Economy

THE PROMOTING EMPLOYMENT PROGRAMS IN UKRAINE

Maria Lytvynenko

National University of Food Technologies, Kyiv, Ukraine

Unemployment is one of the significant factors affecting to the social and economic situation of the population, in particular, determines the extent of poverty and labour migration from Ukraine. When a person is out of work, it feels loneliness, alienation, does not feel the need to be fully used and needed by someone. For some people social necessity is very important and becomes their first need for selffulfillment for everyone. It should be noted that the state regulation of employment is a major factor of sustainable economic growth in Ukraine, because the economy of the stage is determined by the available human resources, their ability to work effectively as well as the presence of its implementation conditions.

Keywords: unemployment, employee, employer, programs, labour market.

Introduction. When a person has a job, he or she feels necessary. In the society a person communicates, shares the information, problems, and develops and lives. Labour is difficult and multidimensional phenomenon that plays an important role in the person’s life. The work is the main condition of vital functions not only of the separate person but also in the whole society. And when a person is out of work, it feels loneliness, alienation, does not feel the need to be use full and needed by someone. For some people social necessity is very important and becomes their first need for selffulfillment for everyone.

Formulation of the problem. Unemployed people are persons in the age of 15-70 who are registered or not registered in the State employment service. Unemployment is one of the significant factors affecting to the social and economic situation of the population, in particular, determines the extent of poverty and labour migration from Ukraine. Judgments about the social and economic consequences of unemployment are ambiguous and depends mainly on which the unemployment rate we are spoken about. The solutions of unemployment problems are researched by scientists such as L. Halkiv, I. Motsin, M. Papiev, A. Pizhuk, J. Miklos, V.Felorenko. Scientists believed that moderate unemployment has several positive effects: planning the mobile reserve work force that can be engaged in expanding of production, inhibits the trade unions’ requirement, increases wage, and hence, reduces the estimated rate of inflation, increases labour motivation of employees, as job security and fear of losing their jobs start to act as an independent incentive to work. However, the disadvantages of unemployment, which is primarily cyclical. The main negative economic effect is under-utilization of the economic potential of society, when real GDP significantly less than the potential. Unemployment brings great problems as the person, who is out of work and seeking to get it, also the society, the economy in a whole.

But our government by every possible way is trying to overcome this problem by developing special programs that contribute to the promotion and development of employment. Such programs may include as separate part of population, especially marginalized groups: youth, women, the disabled people, and specific cases of threats of unemployment caused by economic or other situation (demographic, political, natural disasters, etc.).

And how can the government stimulate employment increasing? The stimulation of employment increasing and creation of new workplaces in the labour market.

Employers who give the position of new working places for young people as their first working place, and also the unemployed persons in the age from 50 and citizens of other vulnerable categories at the labour market, get the indemnification in the size of one social payment that prepaid for the giving position of unemployed person. It is given for one year on the condition of unliberation of the worker during one next year, but in case of liberation an employer returns the given money in the whole or in employing in this job other unemployed person (article 26 Law № 5067).

Will appeal to the article of 14 Law № 5067, the certain categories of citizens who have preferences in employment are certain. They will have the only compensation payment. To these categories of citizens belong:

·one of the parents or person that replaces them and: has children under age 6 on maintenance;

·brings up without one of the married couples child under the age 14 or child-invalid;

· retains without one of the married couples of invalid from childhood (regardless of age) and invalid of I group (regardless of reason of disability);

·children-orphans and the children confined paternal caring, persons who were 15years old and who on the consent of one of the parents or person who replaces them can, as an exception, be accepted to the work;

·the persons exempt after serving of punishment or force treatment;

·young people who had finished or stopped studying in secondary, vocational and higher educational establishments became free from urgent military or alternative (non-military) service (during six months upon completion or stopping studies or service) and who is first accepted to work;

·persons who before the right on retirement pension in accordance with the article of a 26 Law of Ukraine "About the obligatory state pension ensuring" dated July, 9, 2003 № 1058, - IV remained 10 years or less;

·invalids who did not attain the retirement age set by the article of 26 Law of Ukraine "About obligatory state pension insurance".

Results. State and territorial employment program aimed at:

• promoting the development and structural transformation of the economy, the creation of conditions to guide workers, primarily on cost-effective production and in priority sectors;

• prevention of unemployment and its reduction by increasing the economic interest of businesses and organizations in creating new jobs, mostly with flexible forms of employment;

• improving the reproduction of the labor force simultaneously with the increase in the number of jobs, improvement of vocational guidance, training staff and efficient use of labor resources;

• protection of the unemployed people and their families from the negative effects of unemployment and employment of citizens in need of social protection and are unable to compete in the labor market;

• formation of personnel, material, information, statistical, financial and methodological bases of public service employment;

• measures to promote employment of people living in rural areas.

In Ukraine was first developed state program of employment for 1995, as a part of a long-term strategy of creating social and market management model of the labor market. The programs developed in Ukraine, summarize specific measures of creating a legal, organizational and methodological support of employment policies in the following areas:

• formation of differential approach mechanism to the job retention;

• establishment of mechanisms for the implementation of employment policy in national programs (including public works programs, the promotion of youth employment, the revival of the village, and other);

• regulation of labor migration;

• providing additional guarantees of employment to certain categories of citizens;

• promoting of professional mobility;

• development of social and labor relations;

• improving information and statistical base for the labor market;

• promoting of employment through the development of social partnership.

This policy is conducted at both the state and the individual business objects. In France, for example, the state budget allocated for employment 6.8% of the funds, and contributions of the enterprises, social institutions, and various contributions in terms of almost 1.5 times the revenue of the budget.

In Ukraine, the share of employment in the gross domestic product is about 0.3%, which is much smaller than in countries with developed market economies.

Hence we can conclude that in our country financial base for solving problems of employment is insufficient and does not meet the labor market, which dramatically exacerbated by the huge potential unemployment. At the expense of employment are financed the measures of active and passive policies. The cost of these measures depends on the labor market and unemployment, legal guarantees, and achieved level of employment service.

Employment Strategy in Ukraine is linked to the further development and expansion of active measures to prevent rampant unemployment and an increase in the expenditures of the Employment Fund on the state of the labor market. As the amount of assistance due to unemployment, the International Labour Organization provides that it should be 60% of the average wage. In Scandinavian countries such assistance is 70% of the average wage for unemployment 0.5-1%. Taking into account the very low level of average wages in Ukraine, one could argue that the benefit due to unemployment cannot be less than 50% of the average wage (which exists now in Ukraine), because it does not provide the minimum physiological person’s needs. Another thing is that it should limit the time to help and do everything possible for the unemployed population. However, the situation is such that the cost of social security increases and production decreases, which makes it impossible to finance the social security system in accordance with established standards.

There are some measures for improving the performance of the Ukrainian population:

• to ensure an appropriate level of professional qualification of persons of working age according to the labour market needs;

• to create the conditions for unemployed job search;

• to improve the competitiveness of individual in the labour market;

• to provide vocational guidance and training;

• to encourage employers activity aimed at creating new jobs and unemployed persons;

• to create conditions for self-employment and entrepreneurship support;

• to promote young people for their first job and the introduction of incentives for training in the enterprises, institutions and organizations regardless of ownership, type of business and management, individual who use hired labour of youth and students;

• to promote employment disability people;

• to provided suitable conditions and sufficient material level in the country for people who have the desire to emigrate abroad;

• to ensure the participation of the unemployed people in public and short-term works.

The regulation of constitutional right of Ukrainian citizens on free choice of employment and protection against unemployment, regardless of nationality, gender, age, and social status, political or religious beliefs require creation and operation of the state authority for employment of population. Employment services in Ukraine is formed as a centralized state system on the legal basis of the Law about Employment and a widely diversified public services employment with the using is logistics, accounting and human resources of employees. Former Service Employment was reconstructed from considering the formation of the labour market. Creating employment services takes into account the international experience and international standards.

Conclusions. Summarizing all the above, it should be noted that the state regulation of employment is a major factor of sustainable economic growth in Ukraine, because the economy of the stage is determined by the available human resources, their ability to work effectively as well as the presence of its implementation conditions. Given the current stage in thesphere of work and employment in Ukraine is caused by the economic crisis, the priority areas of the state regulation of employment should be presented by economic policy in the interest of employment and unemployment regulations. In the context of sustainable economic growth in Ukraine it is proposed priority features of government regulation on employment creation and saving of existing jobs and also supporting and protecting the unemployed people these features should be aimed at addressing on certain regions of the country (especially in relation to ineffective regions, self-governing cities, etc.) taking into account the balance of the regional economy.