The impact of structural changes in the economy on employment as a basic factor of the region’s social development

Abstract

The purpose of the article is to study the impact of structural changes in the economy on employment as a basic factor of the region’s social development. Methodology. The general scientific methods are used in the research, in particular: theoretical generalization – to study the impact of structural changes in the region’s economy; statistical analysis – to analyze the characteristics of the current, employed population and the average monthly salary; methods of positive and normative analysis – to substantiate the impact of structural changes in the economy on employment as a basic factor of the region’s social development. Results. It is noted that providing a sufficient employment rate and decent working conditions is one of the important indicators and, at the same time, factors of socio-economic development of the region. In order to determine the dependence of employment in Dnipropetrovsk region on the influence of the structural, regional and national factors, a shift-share analysis was conducted. The results of the analysis showed that the greatest influence on providing the employment rate in the Dnipropetrovsk region is exerted by the factors of the regional economy, namely the competitiveness of the sectors, including primarily industry, wholesale and retail trade, transport. Almost all types of economic activity are internally competitive, which in 2018 provided the current employment rate by 89%, i. e. 1,245.4 thousand employees. Given the preservation of national dynamics in the region, the number of employees in the region as a whole would be lower by 9% or 133 thousand people. The largest reductions would be in industry, trade and education. The graphic analysis of employment in terms of economic activities in Dnipropetrovsk region revealed the most promising economy sectors in the region in terms of job creation and providing a sufficient employment rate. Each type of economic activity is represented by a point with corresponding coordinates, which shows the growth of employment in the sector at the national (X) and regional level (Y) and the share of economic activity in the region’s economy. Practical meaning. The graphic analysis shows that the most productive sectors of the region’s economy in terms of job growth are wholesale and retail trade, agriculture and forestry. Prospects for further research. The research shows that the main problem of managing the region’s strategic development at the current stage is primarily the lack of a comprehensive conceptual strategic vision of the region’s model, which will provide a balance of interests between government, business, the public, unite the efforts of all actors in the regional system to achieve common and mutually beneficial goals aimed at sustainable economic growth, providing the welfare of citizens and the most optimal use of resources. Such goals, in our opinion, should be the imperatives of strategic development of the region, which will act as a cross-cutting regulator of socio-economic processes and decision-making at all levels.