Structural employment shifts in an industrial region: About improved living standards of population

Abstract

Introduction. The labour market is the most important part of the economic system of the country and the region, while the ongoing changes reflect the current trends in economic development. There are many studies aimed at identifying cause-and-effect relationships that have led to a decline in the standard of living among population in the Russian regions, but only a few are focused on the analysis of employment as the main factor in the standard of living.

The aim of the study is to assess the shifts in the employment structure of the region. To do this, the study analyses the dynamics of labour income and employment in the context of the sectoral structure of the economy in Chelyabinsk Region and the Russian Federation, refers to the shift-share analysis, identifies promising sectors of the economy in Chelyabinsk Region with the localization coefficient, and recommends scenarios of regional socio-economic policy with regard to the proposed typology of economic activities.

Materials and Methods. The shift-share analysis and the localization coefficients help examine the dynamics of structural elements. Chelyabinsk Region was chosen to be the object of the analysis in the context of current growth of economy driven by the technologically developed industrial regions. The period of the study is 2017–2022.

Results. The article examines the dynamics of living standards, labour income and employment of population in terms of the sectoral structure of the economy in Chelyabinsk Region in 2017–2022. The calculated localization coefficients define the priority industries for investment and support.

Conclusions. The results of the study demonstrate the decline in the living standards of the population in the industrial region, the insufficient remuneration of employees in the majority of economic activities, which means the regional employment policy is ineffective and requires adjustment of its methodological support. The methodology proposed in the article can be used to design an employment policy and manage regional investment resources.

Keywords: living standards, industrial region, regional employment, sectoral structure of employment, employment policy, structural shifts, types of economic activities, localization coefficient, typology of ТEA, regional economic policy

Funding: the article was prepared under the 2024–2026 Research Plan for the Institute of Economics of the Ural Branch of the Russian Academy of Sciences.

For citation

Melenkina S. A., Uzhegov A. O. Structural employment shifts in an industrial region: About improved living standards of population. Perm University Herald. Economy, 2024, vol. 19, no. 2, pp. 164–185. DOI 10.17072/1994-9960-2024-2-164-185. EDN VMWCKL.

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