FYRIRLESTRAMARAÞON HR 2011 | RU LECTURE MARATHON 2011FYRIRLESTRAMARAÞON HR 2011 | RU LECTURE MARATHON 2011

Katrín Ólafsdóttir

Viðskiptadeild

KONUR OG KARLAR Í KREPPU

www.hr.is

Effects of crisis on the labor market

• Depends on flexibility of labor markets– Finland’s unemployment went up to nearly 20%– Iceland’s expected to stay close to 10%

• Reduced working hours (overtime, share of daytime)

• Unemployment• Labor force participation rates• Cut in nominal wages

www.hr.is

Who gets hurt?

• People at the lower end of the income distribution.• When it comes to wages women are generally

harder hit than men.• When it comes to employment men are hit worse

by recession than women.

www.hr.is

Sensitivity to economic cycle1970-2005

54,2

106,7119,9

40,4

175,6

79,971,1 68,0

80,3

123,8

0

20

40

60

80

100

120

140

160

180

200

www.hr.is

Unemployment in Iceland

0

1

2

3

4

5

6

7

1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007

Men Women

www.hr.is

Employment in the U.S.

www.hr.is

Unemployment in the U.S.

www.hr.is

Unemployment in Iceland

0

2

4

6

8

10

12

jan. '07 júl. '07 jan. '08 júl. '08 jan. '09 júl. '09 jan.'10 júl. '10

Karlar Konur

www.hr.is

“Second round effects”

• The government has in many countries stepped in to refinance the financial sector.

• Increase in public sector debt.• Slowdown in economy means increased public

sector deficit.• Many governments will be forced to cut public

services and benefits.• This will hurt women much more than men as

women are over 60% of public sector workers.

www.hr.is

Unemployment in the UK

4

5

6

7

8

9

10

2007M01 2007M07 2008M01 2008M07 2009M01 2009M07 2010M01 2010M07

Total UK Female UK Male UK

www.hr.is

Changing structure in the labor market

www.hr.is

Job matching might get tougher

www.hr.is

What lies ahead?

• Difference in wages between men and women probably narrowed.

• Opportunites in reducing the gender gap in the labor market.

• Need to be open to changes in the structure of the labor market.