Реферат: Formation of the labor market in Ukraine

CONTENTS

INTRODUCTION

SECTION I Concept andfeatures of the labor market

CHAPTER II Featuresof the labor market in Ukraine

CHAPTER III ratio ofemployed and unemployed

CONCLUSION

LIST OF LITERATURE

INTRODUCTION

The labor market is anintegral part of the overall economic and market mechanism. It is characterized as one of the most difficultsocial and economic phenomena of society, which reflected all sides of hislife, it shows the whole diversity of interests and contradictions. Thereforethe process of its functioning is constantly in terms of state, as thereproduction of such goods, as labor — the reproduction of labor resources andin general productive forces of society. Social policy in employment is also oneof state functions. However, the crisis of the Ukrainian society demonstratedinability of the State to exercise effective social control. Accordingly,the labor market situation is poor, and especially — in employment. It lookslike a complex multidimensional, heterogeneous, dynamic and prone to influencefrom outside the subsystem market. Employment in the general population andespecially young people, has not only economic but also social meaning as aform of adaptation of different social groups to the market. The social role ofemployment seen in the fact that in the past aimed at institutions, traditions,stereotypes of behavior can both assist and resist market transformation. Go tomarket is very painful, accompanied by a crisis of industries in all otherareas, failure to pay taxes, lower living standards of most social groups. Alsothe problem of youth unemployment, which threatens great danger to fundamentalchanges and transformations in the way of democratization. Thus, massiveunemployment represents a real threat to civil society that can not survive ifunemployment will stay high. The main objective of this work is to study themain 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 ofthe need to change the situation.

The object of research:the labor market in Ukraine.

Subject of investigation:employed and unemployed population.

SECTION I. Concept andfeatures of labor market

Labor market — is primarilya 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 forcoordinating prices and conditions between employers and employees.

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

In a market economy, labormarket covers all willing to work: as employees and not employees hired labor. Among the unemployed are distinguished group ofable-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 afterthe occupation of interruptions);

• people who have jobsthough, but not happy with it and looking for second primary or additionalwork;

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

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

Thus, thelabor market — a market of hired labor. It covers relationshipsfrom the moment of hiring employees to work for their release.

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

Buyercommodity «labor» in the market is the entrepreneur who haseverything necessary for running own business. Intheir work, entrepreneur attracts other workers for a monetary reward. Wasexchanged individual's ability to work on livelihood necessary for thereproduction of the labor force but also by placing workers in the system ofsocial division of labor of the country.

An important condition forthe formation and functioning of the labor market is compliance officer jobrequirements, and offered a place — employee interests.

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

The necessary conditionsof functioning of the labor market is also organizing a single, closed acrossthe country and an efficient system of labor exchanges, large-scale vocationalguidance, vocational training, advanced training and retraining, the presenceof local authorities the necessary financial and material resources sufficientfor effective system of employment of public works, stimulating employment,social support of citizens, including the unemployed and families who aredependent on them, and others.

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

work force, work orservice work? However, most authors tend to believe that commodity in the labormarket is the individual labor.

Individual work force is acombination of physical and spiritual qualities of man, which are used in theproduction of goods and services.

Labor force, as noted, isthe subject of sale. Shopping «labor» refers to employment. This iscalled labor hired labor, and the employee — an employee. A worker sells hislabor for a businessman period, remaining the owner of the goods.

Elements of the labormarket is also labor demand and the supply. Demand may be individual andaggregate.

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

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

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

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

• quality of work thatdetermined 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 employermay hire, and vice versa, the higher the salary of each employee, the smallernumber of them through the fund will pay hired.

Adjusting the demand forlabor requires analysis of factors that affect it. Increased demand can beachieved by stimulating it through the creation of new permanent or temporaryjobs, the development of non-standard forms of employment, direct investment inthe creation and renovation jobs. Demand growth also contributes to: theintroduction of preferential taxation and credit to those sectors and regions,which should increase the number of jobs, the use of direct payments tobusinesses for each employee hired, the company refunds the costs associatedwith finding, training and hiring employees.

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

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

Labor supply characterizesthe 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 forspecific types of work and employment.

There are three types ofconditions:

• when the labor marketthere is a lack of labor supply;

• when there are largenumbers of unemployed and under oversupply of labor;

• equilibrium when thedemand for labor meets the supply.

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

The ratioof labor demand and the supply is influenced by specific economic andsocio-political situation, changes in price of labor (wages), the level of realincomes. The dependence of these quantities are graphicallydepicted in Fig. 1.

From this figure showsthat as far as reducing real wages (labor) demand for labor by employers andemployment grow accordingly. Growth in real wages accompanied by an increaselabor supply. At the point of intersection of these curves of demand and laborsupply coincide, there is equilibrium in the labor market. If the price oflabor higher than the equilibrium, there is unemployment, if lower — shortageof workers.

Inpractice the overall structure and balance demand and supply of labor ispractically inaccessible. Labor market directly affect theprice of labor.

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

• support its work andobtain the necessary professional qualification training;

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

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

Cost ofthe labor force is in the form of wages. Note that the high wagelimits 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 employeesrequire 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 onlyapplies to certain professions. Overall, employers and workers can not do onewithout the other.

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

Labour market performs thefollowing functions:

• harmonize the economicinterests of the subjects of labor relations;

• provides a competitiveenvironment each side of the market interaction;

• ensures theproportionality of the distribution of labor according to the structure ofsocial needs and development of technology;

• maintains a balancebetween the demand for labor and its supply;

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

•promotes optimal professional and qualification structure;

• stimulates the workestablishes equilibrium rate of salary;

• effect on conditions ofemployment of personal potential;

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

In a market economy anyimbalances in production lead to a breach of the proportions of the labormarket, 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 thedemand 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 countrymust be sufficiently developed housing market. Those who want to change jobsand move to another city should be able to sell and buy a home. As in othermarkets, demand for hired labor is greater than the proposal that employers hadto compete among themselves.

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

CHAPTERII. Features of the labor market in Ukraine

Ukrainianlabor market and employment have their peculiarities. It is about those thatwere within 90 years of the twentieth century. Concentrationon this period due to the fact that previously existed in Ukraine, anothereconomic system. First, you must remember that a legacy from the Sovietadministrative system of the USSR, our state received ineffective, highlycostly in economic crisis, which began long before independence. For example, average annual rates of GDP growth inUkraine in 1961-1965 pp. amounted to 6,9% in 1971-1975 — 5,6% and in1981-1985 — 3,3%. In 1986-1990 pp. This figureis even without taking into account changes in prices amounted to 1,9%. Overallduring 1961-1990 pp. average annual growth rateof GDP and national income decreased threefold. The most deformed sphereof economy of Ukraine during their stay in the USSR was the scope of employmentstatus at the time of independence was characterized by:

no state and legalinstitutions of the labor market, legislation on employment and unemploymentrecognition at government level;

concentration ofemployment in public sector enterprises;

lack of flexibility of payas a result of state regulation;

low labormobility due to legal restrictions in the USSR turnover (if in 1970 years theshare of layoffs at will in total reached 20%, in 1980 — only 12%), changes inemployment (because of the passport residence permit, accountingsystem of seniority, lack of housing market, etc.).

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

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

development of advancedmeans of production compared with the subjects.

In the process of nationallabor market should allocate two stages.

The first phase(1991-1994) was characterized situation that has been established during thecommand economy of the USSR, and existence of vacancies in their number in1,5-2,0 times the number of registered unemployed. As a result, during this period were extremely low official unemploymentrate (0,1-0,3%) and load factor for one vacancy (0,42-0,60). It is clearthat 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'sloss-making enterprises. The state budget expenditures on so-called support ofthe national economy in 1993-1994 pp. were 11.2 and 21.4% VVP2. Politicsartificial containment of unemployment using administrative tools has led toincreased government deficit (in 1994 — 9,3% of GDP) to cover the government,usually resorted to the simplest method — the issue of money. These measuresgenerated high inflation and, consequently, prices during 1992-1993 pp.increased more than 21 and 102 times.

Thesecond phase of the national labor market (1995 — 2001) related to the tightrestrictive monetary and fiscal policies that were aimed at fighting inflationand balancing the financial system. By reducing during thisperiod, spending on the financing of the economy from 21.4 to 6.5% of GDP, thegovernment 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.4However, such actions are not accompanied by structural reforms and led toimbalances in the labor market: the number of unemployed began to exceed thenumber of vacancies, resulting in a level perone vacancy increased from 1.5 persons in 1995 to over 30 in early 1999, onlythis time the number of officially registered unemployed increased from 126.9thousand 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 inconstruction (by 39.7 per cent.), Industry (28.9 per cent.), Transport (by 19.5per cent.), Education culture, art, science and scientific services (by 16,7per cent.). In the same period increased differentiation observed wages anddeepening 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 andSocial Policy, its regional structure. To implement this policy through themechanism of tripartism established the National Partnership. However, this authority has largely ornamental innature and does not provide the necessary role of sectoral agreements andcollective agreements. The composition of the labor marketinfrastructure includes agencies that form the demand for labor. This is thefirst structure of industry bodies and local authorities. Lack of coordinationof their activities leads primarily to sectoral and regional labor marketimbalances, the formation of regional unemployment, inefficiencies of theexisting structure of employment. Reorientationof public policy for a full labor market (education and regulation of trainingmanpower to meet the needs of economy and labor market adjustment to employmentand labor migration regulation of unemployment) is from 1999 — through theimplementation 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 centersand continuing education, vocational and educational training, highereducation, the State Committee of Ukraine on Nationalities and Migration,structures, which are aimed at increasing economic activity of people withdisabilities ( disabled, women with young children, etc.).

The current stage ofeconomic transformation in Ukraine is characterized as a stage of stabilizationand structural adjustment. The labor market atthis stage is still evolving as a major element of economic systems that areresponsive in general to all processes in the society. It should benoted that Ukraine's labor market is improving the situation, which isassociated with increased economic activity of population, including increasingemployment, reducing unemployment, lowering the number of economically inactivecitizens, including persons in desperate search of work. By population sample surveys on economic activity, thenumber of economically active population aged 15-70 in the first half of 2007,compared with the corresponding period last year, increased by 40.4 thousandpersons and accounted for 22.3 million.

market labor employment unemployment

CHAPTERIII. RATIO employed and unemployed

Thenumber of employed population aged 15-70 in the first half of 2007 increased by91.1 thousand persons and accounted for 20.8 million. The employment rate ofthose 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 employmentgrowth as urban residents and rural areas. Thenumber of unemployed in the first half of 2007, compared with the first sixmonths of last year, fell by 50.7 thousand and reached 1.5 million.

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

Thepositive is the fact that the number of people of working age are in desperatesearch of work, and international methodology may also belong to the categoryof unemployed decreased from 209.4 thousand on average in the first half of2006 to 175.3 thousand on average in the first half of 2007.

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

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

Within 10months of 2007 the number of people who with the assistance of publicemployment service were involved in vocational training increased by 22 800 or13,1%.

Coverage of professionaltraining of unemployed citizens rose from 10.1% in January-October 2006 to13,1% in January-October 2007. This situation is typical for all regions, whilein Sevastopol their opportunities in the labor market through expandedprofessional 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 ofDispersed ensure the competitiveness of unemployed citizens in a market economyand reducing the capacity of a legitimate sphere of application of labor. Notenough consistency in the methodology for unemployed people, not worked out itsmethods of assessment across the whole labor market. Unresolved problems andlabor market statistics. Also remains unresolved terminological inconsistency,leading to different interpretations of certain categories and concepts, suchas: competitiveness, workforce, quality of labor potential, unemployed,unemployment, employment, etc. unregulated.

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

«The main motivationfor strengthening these trends has become a competitive salary,» — saidthe Minister. In particular, the Government is taking consistent steps toincrease the minimum wage and its phased approach to the subsistence minimumfor able-bodied person. Since the Government made further practical steps aimedat strengthening of social partnership, the introduction of effective dialoguebetween the authorities, trade unions and employers' organizations, accordingto international norms and laws of Ukraine. Makes efforts and other measures toimprove social policy of the Government.

CONCLUSION

So, in the last decade areas follows:

The reduction ofemployment and unemployment rising, begins with the mid 90's. The main reasonfor the dismissals of workers have begun restructuring the economy: thetermination of businesses whose products are not found or found uncompetitivemarkets, the transition to other forms of ownership. Such processes have experienced all the transition countries andwherever they begins, an increasing number of unemployed, but in conditions wherethe transition to market is consistently hard-working, released from stateinstitutions and enterprises are working on new non-state enterprises, startyour own business etc..

The existence in Ukraineof involuntary underemployment (hidden unemployment). For those who areincompletely occupied, are people who are on forced leave, ex officio, workingpart time or week.

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

It shouldfocus 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, regressivechanges in the workforce and motivation to work. There are unsolved problemsand untapped reserves to attract employers to the state policy of employment.

One of the features thatadversely affect the labor market and the level of social tension is excessivestratification of the population by income and reduce its life.

The objective of thecurrent stage in the regulation of employment is a transition to active labormarket policy, which, unfortunately, not carried out. The basis should be entrusted management model, the central element ofwhich are key regulators of the labor market: wages as the price of laborservices, competition in the labor market, labor mobility, unemployment. Accordingto 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 reformingthe Ukrainian labor market is improving wages, empower the general publicofficial of basic and additional income, social support specific groups,enhance quality and competitiveness of the workforce, promoting effective andappropriate movement of the working population, preventing the growth ofunemployment by creating jobs through various funding sources, implementationand release mechanisms of redistribution, economic restructuring and risingdomestic production.

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

Within 10months of 2007 the number of people who with the assistance of publicemployment service were involved in vocational training increased by 22 800 or13,1%.

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