А Precarious Employment, its Role and Social Consequences

Abstract

The article examines the rapid spread of precarious employment, its mains forms, characterizes the composition and scale of this employment both in developed countries of the West and in Ukraine. The term precarious employment comes from the “opposite principle” and does not give a positive characteristic. More precisely this employment expresses the English term “precarious employment”. Related concepts “precarization”, “precarii” and “precariat” are disclosed. Precarious employment is a controversial phenomen, there its positive and negative sides and consequences are consedеred. The aim of our work is to clarify the causes of positives and negatives of precarious employment in Ukraine in order to stregten its positive aspects and weaken the negative aspects and consequences. We substantiated, that the main reason for the negatives of precarious employment in Ukraine is the decline in innovative development in the national economy: by 2015 year the share of innovative products sold the decreased and amounted to only 1,2%, according State Statistics Service. In its turn, the most important reason for the essentially lack of innovation in the country, in our opinion, is the high proportion of the shadow economy and cheap labour. Here are the conclusions. In order for precarious employment to provide more positive consequences, it is necessary to introduce innovative development into the economy more widely. And for this it is necessary to reduce significantly the shadow economy and increase wages based on the growth of labour productivity. Solving these problems will require huge investments, both internal and external. In order to attract them, it is necessary to create a favorable investment climate in the country, to develop and implement a program for the application of wide benefits, including venture capital companies.