Labor market functioning mechanisms and employment characteristics in the agro-industrial complex

Mechanisms of functioning of the modern labor market

Labor market is a type of factor market, where the main commodity is labor as a service provided by employees. The price of this service is wages, which cannot be lower than the subsistence minimum.

The labor market is governed by the same factors as other markets: demand, supply, the price of labor, and competition. A specific phenomenon manifests in this market — unemployment, which covers all spheres of production, including agriculture and other sectors of the agro-industrial complex. Several types of unemployment are distinguished:

• frictional — a type of unemployment where the unemployed believe they will soon find a job in their specialty. A mismatch between job openings and the number of workers occurs;
• structural — caused by changes in the structure of labor demand. In this case, retraining of personnel, relocation, and additional training in accordance with new economic needs are required and carried out;
• cyclical — caused by a decline in production due to its cyclical nature. During a production slump, incomes decrease, demand falls, and unemployment rises. After exiting the crisis, the number of jobs increases;
• hidden, when people work outside their specialty or part-time.

Thus, unemployment is a situation in the economy or a specific industry where some people who are able and willing to work cannot find a job in their specialty or find employment at all.

The unemployment rate (UR) is defined as the percentage ratio of the number of unemployed (NU) to the sum of the total number of unemployed and employed people, 4R.

Labor demand in the labor market depends on: the availability of jobs, the volume of investment in production, and changes in.

Job creation is the main condition for reducing the number of unemployed.

Labor supply in the labor market is determined by: the number of funds, the necessary amount of monetary income for.

Segmentation and features of employment in the agro-industrial complex

The labor market is also subdivided by levels, for example, regional, local, and even internal for an enterprise.

The labor market is segmented — divided into separate isolated segments; there is no competition between them, but competition is present within each segment. There are three main segments of the labor market:

• primary labor market segment — highly paid workers, as a rule, with good working conditions and social security, with a real opportunity to pursue a career, etc.;
• secondary labor market segment — privileged groups of workers who lose their jobs due to production downtime, i.e., those who are laid off and dismissed. They are interested in work, not a career;
• unemployed market segment.

The labor market in Russian agriculture is influenced by natural, demographic, social, and economic factors.

Favorable conditions for employment are created by vast land areas and rich natural resources. A negative impact on the level of employment and the use of labor resources in agriculture was caused by: production decline, the reduction of intensive labor-intensive industries in many farms, denationalization, and privatization, which reduced the social protection of industry workers.

In some sectors of the economy, the number of workers is increasing, in others it is decreasing, but in agriculture as a whole, the annual reduction is 4—6 %.

Economic factors of employment in agriculture

Production efficiency is a condition for the employment of workers in agriculture. This makes it possible to direct part of the profit received toward expanding production and stimulating it, which allows for the creation of new jobs and the reduction of unemployment.

Another condition for employment is increasing the material and technical equipment of the enterprise. Typical and most important jobs at an agricultural enterprise are created through:

• the availability of tractors;
• the availability of trucks;
• their operation in two and even three shifts.