LABOR MARKETS AND SMALL BUSINESS EMPLOYMENT IN NORTHERN REGIONS: REGIONAL AND SECTORAL CHARACTERISTICS

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Marina A. Terentyeva

Institute of Socio-Economic and Energy Problems of the North, Komi Science Centre, Ural Branch of the Russian  Academy of Sciences, Syktyvkar, Russia, iesp@mail.ru, ORCID 0000-0001-6204-7363

 

Abstract. This article examines employment patterns in Russia’s northern regions, whose territories are entirely classified as areas of the Far North and equivalent localities. The study focuses on the characteristics of regional labor markets and their impact on employment in small businesses. Its aim is to analyze the functioning of labor markets in the small business sector and to identify the distinctive features of employment in northern small enterprises. The research is based on comparative and statistical analysis. The object of the study is the processes occurring in regional labor markets. Russia’s northern regions are examined in the context of ongoing demographic changes. The findings indicate that employment dynamics are shaped by a persistent labor shortage, highlighting the importance of human capital development under challenging climatic conditions. The study shows that the economically active population is declining, while the production-oriented structure of northern regional economies significantly influences sectoral employment patterns. It also identifies spatial disparities in the development of small businesses, demonstrating that their growth across regions is uneven. The results can be applied in practice to support the management of small and micro-enterprises in northern territories. They may also inform federal and regional policymakers in designing employment policies and educational initiatives. Further research could explore the role of institutional factors, including informal practices, in shaping northern labor markets.

Keywords: labor market, population, small business, regional economy, North

Acknowledgments: This study was conducted as part of the research project titled “The Impact of Demographic Challenges on Employment in Northern and Arctic Territories: New Realities of the 21st Century” (No. 125013001104-0, 2025–2027).

For citation: Terentyeva M. A. Labor markets and small business employment in northern regions: Regional and sectoral characteristics. Sever i rynok: formirovanie ekonomicheskogo poryadka [The North and the Market: Forming the Economic Order], 2026, no. 2, pp. 97–111. doi:10.37614/2220-802X.2.2026.92.007.

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