THE IMPACT OF THE CRISIS ON AGE AND PROFESSION STRUCTURES OF DEMAND FOR LABOUR FORCE

Marina Boreyko

Источник: Международная студенческая конференция “UKRAINE AND THE CRISIS - CAUSES AND CONSEQUENCES”, Киевская школа экономики, 5 декабря 2009 года.

The economic crisis has affected all sectors of economical activity and has a considerable effect on labour market. Since economic crisis occurred, employer’s requirements have changed. In Ukraine, demand for labour force in 2008 has decreased almost twice against 2007. At the same time, there are no mass layoffs in Ukraine. However, there are changes of employer preferences concerning age and profession. There is decrease in labour supply for insurance agents, bank workers, credit inspectors and analysts. There is decrease in labour supply for builders and workers in the metallurgical branch. Simultaneously there are more vacancies for sales and crisis managers. Now employer tries to employ experts, who have some work experience, not young people, who have no practical experience. Therefore, purpose of this essay is to analyze changes in structure of demand for labour force, caused by the financial crisis in Ukraine.

At current stage of economy development managers of companies and enterprises prefer qualified personnel, though of older age. Examining the Ukrainian labour market until the crisis, there can be singled out several positive points. First, it concerns students, graduates and young specialists, as majority of companies preferred young personnel. Employers saw perspectives for their development. As results of the investigation of employment notices shows, due to the crisis companies have changed their views. Now they prefer experienced specialists, as their knowledge and professional experience might help to survive during the crisis. Additionally, it is desirable that future workers can estimate their production potential in a sufficient and reasonable way and have no great expectations for high salary. In this connection, at employment employers give preferences to people older 35 years. As they think, these people approach fulfilment of their professional duties with all responsibility, estimate themselves objectively and are socially responsible for their families. People older 45 years have become another age group, which has more chances to find a job during the crisis. Until the crisis, they applied for work, facing many difficulties. However, now this age group has all chances to get a job. First, they are ready to work for lower salary. Second, people of 45 years old are more responsible for work.

The economic crisis has affected profession structure of demand for labour force. Making research of employment notices, there can be singled out several professions, which are in the highest demand at labour market. Today young IT-specialists are in the most popular demand. There are still system administrators, programmers and web-designers in great demand. This tendency takes place, because over the past few years personnel deficit for these workers has formatted and it was not covered even when the crisis had happened. Demand on IT-specialists has decreased 10-12%; meanwhile demand on other professions has decreased by half. At second place of demand, there are sales managers. Demand for highly qualified sales managers is still great as earlier, because these specialists provide direct profits of companies. Lawyers take third place of demand scale. Growth of demand for these workers is conditioned by that in connection with the crisis there has increased number of trials concerning collectors’ piracy, delays of deposit payments, and cases of unwarranted dismissals. Collectors occupy fourth place of demand. In connection with the economic crisis and mass credit non-payments by people, this profession is one of the most popular.

Let us analyze profession structure of demand for labour force in Ukraine until the crisis and during the crisis according public employment service data. Table 1 shows needs of companies for workers to fill vacancies by type of economic activity.

Table 1¹ - Demand for labour force by type of economic activity

Before the crisis, there was demand for workers for extractive and manufacturing enterprises, building companies. In 2008, demand for them has decreased 3, 24, 2, 6 and 2, 78 times. In the crisis conditions, there is economic change in speciality. Now workers of transport and communication sector, financial sector, public management, education and health protection are in the biggest demand. Workers of these branches of economy provide activity of country population during the crisis, as one cannot imagine humankind existence in the XXI century. Structure of demand for labour force has no changes in employer needs for workers of agriculture sector, what is conditioned by the drift of the population away from rural areas to urban areas before the crisis. Also, demand on workers of hotel and restaurant business in connection with preparation to EURO-2012.

The economic crisis led to considerable changes in the economy, which has changed the structures of demand for labour force. Through such changes demand for some professions has decreased or disappeared practically. Demand for other professions, including new ones, has increased. Unemployment has increased, because number of vacancies has shortened. Besides that, profession structure of labour force does not respond to the new structure of work places completely. As a result, skills and experience of some workers have become old-fashioned and not useful due to changes of technologies and character of consumer demand. The economic crisis has influenced on young specialists demand a lot. In the crisis conditions, this worker group practically does not have any chances for employment due to their lack of practical experience. After unsuccessful attempts to find a job during a long time, young people lose their hope to be employed, therefore they agree to any job, including part-time jobs. If they fail to find a job by their specialty, then in given situation there may be an exit for them in the form of temporal employment (waiters, sellers, promoters). School leavers should choose not prestigious professions, but those, which are always in demand (doctors, teachers, cooks, tailors). Those, who are without a job, should continue self-development not to lose their professional capacity. In particular, they need to participate in temporal projects, take all possible courses, learn foreign languages and upgrade their professional skills with use of all possible means. Top-managers should not neglect vacancies of lower positions; otherwise, they will be outsiders in future. After all, eventually a country comes out of recession thanks to key industries. Accordingly, there will be increase of demand for young skilled workers, in particular, of demand for breakdown mechanics, toolmakers, electric welders, turners, millers. Today the majority of these workers make up people of pre-retirement age, but young workers will be needed, who master new technologies and can use latest technical equipment. Our government should develop a program on support of vocational training schools and technical colleges to meet all requirements of labour market concerning considered specialists after the crisis.

¹ http://www.ukrstat.gov.ua/operativ/operativ2006/rp/zrp/zrp_u/pp_rik_u.html/

ВВЕРХ