Ph.D. S.O.Gerashchenko, Ph.D. T.M. Cherkavskaya

State Higher Educational Institution National Mining University, Ukraine

Problems of the national labour market in conditions of globalization

Modern world is developing in conditions of globalization that cause changes in all economic, financial, political and social relationships. Globalization processes are reflected in the following trends: formation of a single world market of goods and services as well as capital market, reinforcement of interrelationships and interdependence of the world community; collecting all the countries in one international economic complex. As it is impossible to avoid globalization processes, it is necessary to save national interests and form the own model of the country development. From our perspective, the main prerequisites to the sustainable development of the Ukrainian model of economy are the following: maintenance of social stability in the society, maximum use of human resources and their scientific and engineering potentials. Competitiveness of the country and its national business is determined by knowledge-based production, qualification level of labour force, standard of living of its population.

There is a wide range of mechanisms to involve the national labour markets in the process of forming global social and economic space. The research of problems in labour sphere within the context of globalization assumes considering the following circumstances.

Firstly, global economy assumes a wide choice of employment, better working conditions, self-realisation and higher standards of living. However, it is necessary to take into consideration the following negative processes: marginalisation of local labour markets connected with the growth of informal employment and self-employment, deterioration of working conditions of the whole continents; generation of highly raising unemployment; expansion of the sector of illegal markets of the foreign labour force in a national economy; establishment of enclaves of migrant employment with dumping labour costs and lowing production efficiency.

Secondly, globalization causes a system of risks for the sphere of labour and employment in the national economies which leads to the risks of low human capital, low competitiveness of workers and employees. The risk of inconsistenciesof continent workers with the requirements of a new demand and the risk of civil rights loss, i.e. right tow work, appear.

Thirdly, the important problem of globalization is growth of inequality in labour sphere reflected in wage gaps of qualified and non-qualified workers.

Fourthly, outsourcing, moving production of goods and services from the countries with post-industrial economies to the developing countries significantly influence the state of a national employment sphere Thus, offshore services are widely used in the IT sphere. Advanced technologies allow to hire programmers on place without going abroad. (It is impossible to count GDP losses caused by virtual brain drain).

Fifthly, international business requirements to market subjects becomes the significant problem as they lead to the complexity not only at the level of technical and practical issues, but at the level of national mentality and behavior as well as they cause problems in institutional regulation of labour sphere in different countries.

Ukraine has joined the globalization processes with a large list of problems in the labour sphere, where are low wages and salaries, high regional, branch and gender differentiations, high level of professional risk, ineffective professional and qualification and branch structure of employment, high regional asymmetry of unemployment indices, non-efficient interaction of labour market with the system of education. The low level of incomes in the employment sphere causes an increase in working hours and multiple employment, including employment in informal sector. Moreover, the secondary employment not always corresponds tothe qualification and education of employees that leads to professional marginalization of the labour force and its wear.

Slack demand in professionals in the country, low salaries and wages lead to their outflow overseas. Labour migration mobility is characterized by high territory migration concentration and the specific use of migrant labour. The USA and Canada are the most important centres of attracting foreign workers and employers. European countries successfully compete with them. Recently Poland, which is ready to receive 2 mln. migrants from Ukraine, has become the attractive country for Ukrainians. The consequences of the international migration are listed below.

1.                The world on whole is winning as free migration allow people to move to the countries, where they can more contribute to the world production.

                   Effects and impactsonan emigration country: decrease of unemployment rate and getting income in currency as the result of currency transfer of emigrants; outflow of qualified labour force resulted from constant migration can lead to GDP losses caused by brain drain.

                   Effects and impacts on an immigration country: the receiving party/country wins because of tax changes based on qualification and age of immigrants. The specialists who are proficient in the language of the immigration country immediately become large taxpayers; significant income is provided by the knowledge which immigrants bring to the immigration country; immigration brings surplus of labour force that allows to provide competition on labout market, retain growth of wages of local workers; concurrently some impacts on the country of immigration are possible such as social tensions, sharpening of the national problems and raise in crimes etc.

To sumup, international migration is part and parcel of the modern world economy. The major economic function of migration on labour market is provision of labour force mobility that contributes to the more rational use of labour resources, providing effective functioning of the national and world labour markets.



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