Zelenska K.I., Ulianova L.P., Mudrenko A.A.

Oles Honchar Dnipropetrovsk National University, Ukraine

THE WAYS OF IMPROVING THE ORGANISATION OF THE LABOR MARKET IN UKRAINE

The manifestation of macroeconomical instability in market countries is an imbalance in the labor market and, as a result, an emergence of a group of people, who don’t have the ability to take part in the social production and to obtain the necessary means of living. The most difficult and lasting is the cyclical unemployment, which is caused by an overall economic recession and a sharp reduction in employment. Due to the fact that economic, moral and social losses caused by unemployment are rather high, the governments of all market countries are doing their best in order to reduce unemployment to the natural or acceptable level. In economic theory, as we know, natural is such a level of unemployment in which the factors that increase wages and prices are equal. Under such an unemployment level, the inflation rates don’t change and normal conditions for the stable functioning of the labor market are created in the society.

Ukraine’s transition to the market economy mechanism in the 90’s of the last century was quite difficult. Unemployment, with all its negative consequences, hasn’t passed by the national economy, which, obviously, made it necessary to determine its point in the legal and economic aspects. Unemployment as a phenomenon was first defined in 1991 inthe “Law of Employment”. According to it, the unemployed are people of working age, who due to reasons beyond their control, have no income and also the citizens who have their first venture to the labor market, they are registered in employment centers and are looking for a job. The legislation quite clearly outlines the main functions and tasks of the employment centers.

During the period of market reforms the methods of quantitative evaluation of labor market indicators began to improve gradually, the main solutions to unemployment were chosen (we’re talking about creating new work places, helping small and medium business, re-training the staff or improving employees skills, encouraging the growth of exports, creating the conditions for the growth of self-employment, the development of a flexible labor market etc.).

Despite active efforts to improve the rates of employment, the mechanism of the Ukrainian labor market has significant drawbacks. Thus, although each year the number of people who turn to the employment centers for help in looking for a job and get the status of an unemployed, is increasing, there are lots of people who work unofficially or who generally hide their unemployment. There’s also a large number of Ukrainians working abroad, especially the inhabitants of Western Ukraine.

The problem of imbalance between the demand and supply of labor in the professional – qualification breakdown has complicated the situation on the labor market as well. This happened because, in the past few years, there’s been a decline in labor demand for technical skills and increased demand for such professions as economists, lawyers and managers. As a result the situation doesn’t meet the current standards of social production. This requires a restructuring of the training and retraining system, the restoration of professional – technical studying.

Special attention should be paid to the issues of the youth labor organization. In Ukraine, according to the statistics in the structure of the unemployed 15,3 % is the unemployed youth, who received secondary and higher educations.

Overcoming the problems in the mechanism of the modern Ukrainian market’s functioning takes, demands a complex, science-based approach, which would provide an enhanced playback of quality labor force and optimize the structure of labor supply according to the forecasts of a growing demand for it and it should be designed to stimulate the creation of new, highly productive jobs considering territorial and sectoral priorities.