Employment and unemployment formalization trends in the labor market of the region (on the example of the Vologda oblast)

The issue concerning the formalization of social-labor relations is relevant for the Russian labor market. A significant amount of scientific and practical works of the Russian and foreign authors are devoted to the formalization and depersonification of relations in the labor market. The article aims to analyze the formalization of employment and unemployment in the Vologda Oblast. It reveals the concept of “formal labor market institution”, examines the trends in the regional labor market and the statistics of offences in the sphere of labor relations. The study attempts to assess the place of formal institutions in the field of employment and unemployment; the author analyzes the behavior of labor market participants and the efficiency of the work of public authorities under the conditions of the changing situation on the labor market. The analysis shows that, despite the strengthening of the role of formal institutions on the labor market, they are unable to respond flexibly to market changes; besides, the efficiency of the work of public authorities in promoting employment shows a declining trend; informal institutions dominate. The following possible consequences of this situation are highlighted: the deformalization of the labor market, difficulties in statistical monitoring of trends in employment and unemployment and, consequently, reduction in the efficiency of the state policy in the sphere of regulation of socio-labor relations. In addition, the article reveals that the institutional specifics of the labor market can reduce labor productivity.