EUROPEAN ECONOMY Economic Papers 318| April 2008 ong>Theong> ong>impactong> ong>ofong> ong>EMUong> ongrowthandemployment Ray Barrell, Sylvia Gottschalk, Dawn Holland, Ehsan Khoman, Iana Liadze and Olga Pomerantz EUROPEAN COMMISSION
The world of work is going through far-reaching transformations. These transformations have a strong impact on labour markets and pose new challenges for their institutions, including unemployment protection and technical and vocational education and training (TVET), which are crucial to the creation of full and productive employment and decent work for all.
Constantly changing labour markets and the growing heterogeneity of labour relations present major challenges for the design of unemployment protection instruments. In addition, a highly skilled workforce is a key element for any development strategy that aims to base economic growth on innovation and knowledge. Moreover, national technical and vocational education and training systems must meet increasingly diverse demands from both the production sector and persons seeking decent work.