Importance The article studies the problems of employment and the creation of a flexible labor market, to quickly respond to economic challenges. The paper considers the actual statistical material on labor market and employment in the Republic of Kalmykia. Objectives The study aims to find ways to increase employment in the Republic of Kalmykia. Methods For the study, I used economic, comparative and statistical analyses. Results In the article, I am proposing unconventional innovative market mechanisms of employment regulation, including through the development of alternative economic activities, taking into account the territorial-economic, natural-resource and historical and cultural features of the region. Application The study's findings got implemented in the educational process for the discipline of Regional Economy. Conclusions and Relevance I conclude that given the high level of unemployment in the depressed regions like the Republic of Kalmykia, ethnoeconomics is the most viable and effective way of improving employment. Also, the study's results may help create new employment, mainly, in rural areas for the poor, in the face of the formation of a new, ethnoeconomic cluster, which will contribute to the creation of segments in the market-ethnic, industrial and ethnic and traditional ethnic activities.
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