Chapter 2: Globalisation, Economic Integration, and Labour Market Dynamics within the European Union^*

Purpose: This research delves into the nuanced interrelations between economic globalisation, European integration, and labour market dynamics, specifically focussing on understanding how trade and financial globalisation impact economic growth and the stability of the European Union (EU) labour markets. The aim is to emphasise the multidimensional effects of globalisation and European integration within this context.

Need for study: This research responds to the critical need for an in-depth analysis of these dynamics of globalisation, providing essential insights for informed economic and policy decision-making at the level of the EU in a globalised landscape.

Methodology: This research employs a systematic review and bibliometric analysis to examine a broad range of literature from 1990 to 2023. Analysing over 1,000 academic articles to identify trends in discussions on European integration and globalisation using the VOSviewer tool assesses the relationship between globalisation, European integration, and labour market performance in EU countries using statistical data provided by Eurostat.

Findings: European integration and globalisation continue to open avenues for economic growth while concurrently exposing economies to various risks, including economic instability and wage disparities. Financial globalisation emerges as a dual-edged credential, amplifying global financial risks and influencing income redistribution patterns.

Practical implications: The study emphasises the need for well-crafted policies to address labour market challenges in EU-13 countries. Policymakers should prioritise investment in education, skills training, entrepreneurship, innovation ecosystems, and workforce adaptability. Regional cooperation is also advised to leverage collective strengths, share best practices, and foster solidarity among EU-13 member states.