Participants in the labor market and their functions

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:55

Modern economy cannot exist without the influence of the driving force that creates we alth for the whole society. This is labor. There is no unified 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 well-being of the people depends on such ties. Participants in the labor market, as well as their functions, deserve special attention. This will allow a deeper understanding of the structure of the entire system.

The concept of the labor market

The labor market is an integral part of the market economy. 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 relationship, the structure, volume of supply and demand are formed. Only here the commodity is labor power, for which the employer is willing to pay a certain cost.

A person who offers his labor force to create material values spends his physical, energy resources. Labor is managed as if from outside(managers) and independently by an employee.

Market participants. Main Bands

The main participants in the labor market interact with each other, establishing a balance between demand and labor prices. These include three main subjects. On the one hand, they are employees. They can unite in trade unions, whose representatives protect the interests of the labor collective.

Employers on the other side. They can also form alliances. But in order not to lead to an uncontrolled interaction of these two main forces of the labor market, there is also a third party. This is the state, as well as its relevant authorities.

The level of influence of the state in different countries is not the same. But it always corresponds to the principles of social policy. This improves the functioning 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.

Entrepreneurs

Participants in the labor market invariably interact with each other under the influence of supply and demand on the labor force. Such an approach is uncharacteristic for a planned economy. This applies only to a market or mixed economic system.

Demand in the labor market is formed by entrepreneurs or their associations. They create jobs. This provides employment for the population. The entrepreneur makes personnel decisions at his own discretion. He canaccept or transfer an employee to a specific position, as well as, if necessary, dismiss him.

If an entrepreneur is looking for the employees necessary for his production, he is already recognized as an employer. The law establishes that he cannot unreasonably refuse to be hired, as well as restrict human rights in the process of concluding an agreement with him. There can be no advantage on the part of an entrepreneur in relation to a person looking for a job, based on his race, gender, nationality, religious beliefs.

Employee

The main participants in the labor market are, in addition to entrepreneurs, employees. 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 follow the orders of higher leaders.

A collective agreement may stipulate a number of requirements and rights specific to a particular organization 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 the staff.

State

Participants in the labor market in the Russian Federation are entrepreneurs, employees, and the state. His role is hard to overestimate. The influence of the state is distributed with the help of regional, federal governments, as well as branch systems of power, local self-government. The functions that are assigned to the state in the labor market are as follows:

1. Legislative establishment of legal rules and norms of behavior of the main market participants.
2. Socio-economic, allowing to achieve maximum employment in all sectors of the economy.
3. Protection of the rights of all subjects of market relations, social justice of participants.
4. Regulation of relations between participants using indirect methods.
5. Role-based establishment of the employer's function at state-owned enterprises.

Many factors affect the powers of the state in this area of activity. However, without his intervention, the mechanisms of functioning of all elements of the system deteriorate significantly.

Legal regulation of relations between participants

Participants in the labor market are interconnected forces. Changing the power of influence of each of them will lead to disruption 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 creating equal opportunities for all subjects to fulfill their needs.

Legal regulation is also needed to create insurance in case of loss of work by employees. Special economic conditions are being created. The state introduces certain benefits, determines taxes. Market management also takes place in the field of creating employment.

Distribution of labor resources

Redistribution of labor resources in the industry with a greater need for qualified personnel allows to achieve the maximum economic effect. Market participants are interested in maintaining the balance of supply and demand. Therefore, there are courses for retraining and vocational training for the laid-off workers.

Such interventions in the functioning of the labor market are necessary to maintain a civilized nature of relations between all subjects. Therefore, the regulatory framework takes into account fundamental rights and obligations, starting from the highest sources of law in the state.

Interaction of participants

Participants in the labor market and their functions are defined by establishing relationships between them. This can be realized in three main stages:

1. At the time of hiring.
2. In the process of establishing working conditions or changing them.
3. When an employee leaves.

Connections between market participants begin from the moment the employer starts searching for the personnel necessary for his enterprise. To do this, he begins to collect information about the existing market conditions. The supply of labor at a given time is broken down by profession,qualifications and specializations.

Quite often, the employer enters into relations with the state control of the labor market. The employment service (public or private) provides him with the necessary information about the existing labor supply.

For people who are looking for a job, 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 is no racial, religious or other discrimination in employment.

Employee must be hired solely for their skills, qualifications or specialization.

Personnel Service

The main participants in the labor market are interested in the qualitative promotion of the recruitment process, as well as in possession of complete information about the structure of supply and demand in the market. Under these conditions, the personnel service of the enterprise plays an important role. This department deals with issues of training, recruitment, remuneration. The Human Resources Department is forming a database.

The organization's development strategy determines the activities of the personnel service. This is regulated by the top management of the company and its position in the labor market.

The Human Resources Department takes into account market conditions, state policy on unemployment and employment, and is subject to the law. This is an important service that regulates the relationship of participants.

Social partnership

Important to maintain a balanced relationship between all actorsmarket is a social partnership. It arises between the employer and hired personnel and is designed to maintain civilized ties between the interests of the parties. This is important for the regulation of labor and other relations related to issues of employment, professional activity, etc.

To do this, a number of activities are being carried out. Consultations, collective bargaining make it possible to prepare and conclude draft contracts or agreements regulating labor relations.

Guarantee of rights and freedoms

Participants in the labor market have certain rights and obligations. In the balance of their relationship, it is important not to support only one of the parties. This leads to a violation of ties, the excess of the powers of one subject over others.

To ensure a fair system of taking into account the interests of all parties, employees through their representatives can manage the activities of the organization.

Also, social partnership is implemented in the form of pre-trial resolution of conflicts and labor disputes. Equality is one of the main principles of this approach. This guarantees the observance of the rights and freedoms of all parties to labor relations.

Familiarizing with such subjects as labor market participants, we can conclude that their interaction determines the social well-being of society. Therefore, their connections are subject to certain laws. Each participant has certain functions, rights and obligations.