2. 2 . Causes and types of unemployment Among economists there is a difference of opinion as to what the real causes of mass unemployment are.
As it is known, JM Keynes "...strongly rejected the idea of lowering wages as a remedy for unemployment, including investment, government spending, and consumer spending other than net exports - and the latter - the main part of aggregate demand. comes from the general demand".
In our opinion, the history of the emergence and growth of unemployment in Uzbekistan proves the correctness of Keynes' views. Since the official registration of the unemployed, the unemployment rate has been steadily increasing to a certain extent, the higher the employment rate, the lower the unemployment rate .
A sharp decrease in employment occurs as a result of structural changes in the economy (reduction of the public sector), inflation, and the deterioration of the financial situation of many enterprises due to the insufficient growth of alternative forms of economic management (private enterprises, joint-stock companies). All this, of course, has a negative impact on the volume of general demand: government influence is reduced, investment activity slows down, and consumer spending is slightly reduced due to the deterioration of the standard of living due to inflation.
Therefore, the main reason for the increase in unemployment in Uzbekistan is the reduction of production. The relationship between the dynamics of economic growth and unemployment are inextricably linked indicators.
associate economic growth with the growth rate of population employment, and recession with the growth rate of unemployment . Indeed, in a normal functioning market economy of the industrial type, economic growth always means the development and expansion of industries, hence the increase in employment. However, in developing countries, such a relationship is not obvious. For example, rapid industrial growth in many developing countries has not produced a corresponding expansion of employment. Economists attribute this phenomenon to the rate of urbanization, which is much higher than the rate of growth in industry, and the low level of skills of the population moving from the countryside to the city.
The non-confirmation of a direct relationship between the employment dynamics of the population, GDP and unemployment is at first glance a logically contradictory phenomenon. Two facts are striking: firstly, the reduction in unemployment that is driving GDP growth; and secondly, a reduction in unemployment along with a reduction in employment.
In our opinion, these events cannot be explained only by statistical errors and the complexity of the conditions for granting unemployment status. There are two reasons for the decline in employment from the seemingly good economic growth indicators. First,the high level of hidden unemployment is maintained, which releases its potential into the open market even under certain conditions of stability. Secondly , the increase in hidden employment, which takes away a significant part of the labor force and the unemployed from the open labor market.
the causes of unemployment in our republic, the following main types are more common:
latent , which is mainly characteristic of agricultural production sectors, and it requires a smaller amount of real labor. In practice, the hidden form of unemployment is not only economic, but also political in nature. Hidden unemployment indicates that overemployment in enterprises is preserved in the conditions of deep recession of production;
seasonal , providing employment in a certain season, based on the period of production of agricultural products and their processing and preparation. It can be included in the sentence of normal unemployment. The volume of seasonal unemployment is manifested as a combination of seasonal factors of labor supply and demand;
technological change, this form occurs, for example, as a result of scientific and technical achievements, as a result of the replacement of manual labor by machines;
structural , it occurs with the emergence of new sectors of the economy or the termination of old ones and changes in ownership forms.
of the socio-economic content, causes and types of unemployment requires the disclosure of the criteria and indicators of the unemployment situation. Because the main criteria and indicators of unemployment are important in regulating the formation of reasonable employment of the working population.
Demographic, social, economic and other aspects of the unemployment situation are reflected in the following criteria : achieving market balance between demand and supply of labor force; reducing labor supply; increasing jobs; increase the participation of the economically active population in work; increase the qualification, mobilization and competitiveness of personnel; increasing labor income of the population and others.
These criteria are determined using the following unemployment indicators : the number of existing and newly created jobs; amount of working time; the size of the gross domestic product produced per capita; the number of local and engaged labor resources; migration flow of population; arming labor with funds and energy; volume of social infrastructure services; land load of each employee of agriculture; average annual salary; provision of housing for each resident; skill and education level of labor resources; shift coefficient of use of fixed assets in industrial enterprises; the number of persons not employed in social production and unemployment and the amount of their benefits; level of satisfaction with general results of work and social infrastructure services; different forms of ownership and efficiency of labor organization, etc.