Definition and Factors Contributing to the Development of Workforce Potential in Ukraine

Abstract

The paper deals with the definition of workforce potential. Workforce potential is a complex category, which is influenced by the environment of its formation.Given the complexity of the phenomenon, the category of workforce potential has been studied predominantly from the economic and legal perspectives. In the paper, the category "workforce potential" is studied from the standpoint of three main areas, namely, as a category characterized by a set of qualitative indicators; a category characterized by a set of quantitative indicators; complex socio-economic category Research emphasized that the concept of " workforce potential" is often associated with the category of " labour resources". It is determined that the category "workforce potential" is wider than " labour resources", because it includes not only the population of economically active population of the country, but also its qualitative characteristics, which determine the ability to effectively provide their right to work. The category " labour resources" defines only the situation in the state in the current period of time, while "workforce potential" includes " labour resources of the future", rather allows to predict the amount of labour resources of the country over a certain period of time, taking into account the demographic and economic situation, the state of compliance labour rights, educational development, etc. The paper suggests that the key factors that affect the development of workforce potential of Ukraine include: social and economic protection of workers, including unemployment rate, remuneration level, work-related injuries, shadow employment; education and training at higher and vocational levels, the match between the graduates’ knowledge and skills and the employer’s requirements and expectations; demographics, including birth and mortality rates, and life expectancy; level of external migration for employment and educational purpose; public health and health care.