Labor productivity in Ukraine: regional differences, problems, and growth prospects

Анотація

The unfolding of a full-scale war on the territory of Ukraine, which led to immediate changes in the demographic situation of the state and the loss of a significant part of its human potential, also had devastating consequences for the economy, which will be felt for a long time. Therefore, it is necessary to search for various levers of economic growth and preservation of human capital, which today should become a priority task of the state on the way out of the economic and demographic crisis, and the possibilities of its integration into the European and world economy. In Ukraine, low labor productivity is one of the defining problems hindering the development of its economy, along with the issues of inefficient use of labor resources and the policy of remuneration. The problem lies not only in the low level of labor productivity but also in the rather low growth rates of this indicator. The article assesses disparities in labor productivity levels across regions of Ukraine. The study shows that low labor productivity is one of the defining problems inhibiting the development of the economy of Ukraine, along with the issues of inefficient use of labor resources and labor remuneration policy. The authors emphasize that the problem lies not only in the low level of labor productivity but also in the low growth rates of this indicator. The dynamics of GRP and the employed population in 2014-2020 is calculated, and the regions are ranked by the level of employment concentration. A comparative analysis of the levels of employment concentration during the research period is carried out and changes in regional employment disparities are revealed. Based on the analysis of employment indicators and GRP. The article identifies the regions demonstrating the efficiency of the use of labor resources in Ukraine. The predominance of regions in the country with inefficient use of labor resources is revealed. The most important reasons for maintaining a low level of labor productivity in Ukraine and its regions are substantiated, and relevant recommendations for solving these problems are proposed.

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