Flexibility key to sustainable employment

Employment has always been a sensitive issue for policymakers and nations. While there is no doubt that it is an integral part of economic growth, it is also vital for governments to have a clear idea about labor market opportunities before they formulate policies to nurture and sustain jobs.

Last week I caught up with an old friend, Robert Tesits, an associate professor at the Institute of Geography and Earth Sciences of the University of Pecs in Hungary and an expert on the global employment market to get his insights on the subject. What Tesits told me was that he and his colleagues have developed a new methodology that presents a more nuanced picture of labor market prospects and opportunities across the world based on geographical and social aspects.

The new model, called the Sensitivity Index, is different from others in that it assesses how certain areas of a country's labor market react to recent economic and social changes, and with it the extent to which people living in these areas can trust that there will be jobs for them.