Formation of the labor market in Ukraine

CONTENTS



INTRODUCTION

SECTION I Concept and features of the labor market

CHAPTER II Features of the labor market in Ukraine

CHAPTER III ratio of employed and unemployed

CONCLUSION

LIST OF LITERATURE






INTRODUCTION



The labor market is an integral part of the overall economic and market mechanism. It is characterized as one of the most difficult social and economic phenomena of society, which reflected all sides of his life, it shows the whole diversity of interests and contradictions. Therefore the process of its functioning is constantly in terms of state, as the reproduction of such goods, as labor - the reproduction of labor resources and in general productive forces of society. Social policy in employment is also one of state functions. However, the crisis of the Ukrainian society demonstrated inability of the State to exercise effective social control. Accordingly, the labor market situation is poor, and especially - in employment. It looks like a complex multidimensional, heterogeneous, dynamic and prone to influence from outside the subsystem market. Employment in the general population and especially young people, has not only economic but also social meaning as a form of adaptation of different social groups to the market. The social role of employment seen in the fact that in the past aimed at institutions, traditions, stereotypes of behavior can both assist and resist market transformation. Go to market is very painful, accompanied by a crisis of industries in all other areas, failure to pay taxes, lower living standards of most social groups. Also the problem of youth unemployment, which threatens great danger to fundamental changes and transformations in the way of democratization. Thus, massive unemployment represents a real threat to civil society that can not survive if unemployment will stay high. The main objective of this work is to study the main stages and features of the labor market in Ukraine.

The aim: to highlight the problem of the labor market in Ukraine.

The task: to convince of the need to change the situation.

The object of research: the labor market in Ukraine.

Subject of investigation: employed and unemployed population.






SECTION I. Concept and features of labor market



Labor market - is primarily a system of social relations associated with buying and selling goods "labor." In addition, the labor market is the sphere of employment, demand and supply for labor. It can be interpreted as a mechanism for coordinating prices and conditions between employers and employees.

The peculiarity of the labor market is that it covers not only the sphere of circulation of goods "labor" but also in manufacturing, where the employee works. The relations here have raised important social and economic problems and therefore need special attention from the state.

In a market economy, labor market covers all willing to work: as employees and not employees hired labor. Among the unemployed are distinguished group of able-bodied people:

• people who do not work, but want to work and seeking work (unemployed, who have the appropriate status, individuals who have first started to work for, people who are looking after the occupation of interruptions);

• people who have jobs though, but not happy with it and looking for second primary or additional work;

• people who are busy, but clearly risks to lose jobs and so are looking for second job.

Specified categories of people and determine the supply of labor in the labor market.

Thus, the labor market - a market of hired labor. It covers relationships from the moment of hiring employees to work for their release.

For the origin, formation and functioning of the labor market required certain conditions. First of all, should be provided with legal conditions for operating this market, including the possibility of free movement on it citizens a free choice of work, freedom is a legal worker, the opportunity to dispose of their ability to work. But this is not enough because of the economic point of view, the owner of the labor force to sell it when it does not have everything you need for keeping their farms as sources for obtaining means of subsistence, or when income from other sources is insufficient.

Buyer commodity "labor" in the market is the entrepreneur who has everything necessary for running own business. In their work, entrepreneur attracts other workers for a monetary reward. Was exchanged individual's ability to work on livelihood necessary for the reproduction of the labor force but also by placing workers in the system of social division of labor of the country.

An important condition for the formation and functioning of the labor market is compliance officer job requirements, and offered a place - employee interests.

Market jobs as part of the labor market, reflecting the need in the workforce, primarily characterized by the number of vacancies in companies and organizations. At the same time take note of those vacancies as companies and organizations are already operating and those that only come into effect. In addition there are those workplaces where employees do not satisfy the employer, so he is looking for them a replacement.

The necessary conditions of functioning of the labor market is also organizing a single, closed across the country and an efficient system of labor exchanges, large-scale vocational guidance, vocational training, advanced training and retraining, the presence of local authorities the necessary financial and material resources sufficient for effective system of employment of public works, stimulating employment, social support of citizens, including the unemployed and families who are dependent on them, and others.

Elements of the labor market are: the product that it offers, demand, supply and price. In modern economic literature there is no unequivocal answer to the question, what constitutes a commodity in the labor market:

work force, work or service work? However, most authors tend to believe that commodity in the labor market is the individual labor.

Individual work force is a combination of physical and spiritual qualities of man, which are used in the production of goods and services.

Labor force, as noted, is the subject of sale. Shopping "labor" refers to employment. This is called labor hired labor, and the employee - an employee. A worker sells his labor for a businessman period, remaining the owner of the goods.

Elements of the labor market is also labor demand and the supply. Demand may be individual and aggregate.

Aggregate demand for labor - is the market demand by all companies and organizations represented on the market.

Individual demand for labor is a demand for a separate employer (entrepreneur, firm). It depends on:

• demand for the firm, because labor is needed as a productive resource for the production of other goods and services, labor demand depends on demand for the product companies, organizations;

• of production, in particular, features of the process, the size and efficiency of capital used, methods of production and labor, etc.;

• quality of work that determined the level of education, professionalism, productivity, employee;

• payroll, which can offer an employer to hire a certain number of employees, because the larger the overall size of the fund, the more employees an employer may hire, and vice versa, the higher the salary of each employee, the smaller number of them through the fund will pay hired.

Adjusting the demand for labor requires analysis of factors that affect it. Increased demand can be achieved by stimulating it through the creation of new permanent or temporary jobs, the development of non-standard forms of employment, direct investment in the creation and renovation jobs. Demand growth also contributes to: the introduction of preferential taxation and credit to those sectors and regions, which should increase the number of jobs, the use of direct payments to businesses for each employee hired, the company refunds the costs associated with finding, training and hiring employees.

At the same time must be set certain legal restrictions on employment growth, including by enabling individual adjustment of working hours, the removal of restrictions to reduce the number of employees, the possibility of their release in case of reducing the amount of work.

Formation of labor demand is influenced by such factors: the size of labor force growth, the ratio of the employed and unemployed population, the use of small competitive groups, features pension legislation, and personnel policies of each company.

Labor supply characterizes the number of able-bodied people with their sex, age, education, occupation, education and others.

'Market - a demand and supply of labor at present, which determines salary rates for specific types of work and employment.

There are three types of conditions:

• when the labor market there is a lack of labor supply;

• when there are large numbers of unemployed and under oversupply of labor;

• equilibrium when the demand for labor meets the supply.

Each type of market conditions peculiar to a region or area of applying labor, forming together the overall labor market in the country.

The ratio of labor demand and the supply is influenced by specific economic and socio-political situation, changes in price of labor (wages), the level of real incomes. The dependence of these quantities are graphically depicted in Fig. 1.

From this figure shows that as far as reducing real wages (labor) demand for labor by employers and employment grow accordingly. Growth in real wages accompanied by an increase labor supply. At the point of intersection of these curves of demand and labor supply coincide, there is equilibrium in the labor market. If the price of labor higher than the equilibrium, there is unemployment, if lower - shortage of workers.

In practice the overall structure and balance demand and supply of labor is practically inaccessible. Labor market directly affect the price of labor.

Price workforce acquisition should provide the market as many consumer goods and services, employee to:

• support its work and obtain the necessary professional qualification training;

• maintain a family and raise children, without which the labor market will not be able to grow new labor force instead of the one who leaves;

• maintain a normal environment for their level of culture and civil society to fulfill a duty, which is also expensive.

Cost of the labor force is in the form of wages. Note that the high wage limits the entrepreneur in hiring additional staff, reducing demand for them, and vice versa, low wages makes it possible to increase the number of jobs.

Under certain conditions, curves of demand and supply of labor can not cross. This occurs when employees require a salary on which employers do not agree, and the last offer such fees, which are not satisfied with the workers. This situation is quite rare and only applies to certain professions. Overall, employers and workers can not do one without the other.

The difference in the ratio of supply and demand for vocational qualifications, sectoral and gender and age groups has led to the division of the labor market in a number of segments, different degrees of first jobs and their reliability.

Labour market performs the following functions:

• harmonize the economic interests of the subjects of labor relations;

• provides a competitive environment each side of the market interaction;

• ensures the proportionality of the distribution of labor according to the structure of social needs and development of technology;

• maintains a balance between the demand for labor and its supply;

• forms a pool of human resources to ensure the normal process of social reproduction;

• promotes optimal professional and qualification structure;

• stimulates the work establishes equilibrium rate of salary;

• effect on conditions of employment of personal potential;

• gives information about the structure of demand and supply capacity, market conditions and more.

In a market economy any imbalances in production lead to a breach of the proportions of the labor market, ie the ratio between the total value of labor demand and supply of, demand for labor and its supply to industries, regions, the ratio between the demand for some professions, specialties and supply. It should be noted that in order to labor market operated efficiently, you must provide certain additional conditions. For example, the country must be sufficiently developed housing market. Those who want to change jobs and move to another city should be able to sell and buy a home. As in other markets, demand for hired labor is greater than the proposal that employers had to compete among themselves.

Among the current trends of the labor market in countries with developed market economies, but these should include: increased competition and complications among workers (for jobs with high pay, additional social guarantees, the prospect of promotion), and among employers ( the most valuable staff) to increase the share of one third of highly qualified manpower in the structure, length of schooling, slowing the inflow of the working population and its aging complications Forms employment and labor relations, etc..



CHAPTER II. Features of the labor market in Ukraine



Ukrainian labor market and employment have their peculiarities. It is about those that were within 90 years of the twentieth century. Concentration on this period due to the fact that previously existed in Ukraine, another economic system. First, you must remember that a legacy from the Soviet administrative system of the USSR, our state received ineffective, highly costly in economic crisis, which began long before independence. For example, average annual rates of GDP growth in Ukraine in 1961-1965 pp. amounted to 6,9% in 1971-1975 - 5,6% and in 1981-1985 - 3,3%. In 1986-1990 pp. This figure is even without taking into account changes in prices amounted to 1,9%. Overall during 1961-1990 pp. average annual growth rate of GDP and national income decreased threefold. The most deformed sphere of economy of Ukraine during their stay in the USSR was the scope of employment status at the time of independence was characterized by:

no state and legal institutions of the labor market, legislation on employment and unemployment recognition at government level;

concentration of employment in public sector enterprises;

lack of flexibility of pay as a result of state regulation;

low labor mobility due to legal restrictions in the USSR turnover (if in 1970 years the share of layoffs at will in total reached 20%, in 1980 - only 12%), changes in employment (because of the passport residence permit, accounting system of seniority, lack of housing market, etc.).

Structural deformation of the sphere of employment - one of the main features of the command economy. In developed countries dominate employment in services and industry, concentrated, respectively, 60-70 and 25-30% of the workforce, nor is its large share in agriculture, representing 8.3% of the workforce due to strong performance of farms .

Ukraine after the collapse of the USSR got the economy where employment in services was lower by 20-40% and in agriculture and industry 3-6 times in 1,5-2,0 times higher than corresponding rates in the developed countries world. Such a correlation between different sectors of employment was caused by the domination of Marxist doctrine, which stipulated the need

development of advanced means of production compared with the subjects.

In the process of national labor market should allocate two stages.

The first phase (1991-1994) was characterized situation that has been established during the command economy of the USSR, and existence of vacancies in their number in 1,5-2,0 times the number of registered unemployed. As a result, during this period were extremely low official unemployment rate (0,1-0,3%) and load factor for one vacancy (0,42-0,60). It is clear that such a situation, provided the decline in 1991-1994 pp. Real GDP is 40% bull is only possible thanks to financial support from the government's loss-making enterprises. The state budget expenditures on so-called support of the national economy in 1993-1994 pp. were 11.2 and 21.4% VVP2. Politics artificial containment of unemployment using administrative tools has led to increased government deficit (in 1994 - 9,3% of GDP) to cover the government, usually resorted to the simplest method - the issue of money. These measures generated high inflation and, consequently, prices during 1992-1993 pp. increased more than 21 and 102 times.

The second phase of the national labor market (1995 - 2001) related to the tight restrictive monetary and fiscal policies that were aimed at fighting inflation and balancing the financial system. By reducing during this period, spending on the financing of the economy from 21.4 to 6.5% of GDP, the government managed to reduce the fiscal deficit to 1,5% of GDP. As a result, average monthly inflation rate declined from 14,4% in 1994 to 1,5% in 1999 r.4 However, such actions are not accompanied by structural reforms and led to imbalances in the labor market: the number of unemployed began to exceed the number of vacancies, resulting in a level per one vacancy increased from 1.5 persons in 1995 to over 30 in early 1999, only this time the number of officially registered unemployed increased from 126.9 thousand in 1995 to 1174.5 thousand in 1999. (Ie more than 9 times). During the years of reforms (1995-2000) fastest number of employed declined in construction (by 39.7 per cent.), Industry (28.9 per cent.), Transport (by 19.5 per cent.), Education culture, art, science and scientific services (by 16,7 per cent.). In the same period increased differentiation observed wages and deepening signs of economic and social crisis of transitional economy. Nevertheless, at this stage was set up necessary infrastructure labor market. Direct labor market policies in the country form the Ministry of Labour and Social Policy, its regional structure. To implement this policy through the mechanism of tripartism established the National Partnership. However, this authority has largely ornamental in nature and does not provide the necessary role of sectoral agreements and collective agreements. The composition of the labor market infrastructure includes agencies that form the demand for labor. This is the first structure of industry bodies and local authorities. Lack of coordination of their activities leads primarily to sectoral and regional labor market imbalances, the formation of regional unemployment, inefficiencies of the existing structure of employment. Reorientation of public policy for a full labor market (education and regulation of training manpower to meet the needs of economy and labor market adjustment to employment and labor migration regulation of unemployment) is from 1999 - through the implementation of the Decree of President of Ukraine of 03.08.1999 p . On the main directions of development of labor potential of up to 2010. Regulation of labor supply, provision of good quality exercise training centers and continuing education, vocational and educational training, higher education, the State Committee of Ukraine on Nationalities and Migration, structures, which are aimed at increasing economic activity of people with disabilities ( disabled, women with young children, etc.).

The current stage of economic transformation in Ukraine is characterized as a stage of stabilization and structural adjustment. The labor market at this stage is still evolving as a major element of economic systems that are responsive in general to all processes in the society. It should be noted that Ukraine's labor market is improving the situation, which is associated with increased economic activity of population, including increasing employment, reducing unemployment, lowering the number of economically inactive citizens, including persons in desperate search of work. By population sample surveys on economic activity, the number of economically active population aged 15-70 in the first half of 2007, compared with the corresponding period last year, increased by 40.4 thousand persons and accounted for 22.3 million. 

market labor employment unemployment

CHAPTER III. RATIO employed and unemployed



The number of employed population aged 15-70 in the first half of 2007 increased by 91.1 thousand persons and accounted for 20.8 million. The employment rate of those aged 15-70 years increased by the period in general in Ukraine from 57,9% to 58,5%. The growth of this indicator was due to employment growth as urban residents and rural areas. The number of unemployed in the first half of 2007, compared with the first six months of last year, fell by 50.7 thousand and reached 1.5 million.

Unemployment rate of population aged 15-70 years (ILO methodology) in general in Ukraine amounted to 6,6% of economically active population in that age against 6,8% in the first half of 2006. This figure was lower than the average in EU countries, which amounted to 7,1%.

The positive is the fact that the number of people of working age are in desperate search of work, and international methodology may also belong to the category of unemployed decreased from 209.4 thousand on average in the first half of 2006 to 175.3 thousand on average in the first half of 2007.

Economic development accompanied by increased demand for labor. Within 10 months of 2007, employers have provided 236 thousand state employment information on availability of vacancies. Total number of registered vacancies in employment was almost 2 million The biggest demand for workers registered in construction, trade, repair of motor vehicles, household appliances and personal use, in manufacturing.

Within 10 months of 2007 the complex of services and material support in Ukraine received over 2 million unemployed citizens. The number of persons who were employed by the assignment of the employment centers, compared with the corresponding period last year, increased by 31.3 thousand and reached 966.4 thousand people, including by granting employers employed 30.7 thousand unemployed; 21,3 thousand unemployed people received one-time payment of unemployment benefits and organized their own business. If the 2006 level of employment of citizens seeking work was 39.7%, in January-October 2007 - 46.0%. The growth of this index occurred in all regions.

Within 10 months of 2007 the number of people who with the assistance of public employment service were involved in vocational training increased by 22 800 or 13,1%.

Coverage of professional training of unemployed citizens rose from 10.1% in January-October 2006 to 13,1% in January-October 2007. This situation is typical for all regions, while in Sevastopol their opportunities in the labor market through expanded professional training one in four unemployed in Kyiv - 42,0% of the unemployed.

However, in Ukraine, new and always remain a number of problems with the specifics of Dispersed ensure the competitiveness of unemployed citizens in a market economy and reducing the capacity of a legitimate sphere of application of labor. Not enough consistency in the methodology for unemployed people, not worked out its methods of assessment across the whole labor market. Unresolved problems and labor market statistics. Also remains unresolved terminological inconsistency, leading to different interpretations of certain categories and concepts, such as: competitiveness, workforce, quality of labor potential, unemployed, unemployment, employment, etc. unregulated.

Positive trends in the labor market not only accompanied by wage growth, but also a substantial reduction of debt, which at the time of the government headed by Viktor Yanukovych (August 2006 - March 2007) decreased by 19.1% or 208.3 million As at 1 April 2007, arrears of wages was 880.8 million.

"The main motivation for strengthening these trends has become a competitive salary," - said the Minister. In particular, the Government is taking consistent steps to increase the minimum wage and its phased approach to the subsistence minimum for able-bodied person. Since the Government made further practical steps aimed at strengthening of social partnership, the introduction of effective dialogue between the authorities, trade unions and employers' organizations, according to international norms and laws of Ukraine. Makes efforts and other measures to improve social policy of the Government.






CONCLUSION



So, in the last decade are as follows:

The reduction of employment and unemployment rising, begins with the mid 90's. The main reason for the dismissals of workers have begun restructuring the economy: the termination of businesses whose products are not found or found uncompetitive markets, the transition to other forms of ownership. Such processes have experienced all the transition countries and wherever they begins, an increasing number of unemployed, but in conditions where the transition to market is consistently hard-working, released from state institutions and enterprises are working on new non-state enterprises, start your own business etc..

The existence in Ukraine of involuntary underemployment (hidden unemployment). For those who are incompletely occupied, are people who are on forced leave, ex officio, working part time or week.

Change in employment structure, which is the ratio between people working in different sectors (industries) economy.

It should focus on problematic issues: an imbalance between supply and demand of labor, shortage of personnel working occupations, low job quality characteristics and, consequently, increasing regional disparities and structural employment, uncontrolled outflow of labor to foreign countries, regressive changes in the workforce and motivation to work. There are unsolved problems and untapped reserves to attract employers to the state policy of employment.

One of the features that adversely affect the labor market and the level of social tension is excessive stratification of the population by income and reduce its life.

The objective of the current stage in the regulation of employment is a transition to active labor market policy, which, unfortunately, not carried out. The basis should be entrusted management model, the central element of which are key regulators of the labor market: wages as the price of labor services, competition in the labor market, labor mobility, unemployment. According to these parameters is, on the one hand, self-regulation in the labor market, on the other - there is state intervention that implements coordination, challenging or limiting role in the management process.

Priorities for reforming the Ukrainian labor market is improving wages, empower the general public official of basic and additional income, social support specific groups, enhance quality and competitiveness of the workforce, promoting effective and appropriate movement of the working population, preventing the growth of unemployment by creating jobs through various funding sources, implementation and release mechanisms of redistribution, economic restructuring and rising domestic production.

Analyzing the mechanism of the modern labor market, we can see that in modern economic systems established mechanism of the labor market with elements of state intervention, ie, its state regulation.

The number of employed population aged 15-70 in the first half of 2007 increased by 91.1 thousand persons and accounted for 20.8 million. The employment rate of those aged 15-70 years increased by the period in general in Ukraine from 57,9% to 58,5%. The growth of this indicator was due to employment growth as urban residents and rural areas. The number of unemployed in the first half of 2007, compared with the first six months of last year, fell by 50.7 thousand and reached 1.5 million.

Unemployment rate of population aged 15-70 years (ILO methodology) in general in Ukraine amounted to 6,6% of economically active population in that age against 6,8% in the first half of 2006. This figure was lower than the average in EU countries, which amounted to 7,1%.

The positive is the fact that the number of people of working age are in desperate search of work, and international methodology may also belong to the category of unemployed decreased from 209.4 thousand on average in the first half of 2006 to 175.3 thousand on average in the first half of 2007.

Economic development accompanied by increased demand for labor. Within 10 months of 2007, employers have provided 236 thousand state employment information on availability of vacancies. Total number of registered vacancies in employment was almost 2 million The biggest demand for workers registered in construction, trade, repair of motor vehicles, household appliances and personal use, in manufacturing.

Within 10 months of 2007 the complex of services and material support in Ukraine received over 2 million unemployed citizens. The number of persons who were employed by the assignment of the employment centers, compared with the corresponding period last year, increased by 31.3 thousand and reached 966.4 thousand people, including by granting employers employed 30.7 thousand unemployed; 21,3 thousand unemployed people received one-time payment of unemployment benefits and organized their own business. If the 2006 level of employment of citizens seeking work was 39.7%, in January-October 2007 - 46.0%. The growth of this index occurred in all regions.

Within 10 months of 2007 the number of people who with the assistance of public employment service were involved in vocational training increased by 22 800 or 13,1%.

Coverage of professional training of unemployed citizens rose from 10.1% in January-October 2006 to 13,1% in January-October 2007. This situation is typical for all regions, while in Sevastopol their opportunities in the labor market through expanded professional training one in four unemployed in Kyiv - 42,0% of the unemployed.

However, in Ukraine, new and always remain a number of problems with the specifics of Dispersed ensure the competitiveness of unemployed citizens in a market economy and reducing the capacity of a legitimate sphere of application of labor. Not enough consistency in the methodology for unemployed people, not worked out its methods of assessment across the whole labor market. Unresolved problems and labor market statistics. Also remains unresolved terminological inconsistency, leading to different interpretations of certain categories and concepts, such as: competitiveness, workforce, quality of labor potential, unemployed, unemployment, employment, etc. unregulated.

Positive trends in the labor market not only accompanied by wage growth, but also a substantial reduction of debt, which at the time of the government headed by Viktor Yanukovych (August 2006 - March 2007) decreased by 19.1% or 208.3 million As at 1 April 2007, arrears of wages was 880.8 million.

"The main motivation for strengthening these trends has become a competitive salary," - said the Minister. In particular, the Government is taking consistent steps to increase the minimum wage and its phased approach to the subsistence minimum for able-bodied person. Since the Government made further practical steps aimed at strengthening of social partnership, the introduction of effective dialogue between the authorities, trade unions and employers' organizations, according to international norms and laws of Ukraine. Makes efforts and other measures to improve social policy of the Government.