The Effective and Regulatory Mechanism of the Labour Market

The current paper aims to research the functioning mechanism of labour market, departing from the idea that labour market represents a constitutive part of the market system, the market system stands as a subsystem of economy and the economy itself a subsystem of the society. First of all, the labour market mechanism results from the essential interdependencies between the structural components of such market, between the labour market and the other markets, between the market system and the economic one, as well as between the economic and social system. Secondly, the labour market mechanism arise from its functional relations with the operational, executive, legislative, institutional and organizational structures of the social system from which it belongs, and which functional relations manifest as public preferences towards the functioning of the labour market. Therefore the regulatory mechanism of the labour market functions in two main steps, each of them comprising means and instruments for the implementation of the regulatory process: the spontaneous mechanism (based on objective necessity) and the intervention mechanism on the labour market, making use of various external economic means.