Macroeconomic assumptions for the employment policy-an overview of the situation in the Republic of Macedonia
Macroeconomic assumptions for the employment policy-an overview of the situation in the Republic of Macedonia

Summary/Abstract: The paper addresses the macroeconomic assumptions for the employment policy in the Republic of Macedonia. The main goal is to identify these assumptions as a base for creating favorable conditions for unemployment decrease. Providing sustainable economic growth is the key determinant for creation of new jobs and solving the unemployment problem. This growth requires macroeconomic assumptions such as: economic stability, favorable investment climate, flexible institutions on the labor force market to be achieved etc. Regarding the unemployment problem in the Republic of Macedonia, creating the macroeconomic framework of the employment policy is a complex process that assumes mix of different sectorial policies, which should align their goals and objectives in order to achieve employment growth. The paper identifies possible activity directions of the monetary, fiscal and wage policy, as a set of core macroeconomic policies which have a direct and indirect impact on the employment growth.The analysis in this paper leads to a conclusion that the achievement of sustainable growth and development of the Macedonian economy is a significant determinant to encourage employment in the future. It should be achieved through: maintaining macroeconomic stability, reducing the budget deficit, increasing the domestic and foreign investments, as well as investment in infrastructure, development of the real sector and increase of the competitiveness. Any successful policy in these areas would contribute to creating new, but also to maintain sustainability of the existing jobs in the country.

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