About the arctic labor market

The present paper considers the Arctic labor market as part of the national labor market. The current state of the labor market in the region is largely determined by the historical aspect of development of productive forces and production relations in the country. In the Soviet times there was an active flow of human resources through organized activities and construction projects, distribution of graduates of educational institutions to be employed at industrial enterprises, higher wages and other benefits. After the collapse of the Soviet Union the mass migration of the population, reduction of the state’s role in the development of the Northern regions led to a decrease in the number of labor resources and their shortage on the labor market. The attractiveness of the territories of extreme development from the point of view of earnings has declined substantially, there emerged the problem of the lack of labor potential. The present study determines the nature and forms of socio-economic institutions, formal and informal institutions, and the basis for the functioning of the labor market. The aim of the study is to identify specific characteristics which have a significant effect on several formal economic institutions and informal institutions of the Arctic labor market, which are closely interrelated, and to analyze the factors that form the “Northern territorial premium”. This article uses economic and statistical methods for analyzing the current trends in determining the value of labor resources and specifics of consumption patterns in the territories of the Arctic zone of the Russian Federation. The results reveal a dual situation on the labor market of the Arctic territories, where there exist objective conditions for increasing the wages in the North and conditions to reduce the Northern territorial premium. These trends suggest the need for a scientific approach to the nature, content and methodological foundations of determining the amount of the northern multipliers. Briefly summing up, the authors would like to note that the labor market of the Arctic zone of the Russian Federation is a particular territorial segment of national space, where particularly uncomfortable conditions affect its institutional parameters, and most importantly - they must ensure the increase in the price of the northern employment contract. This article presents objective characteristics of the labor market of the Northern territories and the Arctic zone, defining the conditions to increase the price of labor in the North. However, statistics on the subjects of the Arctic zone of the Russian Federation shows the inconsistency of the current situation in the region.