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Report of the Minister of labor and social protection of population of RK B. Saparbayev at the plenary session "Future of the labor sphere" XII AEF

Dear participants of the plenary session!

We fully support the recommendations of the ILO Global Commission on the future of the labor sphere. Today, Kazakhstan is taking systematic measures to expand opportunities to improve the quality of labor.

The main indicators of the labor market show stable positive dynamics.

The number of employed people has increased by 7% since 2010 and amounted to 8.7 million people by the end of 2018.

At the same time, the number of employees increased by 1 203 thousand people and amounted to 6.6 million people, and the number of self-employed population decreased by 622 thousand people to 2.1 million.

In general, over the past 10 years, the share of self-employed population decreased from 35% to 24%, which is comparable with countries such as South Korea (25%) and Poland (21%).

If we talk about the future prospects, we highlight the global challenges that can lead to changes in the labor market.

The first challenge is related to the development of digitalization and technologies such as Industry 4.0, artificial intelligence and robotic technology.

Rapid technological development will change the qualifications and skills requirements of workforce, which should include both skills and a range of additional skills.

The second challenge is based on demographic changes in the structure of the labor resource. Worldwide, there has been an increase in the number and activity of the population over 60 years of age. A growing young population must have the right skills. Inclusiveness of the workforce increases in labor markets. The economic activity of women, the elderly and persons with disabilities is growing.

Gig economy is developing, which is manifested in an increase in the number of so-called "freelancers".

Kazakhstan should be ready for the upcoming changes. However, it should be noted that the impact of changes on labor markets in developing countries, including Kazakhstan, will be slower than in developed countries.

The Ministry of labor has developed a vision of the future of labor market in Kazakhstan, taking into account global challenges and emerging trends in the country.

The population is projected to grow up to 19.8 million by 2025 or 1.6 million (9% of 2017).

The workforce will increase by 6.7% to 9.8 million people (from 9.0 million in 2017).

Taking into account the technological modernization of the economy, the need for personnel by 2025 will be more than 570 thousand people.

It is expected to increase the number of medium and high-skilled jobs by 766 thousand.

The demand for low-skilled labor will be reduced. The number of such jobs will be reduced by 530 thousand due to the modernization of traditional sectors of the economy.

Against the background of labor productivity growth, the labor force will flow from agriculture (343 thousand people) to such more productive areas as education, construction, transport, trade and other services.

Taking into account these challenges, work in the field of future work is carried out in several directions.

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First. On behalf of the first President, the Government, together with local executive bodies, is implementing the Program for the development of productive employment and mass entrepreneurship "Enbek" for 2017-2021.

Since the beginning of the State program 314 billion KZT was allocated (2017-2018 – 190 billion in 2019. – 124 billion) over two years attracted more than 1.2 million people, 695 thousand people were employed for permanent jobs.

This year it is planned to cover 570 thousand citizens by measures, 168 thousand people have already participated.

In particular, free training in the framework of technical and professional education is planned to cover 53 thousand young people, short-term courses will cover more than 46 thousand citizens.

More than 14 thousand participants will receive microcredits and 35 thousand people will be sent for training under “Bastau Business” project. In addition, about 14 thousand participants, including those from low-income and large families, will use gratuitous state grants to implement their own business.

In 2019, about 115 thousand citizens (youth practice, public works, social jobs) will be employed for subsidized jobs. Since 2017, 1.1 million people have been employed, 70% of them for permanent jobs.

To improve the effectiveness of the program "Enbek", its improvement is provided.

Measures of the state program will be focused on the final employment, the conditions and coverage of microcredit of the population will be expanded, the criteria for the participation of target categories for each measure of the Program will be specified.

For young people and low-income families with many children, low-income working-age persons with disabilities, the provision of support measures in the form of grants and preferential microcredits is envisaged.

In order to increase access to employment, self-realization, for mothers with many children and mothers raising children with disabilities, social jobs at home will be created. That will allow to combine child care and work, to get an additional source of income.

It should be noted that the empowerment of persons with disabilities to work in Kazakhstan remains a priority.

Today, about 112 thousand people with disabilities (27% of 418 thousand people with disabilities of working age) carry out their work.

This year, a National plan to ensure the rights and improve the quality of life of persons with disabilities until 2025 will be adopted, providing a set of measures to support people with disabilities, including decent work.

Second. Two specific projects on large-scale modernization of the labor market infrastructure have been implemented.

First project - Electronic labor exchange, which was introduced since January 1, 2018.

Exchange is the first digital marketplace in the country and the largest job bank and resume in the country.

All 203 state employment centers, 51 private agencies, 4 media and 7 online platforms are connected to it.

Since the start of working 985 thousand vacancies and 732 thousand resume are posted on the Exchange. More than 630 thousand citizens were employed by the Labor exchange.

Further development of the Exchange provides for the conclusion on its basis of electronic employment contracts. Also, the Exchange will become a platform for professional training, where employers will be able to declare the demanded personnel, and educational organizations - about training courses.

The second project is the modernization of employment services. Under the new Employment law, all employment centers have moved to a new format of work.

Now citizens are provided with a targeted approach based on the mandatory diagnosis of skills and individual employment plans. Employment centers work with employers as professional HR recruitment services. Self-service zones have been created for employers and job seekers.

Third. Kazakhstan is implementing the main recommendations of the OECD in the field of improving the National qualifications system, which ensures that the qualifications of the workforce meet the needs of the labor market. 

For today, the necessary regulatory base has been created, National qualifications framework has been adopted on the basis of the European qualifications framework, defining

8 levels of qualifications.

This year we have planned to develop

480 professional standards, in general, by 2020 we will approve about 550 professional standards in all key sectors of the economy of Kazakhstan.

Fourth. Ensuring decent working conditions while maintaining the flexibility of labor legislation is a priority direction of activity for the Government.

In the ranking of the Global competitiveness index of the World economic forum in 2018, the component characterizing the state of labor relations of Kazakhstan rose to the 30th place among 140 countries.

Kazakhstan's model of regulation of labor relations is developing on the basis of ensuring the balance of interests of employees and employers, social dialogue.

The income of employees is growing. The average monthly nominal wage increased by 7.5% compared to last year (from 163,725 KZT in 2017 to 176,050 KZT in 2018).

In order to implement the address of the First President of the Republic of Kazakhstan to the people of Kazakhstan since January 1, 2019, the minimum wage increased 1.5 times (from 28.2 thousand KZT to 42.5 thousand KZT).

In 2018, employers allocated one hundred sixteen billion three hundred million (116.3 billion) KZT for various benefits and compensation, which is eight percent (8 %) more than in 2017.

At the same time, there is a change in the system of labor relations, there are new forms of employment.

Taking into account the ongoing changes in the labor market, the Ministry has prepared amendments to the Labor Code.

The changes are aimed at:

• - regulation of private employment agencies on the use of labor of employees;

• - expansion of cases of secondment of employees within affiliated companies;

• - regulation of the use of information technology in the conclusion of employment contracts and confirmation of labor activity;

• - implementation of a modern occupational safety management system in companies based on prevention, detection, assessment and management of occupational risks.

The main purpose of the work - to expand the principles of decent work, prevent violations of workers' rights, reduce jobs with harmful working conditions.

Fifth. Providing social protection from birth to old age.

All social obligations are fulfilled by the state in full. At the same time, the volume of expenses on social security and social assistance is growing annually and only at the expense of the national budget is about 5% of GDP.

For additional protection of workers in the event of social risks in the country, compulsory social insurance is available.

Today, the State social insurance fund covers about 70% of the economically active population (6 million people), more than 770 thousand people receive payments annually at the onset of social risk.

The system of compulsory social insurance is developing, and similarly to the pension system will be directly linked to the length of service.

In conclusion, I would like to wish the participants of the session productive work, success in the professional field and in life.

Categories:
Changed on 16 May, 2019 - 18:40
Achievements over the years of independence of RK
Targeted social assistance
Combating the worst forms of child labor
Information campaign «Safe work»
The Republican contest «Enbekzholy»
Best social projects implemented in Kazakhstan
Skills and jobs
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