The article deals with theoretical and methodological principles of state policy regulating employment in depressed mountain areas in the Carpathian region of Ukraine. Purpose of the article is the definition of theoretical and methodological principles of implementation of state policy of employment in depressed areas. In justification of major theoretical and practical results of this paper the method of theoretical synthesis, systematic approach, methods comparative and economic analysis have been used. The essence and criteria of the typology of depressed labor markets according to key indicators - employment rate of the mountainous population, scale of unemployment and income- have been found. Two segments of depressed local labor markets have been highlighted - traditional and new, the differences between them and the genesis of their formation have been defined. It has been proved that the way out of the economic crisis of economy system in mountain areas of the Carpathians necessitates their support from the government because their resources to overcome the depression in this case are significantly limited. This requires from the state the formation of active labor market in order to ensure effective employment of the mountain population. Methodical approaches to formation of active labor market have been suggested and the basic principles of the concept of public policy regulation have been proved. The connection of social and economic development of mountain areas and employment strategy, orientation of state social policy on universal values, the key of which is the right to work, education, freedom of choice of sphere and place of the application of experiences have been defined. The essence of effective employment and mechanisms to ensure it have been disclosed. The necessity of introducing substantial adjustments in public policy regulating the employment of the mountain population has been substantiated. It means to move away from support and combat of unemployment and to stimulate the development of applications by forming a multi-labor, diversified economy. Strategic directions of state policy regulating employment in depressed areas have been suggested, including the development of integrated programs, targeted employment support of business activity, providing institutional regulation of labor relations and the labor market, creating an attractive investment environment etc. Prospects for further research are aimed at creating an effective mechanism for regulating the development of depressed labor markets.