Article

 

EFFECTS OF STRUCTURAL AND TECHNOLOGICAL CHANGE ON THE LABOR MARKET AND LABOR DEMAND FOR GRADUATE DIPLOMA ENGINEERS 
 
by
 
I. Tsolas, National Labor Institute
K. Athanassouli, National Labor Institute
 
JEL classification : I200, J400
 
Abstract
As the role of technology in society increases, engineers possessing a strong understanding of technology, are crossing into other fields except for the traditional engineering sectors of manufacturing and construction. Compared to the past, the industrial employment characteristics of engineers have been changed due to the increased competition. The notable technological change in telecommunications, information and production technology and the globalization of the economy have contributed to the emergence of new markets and the increase of international competition and the competition at national level as well. The reaction of enterprises focused on the development of new products and services with emphasis on quality and the better utilization of production factors (especially of human potential in which the engineers are also included). In Greece, according to official data published by the Technical Chamber of Greece, during the last two decades the number of graduate diploma engineers increased rapidly. That increase of supply was not associated with the growth of economy and the creation of new jobs and had as effect the cause of a surplus of diploma engineers. Specifically, the number of graduate diploma engineers was about 22900 in 1981, about 52600 in late ‘80’s and reached about 70000 in 1997. Empirical findings of the most recent survey conducted in 1996 by the Technical Chamber of Greece, Civil engineers and Architects showed that one half of the total (49%), though Mechanical and Electrical engineers about 30% of the total. As far as the economic activity is concerned, the diploma engineers are employed mainly in construction and public works (49%) and in the tertiary sector (41%). The rest of them (11%) are employed in manufacturing (10%) and mines and quarries (1%). According to the official data of National Statistical Service of Greece, the portion of diploma engineers to total employment was 1,3%, in 1997. Concerning the unemployment of Greek diploma engineers we remark that the new graduates, women and repatriates from universities of the countries of Eastern Europe and the former Soviet Union are touched more than the other groups. It is worth noting that among the unemployed there are also diploma engineers of older groups who were fired by closed or privatized firms. In the case of graduate diploma engineers, new skills are required by the enterprises and the organizations. These skills are adaptability to the firm culture and policy, communication and interpersonal skills, willingness for team working, continuous learning, mobility inside and outside Greece etc. For the improvement of qualifications of older graduates who have not managed yet to adapt to the new requirements of the labor market, further training is needed. In the case of new graduates who face various problems for coming into the labor market, it is essential to investigate the structure of curriculums of the Greek technical universities and how these curriculums can be adapted to new demands of the labor market. In order to facilitate the integration of new graduate diploma engineers into the labor market, further training can help in the short-middle run, though in the long run the optimum solution is that of establishing links between universities and industrial enterprises and the adaptation of curriculums of higher educational institutions to the new market demands as well.