Participants in the labor market and their functions

Modern economy can not exist without the influence of the driving force that creates material benefits for the whole society. This is work. There is no single world system for studying this power. The labor market has a number of participants who interact with each other according to certain laws. Such level of welfare depends on such ties. Participants in the labor market, as well as their functions deserve special attention. This will allow a deeper understanding of the entire system.

The concept of the labor market

Part of the market economy is the labor market. This system functions in close proximity to other markets (materials, raw materials, securities, money, etc.).

The main participants in the labor market are employers and employees. Under the influence of their relationships, the structure, volume of demand and supply are formed. Only here the commodity is the labor for which the employer is ready to pay a certain cost.

A person who offers his labor for the creation of material values spends his physical, energy resources. Work is managed both from outside (leaders) and independently by an employee.

Market participants. Basic Groups

The main participants of the labor market interact with each other, establishing a balance of demand and the price of labor. These include the three main actors. On the one hand, they are hired workers. They can be united in trade unions, whose representatives protect the interests of the work collective.

On the other hand, employers speak. They can also be united in alliances. But in order not to lead to uncontrolled interaction of these two main forces of the labor market, there is also a third party. This state, as well as its relevant bodies.

The level of state influence in different countries is not the same. But it always corresponds to the principles of social policy. This improves the functioning mechanisms of the labor market. Under the influence of the state, social justice is established to the extent that the very society of a particular country is developed.

Entrepreneurs

Participants in the labor market invariably interact with each other under the impact of supply and demand on labor. For a planned economy, this approach is uncharacteristic. This applies only to a market or mixed management system.

Demand in the labor market is formed by entrepreneurs or their associations. They create jobs. This ensures employment of the population. Entrepreneur at his own discretion makes personnel decisions. He can accept or transfer an employee to a certain position, and also, if necessary, dismiss him.

If the entrepreneur is in search of the employees necessary for his production, he is already recognized as an employer. The law establishes that he can not unreasonably refuse admission to office, and also restrict human rights in the process of concluding a contract with him. There can be no advantages on the part of the entrepreneur in relation to the person who is looking for work, on the basis of his race, sex, nationality, religious beliefs.

Employee

The main participants in the labor market are, in addition to entrepreneurs, hired workers. This side forms the supply of labor. A person offers his services for a fee.

An employee becomes an employee on the basis of an employment contract. The employee undertakes to perform the functions proposed to him depending on his professional skills. At the same time, he must obey the internal rules of discipline and follow the orders of higher-level managers.

A collective agreement may stipulate a number of requirements and rights specific to the organization for employees. But only if it does not contradict the legislative documents of the state. Usually employees under an employment contract receive more rights and freedoms than without this agreement. Here, socially just conditions of rest and work, material support can be stipulated. This increases the security of personnel.

The state

Participants in the labor market in Russia are entrepreneurs, employees, as well as the state. Its role is hard to overestimate. The state's influence extends through regional and federal government bodies, as well as by branch systems of power and local self-government. The functions that are entrusted to the state in the labor market are as follows:

1. Legislative establishment of legal rules and norms of behavior of the main market participants.
2. Socio-economic, allowing to achieve maximum employment in all sectors of the economy.
3. Protection of the rights of all subjects of market relations, social justice of participants.
4. Regulation of relations between participants using indirect methods.
5. Role-based establishment of the employer's function at state-owned enterprises.

Many factors influence the powers of the state in this area of activity. However, without its intervention, the mechanisms of the functioning of all elements of the system are significantly impaired.

Legal regulation of the relations of participants

Participants in the labor market are interconnected forces. Change in the force of influence of each of them will lead to disruption of the whole system. For the labor market to function properly, it is regulated by legislative norms, acts that clearly stipulate the rights of each participant. This allows creating equal opportunities for all actors to fulfill their needs.

Legal regulation is also necessary to create insurance in the event of loss of work by employees. Special economic conditions are created. The state introduces certain privileges, determines taxes. Also, market management takes place in the area of creating employment.

Distribution of labor resources

Redistribution of labor resources in the industry with a greater need for qualified personnel makes it possible to achieve maximum economic benefit. Market participants are interested in maintaining a balance of supply and demand. Therefore, for retired workers there are courses of retraining, vocational training.

Such interference in the functioning of the labor market is necessary to maintain the civilized nature of the relationship between all actors. Therefore, the regulatory framework takes into account the basic rights and responsibilities, starting with the highest sources of law in the state.

Interaction of participants

Participants in the labor market and their functions are determined by establishing relationships between them. This can be done in three main stages:

1. At the time of hiring.
2. In the process of establishing working conditions or their changes.
3. At the dismissal of the employee.

Communications market participants begin with the beginning of the search for the employer necessary for his company's staff. To do this, he begins to collect information about the current market conditions. The supply of labor at a particular moment of time is broken down by profession, qualification and specialization.

Quite often the employer enters into relations with the bodies of state control of the labor market. The employment service (public or private) provides him with the necessary information about the existing supply of labor resources.

For people in search of work, it is important to have information about the relevance of their profession, as well as the availability of jobs. The state, for its part, can guarantee that there are no racial, religious or other forms of discrimination when hiring.

The employee must be recruited solely for his skills, qualifications or specialization.

Human Resources

The main participants of the labor market are interested in the qualitative advancement of the hiring process, as well as in the possession of complete information on the structure of the demand and supply of the market. In these conditions the personnel service of the enterprise plays an important role. This department deals with training, recruitment, remuneration. Personnel service forms a database.

The development strategy of the organization determines the activities of the personnel service. This is regulated by the company's top management and its position in the labor market.

Personnel service takes into account the conditions on the market, the policy of the state in the issue of unemployment and employment and is subject to legislation. This is an important service that regulates the relations of the participants.

Social partnership

It is important to maintain a balanced relationship between all market actors is social partnership. It arises between the employer and hired personnel and is called upon to support civilized relations of the interests of the parties. This is important for the regulation of labor and other relationships related to employment, professional activity, etc.

A number of activities are carried out for this purpose. Consultations, collective negotiations allow preparing and concluding draft agreements or agreements regulating labor relations.

Guarantee of rights and freedoms

Participants in the labor market have certain rights and responsibilities. In the balance of their relationship, it is important not to support only one of the parties. This leads to disruption of communications, exceeding the authority of one subject over others.

To ensure a fair system of taking into account the interests of all parties, employees through their representatives can manage the activities of the organization.

Also, social partnership is implemented in the form of pre-trial resolution of conflicts and labor disputes. Equality is one of the basic principles of this approach. This guarantees the observance of the rights and freedoms of all parties to the employment relationship.

Having familiarized with such subjects as participants of the labor market, it can be concluded that their interaction determines the social well-being of society. Therefore, their connections are subject to certain laws. Each participant has certain functions, rights and responsibilities.