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Modernization of country’s economy is directly related to labor market transformation

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She noted that the department launched modernization in four areas: the modernization of labor market, modernization of pension system, modernization of the system of social assistance to citizens and modernization of the system of special social services.

Modernization of labor market is directly related to the modernization of the economy. According to the forecast of the Minister, the forthcoming fourth industrial revolution will lead to the fact that many professions will “get rid” of themselves and will be excluded. Individual industries will disappear. This is due to the fact that new industries and new professions are emerging. This process will lead to the release of labor resources, on the one hand, and to an increase in the demand for highly skilled workers, on the other hand.

T. Duissencova noted that, the Ministry faces the urgent task of improving the skills of labor resources in the framework of economic modernization. There is a significant problem on labor market today.

“The number of employees exceeds 6 million people. 20% of them have a secondary education. If we look at our reserves, which we could involve in the economy, 32% out of 445,000 are unemployed people who have only a school education. About 50% out of 2.3 million self-employed people have only secondary education,” Minister said.

In this regard, the Program for Productive Employment and Mass Entrepreneurship was launched on January 1 of this year. The main goal of the Program is the mass training of citizens in demanded professions in labor market or the basics of entrepreneurship. Everyone who receives an education must have such professional skills that would allow him to find a job, open his own business or expand his business. The program has three directions. Within the framework of the first one – “Education of citizens” – persons from 15 to 24 years old will be able to study free of charge for the first profession within the framework of technical and vocational education. This will primarily involve 21,000 young people who can not pass UNT for several years. The state will allocate scholarships for this category of people and provide free travel and one-time hot meals.

Short-term courses will be organized for people over 24 years of age. They can get second profession for free here.

Mobile training courses will be organized for residents of remote settlements. It will be buses with specially equipped classes. The project in the pilot mode is planned to be launched on May 1 of this year in 5 regions: Akmola, Aktyubinsk, East Kazakhstan, Pavlodar and Kostanay. Most technical specialties will be covered.

Another innovation – if earlier training was conducted at the request of employers, today the professions with the involvement of directly practicing persons are in demand: businessmen, masters from production. The proportion of classes will be as follows: 30% – theoretical training, 70% – practical classes.

T. Duissencova noted that there have also been significant changes in the second direction of the Program – microcrediting . If earlier there were three directions in microcrediting, now all these three directions are united. In addition, if previously only rural people were financed and lent to the Road Map, now the city residents can receive a loan under the Program. The amount of loans increased from 3 million tenge to 18 million tenge. The term remained the same – 5 years. Consumer credits should reach 6% per annum up to the end. Another innovation is the receipt of guarantees. If a person opens his business for the first time, agri-guarantee can guarantee up to 85% of the loan amount. And if a person is already engaged in business, then 50% of the cost of his loan can guarantee an agro-guarantee.

In matters of social support for vulnerable segments of the population, youth practices, social jobs, public works will remain for vulnerable segments of the population.

“We will continue voluntary resettlement or increasing the mobility of our citizens from the surplus regions to regions where there is a demand for labor,” the head of the department said.

This direction of the Program began will be implemented from March 1, 2017. The launch was carried out on social workplaces and youth practice. To date, 18.5 thousand people are involved in the third direction of the Program. It is planned to cover about 200 thousand people during the year.

Source: The Prime Minister of Kazakhstan

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