CHARACTERISTICS OF THE IMPACT OF CHANGES IN THE DYNAMICS OF THE LABOR MARKET ON THE ENTERPRISE ECONOMIC SECURITY MANAGEMENT SYSTEM
Abstract
The purpose of this study is to characterize the specific effects of changes in the dynamics of the labor market on the system managing an enterprise’s economic security. Technological shifts and changes in market requirements compel companies to adapt, developing new skills among their employees to maintain innovation and productivity. It has been proven that the labor market is dynamic and sensitive to macroeconomic fluctuations and global trends, which can lead to changes in labor supply and demand, impacting unemployment levels and wages. It is determined that fluctuations in the labor market can alter an enterprise's economic security through impacts on operational costs, pricing, investment decisions, and strategic planning. It is established that to ensure economic security, enterprises need to closely monitor changes in the labor market, anticipate potential challenges, and adapt their resource management and development strategies. It is proven that a more stable labor market can increase consumer spending and profits, enhancing economic security, whereas a weak market can reduce purchasing power and demand for products, diminishing economic stability. Skill mismatches that arise due to rapid technological changes or industry shifts can cause productivity and innovation issues if enterprises do not adjust their training and development strategies to meet new requirements. It is identified that economic growth increases labor demand, reduces unemployment, and can raise wages, while a recession has the opposite effect. Globalization has made labor markets more interconnected, increasing their vulnerability to international economic crises. Key changes in the dynamics of today's labor market are singled out. Key determinants of changes in the dynamics of the labor market that have a direct impact on ensuring an enterprise's economic security are identified. Businesses often choose to invest or expand in regions where there is an abundance of skilled labor at competitive costs. Conversely, a lack of a suitable workforce can deter entry into new markets or expansion of existing operations, thereby limiting growth opportunities and potentially giving away market share to competitors who can better manage these challenges in the context of economic security.
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