The impact of the labor market on business

Abstract

Relevance. Human capital is a key element in improving the well-being, development, and efficiency of the economy in the conditions of the Knowledge Economy. Human resources as the base for the formation of human capital of entrepreneurial organizations. For the management of companies, there are two fundamental approaches to the creation and development of human capital: – external - attracting candidates from the labor market with the required level of competencies; – internal - training and improving the quality of existing employees. To choose a strategy for managing and developing personnel, the management of business organizations needs to understand the current situation and have a forecast of the dynamics of factors affecting the situation in the labor market. This will help determine the appropriate strategy for a particular point in time. Even though currently there are scientific studies based on the analysis and forecast of labor market trends. The purpose of the work is to study the current situation and identify key trends in the labor market, based on an analysis of factors affecting the quantity and quality of labor resources. Achieving this goal is possible by solving several tasks: quantitative analysis of the sufficiency of labor resources and the study of predictive values; analysis of the quality of the resources offered in the labor market and their relevance to demand; formulation of proposals for the management of companies to provide highly qualified personnel. Methods and materials. The research methodology is based on general scientific methods: synthesis, analysis and comparison. The theoretical and methodological basis of this study is the understanding of the impact of the current situation in the labor market on the business processes of entrepreneurial organizations. The empirical base is based on a content analysis of literature, publications, and studies of consulting companies on the labor market and human capital of entrepreneurial organizations that are available in the public domain. Research results. The results obtained made it possible to determine the current situation in the labor market, identify the main trends, and determine the areas that management needs to consider when developing a personnel management strategy.