Areas of Improve the Labor Potential of the Region in Conditions of

Sustainable Development

Evgenii Anoshin

and Larisa Pugina

Murom Institute (branch) Federal state budgetary Educational Institution of Higher Education, Vladimir State University

named after Alexader Grigoryevich and Nickolay Grigoryevich Stoletovs, 23 Orlovskaya street, Murom, Russia

Keywords: Labor Potential, Labor Resources, Human Resources, Vladimir Region, Labor Market, Employment.

Abstract: The article deals with the problem of modern labor potential management in the region. The analysis of

existing approaches of scientists to the concept of the labor potential in the region is presented. The authors

formulated the conceptual and terminological apparatus of the labor potential of the region. The main elements

of the labor potential of the region are highlighted. In the course of the analysis of the labor potential of the

Vladimir region, it was concluded that the labor force in the region was decreasing. There is a tendency for

the emigration of citizens from the Vladimir region to neighboring regions. Another problem of reducing the

labor potential of the region is a decrease of the number of students in higher education. Thus, the article

summarizes the identified trends and formulates proposals for increasing the labor potential in the Vladimir

region and regulating the labor market in the area.

1 INTRODUCTION

In the modern Russian economy, labor resources are

considered as the main reserve for increasing the

efficiency of economic activity. Human resource is

the basis for the development of man and society, the

creator of all material and spiritual benefits. This is

the main productive force, which is expressed in the

opportunities and abilities of each employee or

society as a whole to carry out and improve labor

activity, to strive to increase its efficiency. Thus, the

labor force continues to be the main capital of the

market economy.

One of the factors in increasing the

competitiveness of the economy of any region is the

effective use of labor potential. In turn, this

contributes to the growth of socio-economic

development: an increase in revenues of local

budgets, a decrease in unemployment, ensuring the

social development of the population and an increase

in the standard of living.

Labor potential researchers in the region note

various imbalances in the regional labor market.

There is an uneven ratio of supply and demand for

qualified labor resources, an increase in tension in the

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labor market, regional differentiation of the quality of

life of the population. Thus, a conclusion is made

about the ineffective use of labor potential in the

region. One of the important tasks in the system of

labor potential of the region is the study of its current

position and the development of strategic directions

for its improvement or growth. Therefore, the study

of regional labor potential keep one of the actual

problems of modern society.

The reproduction of labor resources in modern

conditions is associated with the employed labor

force in the region. Research in this area reports on

the migration of personnel from the Vladimir region

to other regions over the past few years.

Consequently, the need to strengthen competition

actualizes the problem of increasing the efficiency of

the use of human resources in the region.

2 RESEARCH METHODOLOGY

In this regard, the task of developing directions for the

effective development of the labor potential of the

region becomes actual. In our opinion, the conceptual

414

Anoshin, E. and Pugina, L.

Areas of Improve the Labor Potential of the Region in Conditions of Sustainable Development.

DOI: 10.5220/0010591604140418

In Proceedings of the International Scientiﬁc and Practical Conference on Sustainable Development of Regional Infrastructure (ISSDRI 2021), pages 414-418

ISBN: 978-989-758-519-7

aspects of determining the direction of development

of the labor potential of the region should be

considered on the basis of a systematic approach.

The methodological basis of the research is the

materialistic approach and the dialectical method.

The theoretical basis of the research is the patterns

and laws of the functioning of the modern economy.

The research was conducted on the basis of methods

of qualitative and quantitative analysis, economic and

statistical methods were used.

3 THE CONCEPT OT LABOR

POTENCIAL

Currently, the concept of "human resources of the

region" does not have a precise scientific formulation.

Therefore, it is necessary to determine the conceptual

and terminological apparatus of the labor potential of

the region on the basis of existing scientific works, as

well as a aggregate of indicators for its formation.

Most scientists consider labor potential at the

enterprises area, since the very concept of "personnel"

or "staff" is usually used in microeconomics as the

workers of an organization (Zhigun, 2020).

Considering the essence of the labor potential of

the region, Tarakanova L.N. in her research take

notice to quantitative parameters that characterize the

number of active population size (Tarakanova, 2010).

Also, regional labor potential Akperov I.G. and

Bryukhanova N.V. interpreted as an economic

category or system of socio-economic components of

the labor sphere of society, which are in complete

interdependence, which determine the nature of

production relations and depend on them (Akperov

and Bryukhanova, 2014).

This position is occupied by F.V. Potudanskaya.

The author consider that the concept of labor potential

can be use both at the enterprise sphere and at the

regional sphere. In her research, the labor potential of

the region is defined as a part of the labor force with

certain knowledge, skills, abilities, competencies

acquired and accumulated as a result of general and

special education (Potudanskaya et al., 2018).

Mukhametova A.D., conducting a research of the

modern understanding of the labor potential of the

region, defines it as a dynamically developing

magnitude, a economic category that performs the

function of labor activity and the reproduction of

modern potential (Mukhametova, 2015).

In our opinion, the labor potential of the region is

a combination of the existing or not yet realized

quantitative and qualitative characteristics of the

able-bodied population of the territory (physiological,

psychological, as well as intellectual abilities and

innovative skills of society), which directed at

increasing the efficiency of labor and economic

potential using technological, innovative, social and

productive opportunities.

The quantitative characteristics of the labor

potential contain the economic and demographic base

of indicators: the labor force that the region has to

meet the demand in the labor market; migration flows

to neighboring regions; the state of the labor market;

labor productivity of one employed worker of

working age; the level of economic activity of the

population; gross regional product as an indicator of

the efficiency of using labor potential, etc.

Qualitative characteristics are the physiological

and psychological potential of the population,

technological capabilities (tools), social indicators of

the standard of living in the region and innovation

potential, including intellectual, scientific and

technical resources that contribute to the development

of innovative activities in the region.

Thus, the labor potential of region are a difficult

economic category with many territorial

characteristics and processes inside the region, which

requires an effective management system for these

processes.

4 RESULT OF THE RESEARCH

To provide the region with a strategy for effective the

labor potential management, it is necessary to

accurately determine its current state on the basis of

socio-economic indicators.

Therefore, before to form the ways of developing

the labor potential of the region, let us single out the

main negative trends, which are unfavorable

prerequisites for reducing the level of development of

the labor potential of the Vladimir region.

The population size in the able-bodies age determines

the maximum value of the human resources of the

society. Therefore, we will consider the labor

potential of the region in terms of its quantitative

(labor) resources. Table 1 presented the size of the

labor force (Regions of Russia, 2020).

Dynamics of labor resources of the Vladimir region,

thousand people.

Areas of Improve the Labor Potential of the Region in Conditions of Sustainable Development

415

Table 1: Dynamics of the size of the labor force in the

Vladimir region, thousand people

Indicators 2011 2015 2019

Growth

rate, %

Labor force 761,8 758,5 719,7 94,5

Employed

eople 728,7 717,7 690,5 94,8

Unemploye

eople 44,3 42,3 29,0 65,5

As can be seen from Table 1, the size of the labor

force is declining markedly. The decrease in this

indicator over 9 years was 5.6%. In 2011, the size of

labor force personnel was 761.8 thousand people, but

in 2019 this indicator dropped to 719.7 thousand

people. The reason for the decline is demographic

changes in the consist of the region's population. The

aging of the population is one of the main factors in

the decline in this indicator. At the same time, labor

activity decreases, which leads to an outflow of the

population from the labor force (Anoshin and Pugina,

2020).

Together with the reduction of the labor force,

there is a decrease in the number of employed and

unemployed. Thus, over 9 years the number of the

employed population decreased by 5.2%, which is

38.2 thousand people.

However, along with the reduction in the labor

force, in the Vladimir region there is a decrease in the

number of unemployed citizens, as evidenced by the

downward trend over the analyzed period. The

number of unemployed decreased by 15.3 thousand

people, which is 34.6% less than in 2011.

Also, in parallel with the reduction in the number

of people employed in the economy, there is a

decrease in the number of unemployed citizens in the

Vladimir region. This is evidenced by the data in

Table 1. The number of unemployed decreased by

15.3 thousand people, which is 34.6% less than in

2011. This trend is positive, as it reduces the burden

on the employed population and increases the labor

potential of the region. The decrease in the number of

unemployed occurs not only due to demographic

changes, but also due to the gradual activation of the

potential labor force, the expansion of the labor

market and the implementation of municipal

programs to promote employment (Anoshin and

Pugina, 2020).

It is known that in most regions there is a socio-

economic gap against the background of large

territories such as Moscow, St. Petersburg, where the

standard of living is many times higher than in poor

regions. The imbalance in the quality of life is a

problem for the development of the labor potential in

a small regions.

This trend is also actual for the Vladimir region.

Recently, there has been a migration outflow of labor

resources from other regions to larger and more

perspective centers. As a rule, these are megacities,

centers for the extraction of raw materials, where the

conditions of work and wages are the highest. Among

the migrants leaving the region to neighboring

regions, the largest share are young workers of

working age. Due to the continuous outflow of labor

resources from one region to another, imbalances

arise in the labor market, which significantly reduces

the labor resources of the region.

According to FSSS (Federal State Statistics

Service), since 2011 in the Vladimir region there has

been a negative growth in the migration flow. In

2019, there is a positive migration increase (2693

people). Such migration disparities arise as a result of

interregional migration (Federal State statistics

service, 2019). Let's consider them in more detail in

tables 2, 3 and 4.

Table 2 presentation the dynamics of migration

growth in the Vladimir region from 2010 to 2019

(Federal State statistics service, 2019).

Table 2: Dynamics of the net migration rate in the Vladimir

region, person

Region

Yea

2011 2015 2019

Vladimir

ion

-252 -1542 2693

As can be seen from Table 2, there is a dynamics

of negative the net migration rate. For 9 years, the

region has seen a reduction in labor resources. These

are mainly citizens of working age from 15 to 64

years old (Federal State statistics service, 2019).

In 2019, the share of people working age (for men

- 16-59 years old, women - 16-54 years old) leaving

an region in other regions of the country amounted to

70% of the total number of the economically active

population. Among shifting labor resources, there is

an outflow of researchers and scientists who are part

of the innovative potential of the region's

development.

The positive increase net migration rate in the

Vladimir region in 2019 is explained by an increase

in the migration flow from outside Russia (people

coming into an area from abroad is 6.2 times higher

than the people leaving an Russia), as evidenced by

Table 3.

ISSDRI 2021 - International Scientiﬁc and Practical Conference on Sustainable Development of Regional Infrastructure

416

Table 3: Dynamics of international movements in the

Vladimir region, person

Indicators 2011 2015 2019

People leaving outside

Russia

262 949 1115

People coming from

outside Russia

2732 2527 7246

Net international

migration rate

2470 1578 6131

In 2019, the number of people leaving outside

Russia increased by 4.2 times compared to 2011. The

number of people coming from outside Russia

increased 2.6 times over the same period. Thus, there

is an increase rate of the number of persons in the

Vladimir region from abroad. This is evidence of an

increase in the outflow of citizens in the Vladimir

region.

The outflow of qualified citizens of working age

is being replaced by low-skilled labor. On the other

hand, international migrants contribute their income

to the region's economy.

Despite the positive net international migration

rate, in the Vladimir region continues to persist the

negative dynamics of the migration outflow from our

region to other territories, as evidenced by the data in

Table 4.

Table 4: Dynamics of interregional migration flows in the

Vladimir region, person

Indicators 2011 2015 2019

People leaving in

other re

ions

13070 20206 19 996

People coming from

other re

ions

10348 17086 16598

Net interregional

migration rate

-2722 -3120 -3398

During the analyzed period, the number of people

leaving the Vladimir region for other regions of

Russia increased by 53% (+6926 people), while the

growth rate of those leaving the other regions for the

Vladimir region was 60% (+6250 people).

Nevertheless, in the Vladimir region, increased

migration activity continues to other regions.

The net interregional migration rate, in aggregate

consisting of the number of arrivals (from other

regions to the Vladimir region) and departures (from

the Vladimir region to other regions) in 2011 turned

out to be negative (minus 2722 people), which means

a decrease of labor resources. In 2019, this indicator

was minus 3398 people. Thus, this indicates an

increase in the migration outflow of citizens to other

regions.

One of the determining factors in the development

of mechanisms for increasing the efficiency of labor

potential of region is the growth of development of

science and education.

So, another negative trend for the development of

labor potential in the Vladimir region is the reduction

in the graduation of specialists with higher education,

as evidenced by the statistics of Rosstat (Federal State

Statistics Service, 2019), presented in table 5.

Table 5: Graduation of bachelors, specialists, masters,

thousand people

Region 2011 2015 2019

Growth

rate, %

Vladimir

ion

11,4 7,8 6,5 57,01

The dynamics of the number of graduates of

higher education tends to decrease. So, in 2019 year,

the number of graduates of higher education

decreased from 11.4 thousand people to 6.5 thousand

people (by 43%) compared to 2011 years.

One of the possible reasons for this decline is the

drop of the number of educational institutions and

branches by 37.5% over the past 9 years. As a result,

in the region there was a decrease in the teaching staff

of educational organizations by 58% (Regions of

Russia, 2020).

5 CONCLUSION

During the research, the following trends were noted

that negatively affect the labor potential of the

Vladimir region:

1. Reduction of labor resources in the regional

economy against the background of a demographic

decline (predominance of mortality over birth).

2. Maintaining the trend of outflow of labor

resources from Vladimir region to neighboring

regions of Russia, where the standard of living is

higher.

3. Decrease in the number of students in higher

education.

Thus, on the basis of the research, it can be

concluded that there is insufficient use of the labor

potential in the Vladimir region.

To improve the efficiency of the labor potential

management of the region, it is advisable to create

mechanisms for improving human resource

management. At the same time, it is important to take

into account the presence of the economic specifics

of the region. This is necessary to ensure stable

competitiveness in the regional labor market.

Areas of Improve the Labor Potential of the Region in Conditions of Sustainable Development

417

Building an effective model of labor policy to

improve a labor potential of region is a rather

complicated and time-consuming process, that

requires an objective assessment of the socio-

economic state of a particular region.

In our opinion, one of such mechanisms is the

complex programs developed for the territories of

municipalities and aimed at the development of the

labor market.

In this regard, it is proposed to develop a labor

retention program (consolidate) and attract human

resources in the Vladimir region.

The purpose of this program is to preserve and

improve the socio-economic situation of the Vladimir

region, as well as create conditions for attracting

young specialists to the region.

To achieve this goal, it is proposed to implement

the following directions:

1. To develop measures of social and economic

support for young specialists in all sectors: incentive

supplements, lump-sum payments for employment,

rent of housing for employees, transport benefits.

2. Creation of favorable conditions for labor

activity of personnel: training of personnel in labor

protection using modern technologies; elimination of

harmful factors that pose a threat to the health of

employees; providing free health spa vouchers for

workers in hazardous industries.

3. To create conditions for the development and

realization of the abilities of young professionals:

assistance to young specialists in the transition to a

self-employed; company presentations to students, an

invitation to internship.

4. To organize activities for the vocational

guidance of young people in the working professions

and engineering specialties in demand at the labor

market.

5. To consolidate labor relations with the

administrations of neighboring regions in order to

mobilize citizens from regions with surplus labor

resources to the labor market of the Vladimir region.

6. Reimbursement by employers of the costs of

wages to citizens from among graduates of

professional educational organizations and

educational institutions of higher education, proceed

to do internships.

7. Attract highly qualified personnel on a contract

basis with decent wages and high social support.

8. Establishing a more correct correlation

between the specialization of university graduates

and the needs of the labor market, as well as further

support of young people in finding employment in

their specialty.

9. To improve the quality of practical training of

specialists at large industrial enterprises within the

framework of the mentoring and apprenticeship

system.

10. Attracting adolescents from 14 to 18 years old

for temporary work on a contractual basis with the

employer.

Thus, this program is aimed at preserving the

labor resources in the Vladimir region and increasing

the labor potential of this area.

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