Экономические науки/ 14.Экономическая
теория
L. Semenyuk , Y. Kovalyuk
Bukovina State Finance Academy, Ukraine
Problems and Prospects
of labor market Functioning in Ukraine
In 2004 Ukraine adopted market
economy, which is unfortunately characterized by unemployment. The economy of
our country is not able to sustain a large number of the unemployed. The
existing demographic situation, aging of the population, general economic
decline and decreasing living standards led to significant changes in the
design and implementation of labor potential of the population.
The current socio-economic situation in Ukraine requires development of
measures that would, on the one hand, contribute to full employment of working
population, especially in areas of Ukraine with surplus labor. That requires
immediate action by public authorities in modern conditions of falling demand
for labor. Therefore, there should be created regulatory and legislative
framework, which could speed up the pace in the implementation of the appropriate
strategies in practice. Addressing a wide range of problems in social and labor
sphere can be achieved through more efficient functioning of the labor market,
which involves on the one hand, increasing labor market flexibility, and, on
the other hand, ensuring respect for social rights and guarantees. Labor market
sharply reflects most of the political and socio-economic processes in the
country and focuses on the most acute problems: high unemployment, increasing
structural imbalances of employment, changes in the workforce and work
motivation. Therefore, research of problems and prospects of the labor market
in our country is a very relevant task.
The subject of the research is problems and prospects of the labor
market in Ukraine.
The research object is the labor market at the present stage of economic
development.
The purpose of the present paper is to review and identify major
problems and prospects of the labor market in Ukraine.
Among theoretical studies, which highlight various aspects of the theory
and practice of labor market mechanisms operation and regulation, scientific contributions
of D. Bohynia, E. Libanova, O. Pavlovsky, S. Zlupko, V. Mortikov, I. Petrova,
L. Shevchenko should be disfinguished. Socio-economic changes, awareness of the
labor market in providing employment for the population significantly changed
approaches to study of labor market processes, effective use of human
resources, social support of less protected populations, etc. This is confirmed
in scientific papers by A. Nikiforova, V. Petyuha, V. Onikiyenko, D. Bohynia,
Y. Krasnov, G. Kopalova, P. Sabluk, in which the ways of labor market formation
and functioning are defined and issues of improvement of the state employment
are raised. Problems of state regulation of labor markets and management of
human resources are attended by S. Bandura, A. Libanova, N. Nyzhnyk, V.
Knyazev, I. Rozputenka, V. Bodrov, V. Bakumenko, V. Skurativskyi, M. Orlatoho,
O. Koval, V. Troschynsky, V. Tron.
In Ukraine the national labor market model, which is formed and
conditioned by the peculiarities of labor relations in the economy of the
Soviet period, has the following features:
1. The high level of monopolization of the economy;
2. State regulation of wages, its weak differentiation depending on the
results of company’s activities;
3. High intracompany investment in training and retraining of workers in
specific human capital formation.
4. Comfortable with the participation of workers in the unions,
regardless of company size and scope [2, p.492].
Analysis of employment growth indicates labor market imbalances by
increasing labor supply while reducing demand for it. The main reasons for
delayed formation of fixed labor market is maintaining adverse social-economic
development, increasing tendency of enterprises to deter workers in a state of shadow
unemployment. Unpaid leaves in manufacturing industries have become widespread.
Speaking of employment policy, which is instrument of the Civil Employment Service,
we should stress the need for immediate solution to several problems. Among
them are:
1) a development and preservation of employment potential of increasing
its competitiveness and security of high-tech jobs;
2) the formation of social responsibility, including improved protection
of workers from the employers' discretion;
3) overcoming enormous professional-qualification imbalance between
market demand and training schools.
And, of course, pivotal issue is the wage, without repeated and
non-inflationary increase of which Ukraine will not reach any socio-economic
progress. Unfortunately, a unified system of forecasting market demand has not
yet been created in Ukraine, which results in professional-qualification observed
imbalance in the labor market.
The need to minimize effects of financial and economic crisis and to
provide social protection from unemployment, stabilization and subsequent
improvement in the labor market leads to identify areas and ways of state
regulation of the labor market .
Hence, while forming fully functioning market mechanisms, the
government should take over the function of employment adjustment at the macro
level, linking the situation in the area of employment and labor market
conditions on the functioning of the economy. The strategic objective of further
development of world and Ukrainian economy is to improve the efficiency of
human resources. That person, his ability to work creatively one of the main
factors of economic growth. A specific indicator of increasing role of human
factor is the labor market, which occupies a central place in the system of
market relations.
List of
sources
1. Ruzhenskyy M. Economic and social aspects of employment in a market economy. /
Ruzhenskyy M. / / Economy and State. - 2009. - № 2. - P.33-39.
2.
Stepura T. Employment and unemployment: the status and trends in the labor
market / Stepura T. / / Journal LDAU: Economy AIC. - 2009. - № 10 (2). - P.
491-498.
3.
Khramov V. government and state employment policy. / Khramov V. / / Economy and State. - 2010. - № 2. - P.19-24.