Market economy and labor market. Labor market
Labor market concept- the main element of the concept employment in Economic Theory. The labor market is the market of supply and demand for labor, through which labor is sold for a specific period. Work force- this is a person’s ability to work, it implies mental and physical capabilities, skills, abilities, abilities of a person when performing any type of work.
Labor demand- this is the employer’s need for labor to develop and organize its production. The main features are productivity, the use of modern technologies, the influence of the state of the economy, and the demand for goods that people need.
Labor supply- This is the economically active population offering its labor force. The main features are the size of the working population, the level of its qualifications, the level of salaries, social and tax policy of the state.
Based on this, we can deduce the main labor market properties:
- in this market labor power is bought, and not its representative (we do not have a slave system);
- work can be paid not only by salary, but also by various compensations, benefits, incentives, bonuses;
- labor contracts include not only wages, but also conditions, content of work, subordination, relationships in the team, etc.
The labor market is a system of competitive relations between market participants (entrepreneurs, workers and the state) regarding the hiring and use of workers in social production.
The object of purchase and sale in the labor market is the right to use labor; the subject of bargaining is a certain type of human ability and the duration of its use. It also characterizes relations in the sphere of employment regarding the exchange of functioning abilities to work for the monetary equivalent of means of subsistence, i.e. for wages.
The labor market has a number of features. The labor market includes not only the sphere of exchange (purchase and sale) of labor, but also the sphere of reproduction of labor potential (market mechanisms of education, vocational training, etc.) and the sphere of use of labor (market mechanisms of personnel management in production).
The constituent elements of the labor market are people who act as carriers of the labor force and are endowed with such human qualities as psychophysiological, social, cultural, religious, political, etc. These features have a significant impact on the interests, motivation, degree of labor activity of people and are reflected in the state of the market labor.
The fundamental difference between labor and all other types of production resources is that it is a form of human life, the realization of his life goals and interests. That is why the price of labor is not just a type of price for a resource, but the price of living standards, social prestige, and the well-being of the worker and his family.
Functions of the labor market
The functions of the labor market are determined by the role of labor in the life of society, when labor is the most important source of income and well-being. From an economic point of view, labor is the most important production resource. In accordance with this, the main functions of the labor market are identified.
The social function is to ensure a normal level of income and well-being of people, a normal level of reproduction of the productive abilities of workers.
The economic function of the labor market is the rational involvement, placement, regulation and use of labor, which makes it possible to highlight the placement and selective functions.
The allocation function is the allocation of labor based on and in accordance with demand. This function assumes that the organization and functioning of the labor market should serve the rational distribution of the workforce in individual enterprises, industries and regions. The formation of such an accommodation network is the basis for regulating the labor market at all levels of government. The more perfect the labor market system, the more effective the methods for achieving the main goals of management, the more noticeable the manifestation of the placement function. This means that the efficiency of the economy depends on how optimally the process of functioning of the labor market system occurs. This function mainly manifests itself at the regional and macro-regional levels.
The selective function is to select labor based on supply and demand, as well as on the professional and qualification characteristics of the labor force. This function is most significantly manifested at the microeconomic level.
The labor market also performs a stimulating function, promoting competition between its participants, increasing interest in highly effective work, improving skills and changing professions.
Classification of labor markets
Classification of labor markets is carried out on the basis of a variety of criteria.
According to the criterion of the spatial sphere of the labor market, one can distinguish (in relation to the federal type of state structure and the administrative division of Russia) federal, republican, regional, regional, city, district, rural labor markets, labor markets of megacities (such as Moscow, St. Petersburg, etc.) . At the level of interstate social and labor relations, one can distinguish the international labor market, labor markets of interstate regions (European, Latin American, Central Asian, CIS countries).
Based on the criterion of time parameters, promising, forecast and current labor markets are distinguished.
According to the degree of elasticity, there are flexible and rigid labor markets.
In the total population, there are two large groups: people who are able and those who are not able to work for hire.
According to the criterion of the relationship between demand and supply of labor - equilibrium (balanced), deficit (demand exceeds supply) and excess (supply exceeds demand) labor markets. These types of labor market may be related to the regional, professional, integrated labor market.
According to the stage criterion, an emerging market, a transition period market, and a mature (or developed) labor market are distinguished.
According to the criterion of social group, markets are distinguished between predominantly physical labor (workers), predominantly mental labor (employees), predominantly creative labor (intelligentsia), peasant labor, etc. Within the boundaries of these social groups, skilled labor markets are distinguished. Thus, among workers one can distinguish highly skilled, skilled, semi-skilled and unskilled groups. Segmentation of labor markets is dynamic and contradictory.
The work of a certain specialty or profession goes through various stages of the life cycle: from origin to extinction and death. At the stage of emergence and expansion of the scope of application of this profession, the demand for it grows, then decreases. The duration of each stage is determined by the life cycle of the technological process and equipment that caused the emergence of this profession.
The mechanism of functioning of the labor market
The main elements of the functioning mechanism of the labor market are the demand for labor, the supply of labor and the price of labor.
The demand for labor is determined by the needs of employers to hire a certain number of workers with the necessary qualifications to produce goods and services, taking into account aggregate demand. The demand curve for labor D/ has a negative angle: as the general level of wages rises, the demand for labor falls. This is clearly seen from the graph in Fig. 8.1, on which the horizontal axis is the quantity of labor (QL), and the vertical axis is the rate wages(W).
The market supply of labor for a certain type of labor at a given wage is the sum of the supply volumes of all workers. The total supply of labor in the economy depends on the number of workers willing to sell labor to employers. The number of such workers depends on the levels of fertility, mortality and migration of the population, the physical ability to be a productive worker, the availability of other sources of livelihood (other than wages), personal choice between work and leisure, and the opportunity cost of hired labor. Other sources of livelihood include pensions, benefits, subsidies, interest on invested capital, dividends and any other income that does not require direct work.
The supply of labor is also determined by the needs of people of working age for the normal reproduction of their abilities and maintaining a sufficient level of well-being, and therefore it, like demand, depends on the amount of wages. But the dependence here is different. The SL labor supply curve has a positive slope: as the general wage level rises, the supply of labor increases.
The individual supply of labor in a market economy occurs on the basis of a choice between leisure (time spent not related to work for pay) and work, subject to two restrictions: the number of hours in the day (which must be distributed between leisure and work) and the amount of wages.
When the latter changes, the employee's choice is influenced by the income effect and the substitution effect.
The graph shows a supply curve, which differs in its configuration from the usual one and shows the total amount of working time that an employee agrees to work for a given wage.
Up to a certain point (Wh), an increase in wages increases the supply of labor, which reaches its maximum value at point h. After reaching the maximum level, as wages continue to rise, the supply of labor (the amount of time worked) begins to decline. The same reason, namely, an increase in wages, leads to both an increase and a decrease in labor supply.
This happens because when hired for a job, a person chooses between work and free time. When wages increase for each hour of time worked, the employee perceives each hour of free time as lost profit (lost income). This benefit can actually be obtained by converting free time into working time by replacing free time with additional work. When wages increase, there is an incentive to sacrifice leisure in favor of a high-paying job and receiving higher income, which can be used to purchase additional benefits. As a result, labor supply increases. In this case, there is a substitution effect. On the graph, this effect appears when moving along the labor supply curve to point h.
The income effect is the opposite of the substitution effect and begins to appear when the employee reaches a sufficiently high level of income and material well-being. With further wage growth above the level Wh, the income effect begins to dominate, i.e. high incomes stimulate more varied and longer leisure time rather than work. At the same time, the employee has a desire not only to purchase more goods, but also to have more free time for leisure by reducing the amount of working time. Therefore, after point h, an income effect is observed when, as income increases, the supply of labor decreases. The labor supply curve takes the form of bending back towards the y-axis. The predominance of the substitution effect or the income effect at a given wage level depends both on the general economic situation and on the employee himself, who makes an independent decision in accordance with his preferences and interests.
So, the labor market is an economic environment or space in which, as a result of competition between economic agents through the mechanism of supply and demand, a certain volume of employment and wage level are established.
INTRODUCTION
The labor market as an economic category has long been considered as a phenomenon inherent only in capitalist countries, and unemployment is a consequence of the prevailing relations in the labor market, arising as a result of numerous contradictions between labor and capital.
It was believed that the progressive development of the Soviet economy provides unlimited opportunities for full employment in social production, and the only task is to involve the entire working population in it according to the principle “who does not work, does not eat.” The universal obligatory nature of labor and the priority of the public over the personal determined the social climate of Soviet society for decades.
The transition to a market has sharpened employment problems and added new ones to them, related to the structural restructuring of the economy and the emergence of new labor relations determined by different forms of ownership. As a result, there was an inevitable release of workers from enterprises in the context of the transition to market relations and their replenishment of the already large army of unemployed. But it is wrong to consider unemployment as a transition period phenomenon. It is connected both with economic development and with changes in the need for labor and the social status of the worker himself.
In the interpretation of the essence of the categories of wages and the paid minimum, as in no other area of economic activity, many myths and dogmas have accumulated. Here the dogmas of both socialism and the monetary approach are intricately intertwined. Sometimes it is difficult to determine whose fault is greater for the catastrophic state of our labor potential.
This market is one of the most significant in the state and the world as a whole and can be on par with the market for resources (land, natural resources) and will always remain a relevant topic of economics due to changes in the economic situation in the world and the state, as it was in Belarus and the CIS countries after the collapse of the USSR and the gradual transition that continues to this day to a market ecology.
LABOR MARKET
Definition of the labor market
The labor market is a set of economic relations that arise regarding the demand and supply of labor services. The labor market assumes: freedom of supply of labor, freedom of demand for labor; free fluctuation of wages.
Labor is not only a pressing human need, but also a conscious economic necessity.
Without it, a person would not be able to provide for his biological and social needs, and therefore society as a whole would not be able to develop. At the same time, not every work brings satisfaction and joy to a person. It causes physical and mental fatigue, is often associated with negative emotions, requires certain sacrifices (for example, refusal to rest), etc.
Labor has always represented man's painful effort aimed at satisfying his ever-growing needs. Therefore, in society there is compulsion to work, which in each era has its own specific social character.
Economic coercion to work is associated with the category of hired labor. For its emergence, two decisive historical conditions had to appear: first, a person must have personal freedom; secondly, he must be deprived of the opportunity to independently engage in production, i.e. must be deprived of the means of production, and therefore the means of subsistence.
Economic coercion to work is a form of economic dependence of hired workers, based on monopoly private property, on the means of production, on the one hand, and the lack of material conditions of existence for workers, on the other. The latter are therefore forced to sell their labor power to the owners of the means of production. This is how the labor market or labor market (in Western terminology) arises.
From the point of view of an economist, all people are owners: even those who have neither land, nor factories, nor cars, nor houses. The fact is that each person is the owner of his labor power, his labor - one of the most important factors of production. Therefore, he can sell it by concluding a rental agreement, if, of course, he finds a buyer and agrees with him on the terms of the transaction.
As a market economy develops, a labor market develops along with its other attributes.
The fate of labor sellers, like all other commodity owners, depends on the relationship between supply and demand for this product. This means that those who sell their labor can find themselves in very unpleasant situations: not finding a job (and in a market economy no one can guarantee it to anyone), the owner of the labor is thereby deprived of his means of subsistence.
The labor market has a number of features that distinguish it from markets for other resources.
Firstly, demand in the labor market, as noted earlier, is a derived demand, i.e. derived from those finished goods and services that are produced with the help of this labor. Labor as a resource satisfies the needs of the buyer not directly, but indirectly, through the production of goods and services. In this regard, the demand for labor is determined by the productivity of a particular type of labor and the price level for the products in the production of which it is used.
Secondly, strictly speaking, there are many labor markets, since labor is offered to workers in different specialties and in different areas. For example, in the teacher labor market in English In Minsk and the miners' market in Soligorsk, there are completely different sellers and buyers, so there are completely different transaction conditions.
Thirdly, the specificity of the product itself sold on the labor market. The labor carrier (employee) represents a unique human personality who has not only a certain ability to work (scientist, engineer, doctors, etc.), but also a number of other qualities: motives for labor behavior, life experience, psychophysiological characteristics, etc. This circumstance significantly socializes the economic processes occurring in the labor market.
On the other hand, employers (i.e. those who offer jobs) approach hiring labor not only from the point of view of the requirements for the profession and qualifications of the individual, but also evaluate the sociability (ability to work together, sociability of the employee), his ability for retraining, labor mobility, etc.
Fourthly, the severity of the contradictions between sellers and buyers, i.e. between employees and entrepreneurs (firms). Such contradictions in a market economy exist always and everywhere: sellers, no matter what they trade, want to sell at a higher price, and buyers want to buy at a lower price. However, when buying and selling ordinary goods, buyers, if the price of a product is too high, can look for other sellers where prices are lower, or even refuse to purchase this product, replacing it with another product - a substitute (substitute). Sellers can also, if there is a sharp drop in prices for goods, refuse to sell their goods on this market or hold them for later sale (if these are not perishable products), or reduce their production and thereby expand the production of others (more profitable at present) goods.
Sellers of the commodity “labor” are in a completely different position. Typically, this product is the only one they have for sale. If employers offer workers too low wages, the latter will be unable to feed their families. The situation will be even worse if the employee does not find work at all. Without selling his goods (labor), the worker will not be able to buy the vital necessities for him. consumer goods and services.
To understand the real significance of all these circumstances, it is necessary to constantly take into account the most important fact: labor sellers in a market economy make up the majority of the country's population, and their problems are the problems of the entire country.
Fifthly, the consequences of the labor hiring transaction. When purchasing labor (hiring an employee), the buyer, in exchange for wages, not only requires the seller (employee) to perform certain duties, but also becomes his boss for the entire duration of the hire, and the seller of labor becomes his subordinate. At the same time, the employer has real power over the employee he hired, which does not happen when selling any other service. Power relations give rise to corresponding contradictions.
Labor has not only economic value, being the most important factor by which products of a certain quantity and quality are produced. Labor also has social value, since it is a source of income for its bearer (the worker) and determines the social status of a person in society.
The essence of the labor market is manifested in its following main functions:
Coordination of economic interests of subjects of labor relations;
Ensuring proportionality of the distribution of labor in accordance with the existing social division of labor;
Maintaining a dynamic balance between labor supply and demand;
Formation of a personnel reserve to ensure the continuity of social reproduction;
Stimulating effective and efficient employment;
Regulation of individual income of workers;
Promoting the formation of an optimal professional and qualification structure of personnel.
The main subjects of the labor market are:
Contractors of labor relations are employees and employers;
Intermediaries between employers and employees (employment centers, guardianship councils, etc.);
Representatives of government bodies who develop the principles of legal regulation of relations in the labor market, carry out its state regulation and control over compliance with legislation (Ministry of Labor and Social Protection and other regulatory bodies);
Representatives of the interests of workers and employers are public organizations such as trade unions, associations, unions of entrepreneurs, consumers, etc., protecting the interests of subjects of labor relations.
The main components of the labor market include: labor price, competition, supply and demand.
The price of labor power appears in the form of wages; competition - in the form of competition between workers for jobs, employers - for labor, and also between workers-employers - for terms of employment; demand - in the form of the need for labor in the context of industries, regions, enterprises and organizations, and supply - in the form of the number and structure of available labor resources presented on the market and capable of being delivered there. The demand for labor depends on the level of development and structure of the economy, the availability of other factors of production and methods of their technological application, the magnitude of demand for goods and services of industrial and personal consumption, and the phase of the economic cycle. The supply of labor depends on the population size and its growth rate, the share of able-bodied people in the total population, the length of the working day, the intensity and productivity of labor, the qualifications of workers, their migration mobility, standard of living, etc.
The optimal functioning of the labor market involves maintaining a balance between labor supply and demand. The relationship between supply and demand characterizes the labor market conditions. If they coincide, it will be equilibrium; if demand exceeds supply, it will be labor deficit; if supply exceeds demand, it will be labor surplus.
The national labor market is a complex structured formation of a market economy. It consists of many markets, which can also be defined as segments of a single market. Its most important components are regional, sectoral and professional-qualification segments of the single labor market. For example, such as city, district, regional labor markets (segments), labor market (segment) of textile workers, builders, labor market (segment) of engineers, office workers, blue-collar workers, highly and low-skilled workers, etc. In terms of gender and age, for example, market segments such as youth, women, etc. are distinguished. The openness of a market economy also presupposes integration into international market labor. All components or segments of the labor market are in close interaction and their identification to a certain extent is conditional, although absolutely necessary not only for studying the operating conditions of the labor market, but also for making adequate decisions by its subjects.
Directly related to the labor market, although not directly included in it, is its infrastructure. It is called upon to perform the functions of its institutional, material, technical, social and information support.
Labor market infrastructure can be defined as a set of material, technical, organizational and legal conditions, without which the normal functioning of the sphere of commodity circulation of labor is impossible. The labor market infrastructure includes, for example, an employment service, employment bureaus, retraining centers, public works institutes and employment funds, acts of legal regulation of the relationship between sellers and buyers of labor, etc. It ensures the most effective interaction between demand and supply of labor.
It should be noted that, despite the specifics of the labor market, in economic theory they often abstract from these characteristics and proceed from the fact that the price of labor and its quantity supplied are determined (as in other markets) by the interaction of demand (from firms) and supply (from side of temporarily unemployed people). Let's begin our consideration of this issue with the supply on the labor market.
Labor supply is determined by at least four indicators:
1) total population;
2) the share of the amateur population, using its labor force and receiving a certain remuneration for work, in the total number of residents;
3) the average number of hours worked by workers during the week and year;
4) the quality, quantity and qualifications of the labor that the worker will expend.
Note that the third indicator is more susceptible to the influence of purely economic factors.
Let's first analyze the supply of labor by an individual worker and then look at supply curves in labor markets.
An individual's decision about how much labor to offer can be analyzed as a kind of compromise between two “goods” he needs—leisure and purchased consumer goods. When choosing between these possibilities, consumers (who are also sellers of labor) are faced with two main restrictions: 1) limited time in the day and 2) the hourly wage rate, which determines the purchasing power of the individual.
If we imagine that a worker is offered a higher hourly rate of pay and at the same time he can determine the duration of his work, then he finds himself at a crossroads: on the one hand, he is tempted to work more than before, since each hour of work is better paid. Every hour of free time now means a loss, so the worker strives to replace the free hours overtime work. Economists call this process the substitution effect. . After all, the worker replaces rest with additional goods purchased with his wages. Increasing wages makes vacation time more expensive because every hour of it means giving up a higher hourly wage.
On the other hand, an increase in the wage rate gives the worker the opportunity to buy more and more best quality goods and services with a constant number of hours worked. An employee can afford to take, for example, an additional unpaid day off, can go on vacation for a week in the winter and get an additional week of rest in the summer. In this case, the income effect comes into play: with an increase in income, the individual feels richer and can get more pleasure from vacation.
Thus, an increase in the wage rate affects the choice between work and leisure in two ways. In one case, an increase in the wage rate creates a substitution effect, increasing the number of hours worked, the opportunity cost of labor, thus stimulating the replacement of rest with work. In another, an increase in the wage rate creates an income effect, reducing the number of hours worked.
An increase in the real income of workers stimulates their consumption of “normal goods”, which is leisure. Therefore, the income effect of an increase in wages will itself result in a reduction in the quantity of labor supplied by workers.
It is necessary to note one more feature of individual supply in the labor market.
When real wages fall, in order to ensure the same level of consumption life's blessings, households have to increase their labor supply.
Women and children go to work, many workers try to work in several places, at 1.5 rates, etc. This phenomenon can be called the low-income effect.
If the wage rate is low, then the effect of substitution of leisure for labor is stronger, i.e. As wages rise, the supply of labor increases.
However, as wages increase, the income effect comes into play and workers increasingly prefer leisure to work.
In the case where the effect of a change in income exactly compensates for the substitution effect, labor supply becomes completely inelastic, i.e. a change in the wage rate does not affect the quantity of labor supplied. When household income falls below the previously achieved level of consumption, free time is replaced by work.
The labor supply curve for an individual is shown in Fig. 1.1.
From point A to point B, the substitution effect prevails, from point B to point C, the income effect and the substitution effect balance out, from point C to point D, the income effect prevails, and from point A to point E, the low income effect, expressed in an increase in supply, prevails. labor at a falling wage rate.
Despite the fact that an individual's supply curve for his labor may bend, in general the supply curve for any type of labor, at least from a certain wage level, tends to increase over the entire period of task completion. An individual worker may respond to a wage increase by reducing the number of hours worked. However, in the market, this decline may be more than offset by the arrival of new workers from other industries. As a result, we can conclude: for each market for a specific type of labor, taking into account time and place, the labor supply curve is constantly increasing, despite the bending of the individual labor supply curve.
The labor market is the area where employers and workers jointly negotiate, collectively or individually, regarding wages and working conditions (as defined by the International Labor Organization).
Typically, the concepts of “labor market” and “labor market” are used interchangeably. In a strictly scientific sense, labor and labor power as concepts are not identical, but are interrelated. Labor force is understood as a person’s potential ability to work, and labor means expedient human activity(or a person’s functional ability to work). Labor cannot be carried out without the ability to work, and the latter is realized in the process labor activity.
The labor market includes the sphere of exchange (purchase and sale) of labor, the sphere of reproduction of labor potential (market mechanisms of education, vocational training, etc.) and the sphere of use of labor (market mechanisms in production).
The constituent elements of the labor market are people who act as carriers of the labor force and are endowed with such human qualities as psychophysiological, social, cultural, religious, political, etc.
These features have a significant impact on the interests, motivation, and degree of labor activity of people and are reflected in the state of the labor market.
The fundamental difference between labor and all other types of production resources is that it is a form of human life, the realization of his life goals and interests. That is why the price of labor is not just a type of price for a resource, but the price of living standards, social prestige, and the well-being of the worker and his family.
Professions in demand on the labor market
80% of graduates of Russian universities today do not work in their specialty, according to the Federal State Statistics Service.When choosing a specialty, it is very important to focus on the demand for professions in the labor market.
Current trends in the Russian labor market look quite natural: as the overall level of unemployment in the country decreases, the number of applicants for one vacant position increases. Currently, the greatest concern may be the serious differentiation of regions in terms of the level of tension in the labor market. Russia has constituent entities with both a significant relative surplus and a significant relative deficit of labor resources. The imbalance between supply and demand in the labor market is manifested in excessively low or excessively high values of the tension coefficient. At the same time, extremely high values of this indicator (as, for example, in the Republic of Ingushetia and the Republic of Dagestan) stimulate social tension in the regions. In turn, high social tension can also provoke political instability and also discourage potential investors.
Therefore, it is extremely important to carry out a balanced and coordinated policy of both federal and regional authorities aimed at stimulating employment in and increasing the flexibility of the labor market as a whole.
Labor market analysis
The labor market is the sphere of formation of demand and supply for labor. In a broad sense, the labor market is a system of socio-economic and legal relations in society, norms and institutions designed to ensure a normal, continuous process of reproduction of the labor force and the effective use of labor. The demand for labor is formed under the influence of two main factors: the level of wages and free competition. Labor market analysis is the process of obtaining relevant information over a certain period of time.The initial step on the path to employment is monitoring the labor market. It is necessary to collect information that is relevant today. Study the economic and general political situation as a whole. To navigate the market perspective in the short and long term. Analyze supply and demand. It is necessary to analyze your potential capabilities, skills and abilities for compliance with the possibly chosen specialization. Find the optimal position that suits your needs and capabilities. Determine the real “value” of the applicant on the labor market. Identify possible inconsistencies. An important element of the analysis is testing the applicant for professional suitability.
Searching for a job and the employment process is always stressful, so the psychological state and psychological attitude are an important component of the employment process as a whole. The main task of the applicant is to carry out a transaction in a short period of time, which will broadcast his professional competence for a long period. Therefore, it is important to put in the effort, knowledge and organization that can ensure that this transaction is carried out for you. For - this is an opportunity to carry out a transaction in a short period of time, which will ensure development and bring innovation to the production process. Thus, we see that the goals of the applicant and the employer coincide in the first part. This provides the labor market with a unified direction. In a dynamically changing business environment, the ability to quickly obtain up-to-date information allows you to quickly and completely analyze current trends and, as a result, make right decisions. Information about the current state and trends in various industries and areas of business is one of the most important tools of the labor market. Having the necessary information, it is possible to navigate the competitive environment and take steps aimed at achieving the main goal of the applicant - employment.
Labor market regulation
The serious socio-economic consequences of unemployment have necessitated government intervention in the sphere of labor, which promotes modification, regulates them, and limits the freedom of market forces. pursues a targeted policy of regulating the labor market.A powerful system of legislation has been created regulating labor relations (hiring and firing procedures, working hours, labor safety, minimum wage, days off and vacations, resolution of labor conflicts, strikes, etc.) at the national and international level.
The main goals of state regulation of the labor market are:
Ensuring full employment, which means the absence of cyclical unemployment while maintaining the natural level of unemployment, determined by the size of its frictional and structural forms;
creating a flexible labor market capable of quickly adapting to changes in internal and external conditions of economic development, maintaining controllability and stability. This flexibility, compared to the traditional labor market, is manifested in the flexible use of part-time workers, temporary employment, rotation, changing the number of shifts, expanding or adding depending on the need for job functions. Everyone who wants to work must find a job in such a market that meets their needs.
State policy on the labor market is carried out in two main forms:
Active – creating new jobs, increasing employment levels and overcoming unemployment through training and retraining of workers;
passive – supporting the unemployed by paying benefits.
Carrying out an active policy aimed at achieving full employment is a socially oriented priority direction of state policy in the labor market. The main measures of this policy include:
The majority of the population is employed in manufacturing (15.6% of total employment), wholesale and retail trade (17.7%), social insurance and education (8.9%), agriculture, forestry (9.6%), transport and communications (8%), construction (7.9%), healthcare and social services (7%).
Relations in the labor market are implemented mainly through state and non-state employment institutions, personnel services of enterprises, as well as directly between the employee and the employer. In times of crisis, the role of state regulation of employment promotion increases. The Federal Service for Labor and Employment offers numerous programs and services to various segments of the population and provides guaranteed payment of social benefits for the unemployed. This was an important support for citizens during the crisis. In general, the number of citizens applying to government employment services is increasing every year.
Anti-crisis measures of state policy in the field of promoting employment involve the following directions: improving legislation in the field of promoting employment; development of regional labor markets and increased territorial mobility of labor; stimulating economic activity of the population; improving the quality of jobs; providing targeted support to citizens; organization of public works, temporary employment of employees of organizations in case of threat of dismissal; advanced professional training for employees of organizations at risk of dismissal, internship for graduates educational institutions for the purpose of gaining work experience; improving the public administration system in the field of labor market regulation, etc. Some positive results have stabilized the situation on the labor market this year.
Thus, an analysis of trends indicates that the labor market operates in difficult economic conditions, which gives rise to problems such as a decrease in employment, an increase in the level of unemployment, deterioration of working conditions, the outflow of highly qualified labor outside the country and the influx of low-skilled workers from abroad .
The state of the labor market in post-crisis conditions is beginning to stabilize. However, not all problems are solved.
It is necessary to implement a competent state policy in the field of employment, increase the role of non-state employment institutions, and effective programs to promote employment.
The condition for carrying out effective processes is the stabilization of the economic situation, modernization processes in industry, increasing the rate of economic growth, which will lead to positive trends in the Russian labor market.
Labor market problems
Currently, the unemployment rate (according to official data) is quite low, although it is gradually increasing. It is quite difficult to estimate the actual scale of unemployment. Along with registered unemployment, there is hidden unemployment (forced leave and part-time work week). At the same time, there is a large amount of hidden, not officially recorded “shadow” wage employment and individual labor activity. The inability to take it into account creates a distorted picture of the decline in employment. A significant portion of workers who do not have official labor income either have “shadow income” or retain a temporarily non-functioning workplace. Unemployment has not really become an acute social problem on a public scale (although the situation varies significantly in different regions of the country).The dismissal of workers still prevails due to at will, and not due to a reduction in the labor demand of enterprises. At the same time, the process of movement of labor from the “legal” sector of the economy to the “shadow” (even with a tendency to slow down) in general has negative character, although the consequences are ambiguous. On the one hand, it allows you to maintain or even increase an employee’s income, mitigate the social consequences of crisis phenomena in official economy and ensure the satisfaction of those needs of society that it cannot satisfy for one reason or another. On the other hand, the labor resources of the country as a whole are depleted, imbalances in the economy are increasing, and tax collection is declining.
To date main problem What remains unemployed is not unemployment, but the ineffective use of the employed workforce, primarily those in forced downtime. In this regard, a significant part of the population is worried about the threat of job loss.
Currently, the situation on the labor market is acquiring new features. Firstly, long-term hidden unemployment, which is accompanied by the resulting labor shortage, continues. The decline in production, on the one hand, and the low efficiency of production and labor organization, on the other, increase the scale of underutilization of workers.
Secondly, significant disruptions have arisen in the reproduction of the professional and qualification structure of the employed. The natural attrition of older workers in many professional and qualification groups is not being compensated. This jeopardizes the development of leading sectors of the national economy, primarily mechanical engineering. In general, the scale and level of professional training for workers in mass professions does not meet future requirements. The redistribution of employees across industries (primarily the increase in the share of the non-production sector), which is generally necessary and progressive, not only exceeds the current capabilities of the national economy, but is also often carried out irrationally (exorbitantly high share of security structures, shortage of teachers and medical workers).
Of particular interest is the analysis of the situation of young people in the Russian labor market. Its necessity is determined by two important circumstances: firstly, young people make up about 35% of the working population of Russia, and secondly, they are the future of the country. Young people today largely determine political, economic and social processes in society. At the same time, they are one of the most vulnerable groups in the labor market worldwide.
The main social and demographic events in the world occur during adolescence. life cycle person: completion of general education, choice and acquisition of a profession, marriage, birth of children. This category of the population is divided into a number of groups that determine the situation in the labor market.
The adolescent group (young people under 18 years of age) consists mainly of students from secondary schools and vocational schools. Basically they are not involved in work activities. However, a significant decline in the living standards of most of the population has changed the life position of this category of youth. Many of them strive to make money in any way. Most often this is self-employment, such as washing cars and selling newspapers, or working in the “shadow” sector of the economy. The legal market for unskilled child labor is extremely narrow. Therefore, if the problem of state control over child employment is not solved, there will be a danger of increasing the criminal potential of society.
Youth aged 18-24 are students and young people who are completing or have completed vocational training. They are the most vulnerable group entering the labor market, as they do not have sufficient professional and social experience, and are therefore less competitive.
At the age of 25-29, young people already generally have certain qualifications, some life and professional experience. They know what they want, most often already have their own family and have fairly high demands on the work offered.
The decline in the general standard of living of the population has led to overemployment among students who are forced to work in their free time from school. The number of offers from graduates of educational institutions is also increasing. The absence of a mechanism regulating the employment of graduates of educational institutions leads to serious problems. Of particular concern is the loss of the value of professionalism by young people. There is a clear tendency towards lumpenization of youth, which in the near future will affect social structure society.
Despite the crisis, the economy is increasingly experiencing a growing need to improve the general educational level of workers, and the demand for vocational education is increasing. If the current trends in the reproduction of qualified personnel do not change, then in the near future we can expect an increase in unemployment among the unskilled population, and, above all, young people who do not continue further education, do not have a profession or proper qualifications. Therefore, rational organization is necessary vocational education youth, consistent with both the development of the domestic economy and trends in the global labor market. IN Lately an increasing number of young people consider obtaining a full-fledged education a necessary condition for achieving their desired goals social status and higher financial situation. Vocational training is becoming an essential element of market infrastructure. That is why, with a reduction in enrollment in vocational schools and secondary specialized educational institutions, the enrollment of students in universities is increasing from year to year.
Thus, as development market relations and competition, accelerating the restructuring of the sectoral employment structure, the value of employee training will inevitably increase. This will help increase the employment of young people in their studies. World and domestic experience confirms the trend of increasing duration of education for young people and their later entry into active work. At the same time, employers' demands for labor are changing. Entrepreneurs are moving from short-term profit tactics to a long-term strategy for generating sustainable income in a competitive environment, so they will subsequently have a need to increase the hiring of young labor.
Labor market research
Honest and modest are the best workersBaylor University experts say that employees' honesty and humility directly affect their performance. These virtues are associated with more thorough and effective performance of job duties. Even conscientiousness and law-abiding did not earn such authority among researchers.
The American study included 269 employees from 25 different companies. A work ability rating was compiled for each, after which managers were asked to evaluate them. Each rating took into account more than 35 employee skills. Scientists found that honest and modest employees performed their duties best. According to experts, such people are best suited for professions and organizations that require special attention and care for products or customers.
Ambitious and selfish individuals are more suited to jobs that require self-promotion and independent career advancement, the researchers say.
Shift work reduces the risk of skin cancer
American oncologists at Brigham and Women’s Hospital have figured out how to avoid cancer while working shifts. Previously, it was believed that shift work could cause disruptions in the body’s biorhythm system and thereby reduce the production of essential melatonin.
Such work was considered dangerous due to an increased risk of breast, endometrial, prostate and colon cancer, non-Hodgin lymphoma, as well as diabetes, heart disease and gastrointestinal disorders.
Now shift work is recognized not only as safe, but also as beneficial. It will help protect women from skin cancer. Over the course of 18 years, doctors observed nearly 11,000 cases of skin cancer among 68,000 nurses forced to work night shifts. The night shift turned out to be less dangerous. Women who worked shifts for more than 10 years were 44% less likely to develop skin cancer. Women with dark hair were also less likely to suffer from cancer.
Germans hate working as insurance agents
This sad conclusion was reached by researchers in a survey commissioned by the business communications and public relations agency Faktenkontor. It turned out that almost every second resident of Germany (45%) considers the profession of an insurance agent unattractive. Dislike for insurers was caused by the low prestige of this profession in Germany. Only 3% of respondents treat these workers with respect.
The same researchers found that even during the crisis, citizens in general did not trust bank employees less - only 15% lost trust and sympathy for bank managers. For 30% of German residents, it is considered unacceptable political activity. 21% of respondents would never go to work as cleaners.
In Germany, cleaners are loved more than insurance agents because, in the opinion of the population, they do not impose their services and do not try to sell clients unnecessary expensive insurance. Most often, negative expressions like “fool” or “talk” in Germany refer specifically to insurers, notes Welt Online.
Blondes earn more and get married better
Despite judgments about the mental abilities of fair-haired girls, it is they who, according to research by Australian scientists from the University of Queensland, receive more money and happiness. 13 thousand women who took part in the research showed by their own example that blondes are 7% more successful than brunettes and redheads. Moreover, husbands of blonde beauties are 6% richer than those married to women with dark hair.
The scientists, who did not believe their own findings, decided to conduct a new study and this time omitted factors such as height, weight and level of education. But even here the blondes were ahead. The researchers were unable to explain the phenomenon. But their colleagues from the University of California found that blondes are more aggressive and self-confident. They attract more attention to themselves than other women, and actively take advantage of it. Perhaps this is why it is easier for them to achieve careers than for brown-haired or red-haired women. The same scientists believe that by dyeing your hair, you can change your character and develop the necessary ambition and perseverance.
Gays are ready to give up work for the sake of children
The Journal of GLBT Family Studies published a study showing that gay men with children are considered less reliable employees than straight men. Gay men who become fathers as a result of surrogate insemination, unlike heterosexual fathers, are more often willing to sacrifice their careers for the sake of their children.
Psychologists have assessed how the birth of a child for a gay man affects his attitude towards his career, lifestyle, as well as relationships with partners and the degree of self-esteem. The willingness to give up work for the sake of a baby has become the only difference between gays. In relationships with employees at work, gay dads and straight dads are no different. For both of them, with the advent of a child, self-esteem increased and family relationships improved.
Average age The gay fathers in the study were 41 years old and all were in partnerships, with most same-sex couples having above-average incomes of about $270,000 a year.
It’s easier for Elena to build a career
Experts from the Empire of Personnel research center studied the “female” labor market and decided that most often women with the name Elena achieve success in their careers. They are the ones who strive more than others to achieve their goals, are not afraid of change and are ready for difficulties.
The list of the most successful names also included Olga and Natalya. The owners of these names are traditionally purposeful, the general characteristic- high ability to overcome any obstacles on the way to the goal.
Researchers explain the popularity of certain names in the ranking by their prevalence. The more Helens there are in the country, the more of them achieve success. But experts do not exclude the possibility that the name influences the character and professional quality candidate.
Waist size determines salary
A sociological study published in the Journal of Applied Psychology proves that waist size is directly related to salary. An American woman must be thin and a man must be overweight in order to get a salary increase. Psychologically, such people inspire greater confidence among employers and appear to be better employees.
It turns out that an American woman who weighs 12 kg less than her colleague is likely to earn an average salary of $15,572 more per year. Women who are curvy, so that their weight exceeds the office average by 12 kg, risk receiving 13 thousand dollars less.
For men, on the contrary, a large belly gives them respectability. It is best for a representative of the stronger sex in the United States to have extra pounds. A thin American earns an average of $8,437 a year less than his larger-waisted counterpart. The main thing is to know when to stop and stop the gaining kilograms in time. When a person becomes overweight or obese, his salary begins to drop rapidly.
Fat employees are more likely to get sick and miss work
Experts also examined the total cost of lost productivity as a result of problems arising from obesity, which is common among Americans. Costs for obesity are nearly $17,000 for women with a body mass index greater than 40 (about 100 kg of excess weight) and over $15,000 for obese men. The largest share of these costs (56% for women and 68% for men) occurs when obese employees show up to work feeling unwell, work slower, feel tired, lose concentration or are unable to complete tasks at all.
Even among those who are within the normal weight range, the loss of productivity due to health problems far outweighs the costs of medical care. Costs for full-time employees also increase due to frequent sick leave and vacations. Doctors recommend that employers save the situation with programs for healthy image life for its employees.
Envious employees worsen the work environment
Experts from the University of Pennsylvania, Montclair State University from the USA and the Culture Contents Center from South Korea, having conducted observations among 233 hotel business employees, came to the conclusion that envious employees can ruin the friendly atmosphere in the workplace. Moreover, over time, this can lead to the fact that the service industry turns into hostile territory for customers.
It turned out that envy worsens not only the relationship between the subordinate and the employer. Envious employees help their co-workers less in their shared responsibilities. Because these employees often have personal contact with guests, the person staying at the hotel becomes an innocent victim of a negative workplace atmosphere, experts say.
The absence of conflicts will not only make work more enjoyable for each individual employee, but will also raise the prestige of the company as a whole. According to researchers, the employer’s task is to provide a warm and friendly atmosphere in the team, or at least teach employees how to contain conflicts.
Scientists have figured out when to ask your boss for a raise
The survey was commissioned by the pharmaceutical corporation that produces contraceptives, Bayer Schering Pharma. The researchers set out to prove that by taking into account the natural emotional ups and downs of mood throughout the day, people could great success seek a salary increase.
The best time to have a conversation depends on the gender of the boss. Representatives of the stronger sex are more likely to satisfy a request at six o'clock in the evening than at other times. The worst time for men trying to sort things out with women is around three o'clock in the afternoon, researchers say. At this time, women most often win the argument.
The survey of more than 1,000 people also found that it's better to ask for a raise at 1pm rather than early in the morning.
Labor market models
Labor market models may vary. Depending on the degree of competition in the labor market, a purely competitive market model, a monopsony model, a model taking into account the action of trade unions, and a bilateral model are distinguished.A purely competitive market is characterized by the following features: a large number of firms compete with each other in hiring a particular type of labor; numerous skilled workers with the same qualifications independently offer this type of labor service; Neither firms nor workers exercise control over the market wage rate.
The model of monopsony, i.e., the monopoly of one buyer, reflects a situation where the employer has a monopolistic power to buy (hire).
A labor market model taking into account the action of trade unions, i.e. in the labor market, trade unions represent the interests of workers and negotiate on their behalf with employers. The bilateral monopoly model is typical for the conditions of a monopsony market in which strong industry trade unions operate. In other words, when combining the monopsony model and the model taking into account the actions of trade unions, a bilateral monopoly occurs. A union is a monopolistic seller of labor and controls the supply of labor and can influence wage rates. He is opposed to the monopsony employer of labor, who can also influence wages by changing employment.
The American model of the labor market is based on maintaining the competitive state of the economy, preventing its high centralization, encouraging the active role of entrepreneurs, and the life orientation of workers towards individual success and making money. American employment policy is characterized by a focus on high territorial mobility of workers between enterprises, on completed professional training in educational institutions, on recognition of the professional and qualification level of workers when changing companies, and on the desire to reduce enterprise costs for industrial training to a minimum. Wages at such enterprises are established by contracts, taking into account the demand and supply of labor and the classification of work by complexity. The organization of trade unions is built along professional lines. Unemployment insurance is provided on a federal-state basis. Businesses and workers pay separate contributions to state and federal unemployment insurance funds.
Japanese model. A distinctive feature of the Japanese labor market model is the “lifetime employment system”, which provides guarantees for the entire period of workers’ employment. These guarantees are the result of the established practice of relations between employees and entrepreneurs, owners of capital. They are not formalized by law, but are supported by trade unions. The Japanese model is characterized by a paternalistic attitude of company managers towards staff, attention to the non-productive side of workers' lives and the latter's interest in all aspects of the enterprise's activities.
The Swedish model is based on an active employment policy pursued by the state. The state pays great attention to increasing the competitiveness of the workforce through vocational training, creating jobs in the public sector and in private companies through subsidies. Employment policy is closely linked to general economic measures, in particular, restrictive tax policies, “solidarity policies” in wages, and support for weaker groups of the population, industries and regions.
Labor market segments
labor is the division of workers and jobs into stable closed sectors, zones that limit the mobility of labor within their borders. The labor market segments are the primary and secondary labor markets.The primary labor market is a market characterized by a stable level of employment and high wages, the possibility of professional advancement, advanced technology, and a management scheme.
The secondary labor market is a market characterized by staff turnover, unstable employment, low wages, lack of professional advancement, growth in qualifications, the presence of backward equipment and technology, and the absence of trade unions.
Reasons for dividing the labor market into segments: differences in the level of production; difference in the level of social efficiency of labor; difference in social level.
Labor market segmentation involves dividing the labor market into internal and external. The internal labor market is a system of social and labor relations limited within the framework of one enterprise, within which the pricing of labor and its placement are determined by administrative rules and procedures. This market is determined by the presence and composition of workers at the enterprise, their movement within it, the reasons for the movement, the level of employment, the degree of use of equipment, the presence of free, newly created and liquidated jobs. The external labor market is a system of social and labor relations between employers and employees on a national, regional, and industry scale. It involves the primary distribution of workers according to areas of employment and their movement between enterprises. The external labor market is largely realized through staff turnover; it ensures the movement of workers from one enterprise to another and generates unemployment.
In the area of employment, there is segmentation of the labor market by type of ownership and employment status, the development of the informal sector, and small businesses. All persons employed in the economy are divided into three groups: those employed in the formal state, formal non-state, and informal sectors. The last of these includes those that are not registered in accordance with the law. economic activity, in which employees do not pay taxes. Within the informal sector, several types of employment are distinguished: according to the professional and qualification level of income, qualified, fairly well-paid work and work that does not require qualifications are distinguished. According to the status of those employed in the informal sector, persons employed only in the informal sector and persons employed in both the informal and formal sectors are distinguished. According to the method of carrying out informal activities and generating income, individually employed workers, workers and owners of small unregistered production units, officially unregistered employees of registered organizations, unregistered, tax-protected activities of formal sector enterprises that bring unaccounted income to their employees, unregistered activities of workers carried out on workplace.
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One of the four main factors of production is work, which in economic theory is understood as the contribution to the production process made by people in the form of expenditure of physical and mental energy. The term labor also refers to labor resources - the most important element of the wealth of society, the quality and quantity of which largely determine the level of economic development of individual countries.
In a market economy there is a specific labor market. It is an integral part of the structure of market relations and functions along with markets for other factors of production, goods, services . Labor market can be defined as a system of relations related to the supply and hiring of labor resources.
Functions of the labor market:
Providing production and services with labor resources, their distribution between enterprises, industries, regions;
Ensuring that employees have the opportunity to obtain a means of subsistence;
Agreeing on prices and working conditions between employees and employers;
Incentives for employees and employers:
Competition between hired workers enhances the economic motivation of labor, encourages them to improve their skills, and stimulates increased labor discipline;
Competition between employers to attract labor in the quantity and quality they need stimulates them to raise wages and improve working conditions.
Market relations presuppose self-regulation of the labor market. Elements of the self-regulation mechanism are supply and demand in the labor market, competition among workers and employers, and wages. As a result of the action of this mechanism, level and proportions of employment, wages, size and structure of unemployment.
Demand on the labor market represents the totality of demand for a country’s labor resources at any price for them.
Supply on the labor market This is the total supply of labor resources of workers in the country at all possible labor prices.
Demand in the labor market depends on:
Business conditions and phases of the economic cycle;
Technical level of production;
Situations in the investment sector;
The current level of wages;
Tax policy.
Supply in the labor market depends on:
Demographic situation (size and age and gender composition of the population);
Internal and external migration of the working population;
Salary level;
The alternative cost of labor, the possibility of obtaining income from sources other than hired work.
In addition, trade unions influence supply and demand in the labor market. public policy in the field of employment, the level of development of the education system and vocational training. Of no small importance are national characteristics lifestyle.
The processes occurring in the labor market were studied by the classics of economic theory Adam Smith (1723-1790) and David Ricardo (1772-1823), as well as outstanding scientists of the 1920s, Karl Marx (1818-1883), Alfred Marshall (1842-1924), John Maynard Keynes ( 18831946). Various models of self-regulation of the labor market were considered.
According to classic model , presented on the graph (Fig. 8.1), at the intersection point of lines D and S, reflecting supply and demand in the labor market, the equilibrium price of labor (wages W 0) and a certain level of employment E 0 are established. If the level of wages, for some reason, increases from W 0 to W 1, then the quantity of supply will increase, because an additional number of people will appear on the labor market who previously did not agree to work for wages W 1. However, the demand for labor will decrease, since it will be unprofitable for employers to hire labor because of its high cost. The supply of labor will exceed the demand for it, which will lead to an increase in unemployment. If the wage level falls to W 2, it will become profitable for employers to hire additional workers, which will increase the demand for labor. However, labor supply will decrease due to those who are not satisfied with the level of wages. As a result, demand in the labor market will exceed supply, and a labor shortage will arise. According to this approach, unemployment is largely due to voluntary nature , since it is associated with the reluctance of workers to work for what they consider to be insufficiently high wages. The main factor in the fight against unemployment is the reduction of wages.
Forecasting is the core of any trading system, which is why perfectly replicated ones can make you incredibly wealthy.
In modern neoclassical model labor market, household expenditures on education are considered as investments in human capital by analogy with firms’ investments in machinery and equipment. Wages act as a return on these investments. According to the neoclassical model, the price of labor flexibly responds to market needs, increasing or decreasing depending on supply and demand. Households invest in skills until the rate of return on this investment begins to decline. If price equilibrium is achieved in the labor market, then unemployment is impossible.
Keynesian model offers a different interpretation of the mechanism of functioning of the labor market. According to Keynes, the wage rate is a fixed value. The demand for labor does not depend on the level of wages, but on the volume of production in society, which in turn is determined by the amount of aggregate demand. Exists involuntary unemployment , caused by insufficient aggregate demand. It is impossible to stimulate an increase in aggregate demand, and, consequently, employment, by lowering wages. The increase in demand for labor is the result of government measures that stimulate the growth of aggregate demand in the country.
Marxism considers the reserve army of labor as an inevitable attribute, as well as a necessary condition of capitalist production. The levels of employment and unemployment, according to this theory, are determined by the needs of capital for self-expansion and depend on the ratio of capitalists' expenses on wages and the purchase of machinery, fluctuations in the economic cycle, and changes in the structure of production. Unemployment, generating competition between hired workers for jobs, puts pressure on the employed, allows the entrepreneur to reduce wages, and force workers to discipline.
IN institutionalist model the main focus is on analyzing the structure of the labor force. Levels of employment, unemployment, and wages are explained by the characteristics of individual industries, professional and demographic groups.
The processes taking place in the labor market determine level and nature of employment and unemployment in society. The part of the population that provides supply in the labor market, according to the methodology of international statistics, is classified as economically active population.
In our country, under the conditions of a planned economy, records were kept
labor resources, i.e. population of working age, with the exception of non-working disabled people and war veteransI and II groups and persons receiving an old-age pension and on preferential terms. Currently, Russian statistics use the indicator
economically active population, which includes those employed in the economy and the unemployed. The concept of labor resources is now used to designate one of the elements socio-economic potential of the country, included in national wealth part of the population that has the physical development, mental abilities, knowledge, qualifications, and labor discipline skills necessary for the successful development of social production.
Employment– This is the activity of people related to the satisfaction of personal and social needs, not prohibited by law, and generating (usually) earned income.
TO employed in the economy, According to the accepted methodology, these include persons who, during the period under review, performed hired work for remuneration, as well as income-generating self-employed work independently or with one or more partners, both with and without the involvement of hired workers. The number of employees also includes persons who performed work without pay in a family enterprise, as well as persons who were temporarily absent from work due to illness, care for the sick, annual leave, days off, training, educational leave, leave without pay or with partial pay. salary content on the initiative of the administration, strike.
The level and nature of employment of the population are important macroeconomic indicators that reflect demographic and social processes in society.
Depending on the criteria applied, there are the following classifications of employees:
By type of activity:
Those engaged in paid activities in the economy;
Military personnel (they are engaged in activities that do not generate direct cash income, but as they switch to a contract form of service they will approach the status of those employed in the economy);
Work-away students;
By method of involvement in work:
wage-earners;
employers (entrepreneurs who hire workers and realize their entrepreneurial abilities);
self-employed (working for their own account, members of production cooperatives that do not employ hired force on a permanent basis);
The International Classification of Employment Status includes:
Wage-earners;
Employers;
Persons working for their own account;
Members of production cooperatives;
Helping family members;
Workers not classified by status.
In macroeconomic analysis, the category full employment. In the planned economic system Full employment was understood as a state of the economy when all labor resources were involved in social production and other socially useful activities. In world economic theory and practice, full employment is considered achieved when everyone who wants to work has a job at the current level of wages. Full employment corresponds to a certain level natural unemployment no more than 3.5 – 6.5% of the total workforce.
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