Uman NUH | today: 07/27/2022

Macroeconomic instability – unemployment

Author(s) Mudrak R.P., Doctor of Economics, , Uman National University of Horticulture
Revutskaya A., Candidate of Ekonomikal Sciences, , Uman National University of Horticulture
А. А. ОСІПОВА, , ,
Пархоменко Л. А., , ,
Category Economics
year 2021 issue
pages 103-115 index UDK 330.101.541:331.56/57
DOI 10.31395/2415-8240-2021-99-2-103-115 (Link)
Abstract In the Ukrainian economy there is a steady growing trend of the actual values of the indicator «unemployment rate». The main causes of excessive unemployment in the Ukrainian economy are three crises: a) crisis of 2008–2009, caused by the global financial crisis; b) crisis of 2014–2015, caused by the military aggression of the Russian Federation; c) crisis of 2020 caused by the COVID-19 pandemic. Economic crises cause a decline in economic activity and falling demand for labor. A particularly negative trend is the growth of unemployment in the age group 35–49. It concentrates the most experienced and highly productive workforce. The Ukrainian economy is receiving a double crisis blow - reduction in production due to the recession and reduction of social labor productivity due to the emigration of the most experienced and highly productive employees. The same problem arises due to rising unemployment in the group of experienced labor aged 50 to 59 years. Once again, there is an urgent need to point out the aggravation of the problem of the deficit of the Pension Fund of Ukraine. After all, the aging of the country's population, rising unemployment and labor emigration cause an increase in the pension burden per employee. This can eventually lead to the collapse of the current pension insurance system. at some stage, a significant part of future retirees, who today in good faith pay contributions to the PFC as employed, will not have anything to pay a pension. On a sectorial basis, the main factors in the growth of unemployment are the decline in production in industry and construction. An increase in capital investment does not lead to a decrease in unemployment. This paradox is explained by the fact that the absolute amount of capital investment in the Ukrainian economy is so small that it does not cause a significant impact on employment growth and unemployment reduction. The main vectors of the state employment policy are: stimulation of industrial production and construction, radical improvement of the investment climate in the Ukrainian economy.
Key words macroeconomic instability, unemployment, crisis, economic activity, employment, industry, construction, investments
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