I. Concept and features of labor market

Labor market - is primarily a system of social relations associated with buying and selling goods "labor." In addition, the labor market is the sphere of employment, demand and supply for labor. It can be interpreted as a mechanism for coordinating prices and conditions between employers and employees.

The peculiarity of the labor market is that it covers not only the sphere of circulation of goods "labor" but also in manufacturing, where the employee works. The relations here have raised important social and economic problems and therefore need special attention from the state.

In a market economy, labor market covers all willing to work: as employees and not employees hired labor. Among the unemployed are distinguished group of able-bodied people:

* people who do not work, but want to work and seeking work (unemployed, who have the appropriate status, individuals who have first started to work for, people who are looking after the occupation of interruptions);

* people who have jobs though, but not happy with it and looking for second primary or additional work;

* people who are busy, but clearly risks to lose jobs and so are looking for second job.

Specified categories of people and determine the supply of labor in the labor market.

Thus, the labor market - a market of hired labor. It covers relationships from the moment of hiring employees to work for their release.

For the origin, formation and functioning of the labor market required certain conditions. First of all, should be provided with legal conditions for operating this market, including the possibility of free movement on it citizens a free choice of work, freedom is a legal worker, the opportunity to dispose of their ability to work. But this is not enough because of the economic point of view, the owner of the labor force to sell it when it does not have everything you need for keeping their farms as sources for obtaining means of subsistence, or when income from other sources is insufficient.

Buyer commodity "labor" in the market is the entrepreneur who has everything necessary for running own business. In their work, entrepreneur attracts other workers for a monetary reward. Was exchanged individual's ability to work on livelihood necessary for the reproduction of the labor force but also by placing workers in the system of social division of labor of the country.

An important condition for the formation and functioning of the labor market is compliance officer job requirements, and offered a place - employee interests.

Market jobs as part of the labor market, reflecting the need in the workforce, primarily characterized by the number of vacancies in companies and organizations. At the same time take note of those vacancies as companies and organizations are already operating and those that only come into effect. In addition there are those workplaces where employees do not satisfy the employer, so he is looking for them a replacement.

The necessary conditions of functioning of the labor market is also organizing a single, closed across the country and an efficient system of labor exchanges, large-scale vocational guidance, vocational training, advanced training and retraining, the presence of local authorities the necessary financial and material resources sufficient for effective system of employment of public works, stimulating employment, social support of citizens, including the unemployed and families who are dependent on them, and others.

Elements of the labor market are: the product that it offers, demand, supply and price. In modern economic literature there is no unequivocal answer to the question, what constitutes a commodity in the labor market:

work force, work or service work? However, most authors tend to believe that commodity in the labor market is the individual labor.

Individual work force is a combination of physical and spiritual qualities of man, which are used in the production of goods and services.

Labor force, as noted, is the subject of sale. Shopping "labor" refers to employment. This is called labor hired labor, and the employee - an employee. A worker sells his labor for a businessman period, remaining the owner of the goods.

Elements of the labor market is also labor demand and the supply. Demand may be individual and aggregate.

Aggregate demand for labor - is the market demand by all companies and organizations represented on the market.

Individual demand for labor is a demand for a separate employer (entrepreneur, firm). It depends on:

* demand for the firm, because labor is needed as a productive resource for the production of other goods and services, labor demand depends on demand for the product companies, organizations;

* of production, in particular, features of the process, the size and efficiency of capital used, methods of production and labor, etc.;

* quality of work that determined the level of education, professionalism, productivity, employee;

* payroll, which can offer an employer to hire a certain number of employees, because the larger the overall size of the fund, the more employees an employer may hire, and vice versa, the higher the salary of each employee, the smaller number of them through the fund will pay hired.

Adjusting the demand for labor requires analysis of factors that affect it. Increased demand can be achieved by stimulating it through the creation of new permanent or temporary jobs, the development of non-standard forms of employment, direct investment in the creation and renovation jobs. Demand growth also contributes to: the introduction of preferential taxation and credit to those sectors and regions, which should increase the number of jobs, the use of direct payments to businesses for each employee hired, the company refunds the costs associated with finding, training and hiring employees.

At the same time must be set certain legal restrictions on employment growth, including by enabling individual adjustment of working hours, the removal of restrictions to reduce the number of employees, the possibility of their release in case of reducing the amount of work.

Formation of labor demand is influenced by such factors: the size of labor force growth, the ratio of the employed and unemployed population, the use of small competitive groups, features pension legislation, and personnel policies of each company.

Labor supply characterizes the number of able-bodied people with their sex, age, education, occupation, education and others.

'Market - a demand and supply of labor at present, which determines salary rates for specific types of work and employment.

There are three types of conditions:

* when the labor market there is a lack of labor supply;

* when there are large numbers of unemployed and under oversupply of labor;

* equilibrium when the demand for labor meets the supply.

Each type of market conditions peculiar to a region or area of applying labor, forming together the overall labor market in the country.

The ratio of labor demand and the supply is influenced by specific economic and socio-political situation, changes in price of labor (wages), the level of real incomes. The dependence of these quantities are graphically depicted in Fig. 1.

From this figure shows that as far as reducing real wages (labor) demand for labor by employers and employment grow accordingly. Growth in real wages accompanied by an increase labor supply. At the point of intersection of these curves of demand and labor supply coincide, there is equilibrium in the labor market. If the price of labor higher than the equilibrium, there is unemployment, if lower - shortage of workers.

In practice the overall structure and balance demand and supply of labor is practically inaccessible. Labor market directly affect the price of labor.

Price workforce acquisition should provide the market as many consumer goods and services, employee to:

* support its work and obtain the necessary professional qualification training;

* maintain a family and raise children, without which the labor market will not be able to grow new labor force instead of the one who leaves;

* maintain a normal environment for their level of culture and civil society to fulfill a duty, which is also expensive.

Cost of the labor force is in the form of wages. Note that the high wage limits the entrepreneur in hiring additional staff, reducing demand for them, and vice versa, low wages makes it possible to increase the number of jobs.

Under certain conditions, curves of demand and supply of labor can not cross. This occurs when employees require a salary on which employers do not agree, and the last offer such fees, which are not satisfied with the workers. This situation is quite rare and only applies to certain professions. Overall, employers and workers can not do one without the other.

The difference in the ratio of supply and demand for vocational qualifications, sectoral and gender and age groups has led to the division of the labor market in a number of segments, different degrees of first jobs and their reliability.

Labour market performs the following functions:

* harmonize the economic interests of the subjects of labor relations;

* provides a competitive environment each side of the market interaction;

* ensures the proportionality of the distribution of labor according to the structure of social needs and development of technology;

* maintains a balance between the demand for labor and its supply;

* forms a pool of human resources to ensure the normal process of social reproduction;

* promotes optimal professional and qualification structure;

* stimulates the work establishes equilibrium rate of salary;

* effect on conditions of employment of personal potential;

* gives information about the structure of demand and supply capacity, market conditions and more.

In a market economy any imbalances in production lead to a breach of the proportions of the labor market, ie the ratio between the total value of labor demand and supply of, demand for labor and its supply to industries, regions, the ratio between the demand for some professions, specialties and supply. It should be noted that in order to labor market operated efficiently, you must provide certain additional conditions. For example, the country must be sufficiently developed housing market. Those who want to change jobs and move to another city should be able to sell and buy a home. As in other markets, demand for hired labor is greater than the proposal that employers had to compete among themselves.

Among the current trends of the labor market in countries with developed market economies, but these should include: increased competition and complications among workers (for jobs with high pay, additional social guarantees, the prospect of promotion), and among employers ( the most valuable staff) to increase the share of one third of highly qualified manpower in the structure, length of schooling, slowing the inflow of the working population and its aging complications Forms employment and labor relations, etc..

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