The labor market is a system of competitive relations between individual participants in the common market, such as the state, employers and workers, regarding the hiring of workers and their use in social production. This determines the characteristics of the modern labor market. It is a labor market as a commodity. The price and quantity of labor on it are determined as a result of the objective interaction of supply and demand. This market is an area where workers and employers can negotiate jointly about future pay and its conditions.
The structure of the labor market includes five main segments. First of all, this is a relatively small, but very high-quality detachment of highly professional managers (managers). Then come the staff and highly qualified employees. This is followed by workers in industries that are characterized by structural adjustment and periodic reductions in production. In addition to these groups, there are a group of workers in labor-intensive industries, which are characterized by a low level of labor productivity. The fifth component is the most vulnerable layer of working people - young people, older people, people with mental and physical disabilities, people who, for reasons not able to find work.
Features of the formation of the labor market affect all its components and the current state.
Recently, in the sectoral structure of the labor force in Western countries, steady tendencies have been observed for a decrease in the number of people employed in the agricultural sector and an increase in the service sector, as well as knowledge-intensive sectors of the economy.
Evolution is also taking place in the vocational qualification structure. This concept itself is ambiguous. From this point of view, the labor force includes three concepts: the professional, qualification structure of the labor force, as well as the content of qualifications.
Professional structure implies a combination of representatives of various professions. The qualification structure is associated with different levels of preparedness and qualifications of employees. Today we can talk about a significant increase in the educational level of the total mass of the workforce.
The structure of the labor market depends on various criteria. In terms of spatiality, the markets of megacities, republican, federal, city, regional, district, regional, rural labor markets are distinguished. At the interstate level of social and labor relations, the international market and the markets of regions of interstate position are distinguished.
Based on the criterion of time parameters, the structure of the labor market includes current, prospective and forecast markets.
Depending on the degree of equilibrium of supply and demand, equilibrium (characterized by the balance of components), redundant (for which the prevalence of supply over demand) and scarce (for which the prevalence of demand over supply) labor markets are distinguished are distinguished. These types of markets may be related to integrated, regional or professional work.
The structure of the labor market is also determined by the stages of development of market structures. By this criterion, emerging markets, transitional markets, and a developed (mature) labor market are distinguished.
Distinguish the types of labor markets depending on the criterion of social groups. These are the markets of physical labor (workers), intellectual (employees), peasant, creative (intelligentsia), etc.
The organizational and functional structure of the labor market includes in a developed market economy the following elements: principles of state policy in the field of employment; a hiring system, including a contract system; a system for training demanded personnel; retraining and retraining system; unemployment support fund; labor exchanges; employment regulation.