The labor market is a multi-faceted system of socio-economic relations designed to increase
reproduction and ensure the effective using of labor resources. At present, the role of the labor market is increasing due
to the introduction of various innovations, the growth of labor productivity due to the widespread use of
computerization, technology and digitalization, the formation of competitive industries, and the increase in nonresource exports. Therefore, the activation of the labor market in order to provide dynamic sectors of the economy with
highly qualified personnel is necessary in modern conditions. The most important thing is to change the employment
situation through labor force and potential.
The article describes the difficulties in the formation of the labor market in the process of transition from a
planned economy to a market system. The influence of changes in the labor market on the socio-economic development
of the country has been studied and defined the concept of the labor market in the research of economists.
The analysis of the main indicators of the labor market in the Republic of Kazakhstan and the structure of selfemployed workers are carried out. Also, the definition of the labor market is formulated and the mechanism of its
functioning is considered. In the article the current state of the labor market is analyzed, the effectiveness of its
functioning is studied, the causes of unemployment and ways to prevent them are identified.

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