Labor market– an economic environment in which, as a result of competition between economic agents through the mechanism of supply and demand, a certain volume of employment and level of wages is established.

Market work force is a system of economic relations between entities regarding the purchase and sale of labor services, which provides work to the population at prices set under the influence of market demand and supply.

The subjects of this market are employers and hired workers.

Objects – terms of employment. The demand for labor, the solvent need for workers is determined by professionalism and certain qualifications. Labor supply - the variety and quality of labor services offered for sale.

The price of demand for labor is the maximum acceptable, from the enterprise’s point of view, wage rate for workers.

Labor supply price – minimum bid wages that satisfy those who are hired.

Equilibrium in the labor market is established when the supply and demand for labor are equalized.

In accordance with the classical theory, that is, the real equilibrium wage corresponds to the equality of demand and supply for labor, any other wage levels will lead to excess demand and supply of labor.

Keynesian theory agreed with the classical one that the demand for labor depends on real wages, and when analyzing the supply of labor, they stated that households pay attention not to real, but to nominal wages, that is, supply was a function of nominal wages. Therefore, in contrast to the classics, who recommended a policy of reducing nominal wages to restore full employment. Keynes said that it was necessary to reduce real wages by raising the prices of goods and services.

The main conclusion from Keynes' employment theory: a state of equilibrium in the labor market can be achieved even in conditions of underemployment.

The functioning of the labor market is based on the fact that the population, in order to lead normal life activities, is forced to sell their labor for remuneration, which is presented in the form of wages. Here, the specific product is labor - a certain set of intellectual, spiritual, physical abilities of a person, which, in general, represent an individual labor potential. On the other hand, another part of the population agrees to pay employees. In the labor market they are employers.

Demand in the labor market is the totality of demand for a country’s labor resources at any price for them.

Supply in the labor market is the total supply of labor resources of workers in the country at all possible labor prices.

The main indicator of the labor market is wages, which are determined, among other things, based on the total cost of goods necessary to ensure normal human life. This point is the starting point below which it is impossible to set wages. The final level of remuneration is determined under the influence of many factors, the main of which include supply and demand in the labor market.

The main factors influencing the size of wages are:

Age and gender structure of the labor market. The labor market is greatly influenced by the number of people of different age and gender groups in it;

Standards of living;

The nature of the intensity of social labor;

Social labor productivity;

Level of socio-economic development national economy;

The level of scientific and technological development of the national economy;

Geographical, natural and climatic distribution labor resources.

Changes in the level and size of wages are in direct interaction with changes in supply and demand in the labor market. Another important factor that has a decisive impact on the functioning of the labor market is demand - the employer’s need for employees with certain qualifications and professional characteristics.

Demand in the labor market is formed under the influence of the following factors:

1 Structures social production;

2 Levels of development and scale of the structure of social production;

3 Dominant forms of social production;

4 Volumes of social production;

5 Level of scientific and technological development and equipment of the national economy;

6 Rates of growth and development of the national economy.

Supply in the labor market is formed under the influence of the following main factors:

1 Average wage level;

2 Population size and overall demographic situation;

3 Professional structure of the labor market (consists in an overabundance or shortage of certain professions);

4 Population mobility;

5 Ethnic, religious, cultural, psychological characteristics population;

Subjects of demand in the labor market business and the state act, and the subjects of supply are households.

In a perfectly competitive market, the number of workers hired by an entrepreneur is determined by two indicators - the amount of wages and the marginal product of labor in monetary terms.

The attraction of an additional unit of labor will stop when these indicators become equal, i.e. .

The functional relationship between wages and the volume of labor demand is expressed in the form of a labor demand curve, Figure 19.3.

Labor supply also depends on the wages received for productive services. Sellers in the labor market in conditions of perfect competition strive to increase supply as wages rise. Therefore, the labor supply curve has a positive slope, Figure 19.4.

Figure 19.3 – Labor demand curve

– wage rate;

– the amount of labor required;

– labor demand curve.

Figure 19.4 – Labor supply curve

– wage rate;

– the amount of labor offered;

– labor supply curve.

Combining both graphs - the demand curve and the supply curve, we obtain the intersection point E, at which the demand for labor is equal to the supply of labor, i.e. the labor market is in equilibrium, Figure 19.5.

Figure 19.5 – Equilibrium in a competitive labor market

This means that all entrepreneurs who agree to pay wages find on the market required amount labor, their demand for labor is fully satisfied. In a state of market equilibrium, all workers willing to offer their services at a wage are fully employed. Therefore, the point determines the position of full employment. For any other wage value other than , the equilibrium in the labor market is disrupted. When the demand for labor and the supply of labor coincide, wages act as the equilibrium price in the labor market.

If the wage rate is above the equilibrium level, supply in the labor market exceeds demand. In this situation, there is a deviation from the situation of full employment; there are not enough jobs for everyone who wants to sell their labor at high wages. There is an excess supply of labor.

If the wage rate decreases compared to the equilibrium, demand in the labor market exceeds supply. This results in unfilled jobs due to a lack of workers willing to accept lower wages.

Both of these situations (unemployment and the presence of unoccupied jobs) cannot be sustainable (long-term); they are corrected by the market mechanism towards restoring the situation of full employment.

Thus, the labor market develops, like any market, according to the laws of supply and demand, equilibrium is restored, and there cannot be long-term unemployment.

However, unemployment exists. The presence of stable unemployment only indicates that there are no conditions of perfect competition in the labor market: free flow of resources in various segments of the labor market, flexible wages, perfect information, etc. The labor market contains so-called non-competitive factors, which include various institutions. Firstly, they include the state, which actively regulates the labor market, depriving wages of market flexibility. Secondly, trade unions, which have a great influence on the level of wages in the direction of increasing them compared to the equilibrium level. Thirdly, large corporations tend to establish a standard wage rate that is relatively stable over time, refusing to revise it too often depending on the balance of supply and demand in the labor market.

Regulation of the labor market involves influencing both the demand and supply of labor. The objects of regulation are wages, duration working week and vacations, hiring and firing procedures, different kinds social security, etc.

1. The labor market, its elements and features.

2. Unemployment, its forms and causes.

3. Natural rate of unemployment. Okun's Law .

4. State regulation of the labor market. Phillips curve.

Labor market or the labor market is component a common market space that performs the function of distributing and redistributing social labor across economic sectors, types and forms of activity in accordance with the structure of social needs.

Basic elements of the labor market(like any market):

Demand for labor,

Labor supply,

Labor price

Competition.

Demand reflects volume and structure social need for labor represented on the labor market and ensured by the availability of a workplace and a wage fund and means of subsistence.

Work offer strength characterized by the number and composition of workers capable of working and interested in getting hired work. Workers vary in gender, age, nationality, profession, and skill level.

At the cost of labor wages appear. The purchase and sale transaction will take place only if the employee meets the requirements of the workplace, and workplace- interests of the employee.

The labor market is based on competition between entrepreneurs for attracting labor, between employees for filling vacancies, and between employees and employers for the terms of the employment agreement and remuneration.

The labor market has a number of features.

The fundamental difference between labor from other resources is that labor is a form of human life, the realization of his life goals and interests. Therefore, the price of labor is not just some price for a resource, it is the price of living standards, social prestige, and the well-being of the worker and his family. That., main feature The labor market lies in the product itself, which differs from all other resources.

Second difference: the seller of a commodity, labor power, the worker is inseparable from his commodity, he is inseparable from his ability to work, and the utility of this commodity during productive use is not destroyed, but is preserved, restored and accumulated. If an employee is properly exploited, he will improve his skills and bring greater returns.

Two main labor market functions:

1. Social function . It consists in ensuring a normal level of income and well-being of people, a normal level of reproduction of the worker’s productive abilities.

2. Economic function, which consists in the rational involvement, distribution and use of labor.

There are also a number of stimulating functions - advanced training, increased interest.

Classic labor market model - This competitive market model: a large number of sellers, a large number of employers and a price corresponding to supply and demand, i.e. this is the standard model of a competitive market.

Balance point depends on supply and demand. At the equilibrium point, there is full employment in the labor market - everyone who wanted to get a job for this salary, they got it, whoever wants a higher salary is looking for a job (Fig. 12).

Rice. 12. Classic labor market model

If wages are influenced by trade unions suddenly increases, then a situation will arise when firms will hire fewer workers, and workers will work more for increased wages, i.e. unemployment will arise.

Inflated salaries cannot be long, because there is competition, the market will return to equilibrium - this is from the point of view of the classics.

World economic crisis of 1929-33 showed that unemployment can be long-lasting. Ways to reduce unemployment during a crisis of overproduction revealed Keynes .

Another feature of the labor market- it can be characterized monopsony(one buyer) or oligopsony(several buyers), when on the demand side the market is represented by one or more hiring firms. For example, one large enterprise and all jobs are associated with its operation - a city-forming enterprise. The salary rate depends on the company.

Another feature- each seller has only one unit of his goods, so he is more dependent on market conditions than the buyer. Many disparate sellers compete with each other, confronting a stronger buyer. Trade unions, which are organizations of labor sellers, are called upon to smooth out this situation. Trade unions, in the course of their activities, concluding collective agreements with employers, seek to increase wages, which can lead to negative consequences, since it affects the level of employment.

The classical model accepts the following axioms:

1. Firms are free to hire labor, i.e. can freely hire and fire workers;

2. Other things being equal, the marginal product of labor decreases as the labor force grows;

3. Labor supply increases as real wages rise.

The model can easily be considered using the example of a typical company. Let be its production function and let be the amount of labor resources consumed by the firm, i.e. labor force. The marginal product of labor is

Condition 2 is a general requirement for production functions and is known as law of diminishing returns to labor. In differential form, this condition looks like: .

From general theory The firm knows the equilibrium condition for the firm in terms of labor resources: , where is the price of manufactured products and is the wage rate. Informally, this condition is very clear: if there is inequality for a given value, then it is profitable to hire another worker, since the price of the additional product produced by him is greater than his salary; if the opposite inequality is true, then one worker must be laid off.

Let us recall the conclusion from this condition: the firm’s profit is . To determine the condition for maximizing profit, we find the partial derivative of profit with respect to labor and equate it to zero - we get exactly this condition. And the condition guarantees precisely the maximum profit when the first condition is met.

The value found from the equilibrium condition for the firm in terms of labor resources is the demand for labor on the part of producers. Let's find the derivative with respect to wages, for which we differentiate by equality: .

Since from condition 1, then, i.e. the demand for labor falls as wages rise.

The relationship is called real wages. Its economic meaning is how many units of produced goods a worker can buy with his salary. Having differentiated the equality with respect to , we see that, i.e. demand for labor falls as real wages rise.

Total demand labor force and employment are essentially the same thing. Let denotes the total supply of labor. Approximate dependencies And from real wages are shown in the figure. Equilibrium in the labor market is characterized by equality of demand and suggestions . Let it be – respectively, real wages and total demand for labor, i.e. employment at equilibrium.

The classical explanation for the stability of the equilibrium state is as follows. When real wages exceed the equilibrium wage, i.e. when , there is an excess supply of labor, which leads to a decrease in wages by entrepreneurs and thereby in real wages, i.e. a return to equilibrium occurs.

If it turned out, then the supply of labor would decrease. A shortage of labor would force entrepreneurs to increase wages, and thereby real wages, i.e. there would be a return to equilibrium.

The figure shows that there is only one state of equilibrium.

Comment. Axiom 3 of the labor market model requires clarification. Yes, a person wants to receive as much reward as possible for his work. But if he is unemployed and cannot find the job he would like or the salary he would like, then he may well agree to work for a lower salary.

There are several types of unemployment :

Ø Friction – this is when a worker finds himself “between jobs.” Some voluntarily change jobs, others are looking new job due to dismissal, others temporarily lose their seasonal jobs (for example, in construction with the approach of winter), etc.

Ø Structural– Over time, changes occur in the economy and society. Some professions are gradually dying out, and workers in these professions need to change them. The demand for other professions is increasing, and more and more such workers are needed. If unemployment is reduced to the sum of these two types, then we speak of full employment.

In the classical model under consideration, fluctuations in the demand for labor supply disrupt full employment only in the short-term aspect - during the period of transition to a new equilibrium, there is, say, no mass long-term unemployment in this model (see the beginning of the remark). However, this position of the classic spruce was stubbornly contradicted by the fact of repeated periods of long-term unemployment, especially during the “Great Depression” of the 1930s. This obvious discrepancy with the classical model of reality served as one of the origins of Keynesianism.

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Labor market

Labor power is understood as the totality of physical and spiritual abilities that a person possesses and which are used by him during work.

IN market economy labor power is a commodity. The connection of labor power with the means of production is carried out through the labor market. The latter expresses the economic relations that develop between the employee and the employer regarding the purchase and sale of labor, which is used in the production process and is paid depending on labor costs and their results.

Labor power is a special commodity because its carrier is a person.

Worker concluding employment contract, is interested in working conditions, the time required to arrive at work, housing, wages, etc. All this is clarified in the labor market between the employee and the employer.

The state plays a special role in regulating the labor market. It is not only an employer, but also regulates the use of labor and its payment. Thus, through legislative activity, the state establishes the rights and obligations of the employee and the employer, the length of the working day and vacation, the number of holidays, minimum wage, etc.

The labor market performs the following functions:

- the employee and the employer meet in the market and agree on working conditions and wages;

- distribution and redistribution of labor among enterprises and industries occurs through the market;

- the market provides information about the situation with the demand for workers in certain professions and the needs for them.

Labor demand is determined by:

- position on the commodity market. Whether the product is in demand or not.

- development of production and implementation of scientific and technological progress;

- real wages;

- the influence of the state on the development of production and training of qualified personnel.

Labor supply is determined by:

- real wages;

- demographic factor;

- labor migration.

When the demand and supply for labor do not coincide, then either a shortage is formed (when demand exceeds supply), or a surplus is formed (unemployed) when supply exceeds demand.

The labor market in Russia is at the stage of formation:

- wages increase;

- wage arrears are reduced;

- a housing market is created;

- the problem related to the restriction of place of residence is solved;

- special programs are being developed and implemented to increase employment and social assistance to the unemployed.

The employed part of the population and the unemployed make up the economically active or working-age part of the population. The ratio of the economically active population to the total population, expressed as a percentage, is the economic activity rate.

An employed person is a person who works and receives income for his work.

An official unemployed person is a citizen of working age who does not have a job or income, is looking for work, is ready to start work and is registered with the employment service.

The unemployment rate, expressed as a percentage, is defined as the ratio of the number of unemployed to the total number of economically active population.

Unemployment comes in the following forms:

Frictional unemployment is the voluntary or involuntary loss of work for some time. People change jobs various reasons: due to a change of residence; because of studies; due to dismissal; due to a change of specialty, etc. Frictional unemployment is considered necessary and even desirable.

Structural unemployment exists due to a mismatch between the demand for labor and its supply.

Cyclical unemployment is associated with uneven development of the economy, from boom to bust.

Seasonal unemployment is temporary unemployment associated with a reduction and increase in production due to its seasonal nature.

Hidden unemployment refers to those who work part-time or, having an incomplete workload during the working day, perform work that requires a lower level of qualifications. This form of unemployment also includes persons who are unemployed and not registered with the employment service.

Long-term unemployment is typical for those who work from home.

Employment is considered full if there is only frictional and structural unemployment. The ratio of the number of frictional and structural unemployed to the total number of economically active population, expressed as a percentage, constitutes the natural rate of unemployment.

At the natural rate of unemployment, the number of unemployed job seekers, and the number of available jobs are equal. When the number of unemployed people looking for work exceeds the number of available jobs, then the actual unemployment rate in the country is higher than the natural rate. Otherwise, when the number of unemployed people looking for work is less than the number of available jobs, then the actual unemployment rate is lower than the natural one.

Table 1 shows the employment situation of workers in Russia.

Table 1

1). Based on materials from sample surveys of the population on employment issues: the results include data for the Chechen Republic: the average annual number of workers according to organizations and the number of unemployed registered with the state employment service, on average for the year.

2). According to Rostrud.

As we see from table. 1, the number of employed increases, and the number of unemployed decreases.

The presence of unemployment leads to a reduction in gross national production (GNP). According to Okun's law, a 1% increase in unemployment above the natural rate reduces GNP by 2.5%.

The presence of unemployed forces the employed to work more intensively and restrains their advocacy for higher wages.

A person who has lost his job loses his earnings and, consequently, the living conditions of both the worker and his family worsen significantly.

The unemployed changes social status in society.

When there is unemployment in a society, people lose confidence in their future, and their morale worsens.

As unemployment increases in society, the number of mental illnesses, suicides, general morbidity, drug addiction, etc. increases.

The causes of unemployment are defined differently by economists.

A. Smith associated the volume of employment with the average employee wage rate. An increase in an employee's wages leads to a reduction in employment and, conversely, a decrease in an employee's wages leads to an increase in employment. This is due to the fact that wages affect the increase and decrease of the population.

D. Ricardo believed that the size of the population is determined by the basic level of wages, which corresponds to the wages of which corresponds to the physiological minimum of the existence of the worker and his family. When wages are below the physiological minimum, this leads to a decrease in population. An increase in wages above the physiological minimum leads to a surplus of workers.

J.M. Keynes linked employment to effective demand. As total real income increases, total consumption also increases, but to a lesser extent compared to income growth. As a result of this, investment decreases. High loan interest rates also influence the decrease in investments.

Restraining investment means restraining the development of production, and therefore restraining the increase in employment. According to the teachings of J.M. Keynes, the state should promote the growth of investment.

K. Marx linked the presence of unemployment with the accumulation of capital, i.e. its increase. With the expansion and development of production, the organic structure of capital grows under the influence of scientific and technical progress. The growth of the total mass of capital is accompanied by an increase specific gravity constant capital and a reduction in the share of variable capital. Variable capital increases, but more slowly than constant capital. And this leads, according to K. Marx, to the formation of a reserve army of labor, i.e. unemployment.

Each form of unemployment has its own reasons for its formation. Thus, frictional unemployment is associated with a change of place of residence, study, etc., structural unemployment with scientific and technical progress, with the emergence of new specialties and the disappearance of old ones, seasonal unemployment is due to the seasonal nature of production. In general, employment is particularly influenced by the development of production using new technology new technologies, i.e. use in the production of scientific and technological progress.

The state plays an important role in influencing the labor market and reducing unemployment.

When influencing unemployment, it is necessary to take into account the existing inverse relationship between the unemployment rate and the information rate. Especially in the short term. This dependence was calculated by the English economist O. Philips. The Philips curve is shown in Fig. 1.

Rice. 1. Phillips curve

labor force regulation unemployment

As we see from Fig. 1, an increase in information leads to a decrease in unemployment, and an increase in unemployment leads to a decrease in inflation. This is because when aggregate demand increases through higher wages, the supply of labor increases, inflation increases, and unemployment decreases.

The Russian state influences the employed by adopting labor legislation, pursuing policies aimed at developing production and creating new jobs, implementing vocational training frames. The state provides social assistance to the unemployed.

Glossary

1. Unemployment is a socio-economic phenomenon in which part of the economically active population cannot use their labor force.

2. Gross national product (GNP) is the market value of all goods and services (excluding intermediate goods) produced during the year.

3. Reproduction of labor power - meeting the various needs of a person (as a carrier of labor power) and ensuring his life activity.

4. The economically active population is the part of the population that can engage in socially useful work and includes the employed and the unemployed.

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The labor market plays an important role in shaping the structure and employment of the total employee. It is integral integral part market economy systems.

The main directions of Ukraine's economic policy at the present stage provide for the formation, over a certain period of time, of a nationwide regulated effective labor market and an extensive, effective employment service.

Labor market is a socio-economic form of movement of labor resources, a special way of including labor in the economic system, characteristic of developed commodity-money relations. In a market economy, labor power acts as a commodity and in this it is similar to other goods; it can be economic assessment and optimization. The labor market is characterized by a system of relations between sellers (owners) of labor and its buyers, as well as the corresponding infrastructure.

The main subjects of the labor market are the employee and the employer. Each of them has its own social form and branched structure. The system of labor market subjects is supplemented by intermediaries.

The principles of functioning of the labor market are as follows:

1) every individual has the right and opportunity to freely sell his labor power on terms of employment at his own choice and desire and at a market price based on a contract between the employee and the employer;

2) the employer (entrepreneur, production team, state, etc.) decides for himself how many and what kind of workers he will hire;

3) jobs are created and regulated by the government no more than by other employers.

system labor relations, arising in the labor market, cannot be narrowed to the relationship of purchase and sale of labor. The essence of the labor market also reveals the way of connecting production factors, the balance of labor resources and jobs, the normal reproduction of the labor force, the regulation of migration processes of the population, including planned organized movements of labor, staff turnover, and unorganized migration.

Elements of the market infrastructure are the sphere of wage regulation (laws, regulations, agreements, collective agreements, arbitration bodies) and compensation (unemployment benefits, etc.), a network of cash registers and various funds, an employment and placement service, a system of career guidance, vocational training and retraining of labor resources, trade union organizations and employers' unions, etc. .

Only the labor market is able to determine the actual price of a worker’s abilities, the beneficial effect and the share of each participant labor process. It provides a person with economic freedom, the opportunity to choose not only the area of ​​employment, but also the way of life. Nevertheless, what this choice will be depends on many subjective and objective reasons, primarily on the person’s income and security, which is usually associated with the ownership of property.

Important functions of the labor market are ensuring the rationalization of production and employment, regulation and rational allocation of labor resources, coordination of economic interests in the system of social division of labor, etc.

The formation, functioning, and development of the labor market are subject to general laws and trends in the development of a market economy.

The nature of the commodity labor determines the interrelation of economic, social, political, natural-demographic, moral-ethical, psychological factors and processes that influence the dynamics of the labor market.

Among the features of the functioning of the commodity, labor force as a biosocial entity should be highlighted:

Flexibility, variability, adaptability (through consciousness and analysis) to the natural environment, ability to act and react;

Labor force is an active force, subject and object of the reproduction process, an element of the productive forces and the bearer of economic relations of production, the implementer of economic interests and needs;

The ability to self-realize, self-sell;

The ability to create surplus value rather than simply transfer part of its value;

The bearer of labor power is at the same time a consumer of goods;

The labor force product cannot be loaded and arbitrarily moved from one geographic location or region to another;

Over time, in the process of consuming a product, labor within certain limits increases its qualities as a use value;

Society cannot fully control the process of labor reproduction. The producer of his qualities is, first of all, the bearer of the labor force himself, as well as the state, the collective and other environmental societies;

The pricing process, indicators of elasticity of demand and supply of labor force goods have significant differences; the sale of labor cannot be postponed, waiting for more favorable economic conditions, since for the majority of the population this is the only source of ensuring their existence;

Such phenomena as stock, reserve, which are objectively necessary to ensure the continuity of the production process, always mean losses in relation to labor. Saved and unused labor resources are lost to society, since they can no longer be returned to production.

A developed market economy provides the opportunity to choose in various ways inclusion of a person in the management process. IN modern conditions functioning of the total worker the market makes relevant as social partnership, as well as a clear division in the sphere of employment of the rights and responsibilities of all social subjects-- society (represented by the state and its bodies), production teams (represented by managers and owner-entrepreneurs), individuals (represented by the employee).

Labor relations are constantly becoming more complex. There is a transformation of relationships based on the opposition of employer and employee, on the separation of executive work from management, into relationships based on joint responsibility for the state of affairs at the enterprise, partnership, and constructive cooperation.

A peculiarity of the development of the labor market in modern conditions is the contradictory interaction of the processes of its regulation and deregulation. The subjects of regulation are trade unions, associations of entrepreneurs, and the state. The key problem of employment regulation is achieving an optimal combination of high labor efficiency and reliable social guarantees in the event of unemployment. The condition for effective labor market regulation is the organization of operational study and analysis of the situation in the demand for labor and the supply of jobs on the part of the employer, as well as the orientation of the total employee when choosing the field of employment and place of work. An important tool here is the collective wage agreement, which determines the amount of wages, working hours, vacations, hiring and firing procedures, forms of risk compensation, a system of social benefits, etc.

One of the elements that stabilizes the position of an employee in the labor market is the state pension and social security system.

IN Lately V developed countries trends are becoming increasingly apparent deregulation of the labor market. The objective basis of this phenomenon are new manifestations scientific and technological progress, individualization of labor progress, differentiation of groups of workers.

Market deregulation occurs through the transition from labor legislation to individual labor agreements, from a sectoral collective agreement to the conclusion of an agreement at an enterprise, a contract system, the use of a part-time work week (day) or temporary work, fragmentation of tariffs, a reduction in the overall scope of workers’ rights, the transformation of a collective agreement on the hiring of labor into a so-called open agreement, which, under certain circumstances creates less favorable conditions for individual employees.

The relationship between regulation and deregulation of the labor market expresses the economic production relations of employees and entrepreneurs. This ratio is determined by both objective and subjective factors. The main one is the process of fundamental changes in the development of productive forces in the conditions of scientific and technological revolution, and among the second, the main one is the ratio of the organizational foundations of employees and entrepreneurs.

The general model of the functioning of the labor market is presented in Fig. 1

Rice. 1. Supply and demand on the labor market

Labor supply characterized by the number of persons requiring employment, i.e., seeking hired work, and is determined by the number of hours of working time that these labor force carriers agree to provide under conditions of a certain level of remuneration. It is formed due to three main sources: socio-demographic (graduates of various educational institutions, starting to work), social (those who did not work before, or those who were engaged in household work) and economic (released from various industries national economy). Liberation from production sectors occurs through the implementation of measures for the denationalization and privatization of economic facilities, the elimination of unprofitable jobs, the closure of enterprises in connection with reconstruction, destrengthening and repurposing, severance of contractual ties, lack of currency, raw materials, etc. The ratio of these factors varies depending on the situation. time and space.

The supply of labor is determined by the level of wages, the tax system, culture and religion, the authority of trade unions, etc. The scale and composition of the total labor force in the context of competition between those looking for work is constantly changing. Expanding the functions of employees, their rotation and interchange indicate Flexibility of the labor market, i.e. increasing its flexibility.

Flexibilization expresses the need of capital to vary the volume and conditions of use of labor. This is due both to the need for rapid retraining of workers and to the fact that they have a wide range of professional skills. Flexibilization of working time means the elimination of its regular, firmly established volume.

The technical revolution has made the flexible use of labor in all parts of the production process technically possible. The machine-man system becomes less rigid both in space and time.

The level and structure of labor supply are influenced by the size of unemployment benefits and other factors that are difficult to list. The supply of goods by labor has a discrete nature, due to the fact that its bearer consumer properties is an individual. This to a certain extent affects the trends in the functioning of the labor market in general.

Demand for labor-- this is the solvent need of employers for labor services of workers of certain professions and qualifications. The demand for labor, in addition to the needs of entrepreneurs, is determined by the aggregate demand in the economy and the technical equipment of production. The cost of wages for employees plays a more important role compared to the cost of purchasing equipment.

In a situation where the supply of labor exceeds the demand for it, a surplus of labor appears, i.e. unemployment.

A situation where the demand for labor is greater than its supply means a shortage, a shortage of labor with all its consequences.

The difference in the state of supply and demand for professional and qualification groups led to the division of the labor market into a number of segments, which differ primarily in the degree of availability of jobs and their reliability (Fig. 2).

Rice. 2. Main segments of the modern labor market

Two markets are formed. The first is a market for complex, skilled labor that ensures full employment. The main share in it belongs to representatives of new specialties and industries high technology. This workforce requires large capital investments, is characterized by functional flexibility, and differs relatively high degree security.

The second labor market is represented mainly by workers and employees of medium and low qualifications, workers in industries that have undergone structural restructuring, part-time workers, temporary workers, homeworkers, unemployed. In this market, flexibility is achieved mainly through quantitative fluctuations, causing precarious employment. According to estimates by the International Labor Organization, an average of 50 million people were part-time workers in industrialized countries in the 1980s. per year, which is 30 percent more than in the previous decade. This negative trend is also characteristic of the current state of economic development.

The process of labor force segmentation may continue, and its boundaries and internal content may also undergo changes.

The labor market has existed for centuries. Its essence has remained the same, however, the forms, institutional boundaries, and the mechanism by which it functions have undergone serious changes due to scientific and technological development, new capabilities of a particular state, entrepreneurs and workers themselves in the formation of the human personality.

Among the modern trends in the formation of the labor market in countries with developed economies, in addition to those mentioned, it is necessary to note the strengthening and complication of competition both among workers (for jobs with high pay, additional social guarantees, prospects for promotion) and among employers (for the most valuable personnel); the growing influence directly on it from entrepreneurship, small and medium-sized businesses; increasing the share (up to 1/3) of highly qualified personnel in the structure of labor resources, the duration of general education training; slowdown in the influx of the working-age population, its aging; complication of forms of labor activity and labor relations; strengthening the influence of complex (as opposed to narrow economic) factors on the labor market; the formation of labor markets within firms, which is accompanied by a decrease in discrimination based on gender, age or nationality with a simultaneous increase in differentiation, stratification of workers depending on their role in the development of the organization, inclusion in the process of innovation, etc.

The structure of the traditional working class is becoming more complex. Today, its elements include unskilled workers and lumpen strata, the traditional industrial proletariat, workers in technologically advanced sectors of material production and the “aristocracy” of the military-industrial complex, workers in the information sector of the economy - the “new labor aristocracy.”

Development of modern technological revolution, socialization production processes, the transformation of information into a dominant object of property, the main resource of production, embodying primarily the costs of intellectual labor, led to the emergence and spread of the information theory of value among Western researchers.

Today in the United States, for example, 55 percent of all employees work in the information sector of the economy. The main source of value is not the psychophysical efforts of the employee, but primarily his intellectual potential, knowledge and human experience.

The information theory of value reflects the deep processes in the structure of social labor; its dominant type is not divided into structures, but a creative worker acting in a holistic form, armed with intellectual and scientific knowledge. This leads to the development of trends to overcome the marketability of labor. While maintaining the form of a commodity, labor power simultaneously acquires a non-commodity expression according to its essential characteristics, which is determined by the gradual overcoming of the alienation from the worker of his individual ownership of personal labor power, the alienation of the surplus product from him, the alienation of the worker himself from participation in the management system.

This is a contradictory, ambiguous and lengthy process. The legal form of the act of hiring an employee is preserved. Nevertheless, certain signs of the purchase and sale of labor may be lost due to the transformation of alienation relations.

In the early 90s in Japan, up to 90 percent of the population belonged to formal legal owners, in the USA - up to 65 percent, in Great Britain 25 percent of the population owned shares, etc. This indicates that the socialization of capital based on its personification is replaced by socialization based on the depersonification of capital.

The formation of the labor market in Ukraine in the context of the transition to a market economy reflects global trends in the development of this process. The peculiarities of the socio-economic and political situation in the countries formed within the borders of the former USSR affect the state of the total worker. The situation on the labor market is complicated by an abnormal surge in migration processes as a consequence of the exacerbation of interethnic relations; conversion, army reduction, redeployment of military units; evacuation and resettlement of people from territories affected by the accident at the Chernobyl nuclear power plant; shutdown of enterprises due to disruption of production connections and interruptions in the supply of raw materials, energy, and components; the need to implement a broad program of privatization and denationalization of the economy in a short time.