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CHAPTER II. Features of the labor market in Ukraine



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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



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