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.