Deregulated Labor Market of Kazakhstan needs 220 billion tenges

Humanity faced two world crisis from the beginning of new millennium. However, the percentage of unemployed in Kazakhstan has decreased twice from 2001 (9,2%) to 2016 (4,9%). As rules of economics conditions say, there should be partly dismissals in industrial factories and financial institutions. It’s observed that lots of people, who worked in banking sphere, were fired in the beginning of August 2015. Moreover, If to consider that the oil price, which plummeted three times and international political resonance between oil exporting countries hadn’t affected to Kazakhstan, it’s stupid to believe in such statistical oxymoron. What is the real number?

In the beginning of 2016, methods of finding unemployed citizens were changed.’’ A person, who wants to prove that he or she is unemployed, has to wait, at least, 10 days”, ex-vice minister of Investments and Development of Kazakhstan Rakhim Oshakbayev said. According to the economist, an unemployed citizen should come to regional employment center and update his status every three days till finding a job. After all these procedures, he will be included in the overall unemployment rate of the country. “Our society haven’t adapted to ask for a job from employment center. Even they come to apply for a job, they will not come every three days to update the data”, Mr. Oshakbayev told the reporter.

According to applied research center “Talap”, there were 502 thousand people whose monthly earnings were under 30 thousand tenge by the end of 2015 and it was decreased till 289 thousand people by the first quarter of 2016. What kind of social projects should have the government to raise earnings of more than 200 thousand people in couple months? For instance, as official resources say that currently, 441 900 people in Kazakhstan are unemployed.

30% of higher educated professionals work in the other occupations

According to Zhaksybek Kulekeev, ex-minister of Economy and Trade of Kazakhstan, economic targeting of our country is not opening new places to work for higher educated citizens. “There were no analytical researches about future jobs in Kazakhstan. That’s why graduated young generation couldn’t get a job by their professional directivity. Out of that, 60% of graduated citizens say that they supposed to study the another occupation. Statistics of unemployment is also included in there”, Mr. Kulekeyev says.

Korlan Syzdykova, a senior teacher in Nazarbayev University (NU), implies that we have two ministries which are responsible for students’ future professional directions, but none of them is trying to systemize it. “87% of high school students depend on teachers and parents when they choose their future profession. And around 81% of them have no idea what kind of professions are demanding in labor market”, Mrs. Syzdykova said.

According to NU teacher, agencies, where generated the list of professions whom we need in our market, and the contingent of professions, which universities offer, are not close to each other. Unfortunately, we do not have information about which field needs freshly graduates to work.

USA or Japan?

The most liberal labor market is used in the USA, while Japanese government has closed system. Every American, who works in the territory of the US, is protected by Labour Department and trade unions.Japam finds a workplace with all kind of social supports.

Procrastination of solving the problem

All Ministries have analytical committees, which prepare data to particular ministries only. What we need is the nationwide research center with one monitoring position.

According to Rakhim Oshakbayev, if the government declines to solve this problem, then we have to pay billions of tenge to deregulate it again.

220 billion tenge is the decision making capital

Mr. Oshakbayev says he tried to give the detailed information to Kazakhstan Industrial Development Institute about the group of citizens who are in the poorest 4 categories of a labour market. He pointed that these categories are preventing the economy to grow. These are officially unemployed people (3%), and who have monthly earnings less than 30 thousand tenges (3%), people who stay at home (2%) and the group of people are unemployed (3%) without any reasons. In total, 11% of citizens who willingly be able to work needs professional support.

According to “Talap” applied research center, the Government needs 220 billion tenges in order to balance the regional salaries of different occupations. “Let me have a chance to about salaries when our deputy’s incomes were raised. From my experience of serving in government, I would say that it’s quite possible to find out this sum of money in the state budget”, Mr. Oshakbayev said.