 6.1.4. Income and earnings .................................................................................... 212 6.1.5. Business architecture ................................................................................... 213 6.1.6. Human resource ........................................................................................... 214 6.2. Evaluation of cross-border co-operation ............................................................ 217 6.2.1. Opportunities of the Hungarian Romanian border area ............................. 217 6.2.2. Present cooperation of Arad and Békés counties......................................... 218 6.3. Improvability and development of employment ................................................ 219 6.3.1. Short term development priorities ................................................................ 220 6.3.2. Medium term development objectives .......................................................... 220 6.3.3. Long term development program points ...................................................... 221 7. SUMMARY .............................................................................................................. 223 8. BIBLIOGRAPHY ................................................................................................... 230 9. LIST OF FIGURES ................................................................................................ 235 10. LIST OF CHARTS ................................................................................................ 240 11. ANNEXES .............................................................................................................. 244 11.1. Detailed interview outline of primary research ................................................ 244 11.2. Transcripts of primary research ........................................................................ 246 11.3. Detailed charts of secondary research .............................................................. 257 12. APPENDIX ............................................................................................................ 284 1. EXECUTIVE SUMMARY The study examines and compares the labour market of Arad and Békés counties within the framework of the project „Effective Cross-border Co-operation for Development of Employment Growths in Arad and Békés County”. The study discusses the examined topic in four content units. Following the Executive
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