Risnyy O. System priorities of labor market regulation of Ukraine in the conditions of European integration

Українська версія

Thesis for the degree of Doctor of Philosophy (PhD)

State registration number

0821U101856

Applicant for

Specialization

  • 051 - Соціальні та поведінкові науки. Економіка

08-06-2021

Specialized Academic Board

ДФ 47.104.005

National University of Water and Environmental Engineering

Essay

Based on the analysis of the process of European integration of Eastern Europe, the main challenges are systematized, threats and new opportunities for transformation with effective public policy are demonstrated, the labor market parity indicator is proposed, including in dynamics, as a correlation between average annual income and employment level. The impact of robotics and automation on the labor markets of the future is assessed, the approaches in solving the problems of providing the population with employment and income are demonstrated, the forecasts on the professions with the greatest threat of extinction and the newest professions of the future are highlighted. The main priorities for adapting public funds to new challenges are proposed. Based on the analysis of the survey of PES clients during 2013-20, a significant level of territorial mobility of the population and readiness for external labor migration was demonstrated (22-26%), a much higher percentage of readiness to continue looking for work in Ukraine (64-72%) or to start own business (23-29%), however, subject to state support, training or change of profession. Mechanisms for reducing the negative components of labor migration, the use of positive opportunities opened up using the EURES vacancy exchange system with the participation of the PES are demonstrated. Emphasis is placed on the advantages of the legalized interstate labor market in terms of providing legal and social protection, reducing government spending on social security, opening new opportunities for re-emigration and more. Based on the study of the norms of the Council of Europe, the International Labor Organization and the European Union, the main international standards of institutional regulation of the labor market are systematized. The standards of material support in case of unemployment as a tool of effective influence on labor markets are analyzed and generalized. It is necessary to provide the minimum necessary to cover the cost of basic living needs and, at the same time, not to reduce incentives for employment. It has been shown that in Ukraine more than 75% of the PES budget is spent on unemployment benefits and only 5% on active programs. A comparative analysis with the practice of Poland, Latvia and Estonia showed much more liberal domestic approaches to the payment of unemployment benefits. In the ratio of unemployment benefits and wages in Ukraine and Poland, there is a motivational component to employment in Poland and the lack of such in Ukraine. In Ukraine, more than 75% of unemployment benefits are paid in excess of the minimum wage, which does not provide motivation for employment. Violation of the principle of justice in the appointment of social assistance in the maximum amount is highlighted. It is essentially subsidized and is the monetary equivalent of paying the relevant social contributions for 20-25 years, and can be appointed after six months of service. A mechanism for releasing up to 30% of the funds for active programs by reducing the maximum amount of assistance, changing the conditions for its re-receipt, reducing the duration of payment, increasing the base of deductions for calculation, changing approaches to appropriate work. A balanced unemployment policy has been proposed as a tool to increase motivation to look for work and reduce alimony in society. The analysis of the European Employment Strategy WAPES and the Strategy of the EU Public Employment Services PES-Network highlighted the main challenges and threats that arise in the labor markets. An analysis of the employment services of Denmark, the United Kingdom, Sweden, the Netherlands, Australia, Germany and Poland identified the advantages of local flexibility and autonomy over rigid centralization. The main innovative principles of labor market regulation by employment services are defined and generalized: flexibility, targeting and multichannel. Organizational and economic mechanisms of labor market regulation by state employment services are systematized: client profiling, human resources development, labor mobility, fairness and validity of material support in case of unemployment. The need to introduce mechanisms to renew labor potential in Ukraine, which should include: stimulating re-emigration of Ukrainians from abroad, fair and motivational social security, reducing the share of shadow employment, legalized interstate labor market, implementation of affordable adult education programs, simplified registration and management conditions business, small business support programs, establishment of effective mechanisms for attracting foreign specialists. Key systemic priorities of labor market regulation in Ukraine are proposed: innovations and local independence, inclusiveness and targeting of services, client-oriented services, priority of active programs over passive welfare, fair and motivational social security, employment legalization, updated labor legislation.

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