Labor market amid the crisis and ways to improve its governmental regulation

: pp. 144 - 157
Lviv Polytechnic National University, Ukraine
Entrepreneurship and Marketingof Ukrainian Academy of Printing

Statement of the problem. Employment of the population and reduction of unemployment rate are priority objectives for economic recovery in the country suffering from the hybrid war for many years, affected by the COVID-19 pandemic for two years, and involved into the full-scale war since February 24, 2022 that results in joblessness for thousands of people, destruction of the businesses, equipment and facilities, as well as the natural resources of Ukraine. These and other factors are undermining the normalfunc- tioning of the labor market that currently features high unemployment rate, essential territorial differentiation in the area of employment in connection with the temporary occupation of the territories and warfare, imbalances between the vacancies and the qualifications in demand, negative demographic processes (increase in the rate of mortality, disability, migration within and outside the country).

Today, governmental regulation of the labor market is a necessity because coordination between the interests of the workforce and the employers has to be supported and monitored by the government to enable fast recovery from the crisis and integration of Ukraine into the world economic space, increase of the economic competitiveness and acceptance of Ukraine as the member of the European Union.

Analysis of the latest researches and publications. The war in Ukraine that has caused social and economic crisis has also adversely affected the national labor market and employment industry. The vacancies have been curtailed as a result of emigration of people and relocation of businesses, employment has become problematic or impossible, accordingly, there is increase in unemployment rate stemming from the pandemic and economic crisis emerging before the war. That is why a lot of scientists have started researching this problem, namely, N. Balashova, O. Bokov, M. Butko, V. Vasylchenko, R. Voitovych [4], S. Honcharova, K. Dubych [4], M. Kravchenko, O. Krainyk, E. Libanova, Y. Marshavin, L. Novak-Kaliaieva, V. Onikienko, N. Savchenko, K. Suprun [5], N. Titchenko.

Addressing the previously untouched points of the general problem. The subject of the research constitutes study of the particulars of formation of offer and demand in the labor market of Ukraine amid improvement of its governmental regulation, with due regard to the European Integration ambitions of Ukraine. 

Presentation of the basic research material. Employment of the population is one of the most important criteria influencing the state of economy and efficiency of public administration in any country. The purpose of the governmental policy in this area is to ensure the fullest involvement of the population in the socioeconomic development processes.

Public administration of employment includes ensuring balance between the labor offer and demand for the people with different occupational qualifications, increase of the income and improvement of the quality of life of the people, facilitation of staff support in order to generate and fulfill the creative and business ideas.  Public administration of employment plays an important rolein the socioeconomic development policy, offersso- lution to the multidimensional problems, and not only furthers achievement of quantitative target values, but also encourages qualitative economic changes, human capital development, especially in the context of the European integration.

Based on the completed analysis, the key measures aimed at improvement of the governmental regulation of the labor market amid the crisis are creation of equal opportunities for the unemployed in the Employment Center of the region, provision of access to the training programs and job offers, introduction of the mechanisms of cooperation and interaction among the State Employment Service and private employment agencies; elimination of imbalance between the workforce offer and demand revealed while analyzing the number of vacancies and unemployed in the labor market of Ukraine, which is especially necessary in times of war, by achieving the balance between the workforce offer and demand in the market through generation of the system of monitoring and forecasting, and estimation of the numbers of the state order in the educational institutions; career guidance organization and promotion, training and re-training of staff; harmonization of the legislative regulation of labor relations of the market participants; in view of the experience gained from the developed countries, prioritization of the social protection of the unemployed population (financial aid, unemployment benefits, unemployment insurance, etc.), which shall definitely decrease emigration of the staff and reduce the criminal rate; generation of the competitive environment, both in the labor market and in the businesses, with due regard to the economic and regional aspects; increase of motivation among the unemployed, etc.

Conclusions. The research addresses the evident lack of balance between the offer and demand in the labor market occurring as a result of the pandemic, as well as substantial worsening of this situation since February 24, 2022. In 2018–2019, the difference between the vacancies and the unemployed was not essential, in 2020, the number of unemployed exceeded the number of vacancies 1.5 times, in 2021, 1.7 times, and in 2022, 2.7 times. In addition to the social crisis when the war destroys the life of people and families, ruins or paralyzes the state and private economy sector, the governmental regulation of the labor market is required both at the state and the regional levels. Today, the worst situation is in the occupied territories or the area affected by fighting, and despite partial relocation of businesses, many companies are staying in the danger area any putting the life of their employees at stake every day due to impossibility to move their business to another area, desire to keep the jobs or for other reasons, for stabilization of economic processes and the future without war.

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