The article examines regional differences in the implementation of social contracts in Russia and the impact of labor market specifics on the choice of poverty reduction strategies for socially vulnerable citizens. Nowadays, there is a lack of knowledge of the factors determining the preferences of recipients of support between employment and entrepreneurship in different regions. The authors identify a key relationship: in regions with favorable labor market conditions, employment contracts prevail, while in less developed regions, business activity is more often chosen. It has been established that the choice of strategy is directly determined by the number of available vacancies and the salary level. The most demanded areas of employment, explained by their accessibility and traditional development, have been identified. The article provides the empirical substantiation of the need to adapt the parameters of social contracts to local economic conditions and labor markets. Specific scientific results are as follows: evidence of the influence of regional labor market characteristics on the choice of contract type; identification of key factors of this choice (vacancies and salary); and justification of priority industries for employment. The results of the study are of interest to economists, sociologists, social policy specialists and regional authorities involved in the development and implementation of targeted support programs for the population.