PROBLEMS OF EMPLOYMENT SPHERE BALANCE IN ECONOMY OF UKRAINE

In the employment sphere key macroeconomic proportion is proportion between natural rate of unemployment and its actual rate. The performance of employment sphere can be evaluated by indicators of employment and unemployment, labor force participation rate. Labor market of Ukraine in 2008–2018 demonstrated high level of unemployment 8–10% compared with other countries of Eastern and Central Europe. The peculiarity of Ukrainian labor market during the period was considerable hidden unemployment in the form of forced underemployment. An increase of unemployment rate in 2014–2015 was caused by sharp economic crisis because of military conflict with Russian Federation that led to the loss of the territory, termination of the economic relations with this regions and large quantity of temporarily moved persons. Employment of composition has changed: the share of industry and agriculture has decreased, while the share of services has increased. Continued negative trend of Ukrainian labor market was a decrease of labor force as a result of unfavorable demographic (depopulation) and migration processes. Lasting periods of unemployment and job seeking show low performance of Ukrainian labor market. Decline in a quantity of unemployed per one vacancy indicates a weakening of labor market imbalances. In the labor market of Ukraine there is significant informal employment that, though, has decreased during last 4 years. Also there was a decrease of informal employment in hired employee group. Intensification of labor migration processes due to economic crisis and decline of standard of living was one of the determinants of weakening imbalances in Ukrainian labor market. At the same time, labor migration creates risks for Ukrainian economy and induces wage increase as a result of work force deficit.