Azmuk Nadiya, PhD (Economics), Associate Professor of the Department of Economics, Entrepreneurship and Marketing, Cherkasy State Business-College, Cherkasy, Ukraine

ORCID ID: 0000-0002-6650-328X
e-mail: azmukna@gmail.com

Flexicurity: Challenges for the Ukraine’s Labor Market

Introduction. The labor market is changing under the influence of globalization processes and the active penetration of digital technologies into the field of labor. The transformation of the content, nature and process of labor leads to the spread of non-standard forms of employment, which is accompanied by a decrease in the social security of employees. These trends are aggravated by low remuneration, an increase in inequality in income, which causes the outflow of labor potential from Ukraine.

Flexicurity is a model of the labor market, which combines three components: flexibility, social security, active state policy. The model has proved to be effective in the countries with socially oriented economy. At the same time, the effectiveness of implementing flexicurity in Ukraine is possible under the condition of the active state policy aimed at ensuring the welfare of the population.  The result of its implementation is a low level of unemployment; development and maintenance of labor potential in the country.

The purpose of the article is to assess the challenges faced by the Ukraine’s labor market by the main components of flexicurity model: flexibility and employees’ social security.

Results. The flexicurity model can become a tool for solving problems that exist on the national labor market. Its implementation will increase the flexibility of the national labor market and strengthen the social security of the economically active population. The Ukraine’s labor market is characterized by partial flexibility and low level of social security. The main factors that reduce the level of flexibility of the Ukraine’s market are low labor mobility within the country and insufficient remuneration. The low social security of the national labor market is due to imperfect mechanisms and instruments of state regulation. In particular, partial coverage of collective agreements, ineffective policies to stimulate job creation, low remuneration and virtually unrealized concept of lifelong learning.

Conclusions. Issues open for further research include the development of mechanisms for public policy aimed at welfare of the population. It should be based on the integrated approach, a combination of investment, innovation, tax, educational and other components.

Keywords: labor market; flexiurite; labor market flexibility; the social security.

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