INFLUENCE OF DIFFERENT FACTORS ON LEVEL OF INSTITUTIONAL SUPPORT TO EFFECTIVE LABOUR MARKET FUNCTIONING

Abstract

The aim of the study. The effective functioning of labour market influenced by active integration processes is largely depending on such an important component as the institutional support. Therefore, to ensure change of priorities in development of the national labour market in terms of its compliance with the objectives of the national economy, it is necessary, in the first place, to identify and analyze the impact of a large number of factors putting pressure on the institutional support. Methodology. The research is based on analysis, comparing views of different scholars on transformational changes in the national labour market, factors influencing the institutional capacity and efficient functioning of the labour market. Results. In the progress of the study, we have found that institutional support serving the labour market of Ukraine is influenced by more than one factor. First of all, the state of institutional support to the labour market is influenced by both internal (endogenous, controlled) and external (exogenous, uncontrolled) factors. External factors of institutional support to the national labour market are characterized by external competitive environment, in which our government has only limited ability to influence them. The internal factors include those that could be controlled at national or regional level. Practical implications. Synergistic effect from combination of influence of external and internal factors on institutional support determines the effectiveness or ineffectiveness of functioning and regulation of the national labour market. Under a skilful management of factors that affect the level of institutional support, there will be a transformation of inefficient labour market institutions into effective ones and vice versa. Thus, institutional support factors interacting with each other, affect the efficiency of the labour market functioning. The dominant system in innovative model of the labour market development should be the one of innovative institutional support aimed at attracting wider investment; creation of knowledge and their transfer, use, and consumption; enhancement and preservation of intellectual capital; dissemination and commercialization of innovations; information; lower uncertainty in the behaviour of institutional actors; development of innovative infrastructure of the labour market; development of knowledge-based industries; and creation of new highly skilled jobs.