Contemporary role of SMEs in employment in manufacturing and service industries

Abstract

Analysis made in the article allows to conclude that the SME sector of high-tech manufacturing industries plays growing role in solving the problems of employment in developed countries. However, the major problem is that it is capable for only partial compensation of the loss of jobs in labour intensive sectors of the economy. Accumulation of knowledge of the population in industrialized countries together with high levels of computer literacy contributes to the revitalization of business services sellers that are mainly small sized businesses. In the era of fast growing technology industries, in particular related to IT sector, the role of SMEs in economy is increasing as they are main players in start -up communities and IT industries in general. Thus they can growingly contribute to the employment and labour market. The authors proceed from the assumption that service sector, and business services in particular, to a certain extent are capable of absorbing of workforce. This article argues that employment in the service sector in the developed economies is still largely focused on traditional sectors of activity. The purpose of the paper is to investigate latest trends of SMEs role in employment in the developed countries and the role of service sector in stabilizing labour market. Theoretical approaches, statistical data and policy analysis are used to research contemporary labour market trends. Knowledge - intensive services that are important from the point of view of economic dynamics, only start to concur positions in the developed countries.