Social Group Of The Unemloyed And Its Regional Features

Abstract

The article describes the essence, features, functions of the social group of the unemployed and the problems of reduction of unemployment. Under new conditions, the workforce, which has become a commodity, must be constantly updated and reproduced at a new higher level due to highly competitive job market. Under the influence of reconstruction and introduction of new technologies, new workforce is regularly released from production, it becomes almost impossible to provide full employment, to balance the number of people of working age and the level of employment. This shows that the causes of unemployment lie not only in market relations, but also in the development of social production and industrial relations. Currently we can distinguish several types of unemployment: frictional, structural, cyclical and hidden. The study determines the features of each type of unemployment and describes the factors forming them. We pay considerable attention to the analysis of the main trends in the functioning of the social group of the unemployed and determine in which industries the demand for workforce is likely to be reduced or, on the contrary, increased. On the basis of statistical materials and sociological researches we specify the regional features of the social group of the unemployed particularly in the Republic of Bashkortostan. We prove that in the new conditions, taking into account the past traditions and experience of other countries, it is necessary to develop a strategy for managing the job market and, accordingly, to reduce the level of unemployment.

Keywords: Employmentjob marketoccupationsocial group of the unemployed

Introduction

The job market is a prominent part of the resource market, market relations always involve unemployment. Here, the workforce, considered as a commodity, must be constantly updated and reproduced at a new, higher level, due to highly competitive job market. Market demand and STP create the need to introduce new technologies, enterprises are forced to carry out reconstruction in a short period of time, to provide production with modern high-performance equipment, which causes unemployment. In this case, full employment, that is, the use of all suitable work resources impedes the modernization of production, efficient use of society's resources, progressive structural shifts and flow of capital.

At any time, part of the employed under the influence of STP and changes in social needs is regularly released from production, which turns it into a constant value, and from these positions in the economy there is no full employment, it is impossible to provide a mathematical balance between the number of people of working age and the level of employment. At the same time, at regular intervals, another part of the previously released workers returns to the production sector, having undergone retraining, redistribution and employment (Fayzullin, 2006).

Problem Statement

The causes of unemployment lie not only in socio-economic market relations, but also in the development of social production, which in the long term can lead to the fact that the work stops to be only a vital necessity of most people and turns into privilege. Due to the progress of production, there is a decrease in the participants of material production, and an increase in spiritual production. Competition in spiritual production, in turn, will lead to the displacement of a number of economic subjects of social production that do not meet the requirements of society at a given stage of development.

In addition, it should be stated that part of the world's population will not work under any circumstances. The reason for this phenomenon lies in the psychophysiological features of a person. These people see unemployment as a manifestation of their freedom. If we do not consider this group of people, we can distinguish three main types of unemployment: frictional, structural, cyclical, plus one special type - hidden unemployment.

1. Frictional unemployment is the most common. There is always a certain flow of people, changing one job to another, moving from one city to another, looking for work after graduation. Even if the number of unemployed people corresponds to the number of vacant jobs, the process of adjusting these values takes time. The corresponding unemployment rate is considered to be the natural unemployment rate or the full-time unemployment rate. We should strive to ensure that unemployment does not go beyond frictional, so that every citizen who lost job could find another one in a short period of time. At the same time, however, the government should assist in employment of physically challenged and other socially vulnerable categories of the population.

2. Structural unemployment is a result of shifts in the structure of demand and technology of production. The workforce does not meet the new requirements in terms of its professional and qualification characteristics and cannot be used by employers. Each stage of development corresponds to its characteristic change of professional qualification structure, when the professionals of old specialties are exempt from production and replaced by professionals of new, modern specialties. The imbalance in the staffing of employees is always present. Structural unemployment is objectively inherent in an efficient economy, and it is pointless to prevent it. But, perhaps, it makes sense to study it as to develop preventive measures of general economic and special nature that would minimize the negative social consequences.

Structural unemployment is an indicator of the development of social production, a natural result of the development of productive forces. As the complexity of the technical and technological equipment of production increases, it becomes more important to fulfil the existing needs of the economy in advance, providing it with skilled workers and specialists.

3. Cyclical unemployment is caused by the general economic downturn. This type of unemployment in some cases can become stagnant, when the workers lose their skills, or, in some cases, the socio-psychological traits of the individual collapse (Fayzullin & Fayzullin, 2006).

The common feature of unemployment in a number of countries, including Russia, is a large percentage of "hiddenly unemployed". Some of them do not have the opportunity to obtain the official status of unemployed, as well as its benefits due to the conditions of registration of dismissal, some because of their upbringing, mentality do not consider themselves to be unemployed. The "hiddenly unemployed” include the partially unemployed, i.e. the unemployed who are forced against their will, but at the initiative of the administration to work less than the statutory working hours, which is a direct consequence of the reduction in production of marketable products.

Hidden unemployment is characterized by the absence of official status of the unemployed and statutory working hours at the initiative of the administration. Unemployment of this type is a complex phenomenon, which has its pros and cons for the employer and for the employee. The positive aspects for the employer include the preservation of employees without payment of wages (in case of unpaid leaves) or partial payment (if the person does not work for the whole week), which allows you to switch the staff. For the employee, it is beneficial that the person earns continuous length of service and is considered an employee of the enterprise regardless of whether the person actually works at the company. The negative aspect for the employer is the threat of losing professionals who do not agree with the status of hidden unemployed, and, as a consequence, the loss of experience, the possibility of leakage of confidential information. The most negative impact of "hidden unemployment" for workers is the reduction of livelihood. In addition, people have to change the usual rhythm of life, work in a negative psychological climate, spend time and money on forced retraining in order to acquire new skills and knowledge that may not yield results. "Hidden unemployment" is highly undesirable for both the employer and the employee. Some of the hidden unemployed who have found temporary work at another company, will not return to their former jobs, which in the near future will lead to additional difficulties, especially in the field of production of goods (Fayzullin, Zaripov, Yangirov, & Fayzullin, 2009).

In market economies, the situation of the partially unemployed is, as a rule, regulated by legislation. They have certain labour and social guarantees. Part-time workers have a number of benefits. Some of them (benefits) are of general character, when tax barriers are abolished, others are of special character, they are applied to veterans, family people, students and physically challenged people. Employers do not have the right to reduce working hours on their own. The plan to reduce working hours must be approved by the local authorities (Gainanov, Tadgetdinov, & Kirillova, 2012).

Research Questions

In most industrialized countries, the unemployment rate is monitored through systematic surveys of people of working age, our employment services do not have a network of research centers that can organise such surveys, they can provide unemployment status only to applicants who have all the necessary documents. It is difficult to estimate the amount of hidden unemployment - different research centers have different data, which makes their reliability doubtful. At the same time, people belonging to this category are not considered officially unemployed, although they make up the majority of the unemployed.

In the long term, under the influence of STP, there will be an increase in the number of different categories of unemployed and increase of the unemployment rate in general, only the most talented will work, work will become a privilege. This process tends to be prominent now: for example, it is possible to live without work, while the number of part-time workers increases steadily. For example, there was a reduction of the standard working week from 48 to 40 hours in 1997 in Japan. This change was made in the framework of the state program for improving the quality of life. Considering this, society should now think how to get people engaged, employed and distract them from alcohol or drug addiction or criminal. It is considered that the technological progress is linked to degradation of society. In a way, work of the future can be defined as a privilege of economically active subjects of social production, together capable of creating any product to meet the growing needs of the entire population.

A person of today should be mentally prepared for different issues, such as: loss of one’s job, need to continue education, to retrain, professional conversion according to the requirements of STP and market relations. A workforce with innovative potential is now becoming even more important than advanced technology in the development of production. Almost every new industrial technology is expensive and quickly loses its quality. Meanwhile a workforce that has highly developed creative abilities is quite cheap and provides for small-scale, sometimes one-unit release of high-quality, constantly updated products in better conditions of production being constantly updated, therefore bringing more profit (Fayzullin, 2017a).

Purpose of the Study

The article is primarily aimed at analyzing the state of the present-day social group of the unemployed? Its inner structure, and at disclosing the regional specific features of unemployment. Sociological research materials are used for that.

Research Methods

It should be noted that the rating of employment and unemployment varies in different time periods and countries, depending on the characteristics of the socio-political situation , economic structure and culture. Therefore, when studying unemployment, we should explain the dialectics of the general and the individual in the process of forming the socio-demographic structure of the unemployed. Thus, the structure of employment in developed market economies is determined by a number of factors.

First, there is a trend of redistribution of jobs between the public and private sectors of the economy, which was characteristic of the early 2000s. The policy of balancing budget expenditures and the decline in the role of the state as the main provider of social services has led to a decline in the role of the public sector as a source of additional jobs. Private sector enterprises and institutions are increasingly becoming the main suppliers in this situation. In the area of public administration, the redistribution of jobs from Central to local authorities continues.

Second, there are significant changes in the structure of the labor market. In the last decade, the economically developed countries of the world have experienced a significant reduction of staff in manufacturing and extraction industries. In the sector of material production, there is an increase in number of workers only in construction industry. Although the number of jobs during this period increased in some industries, such as automotive, woodworking, etc., this did not affect the reduction in the employment rate in manufacturing. During this period, the number of jobs in service, management, marketing and legal services increased at a faster pace.

Third, the phenomenon of partial employment has become prevalent in the industries of developed countries. In some states, 50% of people of working age have part-time job. The demand for non-traditional employment is high, despite the lack of some social benefits compared to traditional full-time employment. This is due to the fact that part-time employment allows people build their career while achieving other life goals - raising children, getting education, etc. At the same time, people often have to choose part-time job due to the lack of full-time jobs. That is why the rate of non-deliberate part-time employment is an important indicator of the job market.

The improvements in the job market of the EU is primarily due to the impact of a long-term, though uneven, growth of economy. At the same time, employees are mainly those who have recently lost their jobs and, therefore, have not lost their skills and have sufficient qualifications. People with low professional and qualification characteristics become outsiders of the job market, these include many young and older people, due to technological progress and psychophysiological characteristics of individuals.

One of important issues in the structure of the job market remains the uneven level of unemployment of certain age groups, especially of young people. The problem gets more prominent due to the high concentration of unemployed youth in low-income families. Families where parents do not have permanent jobs, cannot help their children at the start of their career. Along with the high school drop-out rate and flaws of the education system, this factor is one of the reasons for the low competitiveness of this category of youth in the job market (Fayzullin, 2017b).

Findings

Despite the fact that many important issues in the structure of the unemployment, the government tends to reduce its expenditures on employment, which include retraining, creating additional jobs in the public sector, supporting employment for outsiders in the job market. At the same time, the so-called activation programs become more popular among the measures of state regulation. Their goal is to motivate the unemployed to seek for new jobs. This means, on the one hand, economic sanctions for the unemployed, on the other hand - the economic encouragement of those who quickly find a new job. These are the functions of the reform of the unemployment insurance system; in particular it aims at changing the insurance principle, as a result of which, for example, people with short payment periods and those who have repeatedly lost their jobs cannot participate in the program.

The state of the job market in the future will be determined by a number of factors. The main of them are: the slowdown in the increase of people of working age, the increase in economically active population of older age groups, the growth of rate of employment in the service sector, and increase in demand for skillful workers while maintaining a large number of LOW qualification jobs. At the same time, the aging of the population is a result of the wave-like dynamics of birth rate and of significant increase in life expectancy due to the improvement of its quality caused by technological progress.

Probably, there will be no changes in the sources of additional jobs, the vast majority of them will appear in the service sector. At the same time, the largest increase in employment will occur in management services, health care and engineering sectors. IT services will take first place in terms of employment growth due to the development of production and information technologies.

Scientific and technological progress and changes in the structure of the economy, along with changes in lifestyle, determine the expected nature of demand for certain professional groups. The main trend in the coming years will be the growing demand for professions that require higher level of education, the jobs for low-qualified workforce will be created faster. The latter will be supplied by countries and cities with low living standard. The local population of developed areas does not accept "hard" work. This phenomenon leads to migration of workforce. For example, the African people assimilated in France, as well as so-called limitchiki – temporary residence workers in Moscow. Local population has bigger needs, that is why the government encourages workers from other countries and smaller cities to migrate to these countries and cities. As a result, there are negative social consequences, the unemployment rate of local population becomes higher, accompanied by degradation of local society. Aside from being the center of political and economic life of Russia, Moscow has highest level of crime, alcohol and drug addiction, prostitution. However, the demand for highly qualified specialists is also the highest (Fayzullin, Valiyev, & Kondratjeva, 2019).

The expected demand for certain professions determines the requirements for the level of education of future employees. The development of service sector will lead to the situation when a degree of high education ceases to be an obligatory requirement, which will cause future problems in the job market.

The global job market consists of many national and regional job markets that determine its specificity. In turn, regional markets are affected by major trends in the international job market. When Russia became a market country, employment of all people of working age ceased to be characteristic of its job market. The phenomena of macroeconomic instability, such as unemployment, inflation, etc. are integral elements of market relations. Scientists of the past considered unemployment to be characteristic of the capitalistic countries. Meanwhile, Western countries after having acknowledged the problem of unemployment, learned to mitigate its social consequences. This is proved by numerous studies as well as experience of social institutions that have developed appropriate forms and methods of regulation of employment and of unemployment among different categories of citizens, taking into account the conditions and opportunities of each country, the peculiarities of historical development, mentality of people. Analysis of the existing foreign literature on this topic indicates the presence of different methods and technologies of dealing with unemployment, which have a significant impact on the solution of existing problems. The study provides the economic measures to reduce unemployment rate as well as social, legal and psychological factors to fix this issue. Considering the current situation in our country, we should be study the experience of other countries and use its positive aspects. We need to note that the methods used by these countries have a significant impact on reducing the social dependency of citizens, increasing responsibility for both the choice of one’s profession and the volume and depth of knowledge of specialists, on increasing productivity and the efficiency of social production in general, the quality of products and other aspects of life of the society (Fayzullin, 2019).

During the last century, Russia did everything possible to provide full employment of population, which was considered an advantage of the socialistic state. Full employment of the population was largely achieved due to rigid centralized system of governmental measures in the job market. With time, the system of social relations has changed, and now it is necessary to develop a strategy for managing the employment of citizens and, accordingly, reducing unemployment among the working population, taking into account our traditions and the experience of other countries.

Unemployment in different regions has its own peculiarities. Due to the fact that new generation of citizens born after the demographic decline are now of working age, there was an increase in the number of work resources in the Republic of Bashkortostan from 2000 to 2015. However, this resulted in only a slight increase in the number of employed people due to the saturation of the job market and at the same time the inability to quickly and efficiently respond to changes in the structure of the workforce of the Republic of Bashkortostan. At the same time, the number of unemployed and citizens not directly employed in the economy (the so-called "self-employed citizens", whom the employment service was unable to provide with the necessary work) increased (table 01 ).

Table 1 -
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During this period, there was an increase in the number of workers in oil refining, engineering and Metalworking, flour, cereals and feed, printing industry, on the main pipeline, railway transport, communications, wholesale trade and public catering, housing and communal services, non-productive enterprises of consumer services, real estate operations. General commercial activity, health care organizations, physical culture and social security, education, culture and art, science and wrist service, Finance, credit. The number of employees in the power industry, metallurgy, chemical and petrochemical, forestry and woodworking, light industry, food industry, building materials industry, agriculture and construction has decreased.

We should note that the stable social situation and positive trends in the economy in the Republic of Bashkortostan in recent years have a positive impact on employment. In 2018, the emerging positive changes in the job market became more prominent, which was facilitated by the implementation of a whole range of measures by the employment service. Thus, the monitoring of part-time employment and migration of workers in the Republic of Bashkortostan for the first quarter of 2018 showed that the organization employed 41, 8 thousand people(5.1% of the total number), including 2.4 thousand. man – to additionally introduced workplaces. 49,3 thousand people, or 6,0% of the list number of personnel, left for various reasons (table 02 ).

Table 2 -
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816 hundred people had part-time jobs in the first quarter of 2018. 15.1 thousand people (1.9% of the total number of participants) had part-time jobs at the initiative of the employer and by agreement between the employee and the employer. 45 hundred people (0.5% of the total number of participants) did not work properly at the fault of the employer or for reasons beyond the control of the employer and the employee. 619 hundred people (7.6% of total number of participants) had unpaid leave after written request of the employee (Bashstat, 2019).

The population of the Republic of Bashkortostan in 2018 amounted to 40633 hundred people (of them: 62.1% - live in cities or towns, 37,9% in rural areas; 46.9% – men, 53.1% – women). 22610 hundred people (55.6% of the total population) are of working age. In 2017-2018, the number of working-age population continued to decline. In general, in Russia in 2017, it decreased by 9603 hundred people, in the Republic of Bashkortostan – by 331 hundred people. This decrease leads to increase in demographic density (the ratio of the working-age population to the population other age). In the Republic of Bashkortostan, women made up 46.9%, men – 53.1% of total number of residents of working age. Latest data provided by Bashstat (2019) also show higher employment rate in the Republic of Bashkortostan compared to Russia, while the age of employees is usually less (table 03 ).

Table 3 -
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The number of employees in commercial organisations continues to increase. If the share of employment in enterprises and organizations of state and municipal forms of ownership In the early 90s in the Republic of Bashkortostan, 70% of employees worked in state-owned organisations (13676 hundred people, total number of employed population – 19537 thousand people). In 2015, this rate amounted to only 25.5% (4538 hundred people, total number of employed population - 17788 thousand people), and the number of employed in commercial organisations amounted to more than 70% of total employment. The share of people who have high, undergraduate high and secondary, or professional education in the Republic of Bashkortostan is slightly lower than in Russia. In Russia this share is 56.1% of total number of employees, in Bashkortostan – 48.8 %, the difference is more than 8%.

In 2017 Bashkortostan saw positive changes in the job market, which was achieved due to the implementation of planned measures (the "map"), aimed to reach the planned "Unemployment Rate" to assess the efficiency of work of executive bodies of the Republic of Bashkortostan for 2017-2019. The unemployment rate is an indicator that characterizes not only the state of the job market, but also the overall level of socio-economic development of the region. At the end of 2017, positive dynamics was achieved in all key aspects of job market efficiency. According to preliminary data of Rosstat (Surinov, 2017, p. 112), the total unemployment rate in 2017 in Bashkortostan decreased from 5.8% to 5.6% (according to the ILO methodology). The number of unemployed on annual average decreased by 4% (111.5 thousand people) compared to 2016 (116 thousand people). The job market density coefficient decreased from 3.6 to 2.7. There have been similar positive changes in the registered job market. The registered unemployment rate decreased from 1.17% to 1.03%. At the same time, the development of work with enterprises, the recovery of the economy made the number of overall vacancies grow by 45 thousand more than in 2016. The result of implemented measures is, of 90 thousand residents requested for job in the employment service more than 65 thousand or 72.8% (in 2016 – 69.3% in 2012 – 69.8%) were employed, which is higher than on average in Russia (66.8%) and PFD (70.5%) (table 04 ).

Table 4 -
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The planned measures (“map”) to achieve the planned "unemployment rate" to assess the efficiency of work of executive bodies of the Republic of Bashkortostan in 2017-2019 has the following 6 aspects: "The unemployment rate according to ILO methodology", "The employment rate of residents seeking employment", "The employment rate of physically challenged residents", "The share of unemployed youth among the registered unemployed", "The average duration of unemployment period" and "The number of residents using the services in the field of professional education". At the end of 2017, the expected rates of all 6 aspects were exceeded. The implementation of preventive measures made it possible to achieve the unemployment rate of 5.6% (planned rate was 5.7%), according to the ILO methodology (Fayzullin, Biglova, & Sadykov, 2019).

Analyzing the formation and reproduction of unemployment, it is necessary to distinguish its objective and subjective factors. By objective factors we mean conditions that are beyond the control of people and determine the directions and various conditions of their activities. They do not depend on the will and desire of the subject. These include the development of productive forces, the transformation of social relations, competition among producers and carriers of workforce, etc. Subjective factors include psychophysiological characteristics of a person (quick mind, creativity, ability to take risks), its social characteristics (gender, age, social status, qualification, etc.). Objective factors always act as determinants (Fayzullin, Mukhamedyarov, & Khalitova, 2019).

When social relations in Russia started to change, the number of jobs was reducing, as objective factors of reproduction of unemployment were dominant, due to large-scale stagnation and sharp, big reduction of staff by many enterprises and organizations. Currently, the volume of national production tends to increase, the number of jobs in various specialties increases. Under these conditions, in the process of formation and reproduction of unemployment, the subjective factor becomes dominant.

Until 1998, both total and officially registered unemployment rates increased rapidly. At this stage, the demand for workforce from the reformed enterprises was very low. During this period, the number of both part-time workers and those on involuntary leave increased. Part-time employment has found its greatest manifestation in such industries as production, transport, construction, catering, etc.

Officially registered unemployment rate more or less reflects general unemployment trends. We should note that the gap between total and registered unemployment rates has been decreasing in recent years. The iron and steel, chemical, timber, light, food industries, construction materials and construction industries show highest part time employment rate (Fayzullin, Sadykov, & Gavrikova, 2019).

As the economy of the Republic of Bashkortostan began to recover, the production rate also began to increase, while the activation of enterprises and institutions forced the demand for staff to grow. This has led to the reduction of both total and officially registered unemployment rates in the republic.

The registered unemployment rate at the end of December 2014 was 1.16% (increased by 0.11% compared to 2011). In Ufa, this rate was 1.13% (in 2011 – 1.33%), in other cities 1.04% (in 2011 – 1.2%), in districts – 1.27% (in 2011 – 1.35%), in the Russian Federation – 1.2% (in 2011 – 1.4%), in the Volga Federal district – 0.9% (in 2011 – 1.1%) (Surinov, 2014, p. 119).

In 2014, the unemployment rate in 37 municipalities was lower than in Bashkortostan on average. The lowest unemployment rate in 2014 was in several locations: Sibay city – 0,66%, Oktyabrsky city – 0,66%, Beloretsk city – 0,71%, Miyakinskiy district – 0,8%, Nurimanovskiy district – 0.85%, Alsheevsky district – 0.91%. The highest unemployment rate was in: the city of Agidel – 7.02%, Mezhgorye city – 2,58%, Burzyansky district – 2,29% and Duvanskiy district – 2.04% (Fayzullin, 2006).

We should note that the average duration of the period of unemployment in 2014 was 4.8 months (compared to 2011, it decreased by 0.1 months). Among people aged from 16 to 29 years, it was 3.8 months; among women -5.0; physically challenged – 5.0; rural areas residents – 4.9 months. About 57% of the number of unemployed citizens registered with the employment service were registered for up to 4 months (53.8% in 2013). In 2015, the average duration of unemployment was already 7.9 months (Bashstat, 2019).

Conclusion

The overall analysis of the materials of the studies leads to the conclusion that, compared to previous years, the total number of citizens who requested the employment services for job decreases (the residents do not trust the employment service – according to the schemes in the study, there is a decrease in the percentage of employment of citizens who requested for job). At the same time, the number of jobs announced by organisations of the republic slightly increased.

These data show that the employment strategy should be implemented not only at the state but also at the regional level, taking into account their characteristics.

References

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Cite this article as:

Fayzullin, I., Gainanov, D., Fayzullin, F., & Sadykov, R. (2020). Social Group Of The Unemloyed And Its Regional Features. In I. Murzina (Ed.), Humanistic Practice in Education in a Postmodern Age, vol 93. European Proceedings of Social and Behavioural Sciences (pp. 954-965). European Publisher. https://doi.org/10.15405/epsbs.2020.11.99