Karol Morvay

Even from labor market – with big time lag – now leave some signs of recession. Right on this market they lived the longest time. The message about more than 2 percent growth in number of workers is probably the most positive and most important message about macroeconomic development in first quarter of 2011. It doesn’t mean definite and smooth turnover in development on labor market whatsoever. Information about development of unemployment are contradictory, same as the information about wages and incomes. Labor market is currently full of contradictions. We devote here the attention to two significant contradictions.

Macroeconomic stabilisation becomes again a frequent professional and also political theme. That’s why we submit a series of analytical articles oriented on stabilisation of economy and consolidation of public finance. Professional and political elites in SR should have rich experience with stabilisation programs. But each of previous stabilisation operations ran along different circumstances.

The development on labor market reacted with delay, but anyway very appreciably on the progress of economic recession. Similarly, as the parameters of labor market worsened with delay (after development of production), they will probably improve the same way with delay. This fact has negative impact on incomes of social security funds, including health insurance companies.

Branches, which expanded in Slovak economy in the past, often had similar disadvantages: their production had low rate of value added, so undoubtful benefit of these branches to economic growth was connected with „turning“ a huge mass of goods. Health care has got other character: it has an unusually high rate of value added and its potential expansion would substantionally contribute towards better economic growth.

It will help health insurance companies

Signs of the end of recession and start of recovery of economy are present even from the beginning of 2010. But first positive signals from labor market occured only in the end of the year. Substantial part of incomes of health care system is dependent on the development of labor market. So we could expect better times for health insurance companies. But the brake are payments of state.