Problem of shadow employment in the context of the labour market structural transformation


  • Larysa Shaulska Vasyl Stus Donetsk National University, Vinnitsa, Ukraine
  • Nataliia Yakymova Vasyl Stus Donetsk National University, Vinnitsa, Ukraine



shadow employment, labour market, structural transformations, reduction of shadow employment, innovative development, increase of competitiveness, updating of tools and methods of state policy


The article studies modern problem of shadow employment in the context of structural transformations of the labour market. In the course of the study, the main manifestations, causes (economic, institutional, financial and social) were established and the consequences of the spread of shadow employment at the state level, at the enterprise and individual level. It is established that the shadow employment in Ukraine in recent years is rapidly spreading, covering a significant number of jobs in enterprises and organizations of the formal and informal sector of the economy. The state and dynamics of the spread of shadow employment in Ukraine are analyzed. It is proved that the informal sector of the economy essentially forms the capacity of the sphere of employment of rural residents. In cities, the situation is opposite - the conjuncture of the labor market and vacant workplaces can provide employment mainly in the official sector of the economy. Of course, it is the availability of jobs and acceptable working conditions that determine the main proportions of the distribution of workers between these spheres. In this context, it is important to emphasize that other factors often work, in particular, motivational ones - low level of wages, unreasonable inter-qualification ratio form active attitudes toward employment outside the formal sector of the economy with a high level of payment. The relationship between structural transformations in the labour market and shadow employment is revealed. The main directions of reducing the scale of shadow employment (formation of a policy of economic stabilization, ensuring the competitiveness of the economy and opportunities for innovative development, the formation and development of innovative infrastructure, the formation of competitiveness of the individual and the capacity for self-realization, updating tools and methods to reduce the scale of shadow employment) are proposed. Implementation of the proposed areas reduce shadow employment will ensure the improvement of the legal framework for the regulation of labour relations, rapid response to changes in demand and the formation of an effective system of forecasting national economic need for workers in view of changes in the structure of employment, contribute to the formation of a qualitatively new level of development of the national economy, securing additional competitive advantage to employers.

Author Biographies

Larysa Shaulska, Vasyl Stus Donetsk National University, Vinnitsa

Dr. of economic sciences

Nataliia Yakymova, Vasyl Stus Donetsk National University, Vinnitsa

PhD in Economics


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How to Cite

Shaulska, L., & Yakymova, N. (2017). Problem of shadow employment in the context of the labour market structural transformation. Skhid, (2(148), 28–35.