Interrelation between Supply and Demand Factors in Regional Labor Markets

Abstract

The article presents the author’s approach to the analysis of matching the demand for labor and its supply. The essence of the approach lies in the dynamic assessment the closeness of the relationship between two sets of indicators describing each of the factors. The proposed model for calculating the coefficient characterizing the closeness of the relationship allowed us to consider simultaneously the factors of the formation of demand for labor and its supply, as well as to make quantitative estimates. The approach was tested using the data from the subjects of the Russian Federation situated in the Ural Federal District. The results of the assessment showed that during the period from 2000 to 2019 the closeness of relationship between the indicators of supply and demand factors in the labor market increased. The most significant contribution to the coordination between supply and demand in the regional labor markets is made by the demographic factor, i.e. the share of the population of working age. In addition, in some subjects of the Russian Federation, the functioning of the labor market is quite significantly affected by the retail turnover, the amount of investment in fixed assets and the graduation of specialists. The use of the coefficient of closeness of the relationship allowed us to consider simultaneously all the indicators of the factors of supply and demand in the labor market and make quantitative estimates. Such a unique approach makes it possible to avoid the objectively existing restrictions in the statistical accounting of employment and unemployment

Keywords

• labor market
• demand
• supply
• labor force
• region