Introduction. Labor market holds a specific place in structure of national economy, provides it with the human capital, and organizes reproductivity. Need of development of Russian labor market assumes research and use of functioning experience of the European labor market possessing a vast amount of systematized regulation tools. Theoretical analysis. The basis of the theoretical analysis is the review of the market development in Russian economy and economy of the European Union allow to make use of the European experience in our country. European Practice induces the seat of power to improve system of vocational training, requalification, to simplify system of the conclusion of employment contracts, etc. However the modern Russian macroeconomic policy interferes with use of the majority of the European instruments of regulation of labor market. Results of the study. Similar trends in the development of the labor market in the economies of the European Union and the Russian Federation make it possible to use the European experience in our country. The practice of European countries encourages the ruling power of Russia to improve the system of vocational education, requalification, simplify the system of concluding labor contracts, etc. However, the rigid macroeconomic policy pursued by state bodies in our economy, prevents the use of most instruments of regulation of the European labor market. Conclusions. The current situation in the Russian labor market limits economic growth. In this regard, the labor law and state regulation of the Russian labor market need improvement. It is also necessary to solve problems low territorial mobility of the gainfully occupied population of the Russian Federation, to promote increase in labour productivity and the real wages.