The regional dimension of unemployment in transition countries: A challenge for labour market and social policies = La dimension régionale du ... marché du travail et les politiques sociales
Unemployment in transition economies has a marked geographical dimension. While unemployment rates are still well below 10 per cent in most capital cities and other major urban centers, they exceed 20% in many rural areas and heavily industrialized areas. In these two areas, the pool of unemployed is often dominated by person who have been without work for prolonged periods. This report on an OECD workshop looks at how regional unemployment differentials can be eased significantly. Policies aimed at facilitating greater labor mobility between regions and developing a business environment in declining regions could stimulate an endogenous process of job creation. All spheres of government action should be brought to bear, including labor market and social policies, which would be more effective if they were tailored to the specific needs of each local labor market.