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

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by March 10, 2017 Legal

The Ministry of Labor and Social Protection of Population is tasked with an important duty within the framework of economy modernization � upgrading the skills of labor resources. Minister Tamara Duissenova reported on the work being done by the Ministry to implement instructions given by the Head of State in his Presidential Address Third Modernization of Kazakhstan: Global competitiveness at the Government press conference.

She noted that the department began implementing modernization in 4 areas: labor market modernization, pension system modernization, social assistance system modernization, and modernization of the system of providing special social services.

Labor market modernization is directly related to economy modernization. According to the Minister’s forecast, the following fourth industrial revolution will lead to many professions becoming irrelevant and disappearing. Several industries will disappear. This is due to the emergence of new professions and industries. This process will lead to the release of labor resources on one hand and to the increase in the demand for highly skilled workers on the other.

T. Duissenova noted that within the framework of economy modernization, the Ministry is tasked with improving the skills of labor resources, since there is a significant problem on the 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, then out of 445 thousand people 32% are unemployed, only having school education. Of 2.3 million self-employed people, about 50% have only secondary education, � the Minister said.

Connecting to this, the Program for Productive Employment and Mass Entrepreneurship began operating since January 1 this year. The main goal of the Program is mass education of the citizens in demanded professions in the labor market or basics of entrepreneurship. Everyone who receives education must have professional skills which will allow them find employment on their own, start their own business, or expand existing business. The program has three directions. Within the framework of the first one � Education of Citizens � persons aged from 15 to 24 will be able study free of charge for their first profession within the framework of Technical and Professional Education (TPE). This will primarily include 21 thousand young people who for several years cannot pass the UNT. The state will provide stipends, free transit and once-a-day hot meal to this category of persons.

For people over 24 years of age, short-term courses will be organized. Here they can get a free second profession.

For residents of remote settlements, mobile training courses will be organized. These will be buses with specially equipped classes. This project is planned to be launched in pilot mode in May 1 in 5 regions: Akmola, Aktobe, East Kazakhstan, Pavlodar, and Kostanay regions. Mostly technical specialties will be covered in general.

Another innovation � if before the training was conducted per request of employers, today education for demanded professions will be provided directly to practicing persons: businessmen, productions masters. The proportion of classes will be as follows: 30% – theoretical training, 70% – practical classes.

T. Duissenova noted that the second direction of the Program � micro-crediting � also went through major changes. If before micro-crediting had three directions, now all of them are unified, Aside from that, if before within the framework of the Road Map only rural residents received financing and lending, now within the framework of the Program city residents will also be able to receive loans. The amount of loans was increased from 3 million to 18 million. The term remained the same – 5 years. The end consumer must receive loans under 6% per annum. Another innovation is the provision of guarantees. If a person starts a business for the first time, then up to 85% of the loan could be guaranteed by agro-guarantee. If a person already manages a business, then 50% of the loan could be guaranteed by 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 volunteer resettlement or mobility increase of our citizens from labor surplus regions to regions where there is demand for labor force, � Minister said.

This direction of the Program began implementation on 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. During the year it is planned to cover about 200 thousand people.

Source: Government of the Republic of Kazakhstan

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