• Unemployed population. Economically active population. Structure and forms of unemployment

    10.01.2024

    In a market economy there is a tendency towards economic instability, which is expressed in its cyclical development, unemployment, and inflationary rise in prices.

    Unemployment is a macroeconomic problem that has the most direct and severe impact on every individual. Losing a job for most people means a decrease in their standard of living and carries serious psychological trauma. It is therefore not surprising that the problem of unemployment is often the subject of political debate. Many politicians use the so-called “poverty index,” which is the sum of unemployment and inflation rates, to assess the state of the economy or the success of economic policies.

    Unemployment means inability to find a job . Unemployment is a socio-economic phenomenon when part of the economically active population does not find work and becomes a surplus population. According to the International Labor Organization, unemployed This is a person who wants to work, can work, but does not have a job.

    To determine the number of unemployed in each country, it is necessary to divide the entire population into groups according to the degree of their labor activity. First, all individuals are divided into two groups:

    1. Economically inactive population - residents of a country who are not part of the labor force. This includes:

    a) pupils and students of full-time educational institutions;

    b) pensioners (for old age and other reasons);

    c) persons running a household (including those caring for children, the sick, etc.);

    d) desperate to find a job;

    e) persons who do not need to work (regardless of the source of their income).

    2. Economically active population (Ea)– part of able-bodied citizens that offers labor for the production of goods and services.

    Then it is determined level of economic activity of the population (Va)– share of the number of economically active people in the total population (CN):

    Ua = Ea / Chn.

    In turn, the economically active population is divided into two groups:

    1.Busy (E)– persons aged 16 years and older (as well as persons of younger ages) who:

    a) are employed for remuneration (full-time or part-time);

    b) work without pay in family enterprises.

    2. Unemployed (U) – persons 16 years of age and older who:

    a) do not have a job (gainful occupation);

    b) are looking for work (contacted employment services, etc.);

    c) ready to start work;

    d) are trained in the direction of the state employment service.

    Based on data on employment (3) and unemployment, the unemployment rate is determined.

    Unemployment rate(Ub) – the share of the number of unemployed (U) in the economically active population (Ea):

    Due to the different lengths of the period of unemployment, 3 types of unemployment are distinguished:

    1) friction;

    2) structural;

    3) cyclical.

    Frictional unemployment means short periods of unemployment necessary to find a job that matches the employee’s qualifications. These periods are voluntary.

    This type of unemployment brings together people who are either unemployed due to a transition from one job to another, or have already found a job and are planning to start it soon, as well as workers in industries with a seasonal nature (agriculture, construction).

    A certain period of time is required to establish a match between the structure and workforce and available jobs. The labor market equilibrium model assumes an exact correspondence between the qualities of workers and available jobs, i.e. assumes that any worker is equally suitable for any job. If this were actually the case, and the labor market were in equilibrium, then job loss would not lead to unemployment.

    However, in fact, workers have different inclinations and abilities, and each specific workplace has certain professional requirements. In addition, the system for disseminating information about job applicants and vacancies is imperfect, and the geographical movement of workers cannot occur instantly. Finding a suitable workplace requires some time and effort.

    A certain level of frictional unemployment is inevitable in a constantly changing market economy.

    Structural unemployment. This term refers to a situation in which a worker remains unemployed for extended periods. These periods are explained by structural shifts in the economy that devalue the skill levels of certain categories of the workforce.

    The demand for various goods fluctuates, which in turn causes the demand for the labor of the workers who produce those goods to fluctuate (for example, the introduction of personal computers reduced the demand for typewriters, which in turn reduced the demand for labor in typewriter factories). Further, since different regions produce different goods, the demand for labor may simultaneously increase in one part of the country and decrease in another. Such changes in the structure of labor demand by industry and region are called structural shifts.

    Unemployment of frictional and structural types exists in both prosperous and unfavorable periods. The total number of unemployed people of both types is called natural rate of unemployment , this level corresponds to the situation of macroeconomic equilibrium.

    The modern name for this indicator is the non-inflation-accelerating unemployment rate.

    The natural rate of unemployment increases over time. If in the early 1960s. it accounted for 4% of the labor force, now it is 5.5 - 6.5% of the total labor force. The reason for the increase in the natural rate of unemployment is an increase in the duration of the job search, which may be due to:

    An increase in unemployment benefits;

    Increasing the time for payment of unemployment benefits;

    An increase in the share of women in the labor force;

    Increasing the share of young people in the labor market.

    The first two factors provide the opportunity to search for work over a longer period of time. The third and fourth factors, which mean a change in the gender and age structure of the labor force, increase the number of people who have entered the labor market for the first time or are looking for work, and therefore the number of unemployed, increase competition in the labor market and lengthen the period of job search.

    Full employment is compatible with the natural rate of unemployment. The amount of output that can be produced under full employment is expressed by production potential of the economy.

    Cyclical unemployment - uh then unemployment caused by a cyclical contraction of production. The difference between the actual value of the unemployment rate and the value of the natural rate is called cyclical unemployment.

    The development of a cyclical form of unemployment leads to its actual level exceeding the natural one. The economic price of this excess is expressed in the gap between the actual volume of GNP and its potential value.

    The following types of unemployment are also distinguished:

    1) seasonal;

    2) voluntary (unemployment caused by the fact that part of the labor force does not want to work for a wage rate that is low compared to unemployment benefits and social benefits);

    3) part-time (shortened working hours);

    4) marginal (unemployment of weakly protected segments of the population: youth, women, disabled people);

    5) hidden unemployment (in a market economy) - the presence of people who want to work, but are not registered as unemployed. Hidden unemployment is partly represented by people who have stopped looking for work;

    6) hidden unemployment (in a command economy) - the presence of excess workers with simultaneous low labor productivity;

    7) economic (unemployment caused by market conditions:
    curtailment of unprofitable production under the influence of the bankruptcy law; the government's reluctance to support unprofitable industries and enterprises, etc.);

    8) institutional - unemployment generated by labor market institutions and factors influencing the demand and supply of labor (imperfect tax system, the introduction of a guaranteed minimum wage, inertia of the labor market, imperfect information about available jobs);

    9) classical (unemployment resulting from a wage rate that is too high compared to the rate that would balance the demand for labor and its supply);

    10) technological unemployment (associated with the introduction of sparsely populated and uninhabited technology based on electronic technology).

    An unemployed person in the United States is a person over 16 years of age who is not working but has been actively seeking work for 4 months or expecting to return to work within 4 weeks.

    The population is classified as employed, unemployed, or temporarily unemployed according to a monthly survey of 50,000 households conducted by the U.S. Bureau of Labor Statistics. People are defined as employed if they work full-time, part-time, or are absent from work due to holidays, strikes or personal reasons. Persons who are willing to work but are not actively looking for work are not counted as unemployed, but are considered temporarily unemployed.

    One of the most acute and negative socio-economic phenomena is unemployment. A situation in which a significant part of the working-age population is looking for, but cannot find, work is fraught with a number of serious consequences. Politically and socially, this is a great stress for society, leading to increased discontent among the people. From an economic point of view, unemployment indicates ineffective and incomplete use of labor and production resources. But despite all this, it is impossible to completely get rid of unemployment; a certain natural level will always remain.

    The concept of unemployment and economically active population

    (unemployment) – the presence in the country of a part of the economically active population that is willing and able to work, but cannot find work.

    Economically active population- residents of the country who have an independent source of livelihood, or wish and potentially can have it.

    • employed (employees, entrepreneurs);
    • unemployed.

    A synonym for the concept of economically active population is the term - work force (labor power).

    Unemployed- a person aged 10-72 years according to the ILO definition (in Russia aged 15-72 years according to the Rosstat methodology), who at the date of the study:

    • didn't have a job;
    • but looked for her;
    • and was ready to start it.

    Indicators of unemployment rate and duration

    One of the most important indicators characterizing the phenomenon of unemployment is its level and duration.

    Unemployment rate– the share of unemployed in the total economically active population of a certain age group.

    where: u – unemployment rate;

    U – number of unemployed;

    L – number of economically active population.

    An important concept is the natural level of unemployment, “natural” because even under the most favorable economic conditions there will be a small but certain percentage of the unemployed. These are people who can, but do not want to work (for example, they have profitable investments and live on interest, like rante).

    Natural rate of unemployment– the level of unemployment while ensuring full employment of the labor force.

    That is, this is the percentage of unemployed in a situation where everyone who wants to work can find a job. This can be achieved subject to the most rational and efficient use of labor.

    Full employment of the economically active population presupposes the presence of only structural and frictional unemployment in the country. Therefore, the natural rate of unemployment can be calculated as their sum:

    where: u * – natural rate of unemployment;

    u friction – level of frictional unemployment;

    u str. – level of structural unemployment;

    U friction – the number of frictional unemployed;

    U str. – number of structural unemployed;

    L – size of the labor force (economically active population).

    Duration of unemployment– the period during which a person is looking for and cannot find a job (that is, he is unemployed).

    Frictional, structural, cyclical and other forms of unemployment

    The following are the most important forms of unemployment :

    1. Friction– unemployment caused by the employee’s voluntary search for a new, better place of work.

    In this case, the employee deliberately quits his previous workplace and looks for another one, with working conditions that are more attractive to him.

    2. Structural– unemployment caused by changes in the structure of demand for labor, resulting in a discrepancy between the requirements for applicants for available jobs and the qualifications of the unemployed.

    The reasons for structural unemployment can be: the elimination of obsolete professions, changes in production technology, large-scale restructuring of the entire economic system of the state.

    There are two types of structural unemployment:

    • destructive- with negative consequences;
    • stimulating- encouraging employees to improve their skills, retrain for more modern and in-demand professions, etc.

    3. Cyclic– unemployment caused by a decline in production during the corresponding

    In addition, there are other types of unemployment :

    a) voluntary– caused by people’s reluctance to work, for example, when wages decrease.

    Voluntary unemployment is especially high during the peak or boom phase of the economy. When the economy declines, its level decreases.

    b) forced(expectation unemployment) - appears when people can and agree to work at a given wage level, but they cannot find work.

    The reason for involuntary unemployment, for example, may be the inflexibility of the labor market in relation to wages (the struggle of trade unions for high wages, the establishment of a minimum wage by the state). Some workers are ready to work for a small salary, but the employer simply cannot accommodate them under such conditions. Therefore, he will hire fewer workers, more qualified and at a higher salary.

    c) seasonal– unemployment is typical for some sectors of the economy, where the need for labor depends on the time of year (season).

    For example, in the agricultural industry during sowing or harvesting.

    d) technological– unemployment caused by mechanization and automation of production, as a result of which the productivity of ore increases sharply and fewer jobs with a higher level of qualification are required.

    e) registered– unemployment, characterizing the unemployed economically active population officially registered in this capacity.

    e) hidden– unemployment that actually exists, but is not officially recognized.

    An example of hidden unemployment can be the presence of people who are formally employed, but are not actually working (during a recession, many production facilities are idle and the labor force is not fully employed). Or these could be people who want to work, but are not registered with the labor exchange.

    g) marginal– unemployment of weakly protected social groups (women, youth, disabled people).

    h) unstable– unemployment caused by temporary reasons.

    For example, layoffs in seasonal sectors of the economy after the end of the “hot” season or people voluntarily changing their jobs.

    i) institutional- unemployment provoked by the intervention of trade unions or the state in establishing the level of wages, which as a result becomes different from what could have been formed naturally.

    Causes and consequences of unemployment

    There are many factors that can initiate an increase in unemployment. The following main ones can be identified reasons for unemployment:

    1. Structural improvements in the economy– the emergence and implementation of new technologies and equipment can lead to a reduction in jobs (machines “displace” humans).

    2. Seasonal variations– temporary changes in the level of production and provision of services (and, accordingly, the number of jobs) in certain industries.

    3. The cyclical nature of the economy– during a recession or crisis, the need for resources, including labor, decreases.

    4. Demographic changes– in particular, the growth of the working-age population can lead to the fact that the demand for jobs will grow faster than their supply, which will lead to unemployment.

    5. Remuneration policy– measures by the state, trade unions or company management to increase the minimum wage may cause an increase in production costs and a decrease in the need for labor.

    The situation when the working-age population cannot find work is not harmless, and there may be serious consequences of unemployment:

    1. Economic consequences:

    • reduction in federal budget revenues - the higher unemployment, the lower tax revenues (in particular from);
    • increased costs for society - society, represented by the state, bears the burden of supporting the unemployed: payment of benefits, financing of professional retraining of the unemployed, etc.;
    • decreased standard of living – people who become unemployed and their families lose personal income and their quality of life decreases;
    • lost output - as a result of underutilization of the labor force, there may be a lag in actual GDP from potential.

    Okun's Law Show

    Okun's Law (Okun's law) - named after the American economist Arthur Melvin Okun.

    It says: an excess of the unemployment rate over the level of natural unemployment by 1% causes a decrease in real GDP relative to the level of potential GDP by 2.5% (derived for the USA in the 1960s; today the numerical values ​​may be different for other countries).

    where: Y - actual GDP;

    Y * - potential GDP,

    u cycle. - level of cyclical unemployment;

    β is the empirical sensitivity coefficient (usually assumed to be 2.5). Each economy (country), depending on the period, will have its own value of the coefficient β.

    2. Non-economic consequences:

    • worsening crime situation - more thefts, robberies, etc.;
    • stress load on society - loss of a job, a major personal tragedy for a person, severe psychological stress;
    • political and social unrest - mass unemployment can cause an acute social reaction (rallies, strikes, pogroms) and lead to violent political changes.

    Galyautdinov R.R.


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    The country's labor resources are formed primarily from the working-age population.

    Of the total number working age population(women - 16-54, men - 16-59 years old) amounted to 4447.0 thousand people in 1959; in 1979 – 5546.4; in 1989 – 5685.0; in 1999 – 5752.1; in 2000 – 5809.3; in 2001 – 5872.4; at the beginning of 2002 – 5918.0 thousand people. However, not all of the working age population is able to work. The exception is non-working war and labor invalids of groups 1 and 2; men 50–59 years old and women 45–54 years old receiving pensions on preferential terms.

    Towards the working population of working age includes all persons 16–59 years old (16–54 for women) with the exception of non-working labor and war invalids of the 1st and 2nd groups, as well as men (50–59 years old) and women (45–54 years old) receiving pensions on preferential terms.

    Working population- this is a set of persons, mainly of working age (16–54 for women, 16–59 for men), who, according to their psychophysiological data, are capable of participating in the labor process. The working-age population is a narrower concept compared to the concept " working age population" since the latter includes both able-bodied and disabled persons of working age.

    As part of the working population based on gender distinguish predominantly female or male populations. In areas of predominance of industries with predominantly male labor, as a rule, there is an unemployed female working population (for example, the mining industry in Soligorsk). And vice versa, the predominance of female labor (at the Orsha flax mill) raises the problem of a shortage of male population. This problem is demographic and social at the same time, because it creates difficulties in creating and strengthening a family, leads to a decrease in marriage and birth rates, an increase in the divorce rate, and increases staff turnover, which reduces their qualifications.

    By degree of economic activity distinguish between the economically active and economically inactive parts of the working population.

    in our country, this is the part of the population that provides its labor for the production of goods and services. The economically active population includes the entire employed population, the unemployed and women on maternity and child care leave.

    To the economically inactive population of working age include students and students, persons engaged in housekeeping, caring for children, sick relatives, and other persons not engaged in economic activities, as well as military personnel.

    The share of the economically active population calculated for certain age groups is called labor activity of the population. The economically active population in the republic was: in 1990 - 5150.8 thousand people; in 1995 – 4524.2; in 1999 – 4542.0; in 2000 – 4537.0; in 2001 – 4537 thousand people; the economically inactive population was 1324.5 in 1995; in 2000 – 1467.6 thousand people; in 2001 – 1560 (Table 2).

    table 2

    Economically active population

    Economically active population Thousand Human As a percentage of the economically active population
    1995 2001 1995 2001
    Total 4524,2
    Men 2147,5 47,5 47,1
    Women 2376,7 52,5 52,9
    Of the total economically active population
    Busy- Total 4409,6 97,5 97,7
    Men 2105,7 46,6 46,1
    Women 2303,9 50,9 51,6
    Unemployed- Total 114,6 2,5 2,3
    Men 41,8 0,9 1,0
    Women 72,8 1,6 1,3

    By degree of employment The working-age population is divided into the working (or employed) able-bodied population and the non-working (unemployed) population. The employed population of the Republic of Belarus amounted to 4410 thousand people in 1995, and 4441 in 2000; in 2001 – 4435, which is 97.5%, respectively; 97.9%; 97.7% in relation to the economically active population. As a result, the main issue in labor resource management is the question of “what and how the employed population is employed.”

    The number of unemployed in 1995 was 114.6 thousand people; in 1999 – 100.0; in 2000 – 96.0; in 2001 – 102 thousand people, which amounted to 2.5 percent of the economically active population; 2.2; 2.1 and 2.3%.

    In other words, the economically active population is the part of the population employed in the country’s economy, including those employed in personal farming, i.e. the vast majority of the working population. In accordance with UN recommendations The economically active population includes not only actually working people, but also unemployed people looking for paid work.

    Economically active population combines:

    1) the entire working population of working age, with the exception of off-duty students serving in the Armed Forces;

    2) persons who are beyond working age, but employed in social production;

    3) persons employed in subsidiary, cooperative and household, personal farming.

    In foreign publications The concept of economically active population is similar to the concept of labor force. In Russian literature, labor is a qualitative characteristic expressing the ability to work, a special kind of product.

    Within the economically active population, labor statistics highlight the concept industrial population(as a set of people employed in industry and construction) and the agrarian (or agricultural) population. In accordance with this, there are concepts: industrial country (for example, Belarus); agricultural country (for example, Bulgaria).

    Thus, the concept of the working-age population does not coincide with the concept of labor resources, since the latter includes not only the working and non-working able-bodied population, but also the working disabled population.

    Table 3

    Labor resources of the Republic of Belarus (thousand people)

    At the same time, not only the able-bodied population is engaged in labor. In addition to the working population of working age, two groups of the population beyond working age are involved in work in our society: the working population under working age (up to 16 years) and the working population older than working age (men 60 years and older, women 55 years and older) . Persons of the last age groups (disabled by age, but employed) are included in the labor force.

    Unemployed population

    The unemployed include persons over 16 years of age who did not have a job (gainful occupation) during the period under review, were ready to start work and tried to find it, that is, they contacted a state or commercial employment service, used the services of the media, used personal connections , tried to organize their own business, etc.

    The following persons are distinguished among the unemployed:

    • - unemployed;
    • - registered with the Employment Service as job seekers;
    • - recognized as unemployed.

    The total number of unemployed is directly determined only by the sample survey method. Its results are then used to indirectly estimate this indicator using data on registered unemployment

    The main relative indicators of labor statistics are:

    • - the level of economic activity, defined as the share of the economically active population in the corresponding population group, distinguished primarily by age and gender;
    • - unemployment rate, determined by their share in the economically active population;
    • - duration of unemployment - the period of time during which a person is looking for work from the moment the search begins until its successful completion or until the moment of observation.

    Classification of the active population

    The classification of the population by employment status, which is in effect in Russian statistics, is fully consistent with the International Classification of Employment Status. Only the economically active population, that is, employed and unemployed, is classified by employment status.

    In essence, the social position of an individual in society is determined by employment status. The main criterion is the degree of economic risk, an element of which is the type of relationship of a person vested with certain powers with other employees or enterprises.

    Groups by status in employment are determined taking into account the difference between work for hire, on the one hand, and work in one's own enterprise (self-employment), on the other.

    Work for hire is a type of labor activity in which an employment contract is concluded that guarantees the person performing the work for hire a remuneration that does not directly depend on the income of the enterprise or organization. At the same time, fixed assets and assets are the property of other persons.

    Working in your own enterprise is a type of work activity in which remuneration directly depends on the income received from the production of goods and services. Persons engaged in such activities make management decisions or delegate their adoption to other persons, while retaining responsibility for the activities of the enterprise.

    Classification of the population by employment status includes the following groups:

    • - Employers are persons who constantly work in their own private enterprise, and persons engaged in professional activities or crafts on an independent basis and constantly using the labor of hired workers.
    • - Persons working on an individual basis are persons who independently or with one or more partners carry out income-generating activities and do not use hired labor on a permanent basis.
    • - Unpaid family workers are people who work without pay in a private family business owned by a relative.
    • - Members of collective enterprises are persons who work in collective enterprises and are members of the collective owners of this enterprise. Each member of a collective enterprise has equal rights with other members when resolving issues of production, sales, etc.
    • - Persons unclassifiable by employment status are persons for whom there is insufficient information available to classify them into one of the categories listed above.

    § 3 Unemployment and employment

    Now consider changes in the field of employment of the labor force, expressing the transition from one opposite to another: from unemployment to employment, and vice versa.

    Who is unemployed

    One of the disasters of the modern economy is mass unemployment. To understand its reasons, let’s define the concept of “unemployed”. To do this, it is important to know the socio-economic structure of the population.

    Perhaps some students will rush to classify the unemployed as the economically inactive population. But this is not true.

    Economically inactive population – these are residents of the country who are not part of the labor force (working population ready to work).

    Economically active population – part of able-bodied citizens that offers labor for the production of goods and services.

    To indicate the place of the unemployed in the population structure, it is necessary to divide it into two large groups (according to the classification adopted by the International Labor Organization): the economically inactive population and the economically active population.

    Based on this structure of the country’s inhabitants, it is determined level of economic activity of the population– the share of the number of economically active people in the total population. This level is calculated using the formula:

    where U a is the level of the economically active population; N – population size; E a – the number of economically active population.

    As can be seen from table. 12.5, in Russia in 2002 the level of economically active population was 50%.

    In turn, the economically active population is divided into two groups:

    1) busy– persons aged 16 years and older (as well as persons of younger ages) who:

    a) work for hire for remuneration;

    b) work without pay in family enterprises;

    2) unemployed.

    Unemployed- this is a person who can work, wants to work, but does not have a job.

    Table 12.5

    Economically active population

    The economically inactive population includes:

    a) pupils and students of full-time educational institutions engaged only in studies;

    b) pensioners (for old age and other reasons) who are not looking for work;

    c) persons running a household (including those caring for children, the sick, etc.);

    d) those who cannot find work;

    e) persons who do not need to work (regardless of the source of their income).

    Based on data on employment (3) and unemployment, the unemployment rate is determined. Unemployment rate(Ub) – the share of the number of unemployed (B) in the economically active population (E a). This level is determined by the formula:

    When determining the unemployment rate, the number of unemployed people registered with the employment service is often taken into account. But not all people who need work are registered with these bodies. Therefore, the actual number of unemployed significantly exceeds the level of officially registered unemployment. Such a discrepancy in indicators does not allow us to establish the degree of social danger of unemployment.

    Maximum permissible The unemployment rate is generally considered to be 7–8%. While in some countries the unemployment rate is relatively low, in others it significantly exceeds the threshold value of this important indicator (Table 12.6).

    To understand what unemployment is, it is important to identify its causes.

    In accordance with the definition of the International Labor Organization, the unemployed include persons at the age established for measuring the economic activity of the population, who during the period under review simultaneously satisfy the following indicators?

    a) did not have a job (gainful occupation);

    b) were looking for work;

    c) were ready to start work within a certain period of time.

    Pupils, students, pensioners and disabled people are recognized as unemployed if they are eager to find work and are ready to start work.

    A fixed-term employment contract (for a period of no more than 5 years) can be concluded with persons studying full-time.

    Labor Code of the Russian Federation (adopted in December 2001), Article 59.

    Table 12.6

    Unemployment rate as a percentage of the total economically active population in 2002.

    Why do “extra people” appear?

    At the present stage of production development, the scientific and technological revolution has led to the emergence of new forms of unemployment:

    technological unemployment associated with the introduction of modern technologies based on electronic equipment. For example, if currently 40 highly qualified typographic workers can type approximately 170 thousand characters per hour, then with the help of computer technology 10 people can type about 1 million characters in the same time, as a result of which technological unemployment increases 20 times;

    structural unemployment caused by the movement of production from one region to another, the decline of old industries and the emergence of new ones. In this case, workers not only lose their jobs, but also lose their profession;

    Western economists talk about the existence functional unemployment. Here we mean unemployment associated with temporary difficulties in employment - waiting for work by people who are seeking to change jobs or professions. These apparently include those who voluntarily leave their previous place of work and look for another; those who temporarily lose their seasonal jobs, or young people choosing a place where they can earn more. Such people need time to find suitable vacancies, acquire qualifications or move to another location.

    The unemployed registered with the state employment service include persons of working age who do not have a job, are looking for work and, in the prescribed manner, have received the official status (legal status) of the unemployed in the state employment service. In 2002, the number of unemployed people registered with employment agencies in our country was 1,306 thousand people. However, according to the materials of sample surveys of the population on employment problems, 6153 thousand people were unemployed.

    Whatever the reason for the appearance of “extra people,” in all cases unemployment causes great damage to the quality of the labor force. Knowledge and work skills are being lost, which has been called the “rusting” of human capital. In addition, losing a job is a psychological stress comparable only to the death of a close relative or imprisonment. American researchers have found that a year of unemployment takes away 5 years of a person’s life. The severe social consequences of unemployment are also known: an increase in drug addiction, crime and an increase in the number of suicides.

    Is full employment achievable in society?

    In many countries, the main socio-economic objective is to increase labor force participation.

    To do this, it is first of all important to know how to determine full employment of the labor force. On a national scale full employment assumes equality the number of working-age population and the number of jobs needed.

    Now let's try to imagine that all jobs are constantly fully occupied. Is it good or bad?

    This is probably good for those who are completely satisfied with the work in their chosen profession.

    But can, say, other people who are still studying at an educational institution or want to change their profession be satisfied? Probably not: there will be no jobs for them.

    This means that it would be wrong to imagine full employment as some kind of unchanged state in people’s employment over decades. In fact, employment changes almost continuously under the influence of many factors. These include, in particular:

    Dynamics of the country's population;

    Progress of technology and technology in all sectors of the national economy;

    Changes in the structure of the macroeconomy;

    Changes in international relations;

    Changes in the professional structure and skill level of the workforce;

    Fluctuations in the number of students studying in secondary vocational and higher educational institutions.

    Naturally, it is necessary forecasting employment of the country's population for a long period, taking into account all changing conditions and factors. Such forecasting serves as the basis for effective public employment policy.

    In a rule-of-law state there is a system social guarantees to ensure the economic security of workers.

    The first element of such a system is employment regulation. Many states are taking the following actions:

    Reduce legally established working hours during periods of mass unemployment;

    Employees of the public sector of the economy who have not served 2-3 years before retirement are dismissed early;

    Create new jobs and organize public works (in the field of infrastructure - for the construction of high-quality roads, etc.), especially for the permanently unemployed and young people;

    They reduce the supply of labor in the labor market: they limit immigration (entry into the country) for those who want to work and stimulate the repatriation (return to their homeland) of foreigners, etc.

    Another element of the system under consideration is labor exchanges, created in the first half of the 19th century. Labor exchanges are, as a rule, government agencies that act as intermediaries between entrepreneurs and workers in hiring. They keep records and find jobs for the unemployed, help them acquire a new profession, study the state of the labor market and provide information about it, and help with vocational guidance for young people. However, job referrals issued by exchanges are not mandatory for entrepreneurs, who often prefer to act through their own HR departments. Refusal of an exchange offer usually results in loss of unemployment benefits.

    But the state is unlikely to be able to provide full employment throughout society. For such an indicator largely depends on the subjective characteristics - will and desire - of individuals. It is important to take into account that in a state governed by the rule of law, forced labor is prohibited; every citizen has the right to freely dispose of his or her ability to work.

    Full employment can be achieved by: a) finding employment through the state employment service and b) active search by the unemployed for a new job.

    Regulation of the contradictory relationship between “unemployment and employment” is directly related to changes in the amount of money that the overwhelming majority of the population receives in the form of wages, and therefore, to the state of money circulation.

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