ADMINISTRATIVE AND LEGAL MECHANISMS FOR REGULATING WORKFORCE CROWDFUNDING IN THE EMPLOYMENT SECTOR: CHALLENGES AND PROSPECTS

Abstract

Introduction. The article explores the administrative and legal mechanisms for regulating workforce crowdfunding in the employment sector. Emphasis is placed on the innovative approach that involves attracting financial resources from civil society, businesses, international organizations, and charitable foundations. Special attention is given to utilizing this tool for creating temporary jobs, funding retraining programs, supporting small and medium-sized enterprises, and ensuring social security for workers during periods of crisis.

Summary of the main results of the study. The author highlights the importance of integrating crowdfunding mechanisms into the activities of the State Employment Service of Ukraine, taking into account successful international practices. The article presents examples of such initiatives in various countries worldwide. Several directions for implementing crowdfunding mechanisms are proposed: supporting key specialists in regions with workforce shortages, financing retraining programs, engaging businesses in co-financing the creation of new jobs, and organizing internships. Special emphasis is placed on the potential creation of a specialized online platform for “crowd-recruiting,” which could serve as a coordination hub for uniting the efforts of the state, businesses, and civil society in funding employment-related initiatives. The article underscores the need for legislative regulation of crowdfunding mechanisms in Ukraine’s employment sector. The author suggests amending the Law "On Employment of the Population" and the Budget Code of Ukraine to define the procedure for accepting charitable contributions to support employment initiatives. Additionally, the creation of legal frameworks to ensure transparency and targeted use of collected funds is recommended.

Conclusions. The author emphasizes that implementing the “workforce crowdfunding” model requires coordinated actions from the central government, local authorities, businesses, and civil society. In this context, the active participation of the State Employment Service as a project coordinator and financial resource administrator will be crucial. The article highlights the significant potential of workforce crowdfunding as a tool for supporting employment in times of economic instability. The proposed mechanisms could become an effective means of preserving human capital, promoting labor market development, and ensuring sustainable socio-economic growth in Ukraine during crisis periods.