Formation and implementation of state youth employment policy at regional level in Ukraine (1991 – 2020)

Problem setting. In the conditions of transition from command-administrative to market economy, decentralization reform of public administration, new priorities in connection with the European integration course of Ukraine, models of the state youth employment policy at the regional level have changed significantly. Trends of job cuts, increase in both open and hidden youth unemployment, as well as the level of young people’s outflow abroad call for development of new approaches and methods of relevant public policy. This necessitates the study of the processes of forming and implementing state youth employment policy at the regional level in Ukraine during its independence.

Recent research and publications analysis. The greatest attention of scientists has been drawn to the issues of organizational and legal support of the state youth employment policy (A. Batiuk, Ye. Borodin, M. Dolishnii, I. Piron, I. Khokhriakova, I. Shkindiuk). The application of active methods of state policy/regulation of youth employment has become the subject of research by D. Krasivskyi, S. Bandur, O. Kovenska. Analysis of the dynamics of youth employment in regions and cities in the scientific works of economists (L. Golubovska, I. Zaiukov, E. Libanova, P. Rossokhatskyi, L. Semenova) allowed identifying the results of state youth employment policy at the regional level.

Highlighting previously unsettled parts of the general problem. At the same time, today there are no comprehensive works exploring the change of approaches to the formation and implementation of state youth employment policy at the regional level in Ukraine in 1991 – 2020.

Paper main body. The main directions of the state youth employment policy at the regional level in Ukraine at the beginning of its independence were determined by the Soviet approaches laid down in the government resolution “On the Establishment of the State Employment Service in the Ukrainian SSR” and the law “On Employment of the Population” adopted in 1990 – 1991. At the regional level, public authorities created institutions: to promote youth employment – regional and district employment centers; social services for young people; to provide social protection and adaptation of the young generation under market conditions – regional branches of the Fund of social adaptation of youth of Ukraine. In order to promote youth employment, the authorities have been developing annual and long-term territorial employment programs since 1991.

Since the 1992 Declaration on General Principles of State Youth Policy in Ukraine, the provision of youth employment has been proclaimed one of the main directions of state youth policy. The youth age in Ukraine, enshrined in law, was changed several times. In 1993 – 1998, it was 15 – 28 years of age (Law of Ukraine “On Promotion of Social Formation and Development of Youth in Ukraine”). In the period of December 1998 – March 2004, the Law of Ukraine “On Youth and Children’s Public Organizations” defined youth as the age group of the population from 14 to 28 years. Since March 2004 to present day, citizens aged 14 to 35 have been referred to as young people. Attempts made in 2013 to limit the age of young people to 28 were rejected in 2016.

In the conditions of transition from administrative methods of the state youth employment policy at the regional level to market ones, in 1997 the model of youth employment due to cooperation of local executive bodies, associations of employers and trade unions was established. The application of active methods of social policy in the field of youth employment (2000) marked a shift from a paternalistic model of state youth employment policy at the regional level to a market model. Functioning of youth labor centers (2001), economic incentives for employers to create first jobs for young people; as well as educational institutions’ training young people in specialties and professions of high demand in the labor market, aimed at pursuing a marketing policy for their graduates (2004); the establishment of career centers and units to promote the employment of students and graduates of higher educational institutions on the basis of these institutions (2008) testified to the fact that the state policy of youth employment at the regional level was at the intersection of the domains of youth, education and regional social policies.

After the so-called optimization of the system of central executive bodies in 2010, the Ministry of Education and Science, Youth and Sports of Ukraine was created by merging of the two ministries. However, the ministry did not have the function of youth employment among its powers. A gradual decline in the functioning of youth labor centers was observed. The mechanism of paying compensation to employers (50% of the amount of the accrued single contribution (since 2012)) for creation of additional jobs to employ the unemployed youth appeared to be an ineffective incentive for employers (the compensation was less than the subsidy established in 2004). The announced internship of students acquired the form of a formal procedure.

The decentralization reform of public administration; the resumed functioning of youth labor centers in the regions (2016); creation of youth centers – new institutions (in communal and private ownership); promotion of youth employment part-time employment, and youth entrepreneurship (2017); involvement of young people to addressing employment issues have had a positive impact on the implementation of youth employment policy at the regional level. In 2018, for the first time since Ukraine gained its independence, the rate of youth employment exceeded by 1,3% the average employment rate of the country’s able-bodied population. Therefore, in the conditions of decentralization of public administration, the state youth employment policy at the regional level has proved effective.

Conclusions of the research and prospects for further studies. The study of the process of formation and implementation of state youth employment policy at the regional level in Ukraine during 1991 – 2020 allowed identifying 4 periods of change in approaches and methods. At the first stage (1991 – 2000), in Ukraine there existed a paternalistic model of state youth employment policy at the regional level, resulting from the Soviet approaches: the use of public procurement, administrative methods, the state allocation of young professionals. The application of active methods of social policy in the field of youth employment since 2001, the emergence of new institutions set to address the problem of youth employment in the regions, that is, youth labor centers testified to the start of using a market model of state youth employment policy at the regional level. The third period – 2010 – 2016 – was characterized by the removal of youth employment from the domain ofyouth and educational policies, the ruining of the network of youth labor centers, reduction in the effectiveness of state youth employment policy at the regional level in Ukraine. The period from 2016 to present day has been marked by a positive impact of decentralization reform on the effectiveness of state youth employment policy at the regional level; the focus of regional employment programs on supporting flexible forms of youth employment; formation of a model for the implementation of youth policy in the context of decentralization; effective involvement of young people in the formation and implementation of youth employment policy at the regional level.