The Regulative Function of Labour Market in the Sphere of Employment

The aim of this article is to characterize the regulative function of labor market in the sphere of employment under the transformative conditions of the transition to the productive economy. The article describes the conceptual principles of the operation of productive economy, which shows itself through the process of capitalization of all its resource components. It exposes the influence of market conditions on the transformation processes of social and labor relations that cause the changes in the interaction between business-owners i.e. the subjects of labor market. Here the interdependence and mutual influence of labor market and employment as organically related parts of the market economy are defined. It is proved that the theory of the new productive economy forecasts and justifies the formation of market relations, where labor force takes the form of human capital and operates as an active factor of the economic relations productivity. It's defined that the labor market is one of the major components of market economy which development is a precondition of the other markets' development, a possibility of effective labor potential usage, a condition providing social progress and thus by the level of risk is one of the most significant , and the one that concerns significant social consequences, notably regarding working conditions, its price, the guarantee of payment and that is connected with the peculiarities of labor market. It is proved that the transition from the compulsory labor of a governed worker to the acquisition of everyone's right to determine their own attitude to work characterize fundamentally different model of labor market therefore the labor market is an organic component of employment as a market mechanism of its existence and realization at the stage the human potential usage.