Over the past few years, one of the most pressing employment problems in Russia has become hidden unemployment, the main reason for this phenomenon is a drop in production, as well as a decrease in employment, which, in its indicators, is inadequate to this decline.
What is it?
The quantitatively hidden type of unemployment implies the number of employees who became unnecessary because the number of manufactured products fell, or structural changes occurred in the manufacturing technology of certain products. At the same time, people who are covered by hidden unemployment continue to be considered employed, and after the economic situation improves, they will be ready to work efficiently again and can return to their previous place.
The economic possibility of a significant spread of this phenomenon is caused by an almost uncontrolled decrease in the real salary of employees at various enterprises.
Forms of Hidden Unemployment
Hidden unemployment exists in the following forms:
- Excessive staff receiving full salaries. In other words, in fact, these people are not unemployed, but at the same time their work will not become unprofitable from their dismissal, but their maintenance is a difficult burden for the economy, provokes a rise in price of production and, accordingly, starts the inflation process.
- Retention of those people who work during an incomplete schedule and who are given the appropriate salary, but who want to work full time, not having this opportunity because of the reduction. Such hidden unemployment is called "partial". If an employee shows a desire to work fully, and if he is satisfied with such conditions, then this is not such.
- Holidays on the part of a certain part of people who do not include full or partial salary retention. Such hidden unemployment is most often the reason for the secondary employment of employees, since they find themselves with a minimum wage or even without it for a period unknown to them.
- The presence of intra-shift or even full-day equipment downtime due to any organizational and technical reasons, such as lack of power supply, violation of contractual relationships and others.
Possible perspective
It is worth noting that during the development of market relations, as well as increasing the rigidity of the current financial and credit policy in various companies and the continuous increase in competition, hidden unemployment in Russia will be continuously reduced, and this process has already been launched. At the same time, one must correctly understand that the main task in this case is that it should decrease towards effective employment of citizens, and not only be the transformation of a latent form into an open one.
Unemployment in itself is such a socio-economic situation in society in which a certain part of active and at the same time able-bodied citizens is not able to find a job for themselves that they can and can do.
Who are the unemployed?
In accordance with the current legislation, unemployed in Russia are those people who simultaneously meet three basic conditions:
- They have no job.
- They are trying to find a job or are organizing their own business.
- They can start working two weeks after they receive an invitation.
It is worth noting that this category affects her and those people who study in various areas of the employment service, have managed to find a suitable job for themselves and are waiting for an answer, or are just preparing to take office, but are not working yet. In principle, hidden unemployment in Russia also affects this category of people, if the contract has already been signed, but at the moment they have not yet come to work.
How are things in Russia?
As mentioned above, in accordance with applicable law, those people who are unemployed and have no work, they are registered with the employment service, are trying to find work and are ready to take office. In this regard, in accordance with the official accounting system, real indicators are significantly underestimated, since a fairly large part of the unemployed are not considered as such, because for one reason or another they were not registered with the employment service. That is why the level of hidden unemployment in Russia is still falling at a slower pace, since the problem is simply not given due attention.
Problem study
In the process of studying what are the causes of hidden unemployment, as well as the problems that relate to it, special attention is paid to the analysis of its individual types. Among the criteria for identifying types of unemployment, one can single out why they appear and how long this problem lasts. The main types of unemployment:
- Frictional.
- Structural.
- Cyclic.
Structural
Demand for work is a derivative phenomenon that directly depends on the demand for certain services and goods created in the process of this work.
Since over time, the structure of demand from consumers constantly changes, accordingly, the demand for employees also begins to change, because some professions and even types of work become obsolete and simply cease to be in demand on the modern labor market. These are the most common conditions for the occurrence of hidden unemployment, when they gradually refuse the services of a certain specialist, for example, replacing it with various automatic equipment.
Various forms of hidden unemployment that arise against the backdrop of such a mismatch are part of the "structural" structure. It is worth noting that this format of unemployment also includes one that relates to the territorial isolation of the workplace and the employee who could hold this position. Structural unemployment is an inevitable prospect, because changes in the economic sphere are just as inevitable.
Possible solutions to the problems associated with this phenomenon are concluded in the development of a system of retraining of specialists, as well as in professional qualifications for those needs that the market will experience in the future. Thus, depending on how effective the solutions to certain problems are, the length of stay of workers in the field of structural unemployment will change, but this format of unemployment is always part of a dynamic economy.
Why it happens?
All this happens for the reason that in the vast majority of cases, people are slower able to respond to various technological changes, if only because the workplace is being updated quickly, and in order to prepare a professional specialist, it will take several years. Ultimately, the structure of labor supply does not correspond to the current structure of demand.
Friction
Among the basic principles of a socially oriented market economy, it is worth highlighting the freedom of choice on the part of workers in the field of activity, as well as the place where they will work.At any moment, a certain part of capable employees is in a state of changing jobs. Moreover, some do this if they are not satisfied with working conditions. At the same time, the other part is only trying for the first time to choose a job for itself, trying to weigh this important decision. It is also worth noting that some are looking for new vacancies in connection with the termination of the contract that they signed at their previous job.
Some of these people find jobs over time, but this format of unemployment is frictional. In this case, the initiative for dismissal comes directly from the employees, while this type of unemployment is not only inevitable, but also desirable to some extent, since due to this, professionals in their field can find more paid work that increases their well-being and, accordingly, benefit to the public.
Overall
The overwhelming majority of economists today recognize that frictional and structural unemployment together in their indicators constitute a natural level. Frictional unemployment is a consequence of the dynamism of the current labor market. That is, it is a structure that is formed due to professional or territorial mismatch of supply and demand on the existing labor exchange. In this regard, the natural level is the minimum that meets the definition of full employment. This level in countries today varies approximately in the range from 3% to 7%, but some types of unemployment are not taken into account: hidden and some others.
Cyclic
In the current economic instability, when the general demand for various services and goods decreases, production is gradually being phased out. This leads to a significant reduction in vacancies and increased competition in the labor market. The general standard of living of the population is falling. Under such conditions, unemployment quickly appears and grows, which is caused by a quantitative lack of jobs for every person who wants to work. It is this type of unemployment that is called “cyclical”, since it is caused by changes in the economic situation and is a crisis phase of the business cycle. Cyclical unemployment It is a direct consequence of the fact that in the labor market there are virtually no free jobs, despite the relatively large number of unemployed people.
In the process of economic crises, the level of cyclical unemployment quite often exceeds 10%, as a result of which it turns into one of the most serious socio-economic problems that can cause unforeseen socio-political changes. This characteristic of hidden unemployment and other types often leads to very disastrous consequences.
Time differences
Depending on the time of occurrence of this phenomenon, temporary and permanent unemployment are distinguished, while it is worth noting that officially there is no established separation between them. Moreover, in accordance with established practice, for example, in the United States, if a person has been unemployed for 15 weeks or more, then his unemployment can already be called long-term. It is worth noting that if the level of latent unemployment of a long-term type rises, then this is already the most dangerous and fraught kind of relative overpopulation. It is for this reason that most governments, as well as their employment services, are trying to initially provide work for this particular circle of people. In other words, everyone is trying to minimize the number of people experiencing long-term unemployment, if there is no way to completely exclude this phenomenon from the country.
What to do?
In order to avoid too many unemployed, as well as to prevent a massive reduction in employment, the fight against hidden unemployment should include both short-term and long-term instruments, including:
- Using an extremely flexible system of combining vocational training, as well as retraining with employment.
- Keeping active investment policy aimed at creating more jobs, as well as maintaining and subsequently maintaining those jobs that are economically viable.
- The increase in the amount of pension, which should be enough for a normal life.
- Widespread use of various forms of secondary employment.
- The development of additional employment, as well as individual labor activity aimed at the provision of services.
- Small business promotion.
- And much more.
The main thing is to minimize the size of long-term and open unemployment, as well as to ease its problems through transformation into part-time employment. Thanks to this, it will be possible to reduce social tension, as well as reduce the risks of a social explosion.