Viktoriia Blyzniuk PhD, Senior Researcher (vikosa72@gmail.com)
Institute for Economics and Forecasting of NASU, Kyiv, Ukraine
Yatsenko Liubov (yatsenkol59@gmail.com)
National Institute for Strategic Studies
ABSTRACT
The article deals with the features and consequences of long-term unemployment, the main of which are weaker motivation to actively look for new job, loss of professional skills and reduced chances of new employment. All that leads to gradual degradation of the individual and increases the risks of lowering the standards and quality of life, social inequality, marginalization of the population, and societal tensions. The article is based on a sample survey of Ukrainian households, which shows the composition and structure of the labor force, as well as employment and characteristics of unemployment. Using the method of binary logistic regression allows to estimate the probability of therisk of long-term unemployment for different socio-demographic groups of the workforce.
The author shows that the risk of falling into the long-term unemployment segment increases with age, despite the increased level of professionalism, and the highest long-term unemployment rates are recorded for the age group of 40-49 years. At the same time, assessment of Ukraine’s labor market of Ukraine does not confirm the hypothesis of inverse relationship between education level and the risk of long-term unemployment: the latter is rather explained by educational disparities and the mismatch between the development level of the market of educational services and the needs of the economy. As to gender, the risks for men are lower compared to women in all age groups, which may be due to women’s more active behavior in the labor market.
Effective solution of the problem of long-term unemployment in Ukraine requires a comprehensive use of the measures of active labor market policy aimed at preventing the transition to long-term unemployment.
Keywords: labor market, long-term unemployment, risk probability, economic activities, unemployment rate
JEL Classification: C38
