The hidden realities of the labor market and the true cost of employment security

The structure of the modern labor market is characterized by profound imbalances, which are often insufficiently recorded in public perception. While the free economy is exposed to constant fluctuations and harsh competitive pressure, certain public service groups enjoy comprehensive protection against these risks. This discrepancy leads to massive distortionsin the assessment of labor costs and social burdens. A closer look at the historical developments and the hidden mechanisms of the employment system reveals the true dimensions of this imbalance.

The historical development of unemployment and the number of unreported

Since the late phase of the past century, unemployment has become a permanent companion of social reality. The officially reported quotas always covered the far more dramatic state of the labor market. Over many decades, the actual values of unrecorded unemployed have moved enormously. The statisticalRecordings systematically drop the real conditions.

The invisible reserve and the phenomenon of overqualification

Those who are not recorded include sick job seekers, participants in qualification measures and those who have given up their search out of resignation. In addition, there are employees in educational queues and people in precarious bogus self-employments. This silent reserve adds up to enormous numbers of people, which drastically reduces the real unemployment rateheight drives. In addition, the tense labor market is forcing many academics to take on activities far below their actual qualifications. In contrast, civil servants go through fixed careers without ever slipping into such precarious situations.

The financial and psychological consequences of the job loss

Loss of employment means that those affected have completely lost their regular income. In addition to the direct financial losses, people suffer massively from their professional qualifications. Application costs, possible moves and later pension deductions further exacerbate the material emergency. psychological stress such as depression and thatFeeling of one’s own uselessness are added as serious factors. Absolute security in the public service protects against these existential needs and represents intangible value that is hardly financially quantiable.

The social costs of rigid security structures

However, the uncancellability in the civil service generates enormous costs for the entire society, since unsuitable people remain permanently in their posts. In the free economy, such misoccupations would be corrected by layoffs, while entire generations suffer from this in the education system. Scientific findings show that significant parts of the teachers for their professionare completely unsuitable. The attractive privileges also attract students to this profession who are only looking for comfortable ways of life. The abolition of civil servant status for teachers would be mandatory to ensure the quality of the training.

The removal of jobs and the outsourcing of loads

In order to reduce staffing overhangs, the future posts will be created, the owners of which will be persuaded by various incentives to leave early. Employees receive high premiums or are put on temporary retirement while the state bears the pension burden. Especially in the area of former state-owned companies, a large number of civil servants in the middleretired age. The huge financial burdens of these early retirements are passed on entirely to taxpayers. For particularly stubborn people, additional premiums are even paid to transfer them back to civil service.

The economic evaluation of the absolute employment guarantee

Absolute security from unemployment represents enormous shadow income, which is completely ignored in conventional comparisons. When calculating the true value of this security, the real unemployment rates and the non-quantifiable psychological benefits must be taken into account. In order to make conservative estimates, this intangible advantage issignificant surcharges on net income. This approach makes it clear that the seemingly high salaries in the public sector do not yet even come close to reflecting the true cost of employment guarantee.