Economy
PROMOTING EMPLOYMENT
PROGRAMS
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. 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 ¹ 5067).
Will appeal to the article of 14 Law ¹
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 ¹ 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. There are long-term and short-term (one year) program. They are
developed at national and regional levels. The aim of national and regional
employment is to promote employment, the needs of citizens in the work.
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;
• 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;
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.
Public Service
Employment was established in
1990, and its duties
and rights were determined by the Article 19 of
the Law of Ukraine
"On Employment".
The main functions of the employment services are:
• analysing the labour market and information about its condition;
• labour mediation and employers
support in
providing enterprises by workforce,
and for citizens is to
obtain employment;
• regulation of labour market, which
is both as labour mediation, and through the implementation of vocational
programs guidance
and promoting employment;
• helping
the unemployed, which include the previous features and financial support for the period of unemployment;
• directing
volvement in the implementation of the state policy of employment and so on.
The experience of developed countries shows that successful employment services acting where it belongs to the state,
subordinates to
the authorities, has highly qualified specialists in employment.
However, in a market
economy there are various private
(non-state) institutions
of promoting employment.
But Ukraine cannot be correlate to these
countries. At this stage it is on the road to development,
but, it doesn’t make much
effort for such problems.
Ukrainian Employment
Service is partially owned by
the state, and if Ukraine has enough qualified specialists and workers,
unemployment rate
would be much lower.
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.
It
shouldn’t be believed that only the state can solve the unemployment problem. Unemployed
citizens should actively promote it.
In today's
freedom of choice employment
forms, the unemployment
problems solving is the business of unemployed citizens.
Thus, the
Law of Ukraine
"On State
Social Unemployment Insurance"
contains the
ability to give only once paymen to
unemployment benefits to unemployed business
organizations. It is
significant in Poland,
the Czech
Republic, where the private businesses,
self-employment is a priority
of the state policy in the field of employment,
and this
policy brings real results.
The state should create
a favorable tax
climate, reform the civil and
business laws
and implementing of its right should actively carry the unemployed
people themselves.
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