Monitoring of regional labor markets and the main trends of labor underutilization in Russia

Abstract

PurposeIn the recent two decades, a model of the labor market formed in Russia; it differs from the model that is peculiar for most developed countries. Its specific feature consists in the fact that adaptation to the fluctuations of the economic situation takes place by means of changes in the labor price, not by means of changes in employment and unemployment.Design/methodology/approachSuch model ensures high and stable level of employment and low level of unemployment with significant pro-cyclic fluctuations of wages. Changes that take place in the sphere of employment of population in labor markets and gradual implementation of collection of information in view of the forms of labor activities into the practices of different countries led to the necessity for reconsidering the previously adopted international standards.FindingsThis is due to the fact that the normative documents present the treatment of unemployment without the criterion “job search,” and new indicators of measuring potential labor force and incomplete employment were adopted. The authors analyze the situation of labor underutilization, which is important for characterizing a region of the Russian Federation by the indicator of unmet need for employment.Originality/valueThe offered information could be used for wider monitoring of the labor market, studying the volume and tendencies in the sphere of unemployment, evaluating the problems of integration in the labor market, studying the connection between employment and poverty and forecasting the tendencies.