The active policy on labor market and the peculiarities of youth employment

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Ivane Javakhishvili Tbilisi State University Press
The principle objective of macro-economic policy is the provision of effective employment for the population at the current stage of forming and developing the labor market in Georgia. The above-mentioned is conditioned by the fact, that the unemployment represents the most acute, global and topical challenge, which is acknowledged to be the key factor causing the poverty in the country. On the basis of the aforesaid, the in-depth research of problems related to the certain social-demographic groups of population, especially the employment of the young people, is attached the considerable significance. The study of the existing situation in the mentioned sphere, as well as the analysis of findings of the conducted researches, allow us to infer a set of the following conclusions: 1. Under the modern conditions there is identified the incompatibility of the skill level of alumni of higher and vocational institutes with the demands of employers, which is added to: the absence of experience in independent decision-making, the insufficiency of appropriate knowledge and the lack of practical skills regarded relevant within the profession. It might be said, that the mentioned factor performs the vital role in terms of the employment of young personnel as well as the whole population capable to work. 2. The low level of competences of the personnel having acquired the higher and vocational education and the incompatibility between the educational quality of the working force and the requirements of modern labor market account for the deficiency of qualified working force and the difficulty in recruiting the personnele according to a certain profession, which, in its term, becomes the hindering factor to the development of business and economics; 3. The crucial factor effecting the youth employment is their conceptions and viewpoints pertaining to the ways of adaptation to the area of labor and employment. While selecting the profession they are not frequently focused on the situation existing at the labor market and its real requirements. Hence, the extremely serious problem of professional orientation assuming the particular importance in the epoch of contemporary innovations and globalization has been illustrated. 4. At the current stage, the labor market cannot ensure the compliance with the social justice rule in the area of employment, the creation of the equal employment opportunities for the unemployed and the realization of the equal labor rights. The various services and events are less available for the certain groups of population. 5. The mechanism of social protection of the unemployed young people and their retraining programs are hitherto virtually nonexistent in the country. 6. The considerable problems can be detected in the sphere of remuneration of labor for the young people. Their wages are low. The situation is much more complicated by the appalling working conditions and the low level of the work organization, its encouragement and motivation; 7. The absence of undeveloped infrastructure and unified information system of the labor market becomes the obstacle to finding the professional job, furthermore, it develops the considerable difficulties for the employers in the process of recruitment and employment of personnel deemed necessary; 8. The scientifically founded management practice regulating the employment and social-labor relationships as well as the relevant legislative basis does not hitherto exist in the country; 9. The system of social partnership has not been developed in the sphere of social-labor relationships; Based on the above-mentioned circumstances, with the aim of providing the youth with effective employment it is essential to take the following measures within the labor market and the active policy on employment: 1. The problems related to the job placement of the young people are impossible to be solved without the joint efforts of social partners. The aforesaid requires the establishment of fundamentally new mechanism of social partnerships and the introduction of the practice regulating the collective agreement. The issues about the youth employment should not be settled spontaneously. It requires the scientifically substantiated approach from the economic as well as social aspects. 2. It is deemed necessary to enhance the quality and level of development of the higher and vocational education system and to focus it on the requirements of labor market. In addition, it is essential to form the adequate system for training and retraining programs for the personnel that will completely ease the shortage of qualified working force and remove the barriers and complications created in terms of recruiting the personnel of specific specialties 3. The effective employment of young people is impossible without the economic growth, in general and the advancement of private sector of economics 4. The youth employment programs should focus great attention on training, retraining of young people as well as helping them to find jobs and carrier planning, also on the issues related to providing them with consultancy and mobility. 5. The legislative basis in the area of labor and employment necessitates being improved and refined. 6. In order to successfully pursue the active policy on employment it is deemed expedient to introduce the effective system of its implementation and the monitoring of its outcomes. 7. With the aim of successful realization of the active employment policy it is expedient to introduce the effective system for monitoring its implementation and expectations. It must provide the strict control over the execution of each specific program launched in the sphere of the youth employment according to all its parameters and indicators.
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Georgia, labor market, youth employment, macro-economic policy
Economics and Business, №2, 2019, pp. 16-36