C HAPTER 2 Social Development and Social Policies 25 2 Social Development and Social Policies Prof. Katia Vladimirova, PhD in Economics 2.1. State of Affairs 2.1.1. Employment and Income of the Population The employment scale and rate of the population are preconditioned by the dynam­ics and structure of the economy, as well as by the level and dynamics of labour productivity. This correlation is complex and multi-faceted. Presently, the scale and dynamics of production are determined by its competitiveness and efficiency, which, in turn, depend on a range of factors:(1) technological level of production, (2) its structure,(3) and the quality of the human dynamic, i.e., the employed, (4) as well as upon innovation and investment in new technology, machines, and equipment. What’s more, the different economic sectors have different potential to generate employment(jobs) and income(payment) for those employed—this fact should be at the forefront in taking decisions to restructure the economy, as well as the policies for stimulating and encouraging diversified manufacturing. The inclusion of the working-age population in the economy(employment rate of the population) has always been considered a very important factor for pros­perity, social security, and welfare. For a long time, a dominant role in employment had been assigned to the quantitative aspect(the number of employed). Yet, as the modern economy evolves, it is the quality of human resources that has come to the fore, as well as their productivity and work motivation. Both the Lisbon strategy and the contemporary EU strategy(Europe 2020) focus on smart and enhanced growth, as well as quality of employment, which is linked to the quality of all lev­els of education and lifelong learning. They also focus on inclusive growth—the creation of opportunities for the inclusion of all those who are able and willing to work.