Labor market's policy in the context of macroeconomic imperatives

Abstract

The dynamics and state of social sphere depend upon two global social parameters - situation in employment and incomes of population. There are at least four aspects of the problem in Russia:-    alterations in the social sphere in connection with economic reforms:-    social sphere dependence on pursued macroeconomic and financial policy:-    social policy of the State (it has a series of relatively independent tasks and methods of their decision).-    social sphere has definite internal resources of self-development.  The author tried to analyze how macroeconomic policy of the State affected on the labor market. And which of these changes in the labor market state were connected with the Government actions in the macroeconomic sphere. The appreciation of hidden processes and in the first place the partial forms of unemployment shows that connection between the dynamics of labor market and stabilizational measures nevertheless exists. Namely the refusal of hard course in realization of credit and monetary policy determined further specific features of the processes on the Russian labor market and imparted pronounced latent character to it.The author comes to a conclusion that inconsistent macroeconomic and financial policy of Russian Government in 1992-95 played the decisive role in the development of absolutely unfavorable processes on the labor market. In this way the macroeconomics is debt to population. Social policy is a “hostage” of macroeconomic strategy and tactics. The Government made serious mistakes and miscalculations in the social policy.In spite of unfavorable character the social contradictions have not assume an acute and opened form yet by virtue of two groups of factors: compensating effect of a number of institutional innovations and the force of social inertia, that permits to avoid the open system crisis during a certain interval. The signs of these resources’ exhaustion have displayed to the end of 1994. Today the factors that were as shock absorbers in the first years of reforms acquire quite another purposefulness.