Strategic priorities of world labor market development

  • Svitlana Bila National Aviation University (NAU)
Keywords: world labor market, labor force, labor migration, unemployment, discrimination, international organizations, UN, institutional and legal, organizational and economic, mechanisms of world labor market regulation, pay rise, employment legalization, human trade, world market

Abstract

Actuality of the research topiс. Strategic priorities of world labor market development in the first quarter of the 21st century are shaped under the impact of a range of multidirectional actions factors – from globalization and respect for the open economy principle by majority of the world countries to neoprotectionism which is becoming more widespread in foreign economic policy of developed countries of the world. Each country which observes the market-based principles is closely linked to the world labor market via labor force resource and labor migration processes. These ties are constantly strengthening as countries obey international law, consider international labor market regulatory mechanisms in their national governance practice, and introduce the best world examples of institutional support for employment, unemployment reduction, labor migration regulation and counteracting all forms of discrimination at labor market. Respect for strategic priorities of world labor market development is of actual importance for all world countries, including Ukraine which for the last five years has significantly expanded labor migration flows and become the active participant of world labor market. Analysis of recent research and publications. Considerable contribution to the study of current situation and defining the newest world labor market development trends in the 21st century was made by profound Ukrainian scholars like A.Philippenko, O.Hrishnova, O.Malinovs’ka, E.Libanova, A.Dembitska and others. Among the foreign scientists who researched the core and main patterns of world labor market development within globalization we should mention G. Borjas, Y. Jansen, R. Celikates, J. de Bloois, A.  Zolberg, E.Meyers, P. Wickramasekara, A. Zogata-Kusz etc. Extraction of unexplored parts of a common problem. Scope of the study into the core and constituencies of world labor market are pretty fully highlighted in the world  economic literature. Yet, to define strategic priorities of world labor market development it is especially important to study the impact of institutional and organizational and economic tools of international organizations activity on world labor market regulation and development. This issue is an important component of international economic relations. Statement of the research purpose and tasksThe purpose of the study is to examine commonality and define strategic priorities of world labor market development in the 21st century. To achieve it the following tasks are set and resolved in the article: - to research the factors affecting world labor market reforming and defining the priorities of its development; - to research institutional and legal, organizational and economic mechanisms of international organizations impact on regulation and unification, defining strategic priorities of world labor market development; - to reveal the newest trends of world labor market development which are shaped under structural and innovative changes, countries’ transition to ‘Industry 4.0’, as well as under impact of labor migration processes. Method or methodology of the research. While defining strategic priorities of world labor market development a set of theoretical and empirical scientific research methods are used. Revealing institutional factors affecting world labor market development, historical and logical methods, methods of synthesis and analysis, abstract and specific methods, and cause-effect method are used. To research the impact of institutional and legal, organizational and economic mechanisms on world labor market historical and logical methods, methods of induction and deduction, methods of classification and generalization are employed. Whereas methods of synergy and expert estimates, casual method are used to justify the innovational processes and labor migration impact on shaping strategic priorities of world labor market development. Presentation of the main material (research results). World labor market is a complex economic system modified under dynamics of supply and demand for labor resources at the world market; under the impact of labor force price charges specificity, terms and pay level formation, as well as social security peculiar nature; qualitative and quantitative mobility and placement of labor force in different world countries; differences in national approaches to labor force reproduction, their professional training and qualification improvement. Within globalization national labor markets lose their closeness and remoteness, becoming constituent part of world labor market. Strategic priorities of world labor market development are shaped under the impact of a range of multidirectional actions factors: globalization and national economy openness, neoprotectionism, structural and innovational changes in world economy, countries’ transition to ‘Industry 4.0’. It occurs due to labor migration activization and enhancing the role of international organizations as coordinators of international economic relations development. Strategic priorities of world labor market development are strongly affected by the international organizations which set standard rules of the game for all countries of the world both at local and world labor markets. Among the priorities the following ones are particularly important: protecting the rights of the employed, unification of system of remuneration and taxation, establishing social guarantees and social security, procedures of admission and dismissal, preventing all forms of discrimination and legal employment. Transition to a 4-day working week is of reality for developed countries of the world. Working terms under freelance system are standardized, as well as for those who work from home in services and within the norms of creative economy. The 21st century faces the growth of labor force mobility, unification of labor migrants’ rights security, labor standards and salary conditions, guaranteeing labor migrants’ social protection. Institutional and legal, as well as organizational and economic security of national labor markets of the world countries is gradually harmonized and unified with world standards implemented by international organizations. International organizations shape the newest trends of world labor market reforms. Organizational forms of world labor market in the 21st century include elaboration and adoption of institutional and legal norms of world labor market development provision; indicative planning (forecasting); defining strategic priorities and long-term purposes of world labor market development; administrative regulatory methods (including fines, penalties, licenses and sanctions). The role of international institutional and financial assistance is growing via consultations, forums, technical aid and recommendations, as well as target-projected financing, grants, free humanitarian and other financial assistance. World labor market is a subject to regular international monitoring, system of international control on the development aimed at prevention all forms of discrimination, human rights and freedoms violation (including labor force and employees), child exploitation and human trade at the world labor market. Strategic priorities of world labor market reforms involve measures directed at employment legalization, preventing human trade and illegal labor force exploitation, avoiding child labor exploitation, preventing all forms of discrimination and ‘shadow economy’ features in recruitment and income generation, protection of employees and labor migrants’ rights and freedoms at world labor market. Reforming Ukrainian labor market as a part of world labor market demands for such strategic priorities as implementation of international standards on the employees’ rights security in Ukraine, pay rise in accordance with EU countries standards, prevention of discrimination and ‘shadow economy’ features at labor market, legalization of employers’ and employees’  income, protection of their rights and freedoms, social securing of their guarantees, as well as the ones for employed migrants working at Ukrainian labor market and Ukrainian labor migrants abroad. The field of the results application. International economic relations and world market. Conclusions according to the article. Trends of world labor market development are correlated with general trends and directions of economic cycle stages (recession, depression, growth and peak), whereas depending on demographical situation in the country and the world, character and dimension of countries’ economy structural transformation and integrational world countries grouping. Basic trends of world labor market development in the 2010s include system of remuneration reforming, moving to general growth in pay rise while freezing substantial discrepancies in wages and salaries between developed and developing countries of the world. The essential trend of world labor market is activization of labor migration processes both at the markets of developed and developing countries. Labor migration in the 21st century is mostly of legal official character, though their segments alter towards growth in demand for labor force at the EU and Asian markets. The demand for highly skilled professionals whose activity is close to innovations is rising dynamically at the world labor market.

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Author Biography

Svitlana Bila, National Aviation University (NAU)

Professor of International Economic Relations and Business Department, Professor, Doctor of Public Administration, Honored economist of Ukraine

Published
2019-03-30
How to Cite
Bila, S. (2019). Strategic priorities of world labor market development. University Economic Bulletin, (41), 107-119. https://doi.org/10.31470/2306-546X-2019-41-107-119
Section
Economyand Management