Volume 03 Issue 05-2023
42
American Journal Of Social Sciences And Humanity Research
(ISSN
–
2771-2141)
VOLUME
03
ISSUE
05
Pages:
42-47
SJIF
I
MPACT
FACTOR
(2021:
5.
993
)
(2022:
6.
015
)
(2023:
7.
164
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
ABSTRACT
This article researches the ways of improvement of the efficiency of investment policy in the service sector, formation
of investment funds in the service sector, investment methods and tools for the development of the service sector on
the basis of public-private partnerships, the network structure of business entities in the service sector within the
framework of the state investment strategy, mechanisms for determining their effectiveness, ways to ensure the
participation of the private sector in the management and financing of socially significant strategic projects, some
restrictions on the implementation of the public-private partnership mechanism, criteria for systemic identification
and classification of public risks, as well as effective ways to implement the public-private partnership mechanism.
KEYWORDS
Service sector, private sector, public-private partnership, project, strategy, mechanism, state risks, limitations, criteria,
employment, unemployment, shortfall, manufacturers, service providers.
INTRODUCTION
In economic literature (sciences), the concept of
“employment” is mainly applied to labor resources.
Employment of labor resources is the main form of
people’s activity, it requires manpower, e
nergy and
time consumption and provides vital conditions for
people’s material support. In fact, the concept of
Research Article
THE IMPACT OF THE DEVELOPMENT OF THE SERVICE SECTOR ON THE
EMPLOYMENT AND REAL INCOME OF THE POPULATION
Submission Date:
May 12, 2023,
Accepted Date:
May 17, 2023,
Published Date:
May 22, 2023
Crossref doi:
https://doi.org/10.37547/ajsshr/Volume03Issue05-09
Murotjonova Mubina Dilshod Qizi
Jizzakh Branch Of The National University Of Uzbekistan Named After Mirzo Ulugbek, Faculty Of
“
Psychology
”, 5230100
- Economy (By Industries And Sectors), Student Of Group 140-20, Uzbekistan
Journal
Website:
https://theusajournals.
com/index.php/ajsshr
Copyright:
Original
content from this work
may be used under the
terms of the creative
commons
attributes
4.0 licence.
Volume 03 Issue 05-2023
43
American Journal Of Social Sciences And Humanity Research
(ISSN
–
2771-2141)
VOLUME
03
ISSUE
05
Pages:
42-47
SJIF
I
MPACT
FACTOR
(2021:
5.
993
)
(2022:
6.
015
)
(2023:
7.
164
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
“employment” refers to the level of involvement of all
types of resources available for use (labor, capital,
land, entrepreneurship) in economically beneficial
activities. It shows the relative share of the country’s
existing labor resources, fertile land and other natural
resources, fixed and circulating capital and money used
for reproduction in the total volume of the country.
Achieving a high level of employment depends on the
main goals of the state’s macroeconomic policy, and
through this process, it becomes possible to increase
the amount of the offer to consumers, that is, to satisfy
the population’s demand for products and services.
The problem of employment and unemployment is
related to the cyclical development of the national and
world economy, structural shifts in their economy,
demographic and cultural-household processes, and
changes that have their own meaning in the labor
market. The theory of employment has gone through a
long arc in its evolutionary development and is
characterized by various ideological approaches,
various methods and branches of research.
According to the classical theory of employment, the
level of expenditure is insufficient to purchase goods
and services produced under conditions of full
employment. On the other hand, even if the level of
total costs is insufficient, the levers of regulation such
as prices, wages, and interest rates act much faster,
and as a result, the reduction of total costs may not
cause a reduction in the real volume of production,
employment, and real incomes. The rejection of the
classical theory that the level of expenditure is
sufficiently high is partly based on Say’s law. According
to
Say’s law, the production process of a commodity
generates an income equal to the value of the
commodity. This means that the production of any
volume of the product automatically provides the
necessary income to buy it. The offer creates its own
demand. However, the fund complicates this process,
that is, it is not guaranteed that the recipient of the
income will spend it properly. Some part of the
consumer’s monetary income may be withheld, which
may not be reflected in the demand and cause a
disruption in the flow of income and expenses. Savings
lead to underconsumption and cause Sey's Law to be
ineffective. As a result, there is a reduction in
production,
accumulation
of
unsold
goods,
unemployment and a decrease in income.
Economist classics emphasize that in real life,
accumulation does not lead to a deficit of demand, and
every accumulated amount is directed to investment
by entrepreneurs. Therefore, any “shortfall” in
consumption spending caused by the surplus is
covered by investment. Say’s law begin
s to apply if
households plan to save as much of their income as
entrepreneurs (manufacturers and service providers)
invest. So, in this case, production (service) and the
level of employment will remain constant.
Volume 03 Issue 05-2023
44
American Journal Of Social Sciences And Humanity Research
(ISSN
–
2771-2141)
VOLUME
03
ISSUE
05
Pages:
42-47
SJIF
I
MPACT
FACTOR
(2021:
5.
993
)
(2022:
6.
015
)
(2023:
7.
164
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
According to the preliminary data, we can see that the
number of people employed in the economy for the
period of January-December 2017 was 13,520,300,
which is an increase of 1.7% compared to 2016. When
analyzing the number of employed people in the
section of economic activities, a significant increase in
the number of employed people compared to 2016 was
in transportation and storage (2.6%), finance and
insurance activities (2.4%), construction (2.1%), was
observed in trade (1.9%), accommodation and catering
services (1.7%). The main part of the employed
population is agriculture, forestry and fisheries (27.3%),
industry (13.5%), trade (11.0%), construction (9.5%) and
education (8.2%) contributed. Also, in the period of
January-December 2017, the share of employees in the
total number of jobs in small business and private
entrepreneurship was 78.3% (it was 78.2% in January-
December 2016).
The average monthly nominal salary amounted to
1983.4 thousand soums21 in December 2017 and
increased by 13.2% in December 2016. The average
monthly nominal salary for the months of January-
December 2017 was 1453.2 thousand sums, and in 2016
increased by 12.3% compared to the corresponding
period.
The average monthly salary by types of economic
activity. The highest level is in finance and insurance
activities - 2694.1 thousand sums (85.4% more than the
average monthly salary in the republic), in information
and communication - 2498.5 thousand sums (71.9%
more), in industry - 2091.7 thousand sums (up 43.9%), in
transportation and storage - 1945.8 thousand sums (up
33.9%), in construction - 1808.4 thousand sums (24, by
4%) and in trade - 1650.7 thousand sums (13.6%). The
highest level of the average monthly nominal salary in
the region is Tashkent city - 1985.5 thousand sums (the
highest in the republic 1.4 times more than the average
monthly salary) and Navoi region - 1926.5 thousand
sums (1.3 times more).
The lowest average monthly nominal wages were
observed in Namangan (1140.5 thousand sums),
Samarkand (1157.3 thousand sums) and Surkhandarya
(1172.0 thousand sums) regions. Average monthly
nominal wages were 21.5%, 20.4%, and 19.4% less than
the average monthly wages in the republic. It should be
noted that in recent years consistent measures have
been taken to develop the service sector in our
republic. The composition of the services market is
considered to be new promising types of services -
banking and finance, insurance, accommodation and
catering, educational services. The highest level of the
average monthly nominal salary in the regions is
Tashkent city - 1985.5 thousand sums (1.4 times more
than the average monthly salary in the republic) and
Navoi region - 1926.5 thousand sums (1.3 times more)
accounted for the contribution. The lowest average
monthly nominal wages were observed in Namangan
(1140.5 thousand sums), Samarkand (1157.3 thousand
Volume 03 Issue 05-2023
45
American Journal Of Social Sciences And Humanity Research
(ISSN
–
2771-2141)
VOLUME
03
ISSUE
05
Pages:
42-47
SJIF
I
MPACT
FACTOR
(2021:
5.
993
)
(2022:
6.
015
)
(2023:
7.
164
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
sums) and Surkhandarya (1172.0 thousand sums)
regions. Average monthly nominal wages were 21.5%,
20.4%, and 19.4% less than the average monthly wages
in the republic.
The average monthly nominal salary (thousand sums)
by types of economic activity is improving due to the
development
of transport,
personal
services,
information and communication services and
administration. The sharp increase in the provision of
sophisticated household appliances, computers and
personal vehicles to families has made it possible to
rapidly increase the number of services provided to
them.
However, it should be recognized that in reality there
are no serious shortcomings in the development of this
field. In particular, the opportunities of the service
sector as a promising source of increasing employment
and income of the population, as well as filling the local
budget, are underutilized. Services and service sector
is developing very slowly, especially in rural areas. In
terms of market relations, this sector is one of the
fastest growing and profitable sectors. Because this
industry does not require a lot of money, is suitable for
small and private business and can develop very
quickly. The peace, stability and solidarity of citizens in
our country increasingly depends on the success of
fundamental reforms in the political, economic and
spiritual spheres carried out in our republic. During the
years of independence, all conditions were created to
provide employment to the population. Employment
structures have been improved, the types of work
activities have been expanded, and there have been
visible positive changes in the attitude towards work.
0 in the process of implementing economic reforms in
Uzbekistan, regulation of the labor market indicates
that the organizational and legal framework in this
regard is improving.
One of the final tasks of the current economic reform
is the measures to further strengthen the involvement
of the population in the service sector, to expand the
formation of entrepreneurs and owners in the
republic, and thus to ensure the growth of the
population. It should be recognized that the
importance of the service sector in solving the
problems of employment of the population is
incomparable. The development of the service sector
has a significant impact on increasing the level of
employment of the population. In addition, the
creation of new jobs in this field allows not only to
reduce the expenses allocated to the budget for
consumption, but also serves the function of paying
taxes from the republican and local budgets.
As a result of the development of the service sector,
the following positive results are observed in the
country’s economy:
•
the country’s economy will be diversified and
modernized (new industries will be launched);
Volume 03 Issue 05-2023
46
American Journal Of Social Sciences And Humanity Research
(ISSN
–
2771-2141)
VOLUME
03
ISSUE
05
Pages:
42-47
SJIF
I
MPACT
FACTOR
(2021:
5.
993
)
(2022:
6.
015
)
(2023:
7.
164
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
•
the development of the consumer market is
observed and the types of consumer goods increase;
•
state budget surplus is achieved;
•
unemployment problems will be eliminated,
etc. As a clear proof of the above, GDP of the services
sector
we can take as an example the share in the last 10 years
(2008-2017), there was a 2.1-fold increase in GDP. The
analysis of the main factors and sources of economic
growth shows that over the last 10 years, the high
growth rate of the economy has been 1.8 times of
agricultural production (average annual growth for
2008-2017 - 6.1%, due to the increase in industry - 1.7
times (5.4%), construction - 3.4 times (13.4%), services -
2.3 times (8.8%) provided.
From the above analysis, we can see that more than 50
percent of all small businesses and private enterprises
in our republic, and more than a quarter of all
employees in these enterprises belong to the service
sector, more precisely, to the catering and trade
sector. is coming. The development of this sector is
beneficial for the development of the economy. But we
need to achieve such significant changes in the
dynamics of the development of other industries.
However, despite this, there are no specific problems
in the employment issues at the same time. Because
the population of Uzbekistan today is 33 million. more
than one person. More than 500,000 people join the
labor force every year, so it is necessary to solve the
problem of employment on a larger scale. In addition,
the desire of some retired persons to work makes the
process of securing employment even more serious.
Therefore, it is appropriate to define an important
social task related to the development of small
business and private entrepreneurship, especially in
rural areas, opening new jobs and solving the problem
of employment among young people. As labor
resources tend to increase, the priority of the social
task will increase.
Today, it is appropriate to create an opportunity to
actively involve young people in real economic
activities in the field of school and extra-school
institutions, production, entrepreneurship, for the
formation of such qualities as economic preparation,
the ability to manage the economy, thrift. Now we
need to take advantage of the wide opportunities in
the development of small and private enterprises in
the fields of agricultural processing, food production,
industrialized processing, production of knitting and
sewing
products,
production
of
construction
materials, tourism services and other similar fields.
In my opinion, since the issues of increasing
employment are related to the prospects of further
development of small business and private
entrepreneurship specializing in the service sector, it is
appropriate to implement the following work in order
to partially eliminate the existing problems in this field:
Volume 03 Issue 05-2023
47
American Journal Of Social Sciences And Humanity Research
(ISSN
–
2771-2141)
VOLUME
03
ISSUE
05
Pages:
42-47
SJIF
I
MPACT
FACTOR
(2021:
5.
993
)
(2022:
6.
015
)
(2023:
7.
164
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
•
first of all, implementing measures to
fundamentally improve the service infrastructure in
rural areas and improve its quality;
•
It is necessary to introduce measures to
expand not only the social infrastructure, but also the
activities of the market infrastructure in order to
develop economic relations. In recent years, due to the
lack of attention to this, subjects of economic activity
are moving to the center (cities).
As a result of our research, we came to the following
conclusions. Service is primarily a product of labor. The
main purpose of this product is to satisfy the specific
requirements of the consumer. In other words, service
is an economic activity aimed at satisfying human
needs and requirements. Based on this, services mean
the concept of conscious activity related to the service
process, directed by entrepreneurs to satisfy a certain
need of the consumer, business entity, and the state.
Service industries as a component of the country’s
economy are directly involved in the structure of the
gross domestic product. The service sector is primarily
a socio-economic activity and is directly suitable for
small business and private business entities.
REFERENCES
1.
Marketing communications Book by John Egan
2015.
2.
Marketing
communications:
a
European
perspective Book by Patrick de Pelsmacker;
Maggie Geuens; Joeri van den Bergh 2013.
3.
Marketing
communications:
a
European
perspective Book by Patrick de Pelsmacker;
Maggie Geuens; Joeri van den Bergh 2018.
