Modern problems of income and labor market distribution under inclusive growth

Abstract

Introduction. The current state of income distribution and the particularities of the labor market is a key indicator in identifying opportunities for ensuring the country’s economic development and macroeconomic stability as a necessary basis for inclusive growth. In Ukraine, against the backdrop of an unbalanced economy, high unemployment, gender 

inequality, social stratification and increasing income inequality, the labor market needs to change the development vector, taking into account the demands of inclusive economic growth.

Purpose. The purpose of our article is to investigate the state of distribution of population incomes and labor market features through the prism of an inclusive approach to economic growth and to identify basic principles for overcoming labor market imbalances, as well as to explore the key priorities of the Europe 2020 economic growth strategy.

 Methods. Based on the analysis of scientific-theoretical approaches to the interpretation of the concept of the labor market, income distribution, the essence of inclusive growth and international methods of assessment and calculation of the index of inclusive development, we applied a systematic approach using analytical, monographic, macroeconomic, economic and mathematical methods of studying this problem.

 Results. Today, in the labor market of Ukraine, there is a balanced demand for labor, which is reflected in a shortage of workers of specialties and excess supply of workers with higher education, and there is still unmet demand for vacancies, one of the reasons for the mismatch of requirements, the offered professions and the level of qualification available in employees. It is confirmed that the vector of inclusive development of the economy of Ukraine will help to overcome imbalances in the labor market, will become one of the factors of balanced development and will increase the standard of living of the population and reduce the income gap. Reducing the income gap as one of the main priorities of inclusive growth should be realized through improving the social policy of the state, ensuring structural transformations in the Ukrainian economy, establishing a real minimum wage and the size of the consumer basket, improving the monitoring of labor market forecasting and education the labor market in skilled labor and the expansion of opportunities for increasing the competitiveness of the workforce through the improvement of educational services.

 Discussion. The basic principles of inclusive development should be the principles of equal opportunities; the principle of justice for all; the principle of openness; the principle of inclusive solutions; the rule of law; the principle of inclusive democracy; principles of decent work and decent living standards; the principle of entrepreneurial activity for all; the principle of social cohesion; principle of being scientific. The subject of our further research is to identify the infrastructure functions of an inclusive labor market.