Abstract: A system of factors that affect the formation of labor resources is considered. At present, quite unrelated indicators that reflect individual aspects of the labor potential are used to characterize labor efficiency. In new economic environment, it is necessary to elaborate a system of indicators that would more fully reflect the use of labor. Keywords: labor resources, efficiency, competitive labor compensation, nominal compensation, criterion, labor productivity, demography UDC 331.53:631 DOI 10.12737/4143 INTRODUCTION The reorganization of ownership patterns and the formation of a mixed economy in the agrarian sector require adequate changes in labor relations. An important cause of the production decline in the agrarian sector was the inability of the rural population to adapt to market conditions due to its specific mentality. The substantial drop in overall production and the deterioration of the demographic situation have led to a decrease in the absolute number of employees and, what is more important, to changes in their qualitative composition. In our opinion, an increase in the performance of the agrarian industry is primarily determined by the availability of highly professional and economically competent human resources who are able to use new technologies in production. We see a decrease in real labor compensations of agricultural producers, late payments, unpaid vacations, dismissals, and reduced productivity and labor motivation. The goal is to propose and substantiate a system of labor-forming factors and to assess the efficiency of labor. The development of market mechanisms in the agrarian sector in the absence of efficient state incentives for agricultural producers has led to deterioration in socioeconomic conditions in the industry and in rural communities as a whole. Thus, it is necessary to analyze in detail the existing situation and to elaborate measures of increasing efficiency in the use of labor. Market relations introduce changes to the organization, distribution, and use of labor, which manifest themselves in different ways in agricultural businesses of different forms of incorporation. At present, agricultural production practices require new approaches to make the use of labor efficient. We used data of the Russian Federal State Statistics Service and the Kemerovo oblast territorial statistics body for our analysis. The paper employs the following methods: - economic–statistical; - monographic; and - abstract–logical [8].