Shadow employment: features and challenges for Ukraine in the context of social security ensuring

Abstract

In the context of the modern Russian-Ukrainian war, the issue of shadow employment is closely related to preserving the Ukrainian population of working age. By implementing social security measures, we gain the opportunity to retain the Ukrainian population, increase the labor potential, and accumulate human capital as an important national resource. In this article, the aspects of the impact of shadow employment on the economic sector in Ukraine are explored, as well as the connection of this social phenomenon with personal social security is considered. The terminology of the study regarding shadow employment and social security is clarified. It is argued that shadow employment is a component of the shadow economy sector. It is shown that in conditions of a state of war, shadow employment makes sense for existence, as it mitigates and reduces the levels of potential unemployment. The purpose of the research is to generalize the theoretical aspects of shadow employment, establish a logical connection between shadow employment and social security, and indicate possible ways to reduce the levels of shadow employment in the context of ensuring social security. The conclusions and recommendations of the authors are based on the results of a project supported by the International Center for Rebirth, a public organization «Network of Legal Development, «which aimed to objectively study the impact of the COVID-19 pandemic on the legal needs and problems in the informal labor sector in Ukraine. Emphasis is placed on a range of practical measures that government authorities should take to improve the situation in the field of shadow employment and thus ensure a higher level of social security for both workers and employers. Considering the observance and provision of social security at the state level for all workers, especially those engaged in shadow activities, as a mandatory norm, state authorities intend to implement a series of practical measures aimed at improving the situation in this area, particularly regarding shadow employment. It is summarized that social security should be represented by a certain system of organizational, economic, managerial, and legal measures, the purpose of which is to prevent social threats to security at all levels: national, regional, specific enterprise, organization, and individual. Enhancing the level of social security in the realm of shadow employment will allow the development of mechanisms and organic supplementation of an effective state policy for ensuring the social security of citizens.