Any market economy tends to fluctuate and become unstable. One of the key criteria influencing its development and functioning is the economically active population, which in turn is divided into:
- busy;
- unemployed.
The Federal Law of the Russian Federation “On Employment of the Population in the Russian Federation” states: “Employed” means citizens engaged in labor activities under a contract that implies performing work for financial remuneration on the principles of full or part-time employment, as well as those who have any other work, including periodic work. character.
Unemployed citizens are recognized as a part of the economically active population that simultaneously meets the following factors:
- lack of permanent income in the form of wages (excluding unemployment benefits or social payments of the enterprise upon its liquidation);
- registration with the social fund as unemployed;
- constant search for a job;
- readiness to start work immediately.
The International Labor Organization (ILO) has a slightly different point of view and believes that the unemployed are the part of the population that does not have a job, is able to work in the current period of time, and is also looking for work in the period under study. In its calculations, the ILO uses data on the population aged 10 to 72 years; Rosstat, in its methodology, takes into account ages from 15 to 72.
In the concept of “unemployed population,” the ILO and Rosstat do not include full-time university students, people with disabilities, pensioners, and part-time workers.
To summarize, we can conclude that unemployment is a situation when the working-age population makes an effort to find income, but is unable to find a job or does not want to work, so to speak, they consider the working conditions offered by the job market to be inappropriate to their requirements.
Unemployment is not an abstract economic concept, but a problem that affects every citizen and the economy of the country as a whole. In most cases, the loss of a permanent position leads to emotional trauma, a deterioration in the person’s standard of living and stability. For the population, the opportunity to have a stable income is one of the main indicators of the success of the government’s economic activities. And during the election race, political parties use this problem to attract the attention of the electorate as the most pressing one.
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Unemployment Rate Indicators
The unemployment rate is the share of the unemployed population in the labor force.
Labor power is a citizen’s ability to work, a general indicator of the physiological and moral forces that he operates and uses in the process of creating material wealth.
Labor is a key factor of production in any modern society.
The unemployment rate is usually calculated using the formula:
Figure 0
Where: U’ is the unemployment rate;U is the number of unemployed;E – number of employees;U+E – quantity of labor force.
Each country calculates and publishes official data on the levels of unemployment that are acceptable for the level of its economic development, which are natural or maximum permissible. During the year, this coefficient may change under the influence of the cyclical nature of economic development and changes in the exchange rate of the national currency.
The natural or maximum permissible level is the level of unemployment at full employment of the population, as a result of which there is no excess demand and excess supply in the market. This state is described as equilibrium in the labor market. It forms a supply of labor capable of making economic and geographical movements in an extremely short time, depending on changes in demand and the resulting production needs. Such a supply of labor allows the economic system of the state to function stably.
The maximum permissible level in developed countries is the following dynamics: from 1.5-2% in Japan and Scandinavian countries to 6-8% in North America. Based on these statistics, economists have come to the conclusion that the maximum permissible level of unemployment varies between 4-6%.
According to data presented at the beginning of 2017 by Rosstat, the unemployment rate in Russia at the end of 2016 was 5.3%, which even exceeds the expectation of the Russian Government, which stated a level of within 6%.
Picture 1
But when considering Rosstat data, it is necessary to take into account that its methodology, unlike the ILO, takes into account only the population officially looking for work at the time of sampling. And it is based on a study of the analysis of certain categories of citizens of our country. Also, the statistical sample excludes data for the Republic of Crimea. Therefore, the true figure may differ significantly from the official version of Rosstat. All sample data can be found on the website www.gks.ru.
Forms, types of unemployment and their characteristics
For clarity, the forms, types of unemployment and their characteristics are shown in the table.
Figure 2
Types of unemployment
1. Frictional unemployment
A type of unemployment caused by natural migration, the main reason for which is the transition of a citizen from one job to another. As a result of such movement (during the period of selection or waiting for another job), these workers seem to drop out of the employed population.
The main causes of frictional unemployment are considered to be:
- geographical movement: a citizen changes his place of residence and may find himself without work for some time;
- change in life and professional interests: retraining, higher education, retraining;
- a new stage in my personal life: the birth of children.
Most economic experts believe that in a stable market situation the existence of a moderate level of frictional unemployment is, if not desirable, then at least a natural fact, since such a transition in most cases is caused by a person’s desire to get a higher-paying or interesting job. And this, in the long term, will lead to a better and economically sound placement of its human resources.
However, in practice, job seekers have their own requirements and inclinations, and existing vacancies require specific skills and professional knowledge. This leads to an imbalance between them. In addition, information about the availability of jobs does not always appear in a timely manner. And vacancies may end up in another region, requiring the allocation of labor. This leads to delays in employment and increased unemployment.
Frictional unemployment as a short-term phenomenon will be a useful element in a format of the labor market that assumes an exact match between a available employee and the offers of the vacancy market. In the real world, such an equilibrium is impossible, and temporarily unemployed citizens lead to an increase in unemployment.
2. Structural unemployment
This type occurs due to a mismatch between the qualifications or specialty of citizens seeking work with the proposed vacancies. That is, demand in the labor market is at odds with supply.
Structural unemployment often arises as a result of improvements in production or the transition from manual to automated labor. Also in case of transfer of production to another region. As a result of this optimization, released employees are forced to look for work in other sectors of the economy.
This type of unemployment is characterized by a long period of searching for work. A person is forced not only to look for a place, but also a new direction of activity.
3. Seasonal unemployment
Seasonal unemployment is predetermined by the fact that some sectors of the economy are in direct connection with natural conditions. The most striking example of such an industry is agriculture. In the construction and tourism sectors, seasonality also affects the number of employees. For example, cafe owners in resort areas hire only for the period May-October; keeping extra employees “out of season” is very costly for them.
The level of its load depends on how ready other sectors of the economy are to accept released citizens. And also on the desire and ability of the latter to undergo vocational training or move to another region.
However, this species has one important distinguishing feature - it can be predicted.
4. Cyclical unemployment.
Occurs during a depression, crisis or stagnation in the state's economy. The need for goods and services is reduced, subsequently reducing the overall volume of production. Enterprises are cutting costs by cutting the number of jobs. It is most noticeably manifested in a large number of job searches and a small supply in all structures and regions of the country. This is the most severe type of unemployment.
Its size is calculated as follows: the number of citizens employed in the economy for a given period of time minus the number of workers who could have jobs at a normal level of production, that is, under standard load conditions of all available production capacities.
5. Institutional unemployment.
This type of unemployment created by government agencies responsible for the labor market and factors affecting the distribution of labor.
These include:
- imperfections in the tax system (for example, a reduced tax rate on the income of unemployed individuals);
- social guarantees for the non-working population (for example, the government establishing a high level of unemployment benefits);
- insufficient awareness of employment centers about possible vacancies.
The culprit in this situation is the ineffective functioning of the labor market. The lack of up-to-date information about the availability of a vacancy does not allow an employee to quickly fill it. Or try to move to another region. In turn, firms do not see the resumes of candidates for the positions they offer.
High social benefits and allowances for unemployed citizens, which allow them to lead a completely normal lifestyle, lead the unconscious part of the working-age population to decide on parasitism. And a lower tax rate on social benefits may be more attractive than a fairly significant income tax on wages.
Forms of unemployment
1. Open unemployment.
There are two types:
- registered type (part of the population who has applied for support in finding work from social funds, that is, registered with the employment center and receives a monthly social benefit from it);
- unregistered type (part of the active population who prefers to work for themselves, that is, unofficially, hiding their income from the state, or the so-called parasites, people who do not like to work according to their life beliefs).
When compiling the sample, Rosstat takes into account only registered unemployed people, so its data may differ dramatically from the real ones. The ILO assessment technology involves taking into account all categories and is the most effective.
2. Hidden unemployment.
This is a difficult type to define, implying a situation where an employee is officially on the list of employees, but does not actually participate in production or participates in a greatly truncated form.
Hidden unemployment appears as a result of the following factors:
- Due to various factors, the enterprise maintains an excess number of employees receiving full wages. And as a result, the costs of their maintenance are included in the cost of manufactured products.
- The inability of the enterprise to provide employees with full-time work with an appropriate salary, but retain them as “part-time” employees. In this case, only employees who are willing but unable to work full-time are taken into account; employees who deliberately come for half a day are not taken into account.
- Registration of some employees on leave without pay.
- Regular downtime of enterprise equipment for a number of technical reasons.
The reasons for its occurrence:
- the enterprise administration is pursuing a policy of maintaining staff numbers with the expectation of a quick change in the economic situation, introducing half-day work;
- retaining employees allows management to count on receiving a number of benefits from the state;
- often, an enterprise does not have the financial ability to pay unemployment benefits to employees, so employees are forced to leave an employee, creating poor working conditions;
- the reluctance of workers from small settlements to leave work while maintaining partial earnings, due to the lack of other work;
- for employees of pre-retirement age, continuous length of service is important;
- a small but stable income in part-time work plays a more significant role for an employee than the possibility of increasing income when looking for a new job.
The development of economic relations and competition in the market for goods and services forces enterprises to optimize their numbers. This entails a reduction in the level of hidden unemployment. The main task at the moment is to ensure that in the process of developing a market economy, hidden unemployment does not turn into open unemployment.
3. Current unemployment.
This form is detected when workers in intellectual and physical labor who have key skills that meet all standards are released. This situation arises for various reasons, the main ones:
- disproportionate development of industrial sectors in the regions;
- periodically recurring recessions, depressions and stagnation in the economy;
- irregular demand for workers (insufficient during recession and depression, excessive during production downtime).
4. Stagnant unemployment.
Stagnant or long-term unemployment is a form of lack of employment of a citizen for a long period. It leads to dire consequences in terms of both material capabilities and the emotional state of the unemployed.
It has been statistically proven that the possibility of getting a job decreases if the period without a permanent job is prolonged. In part, this happens because after a sufficiently long unsuccessful search for work, the applicant prefers to remain on benefits as his usual security. Stagnant unemployment implies the need for assistance with retraining personnel or moving to another region where this area of activity is more in demand.
5. Voluntary unemployment.
This form includes citizens who, due to various subjective factors, do not find it necessary to carry out any labor activity.
The reasons may be different:
- political and social views on work;
- religion and traditions (especially expressed in the republics of the Caucasus, where there is an opinion that it is impossible for a woman to realize herself in the profession);
- the desire of women to devote themselves to family and housekeeping;
- reluctance to work under the conditions offered by the labor market (amount of payment, length of working day);
- the loss of a citizen from society caused by his lifestyle, for example, homeless people, tramps, etc.
There are such people in any society. Even in the USA and Europe, scientists estimate their number at 14-16%. Attempts at influence, pressure, re-education or appeals to a sense of duty and responsibility did not bring any significant results. In Soviet times, there was an attempt to combat parasites, but it was not implemented quite successfully.
Economic and social consequences of unemployment
An increase in the share of physically healthy, but not engaged in any economic activity, part of society leads to negative results in various government spheres. Despite this, upon careful examination, this phenomenon can have its pros and cons.
Among the negative economic factors are:
- expenses incurred by state funds for social payments to registered unemployed;
- losses on lost wages for the unemployed;
- losses of tax authorities from shortfalls in tax collections to the budget on taxes levied on individuals;
- a decrease in the level of income of citizens leads to a reduction in the consumption of goods and their production;
- devaluation of acquired knowledge during training;
- general decline in the standard of living of the population.
Positive economic factors include:
- creating a reserve of working groups of various qualifications for large-scale changes in the structure of the economy;
- job cuts provoke an employee to more actively express himself as a specialist needed by the enterprise, pushing him to increase his level of knowledge and strive for professional growth;
- during the period of forced cessation of work, time is freed up for retraining, advanced training or obtaining education in a more in-demand profile;
- stimulating growth in labor efficiency and productivity.
Among the negative social factors it is worth noting:
- worsening crime climate in the region;
- increasing financial gaps and tensions between different social groups;
- an increase in physical and mental illness caused by stress from job loss;
- increased social apathy;
- decrease in the level of labor activity and desire for it due to a long search for a new job.
Positive social factors:
- changing attitudes in the employee’s mind about the social value of his workplace;
- increasing personal free time for communication with family and creative growth;
- freedom to choose a place of work, limited only by the required initial skills;
- changing society's attitude towards the social significance and value of work.
The main economic damage from unemployment is unproduced product. Which leads to a decrease in the total volume of material goods produced in the country and services provided. The growth of the unemployed population leads to a reduction in consumer demand. After all, wages are the only source of income for the majority of citizens. The elimination of this source forces the population to cut their expenses to the minimum necessary needs, such as utilities, food and medicine. All this prevents the growth of production of less necessary goods and a decrease in the production of essential goods. As a result, this leads to a general deterioration in the standard of living of the country's population as a whole.
The social component of unemployment is important for society, social funds and institutions, as well as individual citizens. A citizen loses not only his main source of income, but also, in the process of a long search for a new place, his qualifications. And with it confidence in further successful employment.
Social assistance from the state is not able to provide a satisfactory standard of living in the face of constantly increasing prices for goods. And the large number of people in need significantly depletes social funds.
Unemployment is a heavy and emotional burden for the citizen himself. He falls out of his usual environment, losing confidence in the need of his professional knowledge for others, his qualifications and the relevance of himself as a specialist in the future. There are frequent cases of deterioration in the physiological and moral state of the unemployed.
For the younger generation, who do not have sufficient work experience or the required level of professional skills, the lack of a labor market with vacancies without work experience can be a difficult ordeal. Such difficulties lead to the devaluation of education.
The long-term practice of countries with strong and competitive economies in the field of employment control has revealed that the labor market is not independent and does not provide solutions to employment issues without state intervention.
Measures taken by the Government of the Russian Federation to combat unemployment
State employment policy is a scientifically based process that includes measures implemented by government authorities in relation to the labor market.
Its parameters:
- improving labor reserves, increasing the speed of their allocation, protecting the interests of participants in the Russian labor market;
- protection and provision of equal opportunities for free labor to all categories of the working population without taking into account their political, social and religious views;
- providing conditions that provide an opportunity for a decent life and self-development for a citizen;
- comprehensive assistance to the population in the development of labor, production, creative and financial activities carried out in accordance with existing legislation;
- implementation by state funds of events aimed at helping citizens who have difficulty finding a job on their own;
- taking preventive measures to eliminate mass and reduce long-term unemployment;
- development of a system of benefits for enterprises that retain their existing staff and provide priority for newly created jobs to citizens who are in a long-term search for them;
- legislative coordination of all labor market participants to harmonize their actions;
- ensuring the relationship between state authorities, trade unions of enterprises, and any other associations representing the interests of employees and administration of enterprises in the development and implementation of acts to improve the employment situation;
- interstate interaction in resolving issues about the labor activities of Russian citizens outside its territory and citizens of third-party states on our territory, to perform the function of monitoring the implementation of international labor rules.
In a market economy there is a tendency towards economic instability, which is expressed in its cyclical development, unemployment, and inflationary rise in prices.
Unemployment is a macroeconomic problem that has the most direct and severe impact on every individual. Losing a job for most people means a decrease in their standard of living and carries serious psychological trauma. It is therefore not surprising that the problem of unemployment is often the subject of political debate. Many politicians use the so-called “poverty index,” which is the sum of unemployment and inflation rates, to assess the state of the economy or the success of economic policies.
Unemployment means inability to find a job . Unemployment is a socio-economic phenomenon when part of the economically active population does not find work and becomes a surplus population. According to the International Labor Organization, unemployed – This is a person who wants to work, can work, but does not have a job.
To determine the number of unemployed in each country, it is necessary to divide the entire population into groups according to the degree of their labor activity. First, all individuals are divided into two groups:
1. Economically inactive population - residents of a country who are not part of the labor force. This includes:
a) pupils and students of full-time educational institutions;
b) pensioners (for old age and other reasons);
c) persons running a household (including those caring for children, the sick, etc.);
d) desperate to find a job;
e) persons who do not need to work (regardless of the source of their income).
2. Economically active population (Ea)– part of able-bodied citizens that offers labor for the production of goods and services.
Then it is determined level of economic activity of the population (Va)– share of the number of economically active people in the total population (CN):
Ua = Ea / Chn.
In turn, the economically active population is divided into two groups:
1.Busy (E)– persons aged 16 years and older (as well as persons of younger ages) who:
a) are employed for remuneration (full-time or part-time);
b) work without pay in family enterprises.
2. Unemployed (U) – persons 16 years of age and older who:
a) do not have a job (gainful occupation);
b) are looking for work (contacted employment services, etc.);
c) ready to start work;
d) are trained in the direction of the state employment service.
Based on data on employment (3) and unemployment, the unemployment rate is determined.
Unemployment rate(Ub) – the share of the number of unemployed (U) in the economically active population (Ea):
Due to the different lengths of the period of unemployment, 3 types of unemployment are distinguished:
1) friction;
2) structural;
3) cyclical.
Frictional unemployment means short periods of unemployment necessary to find a job that matches the employee’s qualifications. These periods are voluntary.
This type of unemployment brings together people who are either unemployed due to a transition from one job to another, or have already found a job and are planning to start it soon, as well as workers in industries with a seasonal nature (agriculture, construction).
A certain period of time is required to establish a match between the structure and workforce and available jobs. The labor market equilibrium model assumes an exact correspondence between the qualities of workers and available jobs, i.e. assumes that any worker is equally suitable for any job. If this were actually the case, and the labor market were in equilibrium, then job loss would not lead to unemployment.
However, in fact, workers have different inclinations and abilities, and each specific workplace has certain professional requirements. In addition, the system for disseminating information about job applicants and vacancies is imperfect, and the geographical movement of workers cannot occur instantly. Finding a suitable workplace requires some time and effort.
A certain level of frictional unemployment is inevitable in a constantly changing market economy.
Structural unemployment. This term refers to a situation in which a worker remains unemployed for extended periods. These periods are explained by structural shifts in the economy that devalue the skill levels of certain categories of the workforce.
The demand for various goods fluctuates, which in turn causes the demand for the labor of the workers who produce those goods to fluctuate (for example, the introduction of personal computers reduced the demand for typewriters, which in turn reduced the demand for labor in typewriter factories). Further, since different regions produce different goods, the demand for labor may simultaneously increase in one part of the country and decrease in another. Such changes in the structure of labor demand by industry and region are called structural shifts.
Unemployment of frictional and structural types exists in both prosperous and unfavorable periods. The total number of unemployed people of both types is called natural rate of unemployment , this level corresponds to the situation of macroeconomic equilibrium.
The modern name for this indicator is the non-inflation-accelerating unemployment rate.
The natural rate of unemployment increases over time. If in the early 1960s. it accounted for 4% of the labor force, now it is 5.5 - 6.5% of the total labor force. The reason for the increase in the natural rate of unemployment is an increase in the duration of the job search, which may be due to:
An increase in unemployment benefits;
Increasing the time for payment of unemployment benefits;
An increase in the share of women in the labor force;
Increasing the share of young people in the labor market.
The first two factors provide the opportunity to search for work over a longer period of time. The third and fourth factors, which mean a change in the gender and age structure of the labor force, increase the number of people who have entered the labor market for the first time or are looking for work, and therefore the number of unemployed, increase competition in the labor market and lengthen the period of job search.
Full employment is compatible with the natural rate of unemployment. The amount of output that can be produced under full employment is expressed by production potential of the economy.
Cyclical unemployment - uh then unemployment caused by a cyclical contraction of production. The difference between the actual value of the unemployment rate and the value of the natural rate is called cyclical unemployment.
The development of a cyclical form of unemployment leads to its actual level exceeding the natural one. The economic price of this excess is expressed in the gap between the actual volume of GNP and its potential value.
The following types of unemployment are also distinguished:
1) seasonal;
2) voluntary (unemployment caused by the fact that part of the labor force does not want to work for a wage rate that is low compared to unemployment benefits and social benefits);
3) part-time (shortened working hours);
4) marginal (unemployment of weakly protected segments of the population: youth, women, disabled people);
5) hidden unemployment (in a market economy) - the presence of people who want to work, but are not registered as unemployed. Hidden unemployment is partly represented by people who have stopped looking for work;
6) hidden unemployment (in a command economy) - the presence of excess workers with simultaneous low labor productivity;
7) economic (unemployment caused by market conditions:
curtailment of unprofitable production under the influence of the bankruptcy law; the government's reluctance to support unprofitable industries and enterprises, etc.);
8) institutional - unemployment generated by labor market institutions and factors influencing the demand and supply of labor (imperfect tax system, the introduction of a guaranteed minimum wage, inertia of the labor market, imperfect information about available jobs);
9) classical (unemployment resulting from a wage rate that is too high compared to the rate that would balance the demand for labor and its supply);
10) technological unemployment (associated with the introduction of sparsely populated and uninhabited technology based on electronic technology).
An unemployed person in the United States is a person over 16 years of age who is not working but has been actively seeking work for 4 months or expecting to return to work within 4 weeks.
The population is classified as employed, unemployed, or temporarily unemployed according to a monthly survey of 50,000 households conducted by the U.S. Bureau of Labor Statistics. People are defined as employed if they work full-time, part-time, or are absent from work due to holidays, strikes or personal reasons. Persons who are willing to work but are not actively looking for work are not counted as unemployed, but are considered temporarily unemployed.
Employment statistics studies the quantitative manifestations of mass processes and events in the field of population participation in economic activity. Considers the problems of the economically active and economically inactive population and labor resources. Employment statistics indicators are necessary for macroeconomic analysis, research into the problems of employment and unemployment, supply and demand in the labor market, labor mobility, etc.
In the 90s of the last century, the Russian Federation adopted the Convention on Labor Statistics. Under the terms of the Convention, Russia is obliged to provide data on employment, unemployment, wages and others to international organizations. However, state statistical bodies did not abandon the accumulated experience in the participation of the population in the labor process. So, today Russian statistics consider such categories as labor resources, labor potential, economically active population, economically inactive population.
In accordance with international standards, the main categories for assessing the labor market are economically active population, busy And unemployed.
Economically active population- this is the part of the population aged 15 to 72 years that creates the labor market for the production of goods and services. The economically active population consists of the number busy And unemployed. For analytical purposes, categories of economically active population are determined: currently active population And usually active population.
Currently active population (labor force) includes persons who are working or were unemployed, but for a short time (a week or one day). In practice, the active population includes persons whose status has been determined based on a longer period of time (usually a year). The economically active population is divided by type of occupation into:
Employed in the economy;
Servants of religious cults;
Military personnel;
Unemployed.
TO busy include persons who, during the period under review:
Performed hired work for remuneration, money, as well as other income-generating work, independently or with partners, both with and without the involvement of hired workers;
Temporarily absent from work due to: illness or injury, days off, annual leave, other holidays, time off, strikes and other reasons;
They performed work without pay in family businesses.
TO employed in the economy include persons working in state enterprises and organizations, in cooperatives of all types, in private enterprises and in enterprises with a mixed form of ownership, in farms, as well as persons engaged in individual labor activities in personal subsidiary plots and with individuals employed without wages in family businesses.
Servants of religious cults– persons engaged in the field of religious cults (priest, pastor, mullah, etc.).
Military personnel– persons of regular and conscript military service. These do not include persons serving in internal affairs bodies as privates and officers who have been awarded special ranks of the police, internal service, and justice.
To study the composition of the employed, the International Standard Classification of Status in Employment, adopted at the 15th International Conference of Labor Statisticians, is used. Based on this classification, the State Statistics Committee of Russia approved the Basic Methodological Provisions for the classification of statistical data on the composition of the labor force, economic activity and employment status. According to this classification, the following categories of the employed population are distinguished by employment status:
- employees– persons who have entered into an employment agreement (contract) on working conditions and payment with the head of an enterprise of any form of ownership;
- self-employed– persons employed in their own enterprises:
Employers are persons who manage their own enterprise or work independently, while constantly using the labor of hired workers;
Self-employed – persons who work independently and do not use hired labor on a permanent basis;
Members of collective enterprises are persons who work at a given enterprise and are at the same time its owners, co-owners, who take an active part in resolving issues of organizing production, marketing products, and distributing income of the enterprise;
Unpaid family business workers are persons who work without pay in a family business headed by their relative;
3. persons who cannot be classified by status busy, information about which is not sufficient to be assigned to one of the above groups.
With the advent of the labor market in Russia, the following categories of employment began to be considered: full, incomplete, secondary and informal employment.
Under full time In modern economic theory, we understand a state of the economy in which everyone who wants to work at the current level of wages has a job.
Underemployment can be visible and hidden.
Visible underemployment is characterized by the number of workers employed part-time (shortened working hours or shortened working weeks) in comparison with the standard working hours established by law or the internal regulations of a particular enterprise. This category of employees also includes persons on vacation at the initiative of the administration. The main reason for the apparent underemployment is the fall in production volumes.
Hidden underemployment is determined by the number of people formally employed full time, but with incomes below the subsistence level. Hidden underemployment exists in enterprises that employ fictitious labor (for example, in order to reduce the tax burden) or do not fully use the existing one.
State statistics bodies are currently keeping records of visible underemployment. Information about it is collected from labor reports of large and medium-sized enterprises. The extent of hidden underemployment can only be assessed using materials from special surveys.
Under secondary employment refers to the additional (secondary) use of labor already involved in labor activity. The objective reason for the existence of secondary employment is underemployment.
The development of secondary employment in Russia has been widely developed since the early 90s. The main motivation for existence is to increase your income. However, the majority of people involved in secondary employment are in no hurry to part with their main place of work. The reason is the nature and characteristics of secondary employment. The most common professions in the field of secondary employment are cleaners, security guards, servants, sellers, teachers, resellers, carpenters, joiners, accountants, hairdressers, massage therapists, doctors. Secondary employment has positive and negative sides. The positive ones include: for citizens - a source of additional income, for enterprises - a way to preserve the core of the workforce, for the state - an opportunity to smooth out social tensions. Negative consequences are expressed in a decrease in the working capacity of the population, loss of professional qualities, changes in labor motives, tension in families, etc. From a macroeconomic point of view, secondary employment contributes to an increase in unemployment: the most mobile part of the population forces the less mobile part of the population out of the labor market.
Informal employment associated with officially unregistered economic activities. They can be involved in it as self-employed people, i.e. self-employed and hired workers.
The main signs of informal employment include:
Lack of state registration;
Small scale of activity;
Low level of organization and labor productivity;
Use of fixed assets in parallel for production activities and for personal purposes;
Lack of access to organized markets, credit institutions, modern technology, etc.;
Lack of permanent premises;
Going beyond legality.
The study of employment in the informal sector is important not only in Russia, but throughout the world. A general definition of the informal sector was developed by the 15th International Conference of Labor Statisticians (ICLS), which adopted a resolution on employment statistics in the informal sector in January 1993. The State Statistics Committee of Russia, taking into account the recommendations of the 15th ICLS, has developed methodological approaches to measuring employment in the informal sector in Russia. This methodology makes it possible to classify units of the informal sector based on the type of economic activity, number of workers, and type of employment. The role of the informal sector in the economy is not clear. On the one hand, it creates additional jobs, curbs the decline in the standard of living of the population and the growth of unemployment. On the other hand, the activities of this sector do not generate income for the state, those employed in it do not have social guarantees, and consumers suffer due to the lack of quality control of products.
Information on informally employed persons is collected through indirect and direct surveys. The most accurate results are obtained from specially organized surveys, which are included as a separate section in the list of issues being studied in a sample survey of employment.
Unemployed- persons who have reached a certain age, accepted within a given state as the lower limit of working age (in Russia - 16 years), who did not have a job during the period under review, were looking for work and were ready to start working immediately. Persons studying under the direction of employment services or performing paid public works under the direction of employment services are also considered unemployed. Pupils, students, pensioners and disabled people are counted as unemployed if they were looking for work and were ready to start work immediately.
These criteria for classifying the unemployed correspond to the methodology for determining the number of unemployed people proposed by the International Labor Organization. The number of unemployed is calculated based on the results of periodic sample surveys on employment problems and through state employment services.
Economically inactive population are persons aged 15-72 years who during the period under review were neither employed nor unemployed.
Pupils and students, listeners and cadets of full-time education;
Old-age pensioners, on preferential terms and persons receiving survivors' pensions when they reach retirement age;
Persons receiving disability pensions;
Persons engaged in housekeeping, childcare, etc.;
Persons who have stopped looking for work, having exhausted all possibilities for obtaining it, but who are able and ready to work;
Other persons who do not need to work, regardless of their source of income.
Sources of information about the economically active and inactive population are labor reports of enterprises, reports of employment services, special reports of ministries and departments and specially organized sample surveys on employment issues.
42.Economically active population, employed, unemployed.
Economic activity level and unemployment rate.
Economically active population- this is the part of the population that offers its labor for the production of goods and services.
The economically active population (also called the labor force) includes two categories - employed and unemployed.
Employed persons include persons of both sexes aged 16 years and older, as well as persons of younger ages who, during the period under review:
performed hired work for remuneration, money or paid in kind, as well as other income-generating work;
temporarily absent from work due to: illness or injury; days off; annual leave; various types of leaves, both with and without pay, time off; leaves at the initiative of the administration; strikes and other reasons;
performed work without pay in the family business.
When classifying or not classifying a person as employed, the criterion of one hour is used. In Russia, when surveying employment, the number of employed includes persons who worked one hour or more in the surveyed week. The use of this criterion is due to the fact that it is necessary to cover all types of employment that may exist in the country - from permanent to short-term, casual and other types of irregular employment.
Unemployed persons include persons aged 16 years and older who, during the period under review:
did not have a job (or income-generating occupation);
were looking for a job;
were ready to get to work.
This definition is consistent with the methodology of the International Labor Organization (ILO). When classifying a person as unemployed, all three criteria listed above must be taken into account.
Economically inactive population is the population that is not part of the labor force. This includes: pupils and students; pensioners; persons receiving disability pensions; persons engaged in housekeeping; persons who have stopped looking for work, having exhausted all possibilities for obtaining it, but who are able and ready to work; other persons who do not need to work regardless of their source of income.
Unemployment rate is the share of unemployed people in the total labor force.
It is measured as a percentage and calculated using the formula:
Level of economic activity of the population certain age group- the share of the economically active population in the total population of the corresponding age group, calculated as a percentage.
43.Types of unemployment. Okun's Law. Ways to combat unemployment.
Unemployment- a socio-economic phenomenon in which part of the labor force is not employed in the production of goods and services.
There are several types of unemployment: structural, frictional, cyclical, hidden, voluntary, forced, long-term, stagnant.
Structural unemployment– characterizes the impossibility of employment due to differences in the structure of labor supply and demand. Its cause is the economic processes of the functioning of the market, when at some periods there is a demand for certain professions of various qualifications in certain regions in the absence of a corresponding labor supply there, and vice versa.
Frictional unemployment– associated with the natural constant movement of the population. Since a person is given the freedom to choose his type of activity and place of work, he uses this right. Some voluntarily change jobs, others are looking for a new job due to layoffs. Some lose temporary jobs, seasonal jobs, etc. Some people in this category find employment, while others continue to look for work. Frictional unemployment is considered inevitable and desirable, since the initiative to quit comes from the person himself and many workers, upon dismissal, move from low-paid, low-content work to higher-paid and meaningful work.
Cyclical unemployment– associated with the phases of reproduction cycles. It is caused by a decline in production and a decrease in investment in the economy. Employers, due to decreased demand for their products, are forced to reduce the number of employees.
Hidden unemployment– characterized by a situation in society when an employee is forced to agree to work under conditions of part-time employment (less than a full day, week or month). This type of unemployment is also associated with the presence of an unemployed population in society due to economic instability, when the demand for labor is less than supply. Hidden unemployment is divided into official and unofficial. Official hidden unemployment includes persons registered by statistics who are on administrative leave at the initiative of the administration, as well as persons forced to work part-time. Unofficial hidden unemployment should include the excess internal number of workers and those who are looking for work on their own.
Voluntary unemployment- means that the employee does not want to work for the salary offered to him or in the specialty offered to him at the enterprise, waiting for a more suitable job.
Involuntary unemployment- means, in essence, any type of unemployment other than voluntary. This type of unemployment characterizes a situation when an enterprise, in accordance with a collective agreement, has a fixed salary for a certain period of time, which does not suit the employee. Involuntary unemployment may occur while awaiting wage revisions.
Long-term unemployment observed when there is no work for 4–8 months. Such unemployment is characterized by the beginning of worker deskilling, the appearance of self-doubt, and reluctance to look for work on their own.
Long lasting Unemployment is considered to last for 8-18 months. Under these conditions, the worker begins to experience general deskilling, loss of labor skills and the ability to work intensively for the required time.
Long-term unemployment lasts more than 18 months. Under these conditions, degradation of human labor potential occurs. To restore a person’s previous attitude to work, an individual approach is necessary.
The pattern, called Okun's law, characterizes the potential losses associated with cyclical unemployment.
Okun's Law(law of the natural rate of unemployment) - if the actual unemployment rate exceeds the natural rate by 1%, the lag of actual GDP from potential is 2-2.5%.
In graphical form, this pattern is presented in Figure 6.2.
Rice. 6.2. Okun's Law
Under conditions of full employment, the volume of production is equal to , and the unemployment rate. If employment falls and unemployment rises, output will also fall. Thus, the graph reflects the decreasing dependence of output on the unemployment rate.
Ways to combat unemployment:
Upgrading the qualifications of employees or retraining them;
Creating new jobs, including organizing public works, opening new enterprises and restoring old industries;
Assistance in registration and assistance in finding employment at employment centers;
In order to preserve jobs, support enterprises, as well as support the development of small and medium-sized businesses;
Control over the validity of dismissal, especially for the most vulnerable groups (people with little professional experience, at a certain age, mothers with children, pregnant women);
Assistance in traveling to those territories where there is a labor shortage, if there are labor vacancies;
Redistribution of jobs in favor of the local population over visiting citizens.
2 hours
TOPIC No. 13 UNEMPLOYMENT AND INFLATION AS MANIFESTATIONS OF ECONOMYCZECH INSTABILITY
Lesson 1
1.Tore resources: structure and measurement.
2. Structure and forms of unemployment.
3. Causes and consequences of unemployment.
4. State regulation of the labor market
Lesson 2
5. Inflation: essence, types and causes
6. Socio-economic consequences of inflation.
7. Anti-inflationary policy
1. TORE RESOURCES: STRUCTURE AND DIMENSION
To determine the number of unemployed in each country, it is necessary to divide the entire population into groups according to the degree of their labor activity. To do this, we will use the labor force classification introduced into Kazakhstan statistics (it takes into account the recommendations of the International Labor Organization).
1). Economically active population (labor force)- part of the population at the age established for measuring the economic activity of the population, providing labor supply for the production of goods and services. The economically active population includes those employed in all types of economic activity and the unemployed.
Working population in Kazakhstan these are people over 16 years old and men aged 63 years, women – 58 years old.
Economic activity level- the share of the population aged 15 years and older, measured as a percentage.
2). Economically inactive (passive) population– persons of the age established for measuring economic activity of the population who are not employed or unemployed during the period under review.
Based on this structure, the level of economic activity of the population is determined - the share of the number of economically active people in the total population. This level is calculated using the formula
where Ua is the level of economically active population;
N - population size;
Ea is the number of economically active population.
In its turn, economically active population is divided into two groups:
1). Employed (working) population – all persons of the appropriate age who, by reason of their condition during a specified short period of one week, may be classified in one of the following categories:
A) “hired (paid) employee”;
B) “self-employed worker.”
2). Unemployed population - persons at the age established for measuring the economic activity of the population, who during the period under review simultaneously met three main criteria:
A) were unemployed (did not have a gainful occupation);
B) were actively searching for it;
B) were ready to start work within a certain period of time.
Pupils, students, pensioners and disabled people are counted as unemployed if they were looking for work and were ready to start it.
The unemployed registered with the state employment service include persons who do not have a job, are looking for work and have received official unemployed status in the prescribed manner.
Based on employment and unemployment data, the unemployment rate is determined. The unemployment rate (Ub) is the share of the number of unemployed in the economically active population (Ea). This level is determined by the formula
Unemployment rate is the share of the number of unemployed in the economically active population, measured as a percentage.
2. Structure and forms of unemployment
Unemployment is a condition when the working population is looking for, but cannot find, work. The entire population of the country can be divided into able-bodied and disabled.
It is important to emphasize that the unemployed usually include not only those fired for various reasons, but also persons who voluntarily left their previous job and are trying to find a new one. Unemployment structure for its reasons, it includes four main categories of the workforce: those who lost their jobs as a result of layoffs; those who voluntarily left their jobs; those who entered the labor market after a break; those entering the labor market for the first time. The ratio of these categories depends, first of all, on the phase of the economic cycle.
There are different concepts of the phenomenon of unemployment, but in general in economic science the dominant point of view is that unemployment basically reflects the economic feasibility of using resources, just as, say, the degree of utilization of production capacity reflects the feasibility and efficiency of using fixed capital. This is evidenced, in particular, by the so-called natural rate of unemployment, defined as the unemployment rate at full employment. However, full employment does not mean 100% employment of the labor force and the absence of unemployment. It assumes the presence of structural and frictional unemployment, but the absence of cyclical unemployment. Under structural unemployment refers to unemployment caused by a discrepancy between the structures of demand and supply of the workforce in terms of qualifications, demographics, geographic and other criteria. Frictional unemployment- is unemployment associated mainly with the voluntary transition of workers from one job to another and with seasonal fluctuations in the demand for labor. Thus, seasonal unemployment is part of frictional unemployment. Cyclical unemployment reflects the state of the economic situation in the country and the excess of labor supply over demand for it during the economic downturn.
Economists also highlight some other forms of unemployment, associated with various classification criteria: its duration, forced nature, concentration in certain professional groups, industries, regions or age categories. Among them, in particular, partial unemployment when workers are forced to work part-time due to lack of work. Under stagnant unemployment refers to its concentration among certain categories of the labor force over a long period of time. Technological unemployment is associated with the displacement of living labor from production under the influence of scientific and technological progress.
In the USA in the 60s. The natural level of unemployment was considered to be 4.3%, in the 70s - already 6.6%, in the 80s-90s. - about 7%. The excess of unemployment above its natural level is determined mainly by the cyclical factor, i.e. the state of the economic situation in the country. According to the calculations of American economists, 60% of the increase in the number of unemployed in the United States in the 60-90s. accounts for structural unemployment, and 40% - for cyclical unemployment. The dynamics of unemployment are also influenced by the economic and social policies of the state, demographic factors, changes in the structure of the economy, the state of foreign trade and the export of capital, the scale of military expenditures, and the positions and activity of trade unions.
Of course, in practice it is difficult to separate the impact of structural factors from cyclical ones, and therefore the definitions used by science (frictional, structural, cyclical and other types of unemployment) are quite arbitrary. However, they can be useful, for example, in identifying long-term and short-term factors affecting the labor market.
The macroeconomic costs of unemployment are indicated, in particular, by Okun's law, reflecting the relationship between the unemployment rate and the lag of GDP. This lag represents the amount by which actual GDP is less than its potential value. In turn, potential GDP is determined based on the assumption that there is a natural rate of unemployment at a given rate of economic growth. According to Okun's law, an excess of the current unemployment rate by 1% above its expected natural level (at full employment) increases the backlog of GDP by 2.5%. It's an attitude 1:2,5, those. the level of unemployment to the lag in GDP, allows you to calculate the absolute losses of production associated with any level of unemployment in the country.
It is necessary to keep in mind the existence of significant “shadow” employment, which is not taken into account by official statistics. This includes, in particular, the so-called shuttles carrying out export-import operations (estimated at several hundred thousand people); people engaged in domestic unorganized small retail trade; employees of unregistered security structures; persons involved in illegal business (prostitution, pornography, drugs, etc.) and criminal structures. In addition, there are many types of activities (consulting services, tutoring, home and car repairs, construction of summer houses and garden houses, etc.), which are often carried out without any registration and the scale of which is very large. All this taken together could provide regular and casual employment for many hundreds of thousands of people and thus correct existing unemployment estimates.
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