INFORMAL EMPLOYMENT IN UKRAINE: INFLUENCE FACTORS AND POSSIBILITIES OF PREVENTION

Abstract

The article focuses on the factors of growth of informal employment, in particular: deterioration of the country's economic situation as a result of the destruction of a large number of production facilities in the main types of economic activity; shadowing of relations in the labour market and employment; unfavourable conditions for doing business; low wages for officially employed workers and the lack of an effective system of control and penalties for paying unofficial wages, for not formalising labour relations with some employees at the enterprise; low incomes and the spread of poverty among workers; reduced real living standards and purchasing power of the population; intensified migration processes; devaluation of the hryvnia, etc. The paper proves that the destructive processes in the Ukrainian economy, which are a direct consequence of military operations and the increase in the scale of external migration, significantly change the supply and demand in the labour market and transform the forms of employment. The publication clarifies the peculiarities of socio-economic conditions for improving the efficiency of personnel management and labour motivation at enterprises of the real sector of economy. It identifies the main directions of interaction of effective management, types of motivation of a person and economic entities in the process of de-shadowing the informal sector of economy. It is proved that effective personnel management and motivation are an integral part of the de-shadowing of the informal sector of the economy. The study substantiates the need to use more effective methods of influencing employers in order to reduce the volume of informal relations, in particular: the use of penalties for violation of labour legislation in Ukraine, evasion of formalisation of labour relations between an employee and an employer; significant reduction of payroll taxes, etc. It is argued that the use of traditional and innovative methods of personnel management, in particular, increasing the role of all forms of labour motivation, can help reduce informal employment by ensuring stable staff retention, reducing unemployment, and developing employees' leadership skills and self-confidence, which will help them start their own business.