Problems of unformal employment at the market of Ukraine's labor.

Alla Bielova ^1* Doctor of Economics, Associate Professor
Svetlana Koval ² Candidate of Science (Economics), Senior Researcher, Associate Professor.
^1* Department of Economics and Management of the GSP "Institute of Innovation Education" of Kyiv National University of Construction and Architecture, Vozduhoflotsky Avenue 31, Kyiv, 03680, Ukraine
² State Higher Educational Establishment «Pereyaslav-Khmelnyckyi State Pedagogic University named Grygoriy Skovoroda» str. Sukhomlinsky, 30, Pereyaslav-Khmelnitskiy, Kiev region, 08401, Ukraine
Received: 02/10/2019; Accepted: 03/30/2019; Available online: 04/29/2019.
DOI: https://doi.org/10.32557/useful-3-1-2019-0004
HDL: https://hdl.handle.net/20.500.12334/111
*Corresponding author e-mail: allal64@ukr.net
Under a creative commons license. Volume 3, Issue 1, 2019, pages: 31-38.
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Author Keywords: labor market, informal employment, statistical analysis of dynamics, complex assessment.

Abstarct

The subject of the article is the study of specific problems of informal (unformal) employment of the population on the labor market of Ukraine by analyzing the statistical estimation of dynamics and structure of some indicators in 2015 and 2017. The study used general scientific and special statistical methods: analysis of dynamics and synthesis, analogy and comparison, expert assessments, etc. On the basis of the study of the numerical characteristics of the main indicators of the labor market, an analysis of certain aspects of the problems of the informal sector in the field of employment and unemployment in Ukraine was conducted, as well as the main prospects for their possible future solution in the modern economic conditions. It is determined that coordination of efforts of the authorities at all levels in the implementation of the employment policy and reduction of its shadowing scale is impossible without a scientifically based comprehensive national program for promoting employment, aimed at ensuring a balanced supply and demand for labor in the labor market.

1. Introduction.

Formulation of the problem. At present, the development of market relations in Ukraine is accompanied by significant changes in the employment situation, leading to new features of the functioning of the labor market. One of the biggest obstacles to building a new model of socio-economic development of the country at the present stage is the high level of economic shadowing, which makes it impossible to accelerate economic reforms, increase social standards of living of the population and integration into the European community. One of the most important issues in this area is the disarmament of the labor market. The urgency of the problem of legalizing employment and wages today is due to its scale and extremely negative and devastating consequences. Analysis of recent research and publications. The question of the functioning of the labor market and the principles for its regulation have been highlighted in numerous papers by scholars, research scientists, economists, sociologists, and specialists in public administration: Z.P. Baranik, D.P. Goddess, O.V. Bokova, VS Vasilchenko, M.I.The lower one, T.M. Kirian, G.I. Kupalova, E.M. Libanova, V.V. Onikienka, L.G. Rozhdestvenskaya, V.A. Savchenko, A.A.Shenchuk, G.G. Trofimova, O. M. Umansky, V.M. Chamoty, L.S. Shevchenko, L.M. Yakushenko, L.D. Yatsenko and others. [2, 3]. But at present, Ukraine lacks fundamental scientific works, which would have had a comprehensive approach to studying the problems of shadow (informal) employment in Ukraine, that is, the use of hired labor without an employment contract and the shadow wage that has been rapidly spreading in recent years, covering a large number of jobs at the enterprises and organizations of the formal and informal sector of the economy. The purpose of the article is to review and statistical analysis of processes of informal employment of the population of Ukraine in terms of its comparison with actual official employment in the labor market and further developments in this direction.

2. The main part.

It should be noted that under the conditions of a market economy in Ukraine, informal employment is spreading rapidly, covering all informal workplaces both in the informal and formal (formal) sectors of the economy. Usually informal employment is inherent in the population of certain socio-economic groups. Thus, in 2015 the number of informally employed population of Ukraine amounted to 4.3 million people, or 26.2% of the total employed population. Informal labor relations predominated in the self-employment sector, where the share of the population working in informal work places was 73.2%, and among those employed by such persons was about 17.3%. [1]. Among informally employed persons, more than one third (38.6%) of people worked in agriculture, forestry and fisheries. Other common types of economic activity of the population of this category are wholesale and retail trade (22.1%) and construction (16.1%) [1]. In 2017, the number of informally employed population in the country decreased by 642 thousand people compared to 2015 and amounted to 3.7 million people, or 22.7% of the total number of employed population. Thus, informal labor relations predominated in the self-employed sector, where the share of the population working in informal workplaces was 74.3%, while the number of employed persons was almost 13.1% (Table 1) [1].

Conclusions

Consequently, the current state of the labor market of Ukraine is characterized by unfavorable trends in the level of employment and ineffective use of labor force. At this time, shadow occupation has become extremely widespread, with negative consequences for both the state and employees. Coordination of the efforts of the authorities at all levels in implementing the employment policy and reducing the scope of its shadowing is impossible without a scientifically based comprehensive national program to promote employment, aimed at ensuring a balanced supply and demand for labor in the labor market. Therefore, one of the main tasks of the state policy of Ukraine should be the concentration of efforts of all branches of power on the complex implementation of radical economic, administrative, administrative and organizational measures to legalize the employment of the population in the Ukrainian labor market.

References

[1] Official site of the State Statistics Service of Ukraine. URL: http://www.ukrstat.gov.ua/.

[2] Senchuk A. The Strategy of Sustainable Development "Ukraine-2020" - the Way to a Better Future. External affairs. 2014. №8. URL: http://uaforeignaffairs.com/ua/zs/anglomovna-versija/view/article/ strategy-stalogo-rozvitku-ukrajina-2020-shljakh-do-kr/.

[3] Yatsenko L. D., Yakushenko L. M. Analytical report of the Department of Social Policy, Kyiv, 2016. URL: http://ndei.me.gov.ua/index.php?option=com_content&view=article&id=203&Itemid=89/.

Please cite as: A.Bielova, S.Koval “Problems of unformal employment at the market of Ukraine's labor.” USEFUL online journal, vol. 3, no. 1, pp. 31-38, April 2019. DOI: https://doi.org/10.32557/useful-3-1-2019-0004