Institutional changes in international labor market and human resource management

Abstract

The object of the article is to assess the influence of economic and political institutions on the situation of international labor market in European countries. In recent years, the focus shifted towards institutional solutions of economic processes, including the situation of international labor market. The analysis shows that the institutional structure has a great impact on the labor market. The problem is the balancing of the global trends in human resource management with the influence of national culture because many aspects of human resource management (HRM) are affected by differences in national culture. The article analyses the major challenges arising from international labor market and affecting human resource management practices in the 21st century in European countries.The existence of efficient and well-managed institutions helps to reduce distortions in the allocation of the labor force as well as creating demand for labor.