Study of unemployment in Ukraine and Odessa region

Cheliadnyk Vitalii
master`s student, Odessa national economic university. E-mail:mrchilivilli@ukr.net

Baldzhy Maryna
Doctore of Еconomic Sciences, Professor, Odessa national economic university. E-mail:baldgi@ukr.net

Cite this article:

Cheliadnyk V., Baldzhy M., (2018) Study of unemployment in Ukraine and Odessa region. Ed.: М.D. Baldzhy (ed.-in-ch.) and others [Systema pensiinoho zabezpechennia Ukrainy ta yevrointehratsiini protsesy; za red.: М. D. Baldzhy (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 8(260), pp. 173-189.

Abstract

The article considers the problem of unemployment at the state and regional levels. The urgency of the presented problem is grounded. The cause of unemployment and its types such as actual, natural, frictional, structural and cyclical, as well as their interrelation has been studied, the theoretical concept of unemployment regulation has been identified. The article examines the unemployment rate for 2004–2017, as well as inflation and GDP for the same period at the regional and national levels. The problem of unemployment can not be solved completely in the conditions of the market functioning of the Ukrainian economy, but it is necessary to pursue the correct state policy in the field of employment regulation. Analysis of these indicators allowed us to trace the relationship between these indicators and confirmed the correctness of the theoretical concept of regulating unemployment. With the level of actual unemployment, which is lower than natural, the economy accelerates inflation. This is due to the inability of producers to meet the demand of customers due to the lack of an important factor of production - labor. With cyclical unemployment, the economy of the state and the region loses some of its GDP. This happens according to Okun's law, which shows the empirical relationship between the level of cyclical unemployment and the volume of under-received GDP. Therefore, government employment policies should be based on a balance of unemployment. It should minimize the loss of GDP for the regional and national economy and, at the same time, not contribute to the acceleration of inflation. Implementation of the considered concept of state employment policy will stabilize the domestic and regional labor market at the optimal level and minimize the negative social and economic consequences of this problem for the regions of Ukraine, the national economy and the individual.

Keywords

unemployment, employment, GDP, inflation, natural unemployment rate.

JEL classification: J690

UD classification: 330.8:336.743.3

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