Sustainability and resilience from the perspective of the labour market of Central and East European (CEE) member states

Abstract

The paper examines the short-term relationship among the labour market and two key indices, namely the ESGI (Environment, Social, and Governmental Index) measuring sustainability-related risks, and the SRI (State Resilience Index), focusing on Central and Eastern European (CEE) member countries. The findings indicate that an expansion of the labour force contributes to heightened environmental, social, and governance risks, but enhances state resilience. Factors such as adapting to digitisation, enhancing quality of life amidst economic growth, and increased education levels contribute to a more robust workforce. Economic growth tends to discourage individuals from pursuing higher education, and unemployment among those with tertiary education disrupts the labour market equilibrium. In this context, state intervention through additional investments in education yields positive effects on the labour market and, by extension, on state resilience, potentially mitigating environmental, social, and governance risks. The results address existing gaps in the literature and provide valuable insights for shaping economic policy measures in CEE countries.