Assessing the Efficiency of the Functioning of the Social Insurance System For Unemployment in Ukraine Under Labor Market Instability

Анотація

A comprehensive assessment of the efficiency of the functioning of the social insurance system for unemployment in Ukraine under the conditions of labor market transformation has been carried out. It has been substantiated that structural shifts in employment, the intensification of regional and professional-qualification imbalances, migration processes, and the spread of alternative forms of employment change the socio-demographic profile of beneficiaries of insurance protection and affect the institutional capacity of the system. The trends for 2018–2025 regarding the number of registered unemployed, the unemployment rate, the ratio of labor demand to supply, as well as gender and age shifts in the structure of unemployment have been characterized. The evolution of the financial aspects of the Compulsory State Social Insurance Fund for Unemployment has been studied: the transformation of the income structure from the predominance of insurance contributions to a temporary strengthening of the budget component during a crisis period and the increasing role of internal reserves in subsequent years. A change in priorities in the expenditure structure has been identified – from the dominance of compensatory payments to the expansion of active employment policy tools, including grant programs supporting entrepreneurship. The dynamics of coverage of the unemployed by insurance benefits, the average amount of assistance, and its ratio to inflationary processes have been analyzed. It has been shown that changes in coverage of the unemployed by insurance benefits and dynamics of the average assistance amount should be assessed taking into account inflationary processes and the actual purchasing power of payments. It is summarized that the transformation of the social insurance system for unemployment reflects the transition from a predominantly compensatory model to a more flexible and proactive model of supporting the economic activity of the population in the context of structural restructuring of the labor market. Directions for increasing the system’s efficiency are substantiated through enhancing the targeting of support, improving the adaptability of institutional mechanisms, expanding the tools for professional reintegration, and improving the monitoring of the effectiveness of active employment programs.

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