The most important elements of an economic system are labor market and unemployment without which understanding of value it is difficult to understand the difficult economic relations. Also it should be noted that labor market and unemployment have a number of features and distinctive features. Labor market is the system of peculiar public relations in which the main thing coordination and accommodation of interests of employers with the interests of workers is represented. It is set of difficult economic interrelations between supply and demand of labor as fundamental elements of economic activity. Thus, labor market is battlefield on which various social and economic interests are crossed and interact.
In real economic life of the country labor market, employment and unemployment are those elements which a number of various factors influences: birth rate level, for example, and also dynamics of growth of number of able-bodied population, plus immigration processes and so forth. It should be noted that uniform labor market, employment and unemployment do not exist within any country as, say, labor market is divided into groups of labor of various professions, also in it there is territory and industries separation.
Concept of unemployment
Also unemployment as a labor market element as its definitions there is great variety demands a clear understanding and they are sometimes very contradictory. Unemployment is the phenomenon of a social and economic order which characterizes macroeconomic instability and also has the cyclic nature of the development. A part of workers at the same time is not engaged in the sphere of production. More in details to define what is unemployment as a labor market element, it is necessary, obviously, to find out who such unemployed, and for this purpose to consider the main categories of the population of the country.
In macroeconomic sense the population of the country is divided into two big groups, namely: those who are included in labor number, and those who are not included in this number. The minors imprisoned in prisons, patients in psychiatric clinics and disabled people make the second group. The first group is people who have work, people who can work belong here, want and, respectively, are concerned by job search, but at the moment have no it.
As both labor market, and unemployment are elements of the general economic system, it is possible to note considerable influence of unemployment on labor market which consists in growth of social tension, up to broad social and political revolutions in case labor market is nonflexible and conservative. Labor market as a system dynamic, that is such which is in the constant movement and updating has to provide all new and new vacancies for the waiting labor. If it does not occur, then long loss of a stable source of income can drive the person not only to minor offense, but also, say, to murder.
It is possible to draw a conclusion that labor market and problems of unemployment are important for the modern developed state. In this regard economic planning and regulation has to aspire to as much as possible to increase labor demand. That is it is necessary to create the most flexible labor market with low unemployment rate and high level of economic growth (here it is necessary to refer also growth of the salary), and it means that it is necessary to mobilize all forces of the state.