Modeling the interrelation between formation factors of labor demand and its supply

The remaining problem of the imbalance on the Russian labor market determines the relevance of studying labor demand and its supply. For this purpose, the objective of identifying the interrelation between the factors of demand and supply formation on the labor market, described using two sets (vectors) of indicators, was set and achieved. The study model also includes labor migration, informal employment, and labor activity of elderly population as factors of labor supply, which ensure that the labor shortage is filled, and the labor market is balanced. The statistical base of the study is 2006-2018 Rosstat data for Russian regions. The results of the study showed that, since 2014, there has been a growing trend in the interconnection between the factors of labor demand and its supply. In difficult macroeconomic conditions, the Russian labor market adapts not by freeing up the labor force, but by expanding labor relation practices (including underemployment of population) while maintaining a low unemployment. Economic decline has led to a reduction in the need for labor, which, on the background of a narrowing supply of labor resources caused by population ageing, has strengthened the balance between supply and demand on the labor market. The growth of partial and part-time employment has become a key process in reconciling the demand for labor and its supply. The inclusion of all factors, studied in this research, in the model allowed us to assess their impact on the balance of labor demand and supply. Employment of population aged 60-72 years was the most significant factor among all supply and demand indicators on the labor market, which indicates a high potential of ensuring their balance.