A modern economy cannot exist without the influence of the driving force that creates wealth for the whole of society. This is labor. There is no single world system for studying this force. The labor market has a certain number of participants who interact with each other according to certain laws. The level of well-being of the people depends on such ties. Labor market participants, as well as their functions, deserve special attention. This will allow a deeper understanding of the structure of the entire system.
Labor market concept
An integral part of a market economy is the labor market. This system operates 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 and volume of supply and demand are formed. Only here labor is a commodity, for which the employer is ready to pay a certain cost.
A person who offers his workforce to create wealth, spends his physical, energy resources. Labor is managed both externally (by managers) and independently by an employee.
Market participants. Main groups
The main participants in the labor market interact with each other, establishing a balance of demand and labor prices. These include three main actors. On the one hand, these are hired workers. They can be united in trade unions, whose representatives defend the interests of the labor collective.
On the other hand, employers are speaking. They can also join in unions. But in order not to lead to uncontrolled interaction of these two main forces of the labor market, there is a third party. This is the state, as well as its respective bodies.
The level of influence of the state in different countries varies. But it always complies with 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 society of a particular country is developed.
Businessmen
Labor market participants invariably interact with each other under the influence 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. The entrepreneur, at his 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 by the employer. The law establishes that he cannot unreasonably refuse to accept a post, as well as restrict human rights in the process of concluding an agreement with him. There can be no advantage on the part of the entrepreneur in relation to a person who is looking for work, based on his race, gender, 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.
A person becomes an employee on the basis of an employment contract. The employee undertakes to perform the functions offered to him depending on his professional skills. At the same time, he is obliged to obey the internal rules of discipline and comply with the orders of senior managers.
A collective agreement may stipulate a number of requirements specific to a particular organization and rights 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 fair conditions of rest and work, material support can be stipulated. This increases the security of staff.
State
Participants in the labor market in the Russian Federation are entrepreneurs, employees, as well as the state. Its role is hard to overestimate. The influence of the state is spread through regional and federal government bodies, as well as branch systems of power, and local self-government. The functions that are assigned to the state in the labor market are as follows:
- Legislative establishment of legal rules and standards of conduct for major market participants.
- Socio-economic, allowing to achieve maximum employment in all sectors of the economy.
- Protection of the rights of all subjects of market relations, social justice of participants.
- Regulation of relations between participants using indirect methods.
- Role-based establishment of the employer function in state-owned enterprises.
Many factors affect the powers of the state in a specified field of activity. However, without his intervention, the functioning mechanisms of all elements of the system are significantly impaired.
Legal regulation of relations of participants
Labor market participants are interconnected forces. A change in the strength of each of them will lead to disruptions in the operation of the entire system. In order for the labor market to function normally, it is regulated by legislative norms, acts that clearly stipulate the rights of each participant. This allows you to create equal opportunities for all actors to fulfill their needs.
Legal regulation is also necessary to create insurance in case employees lose their jobs. Special economic conditions are created. The state introduces certain benefits, determines taxes. Market management also takes place in the field of employment creation.
Labor allocation
The redistribution of labor resources in the industry with a greater need for qualified personnel allows to achieve maximum economic effect. Market participants are interested in maintaining a balance of supply and demand. Therefore, for retired workers there are retraining courses, vocational training.
Such interventions in the functioning of the labor market are necessary to maintain the civilized nature of relations between all entities. Therefore, the regulatory framework takes into account fundamental rights and obligations, starting with the highest sources of law in the state.
Participants Interaction
Participants in the labor market and their functions are determined by establishing interconnections between them. This can be implemented in three main stages:
- At the time of hiring.
- In the process of establishing working conditions or their changes.
- Upon dismissal of an employee.
The relations of market participants begin from the moment the employer begins to search for personnel necessary for his enterprise. To do this, he begins to collect information about the current market conditions. Labor supply at a particular point in time is broken down by occupation, qualification, and specialization.
Quite often, the employer enters into relations with the state control bodies of the labor market. The employment service (public or private) provides him with the necessary information about the existing labor supply.
For people in search of work, it is important to have information about the demand for their profession, as well as about the availability of jobs. The state, for its part, can guarantee that there are no racial, religious or other forms of discrimination in employment.
An employee should be hired solely for his skills, qualifications or specialization.
HR service
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 about the structure of demand and supply of the market. In these conditions, an important role is played by the personnel service of the enterprise. This department deals with training, recruitment, and remuneration. The personnel service forms a database.
The development strategy of the organization determines the activities of the personnel service. This is regulated by the senior management of the company and its position in the labor market.
The personnel service takes into account market conditions, government policy on unemployment and employment and is subject to legislation. This is an important service that governs the relationships of participants.
Social partnership
Important for maintaining a balanced relationship between all market entities is social partnership. It arises between the employer and hired personnel and is designed to maintain a civilized relationship of interests of the parties. This is important for the regulation of labor and other relations related to employment issues, professional activities, etc.
To do this, a number of activities are carried out. Consultations, collective bargaining allow you to prepare and conclude draft contracts or agreements regulating labor relations.
