State regulation of the labor market

The emergence of serious social and economic consequences of unemployment led to the need for government intervention in the world of work. Due to this, it became possible to modify labor relations, regulate them and limit the freedom of market forces. As an element, a powerful state legal regulation of the labor market has been created, through which labor relations are regulated (working hours, hiring and dismissal procedures, giving days off, etc.) at the international and national level.

State regulation of the labor market is carried out in two forms - active (raising the level of employment, creating new jobs, and overcoming unemployment through retraining and training of workers) and passive (payment of unemployment benefits).

State regulation of the labor market sets itself the following goals:

· Providing full employment, which will exclude the development of cyclical unemployment, without violating the so-called habitual level of unemployment, which is determined by the size of its structural and frictional forms.

· Creation of a labor market that can adapt to various external and internal changes in the development of the economy.

If we talk about the main direction, recently state regulation of the labor market does everything to achieve full employment of the population. For this, such measures as the organization of retraining and retraining of the unemployed, stimulation of investments in the economy, the development of employment services, assistance in the development of small and family business, the organization of public works, international cooperation to solve employment problems, the consideration of the issue of international labor migration .

The state regulation of the labor market also concerns support for those who are unemployed. Such social protection is a passive form of state policy. Persons who for one reason or another can not get a job, the state guarantees free medical care, as well as providing social support in the form of material assistance, unemployment benefits and some other payments.

How necessary is the state, especially the legal regulation of the labor market? To understand this, having analyzed the pros and cons of such state policy. State regulation of the labor market leads to the fact that the conclusion of labor agreements is not in free form, but according to law. Until recently, the employer, in the event that a formal labor agreement was not formalized , could at his own discretion determine the amount of wages and working conditions. Thanks to regulation, such an act is limited by the law on working conditions and minimum wages. Of course, such a circumstance is a plus of state regulation. However, on the other hand, supporters of such regulation believe that this law leads to an increase in the costs of employers, as a result, the latter can not act flexibly. This is how the growth of unemployment is provoked, which is especially high in certain spheres of activity. The reason for this is that the established high level of wages and working conditions suit only the workers themselves, while remaining unprofitable for organizations and firms. As a result, the latter will avoid hiring those people who do not have a good "track record". Their conclusion is this: people who have not worked for a long time or do not have the necessary qualifications remain unemployed. Thus, the state regulation of the labor market should not be considered only on the positive side.