Importance The article discusses the problems and prospects for economic development of the Northern regions under unemployment reduction. Objectives The paper aims to determine the impact of labor value on the gross regional product of certain regions of the Russian North and calculate the growth potential of the regions through productive activities of temporarily unoccupied people. Methods Through the use of labor (resource) methods and regression modelling, I received multiplicative models of gross output of individual constituent entities of the Russian Federation for several years. Results I calculated the point and interval potential gross regional product of the Northern regions. I show that it is closely linked to the amount of drawn in labor. This makes it possible to calculate the potential of regional economic growth under further labor involvement. I identified an opportunity to increase gross production due to additional involvement of the unemployed. Conclusions and Relevance Regional policy in the field of labor and employment should be aimed at the maximum involvement of labor force in the production process, creation of new jobs, training or retraining of staff. The proposed measures will create the prerequisites for growth in the region and have a positive impact on filling regional budgets as well as will contribute to the improvement of the social situation. The proposed methodology can be used by regional authorities to develop economic development strategies.
Keywords: North regions, GRP, potential, labor, unemployment, regression modeling
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