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Experts: Optimum set of measures aimed at population employment promotion are applied in Kazakhstan

Experts of JSC Information and Analytical Center for Employment Problems of MHSD RK (hereinafter– JSC IAC EP) came to such conclusion upon analyzing the situation in labor markets of member countries of Organization for Economic Cooperation and Development (hereinafter - OECD) and Kazakhstan.

In many countries the state programs providing for active and passive measures aimed at employment promotion are developed to implement the policy of population employment promotion.                                          

To active measures of employment promotion the following belong: vocational training in special educational institution, training at workplace, special internship training; partial or full subsidizing of work positions within short time, as a rule; 100% subsidizing of workers with the reduced working capacity; creation of new work positions; development and financing of the programs promoting business development.

To passive measures of employment promotion the following belong: insurance payments on unemployment; social allowances on unemployment; unpaid salaries compensations for the staff of bankrupt companies; programs of assistance to full or partial early retirement of elderly people promoting their replacement by the unemployed persons from other target group (payments for early retirement stop after achievement of a retirement age).

According to JSC IAC EP data, the OECD countries spend in average 1,5% of GDP for employment promotion programs, the European countries – 1,8%, and such countries as Ireland, Denmark and Spain allocate more than 3% of GDP for employment of their citizens. The greatest funds for population employment promotion are allocated by France and Germany – more than euro 47 milliard, the USA – euro 46 milliard, Spain – more than euro 38 milliard and Italy – more than euro 32 milliard.

To analyze, what employment promotion measures (active or passive) are more preferable, experts of JSC IAC EP have studied the expenses in some OECD countries in 2013 (based on latest data available in free access) in a money equivalent per each participant of the appropriate measures.

"To start with it should be noted that in average for these countries the share of the state budget spending for employment promotion programs from GDP is greater for passive measures – 0,9%, than for active ones – 0,5%. The countries with unemployment level lower than that in Kazakhstan (5%) are of greatest interest for us. These countries are Norway (3,4%) and Switzerland (4,4%). In Norway 55 thousand people were covered by active employment promotion measures, 53 thousand people were covered by passive ones, but expenses per a participant of active measures are higher, than those per a participant of passive measures, euro 35 thousand and euro 24 thousand, respectively. A little bit different situation is in Switzerland where 120 thousand people are covered by passive measures and 55 thousand people – by active ones. At that the expenses per one person by first direction constituted euro 26 thousand, and euro 51 thousand - by second direction.

In Spain where the unemployment rate constitutes 26,1%, the share allocated from GDP (3,6%) to employment promotion is the greatest among other OECD countries. The most part of these funds is spent for passive measures, namely nearly 3%. At that active measures covered 2,7 million people, passive – 2,9 million people. In 2013 in Spain for support of one passive measures participant there were allocated euro 10 thousand that is 4,5 times higher than expenses for the participant of active measures", - experts of JSC IAC EP note.

According to opinion of analysts, these indicators may serve as the basis for assessing the efficiency of the measures for population employment provision undertaken by the OECD states, namely the proof of that active measures are more productive in fight against unemployment.

In Kazakhstan the Employment Road Map 2020 program (hereinafter - "ERM 2020") is focused on active measures of employment promotion. The program's priority is to decrease the unemployment level and enhance the overall welfare of Kazakhstan citizens. It should be emphasized that the level of unemployed population in Kazakhstan is not much higher, than in Norway and Switzerland. At that, in 2014 the state allocated euro 2 thousand  per each participant of the program that is 15 times less than the funds provided within state programs of employment promotion in these European countries in 2013.

"Unemployment rate in Kazakhstan gradually decreases from 5,8% in 2010 down to 5% in the second quarter of 2015, at that within this period only in 2012 it is possible to observe increase in number of the unemployed (473 thousand unemployed in 2011, 475 thousand – 2012). According to data for the second quarter of 2015 the unemployed number in Kazakhstan constituted 449 thousand people", - experts of JSC IAC EP note.

According to opinion of the analysts, successful fight against unemployment in Kazakhstan, is provided due to implementation of the ERM 2020 program in which the purposes are distinctly identified: unemployment rate - not more than 5%; level of women's unemployment - not more than 5,5%; level of youth unemployment - not more than 4,6%, and also the implementation directions are precisely selected as being: employment through development of infrastructure and housing and communal services; stimulation of entrepreneur initiative and integrated development of support villages; training and assistance in employment and resettlement subject to real demand of the employers.

"Thus, summing up the result, it should be noted that in crisis times it is required to allocate more money to active measures of employment promotion as direct employment, vocational training of specialists, salaries subsidizing, business development, etc. are the most effective tools in issues concerning population employment", - experts of JSC IAC EP emphasize.

Let us remind, in 2014 within the framework of ERM 2020 program implementation over 167 thousand people are employed. Since the beginning of this year more than 118 thousand people, from among of them 97,4 thousand citizens were employed to permanent job positions, 20,7 thousand people were employed to temporary work positions.

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