THE PROBLEM OF UNEMPLOYMENT IN RURAL AREAS: THE IMPACT OF DECENTRALIZATION REFORM

Abstract

The impact of decentralization reform on unemployment in territorial communities formed in 2015–2020 as a result of the reform of the administrative-territorial system in Ukraine is considered. Focused onthe problem of unemployment in rural areas in the context of the reform of the administrative-territorialsystem. The peculiarities of strategies for the development of grassroots territorial communities in termsof ensuring the creation of new jobs are highlighted. Emphasis is placed on the efforts to form nonagriculturalemployment in rural areas of newly created grassroots territorial communities in Ukraine.The peculiarities of community action plans aimed at combating unemployment and migration fromthe Ukrainian countryside are highlighted. The materials of surveys of territorial communities’ leaders2019–2021 conducted by the analytical center of the All-Ukrainian Association of Joint TerritorialCommunities on the formation of policies to combat unemployment are analyzed. The peculiarities ofbudgetary and financial policy of grassroots territorial communities in Ukraine in the context of theirinfluence on the fight against unemployment in rural areas are revealed. The impact of the COVID-2019coronavirus pandemic on the economic development of newly formed grassroots territorial communitiesin Ukraine is reflected. The vision of the leaders of territorial communities on the consequences of thegovernment’s introduction of a set of economic measures to reduce the tax burden on the economyand small and medium-sized businesses, which are related to counteracting the spread of coronavirusCOVID-2019, was analyzed. Community leaders have identified an assessment of government measures to reduce the tax burden on the economy and small and medium-sized businesses and local budget lossescaused by them, measures that will have the greatest impact on the labor market in local communities atthe grassroots level. The ability of territorial communities to keep jobs in the field of medium and smallbusiness and the need for external support to local communities to combat corporate bankruptcies andthe threat of unemployment have been identified.