Journal
УКР   ENG
Socio-Economic Problems
of the Modern Period of Ukraine
   



Collection SEPSPU -- sep2026.03.056

Repository of Institute of Regional Research UDC 332.14:331.5:338.2; JEL R11, R23, J21, J08
Levytska, O. O., Kulyavets, S. Z., Hres, B. A., & Ryvak, R. O. (2026). Mistsevyy ekonomichnyy rozvytok i transformatsiya rynku pratsi yak determinanty sotsial'no-ekonomichnoyi stiykosti terytorial'nykh hromad [Local economic development and labor market transformation as determinants of the socio-economic resilience of territorial communities]. Sotsial'no-ekonomichni problemy suchasnoho periodu Ukrayiny [Socio-Economic Problems of the Modern Period of Ukraine], 3(175), 56-65. [in Ukrainian].
Sources: 29

Authors



Levytska Olha Oleksandrivna

Doctor of Economics, Senior Researcher

Leading Researcher of the Department of problems of social and humanitarian development of the regions of the Dolishniy Institute of Regional Research of NAS of Ukraine

Contacts: o.levytska@gmail.com, (067)773-5481

Webpages:



Kulyavets Serhiy Zinoviyovych

Postgraduate of the Department of problems of social and humanitarian development of the regions of the Dolishniy Institute of Regional Research of NAS of Ukraine

Contacts: serhiy.kulyavets@gmail.com

Webpages:



Hres Bohdan Arsenovych

Postgraduate of the Department of problems of social and humanitarian development of the regions of the Dolishniy Institute of Regional Research of NAS of Ukraine

Contacts: gress@ukr.net

Webpages:



Ryvak Rostyslav Oleksandrovych

Postgraduate of the Department of problems of social and humanitarian development of the regions of the Dolishniy Institute of Regional Research of NAS of Ukraine

Contacts: ryvak.r@gmail.com

Webpages:

Resume

The analysis of challenges and opportunities in local economic development planning highlights the need for a systematic and strategic approach. This approach involves developing a coherent regional master plan for sectoral specialisation and development based on territorial communities’ visions, strategies, programmes, and investment profiles. This requires strengthening local economic development policy in two main areas: adaptive development, involving instruments for timely regulatory intervention, and strategic development, focusing on creating a favorable environment for economic activity with long-term effects. The emphasis is on overcoming formalistic approaches, improving local economic development strategy-making and programming, strengthening incentives for local governments, and engaging local stakeholders in drafting the relevant policy documents. The importance of concentrating communities’ resources on a limited number of strategic priority projects is emphasized. These include capital projects aimed at creating and upgrading physical assets, and process-oriented projects designed to facilitate structural and institutional change. Priority capital projects within local economic development programmes include the development of transport and logistics hubs, industrial clusters, locally integrated structures, and other business activity centers; the establishment of new enterprises and the modernization and expansion of existing enterprises’ production capacity, alongside the development of transport and logistics infrastructure and product distribution systems, particularly for exports and sales to other regions of the country; and support for investment and entrepreneurial projects aimed at establishing enterprises in high-value advanced processing real-sector industries, including through the preparation of territorial investment profiles. Process-oriented projects within local economic development programmes should include measures to harness communities’ existing economic and resource potential; stimulate entrepreneurship and employment, particularly in rural areas; foster intermunicipal economic cooperation; develop smart infrastructure; and improve road and transport infrastructure and road quality. The study substantiates the direct link between territorial communities’ project activities involving effective measures to promote entrepreneurship, employment, and structural economic change and the transformation of the labor market. In turn, achieving strategic and programme objectives through labor market development measures significantly contributes to communities’ socio-economic resilience. However, this positive impact depends on the initiative and active engagement of local governments, their capacity to organize and coordinate activities in line with the community’s development priorities, and their ability to mobilize internal resources and attract external funding and support. Together, these efforts can enhance the socio-economic resilience of territorial communities, thereby strengthening the resilience of regional economies and Ukraine’s economy as a whole.

Keywords:

local economic development, policy of local economic development, labor market, project activity, territorial community, socio-economic resilience

References

    
  1. Cabinet of Ministers of Ukraine. (2026, Jan 07). Pro skhvalennya Stratehiyi zaynyatosti naselennya Ukrayiny na period do 2030 roku ta zatverdzhennya operatsiynoho planu zakhodiv z yiyi realizatsiyi u 2026-2028 rokakh [On approval of the Employment Strategy of Ukraine until 2030 and the operational action plan for its implementation in 2026-2028] (Order No 92-r). https://zakon.rada.gov.ua/laws/show/92-2026-%D1%80#Text [in Ukrainian].
  2. Ukraine Facility. (2023). Prohrama finansovoyi pidtrymky Ukrayiny vid Yevropeys’koho Soyuzu [The European Union’s financial support programme for Ukraine]. https://www.ukrainefacility.me.gov.ua [in Ukrainian].
  3. Wolman, H., & Spitzley, D. (1996). The politics of local economic development. Economic Development Quarterly, 10(2), 115-150. https://doi.org/10.1177/089124249601000201
  4. Blakely, E. J., & Leigh, N. G. (2013). Planning local economic development. Sage.
  5. Malizia, E., Feser, E. J., Renski, H., & Drucker, J. (2020). Understanding local economic development. Taylor & Francis.
  6. Vermeulen, W. (2022). Policies for resilient local economies. OECD Local Economic and Employment Development (LEED) Papers, 2022/09. https://doi.org/10.1787/872d431b-en
  7. Topel, R. H. (1986). Local labor markets. Journal of Political Economy, 94(3):2, 111-143. https://doi.org/10.1086/261401
  8. Partridge, M. D., Rickman, D. S., & Li, H. (2009). Who wins from local economic development? A supply decomposition of U.S. county employment growth. Economic Development Quarterly, 23(1), 13-27. https://doi.org/10.1177/0891242408322314
  9. Kline, P., & Moretti, E. (2014). People, places, and public policy: Some simple welfare economics of local economic development programs. Annual Review of Economics, 6, 629-662. https://doi.org/10.1146/annurev-economics-080213-041024
  10. Bartik, T. J. (2020). Bringing jobs to people: Improving local economic development policies (Policy Paper No. 23). W.E. Upjohn Institute for Employment Research. https://doi.org/10.17848/pol2020-023
  11. Goga, S., Murphy, I. F., Swinburn, G. (2006). Local economic development: A primer developing and implementing local economic development strategies and action plans (Bulgarian). Washington, DC: World Bank. https://documents.worldbank.org/en/publication/documents-reports/documentdetail/740711468141554090
  12. OECD. (2020). Job creation and local economic development 2020: Rebuilding better. OECD Publishing. https://doi.org/10.1787/b02b2f39-en
  13. OECD. (2024). Job creation and local economic development 2024: The geography of generative AI. OECD Publishing. https://doi.org/10.1787/83325127-en
  14. Kovalyov, A. I. (Ed.). (2021). Instrumentariy mistsevoho ekonomichnoho rozvytku: teoriya, metodolohiya, praktyka [Tools for local economic development: Theory, methodology, practice]. Kyiv. https://doi.org/10.33987/978-617-7901-33-3 [in Ukrainian].
  15. Zablodska, I., Hrechana, S., & Lyashenko, P. (2024). Stratehichne tsilepokladannya v paradyhmi mistsevoho ekonomichnoho rozvytku [Strategic goal-setting in the paradigm local economic development]. Ekonomika ta pravo [Economics and Law], 75(4), 90-101. https://doi.org/10.15407/econlaw.2024.04.090 [in Ukrainian].
  16. Kraynyk, O. P. (2022). Napryamy realizatsiyi derzhavnoyi polityky rehional’noho ta mistsevoho ekonomichnoho rozvytku v umovakh detsentralizatsiyi [Directions of realization the regional and local economic development state policy in the conditions of decentralization]. Ekonomichnyy visnyk Natsional’noho tekhnichnoho universytetu Ukrayiny «Kyyivs’kyy politekhnichnyy instytut» [Economic Bulletin of National Technical University of Ukraine «Kyiv Polytechnic Institute»], 21, 7-11. https://doi.org/10.20535/2307-5651.21.2022.254716 [in Ukrainian].
  17. Storonyanska, I. Z. (Ed.). (2022). Vyklyky ta priorytety upravlinnya aktyvamy terytorial’nykh hromad v umovakh viyny [Challenges and priorities of territorial community asset management during wartime] (Scientific and analytical report). Lviv: Dolishniy Institute of Regional Research of NAS of Ukraine. http://ird.gov.ua/irdp/p20220034.pdf [in Ukrainian].
  18. Storonyanska, I. Z. (Ed.). (2021). Terytorial’nyy rozvytok i rehional’na polityka. Stymulyuvannya rozvytku rehioniv na zasadakh smart-spetsializatsiyi: bar»yery ta mekhanizmy implementatsiyi [Territorial development and regional policy. Promoting regional development through smart specialisation: Barriers and implementation mechanisms] (Scientific report). Lviv: Dolishniy Institute of Regional Research of NAS of Ukraine. https://ird.gov.ua/irdp/p20210034.pdf [in Ukrainian].
  19. Voznyak, H., Kaplenko, H., Koval, V., Druhova, V., & Mulska, O. (2023). Financial self-sufficiency of Ukrainian territorial communities and local economic development: Modeling the causal relationship. Public and Municipal Finance, 12(2), 17-31. https://doi.org/10.21511/pmf.12(2).2023.02
  20. Layko, O. I. (Ed.). (2025). Ekonomichnyy rozvytok terytorial’no-hospodars’kykh system Ukrayiny v umovakh suchasnykh vyklykiv [Economic development of Ukraine’s territorial economic systems amid contemporary challenges]. Odesa: Institute of Market and Economic & Ecological Research of the NAS of Ukraine. [in Ukrainian].
  21. Avhustyn, R., & Demkiv, I. (2023). Instrumentariy polityky rozvytku ta zmitsnennya konkurentospromozhnosti ekonomiky terytorial’nykh hromad [Policy toolkit for the development and strengthening of the competitiveness of the economy of territorial communities]. Modeling the Development of the Economic Systems, 2, 28-33. https://doi.org/10.31891/mdes/2023-8-4 [in Ukrainian].
  22. Varchenko, O., Krysanov, D., & Varchenko, O. (2025). Mistsevyy ekonomichnyy rozvytok u terytorial’nykh hromadakh Ukrayiny [Local economic development in territorial communities of Ukraine]. Stalyy rozvytok ekonomiky [Sustainable Development of Economy], 1(52), 473-482. https://doi.org/10.32782/2308-1988/2025-52-68 [in Ukrainian].
  23. Vasyltsiv, T. H., & Levytska, O. O. (2024). Konkurentospromozhnist’ rehional’nykh rynkiv pratsi: metodolohiya analizuvannya ta modelyuvannya vplyvu na sotsial’no-ekonomichnyy rozvytok [Competitiveness of regional labour markets: Methodology for analysing and modelling the impact on socioeconomic development] (Scientific and analytical report). Lviv: Dolishniy Institute of Regional Research of NAS of Ukraine. http://ird.gov.ua/irdp/p20240031.pdf [in Ukrainian].
  24. Ostafiichuk, Ya. V., & Tsymbal, O. I. (2024). Vplyv vnutrishn’oyi mihratsiyi robochoyi syly na rezyliyentnist’ terytorial’nykh hromad v Ukrayini: problemy doslidzhennya ta otsinky [The impact of internal labour migration on the resilience of territorial communities in Ukraine: Research and assessment issues]. Ekonomika ta derzhava [Economy and State], 2, 91-103. https://doi.org/10.32752/1993-6788-2024-2-282-91-103 [in Ukrainian].
  25. Mulska, O., & Leshchukh, I. (2025). Systema informatsiyno-analitychnoho monitorynhu mihratsiynykh ryzykiv na mistsevomu rivni: kontseptual’nyy pidkhid i praktychna implementatsiya dlya hromad Ukrayiny [Information and analytical monitoring system of migration risks at the local level: conceptual approach and practical implementation for Ukrainian communities]. Review of Transport Economics and Management, 14(30), 5-16. https://doi.org/10.15802/rtem2025/342858 [in Ukrainian].
  26. Blyznyuk, V. V., & Yatsenko, L. D. (2025). Rynok pratsi Ukrayiny u voyennyy chas: rehional’ni aspekty [The Labor Market of Ukraine in Wartime: Regional Aspects]. Problemy suchasnykh transformatsiy. Seriya: Ekonomika ta upravlinnya [Problems of Modern Transformations. Series: Economics and Management], 19. https://doi.org/10.54929/2786-5738-2025-19-07-01 [in Ukrainian].
  27. Dyakonenko, O. I., & Kotenko, T. M. (2024). Transformatsiyi rehional’nykh rynkiv pratsi Ukrayiny v umovakh viyny [Transformations of Regional Labor Markets in Ukraine in the Condition of War]. Statystyka Ukrayiny [Statistics of Ukraine], 2, 85-94. https://doi.org/10.31767/su.2(105)2024.02.08 [in Ukrainian].
  28. Levytska, O. O. (2024). Konkurentospromozhnist’ rynku pratsi rehionu ta mihratsiyna bezpeka: modelyuvannya vzayemozv»yazkiv i polityka zabezpechennya [Regional labour market competitiveness and migration security: Modelling interrelationships and policies for their enhancement]. Lviv: Dolishniy Institute of Regional Research of NAS of Ukraine. https://ird.gov.ua/irdp/p20240006.pdf [in Ukrainian].
  29. Vasyltsiv, T. H., Levytska, O. O., & Kravchyk, Yu. V. (2024). Instrumenty stymulyuvannya mistsevoho ekonomichnoho rozvytku Ukrayiny v umovakh nestabil’nosti [Tools for promoting local economic development in Ukraine under conditions of instability]. Herald of Khmelnytskyi National University. Economic Sciences, 334(5), 331-337. https://doi.org/10.31891/2307-5740-2024-334-49 [in Ukrainian].


Web-master P. Popadyuk