Яровінська В.Я., Рєзнік М.А., Ульянова Л.П.

Дніпропетровський національний університет імені Олеся Гончара

YOUTH UNEMPLOYMENT IN UKRAINE: THE CURRENT SITUATION AND PROSPECTIVE SOLUTIONS TO THE PROBLEM

Unemployment is social and economic phenomenon associated with excessive labor supply in comparison with the demand for it and the status of an unemployed person that a part of economically active population has. According to the UN data, today every third person in the world capable of working does not work or has casual or seasonal employment. In March, 2010, the number of registered unemployed people was 530.3 thousand, or 27.5% of all unemployed people of working age (ILO methodology). Among them almost one in nine lost his/her job for economic reasons.

Vacant workforce means underutilization of economic potential of society and direct economic losses, having underproduction of GDP and other negative consequences as a result. The problem of unemployment is a major socio-economic problem of our time that occupies one of the first places in economists’ research devoted to urgent issues of the present time. Researches rightfully note that unemployment is the most topical issue in countries with transformational economies, where no effective mechanisms of labor market regulation have been formed, and where no approaches to youth employment have been found.

It should be noted that Ukraine has been facing the problem of youth unemployment since the beginning of market reform (in 1990s). In the current global economic crisis this problem is especially severe, since there’s a growth trend of youth unemployment. According to sociological surveys in recent years Ukraine confronted such problems of employment as the reducing number of employees in the country, growth of labor mobility, increasing number of employees in the shadow sector, the emerging child labor markets, dismissal of layers of population which are rated by the Labor Law as the most unprotected ones (for example, youth). According to the State Employment service the number of unemployed people is growing, every day 9-12 thousand people join the ranks of people without a job. These are mainly active, dynamic and educated young people. By January 1, 2010 the total number of Ukrainian unemployed young people (up to 35 years) made up 31.4%. It should be taken into account that in recent years the proportion of youth in our country’s population’s structure decreased significantly. High unemployment rate is evidence of instability in the economy and has its negative socio-economic consequences for the country.

Firstly, it is accompanied by poverty, significant deterioration of population's living standards. Secondly, the inability to find work in the homeland makes youth look for a job abroad, which leads to the outflow of labor force. Employment opportunities outside Ukraine used to be quite real, but now, during the world economic crisis, the governments of the European Union countries and the CIS, where Ukrainian citizens often worked, are trying to preserve jobs for their own citizens by reducing the number of legal employment for foreigners. Besides, youth unemployment is particularly alarming, because young people are the future of the country. The lack of work is the reason of abortions, divorces and the increasing number of orphans. Knowing about mass unemployment, young people stop taking education seriously, so it is rather difficult to find a really good specialist. It shouldn’t be overlooked that most crimes are often committed by youth. Therefore, increasing unemployment among young people leads to worsening the crime situation in the country. You should also take into account that it is often dissatisfaction with the lives that makes young people start taking drugs and become alcoholics.

All these factors lead to destruction of the nation. Having this in mind, we need to take a whole set of measures against youth unemployment:

1. People should be well informed about the youth labor law. Besides some amendments to this law should be made.

2. Close relationship between universities and the labor market should be established.

3. The activities of employment services should be better organized.

4. More youth should receive education in the areas that need young professionals the most.

5. Students of the final year of study are to be provided with internships by prospective employers.

6. It is imperative to develop an effective mechanism of population protection from unemployment growth by adopting anti-recessionary bills aimed at minimizing the effects of the global financial crisis on employment and enactment of compulsory state social insurance.

7. Public works should be introduced (under the conditions of economic expediency and social need) to protect young people who lost their jobs. Attracting investments for implementation of public works will contribute to effective youth employment.

8. Central and local authorities are to create an effective system of professional training of the unemployed population, including young people who graduated or are studying in institutions of various levels of accreditation. It can be done through counseling and creating a modern information framework, promoting various careers, etc.

Thus, youth unemployment is an urgent problem for Ukraine. It must be noted that the difference between the youth employment challenge and the general employment challenge is that helping young people get the right start helps to ensure that they follow a pathway to decent work that will benefit the economy of Ukraine. So it is highly important that all the necessary measures discussed in this article should be taken as soon as possible.