Labor market analytical review

Summary – the article analyzes the indicators of the labor market in Kazakhstan. Measures identified for the medium term (until 2020) and long-term measures (up to 2050).

The latest developments in the Kazakh economy related to the devaluation found their immediate reflection in the labor market trends of the Republic of Kazakhstan. Despite the first negative reactions, both employers and specialists, who can be stabilized depending on the situation.

We analyze the main labor market indicators in the Republic of Kazakhstan (Table 1)

Table 1 – The main indicators of the labor market in the Republic of Kazakhstan

According to the data of Table 1, we can note that in Kazakhstan there is a positive dynamics of labor market indicators for the analyzed period 2012-2016. One of the indicators of the labor market is the labor force; it is a part of the population aged, established to measure the economic activity of the population, which ensures the supply of labor for the production of goods and services. The labor force consists of the number of employees for all types of economic activity and the unemployed. So, in 2016, the number of the workforce (NWF) was 8 998,800 people (70% of the total population), of which: employed – 8553,3 thousand people, which is 95% of the total NWF and unemployed – 445,5 thousand people, this is 5% of the total NWF. Comparing these figures with the previous 2015, we can note the following: the number of labor increased by 111,3 thousand people or by 1,3%. This increase was due to the growth in the number of employees by 120 people (1,4%) and the reduction in the number of unemployed by 8,7 thousand people or by 2%.

The category "employed" includes all persons of the same age as they are in the class, which are either hired employees or self-employed. Analyzing this category of "employed" according to Table 1; we should note that for the period 2012-2016, the number of employees from year to year has a growth trend, and the number of self-employed on the contrary, decreases. So, if the number of employees from 5,813,700 people (68,3% of the employed population) in 2012 increased by 6442,800 people (74,2% of the employed population) in 2016 year, that is, by 529,1 thousand people or by 9,1%. The number of self-employed workers in 2012 was 2693,5 thousand people (31,7% - the share in the number of employees), and in 2016 – 2210,5 thousand people (25,8% - the share of employment), then there was a decrease of 18% or decreased by 483 thousand people. We can attribute the increase in hired workers to the fact that they work under a contract of employment that envisages payment (compensation) in the form of salary, bonus, allowances, etc., or in natural form

Self-employed workers remuneration relates to the income they receive from the production and sale of goods and services (where their own consumption is treated as part of income).

I would like to note that in accordance with the International Classification on the status of employment (status in employment), the following groups of self-employed workers are defined. They are; employers are persons who manage their own enterprise or are engaged in independent business activity in any kind of economic activity and who have one or several employees; independent workers – persons who, working alone or with one or several partners, are engaged in activities on the basis of self-employment and do not hire employees on an ongoing basis; assisting (unpaid) employees of family enterprises – persons, usually working without compensation at the enterprise (in the household), managed by a related person; members of the cooperative are persons who are members of a labor co-operative engaged in entrepreneurial activity [2].

Let us consider in more detail the employed population by types of economic activities for 2016, the data are reflected in Table 2.

Table 2 – Distribution of employed by economic activity in 2016году

The total number of employees in 2016 was 8553, 3 thousand people for all types of economic activity, the largest share is occupied by "Agriculture, forestry and fishing economy "– 16,2% (1,4 million people).

Including the number of employees – 5, 2% (0,4 million people) and self-employed – 11% (0,9 million people). Employed in the field of "Wholesale and retail trade; repair of cars and motorcycles "– 15,2% (1,3 million people), including hired employees – 8% (0,7 million people) and 7,2% (0,6 million people); Also in the structure of employed a large share of the sphere of "Education" – 12,1% (1,0 million people), this is due to employees. 7.9% of employed (0.7 million people) are engaged in the sphere of "Construction", including employees – 5,8% (0,5 million people) and self-employed – 2,2% (0,2 million people). 7,2% (0.6 million people) are employed in the sphere of transport and warehousing, of which 4,6% are employees (0,4 million people) and 2,6% are self-employed (0,2 million people) human). Next, consider the employed population by employment status in 2016 (Table 3).

Table 3 – Employed population by employment status in 2016

According to Table 3, it should be noted that in 2016 the bulk of employees were employed in organizations (enterprises) – 66,4% (5,7 million people); Individual individuals – 6,4% (0,5 million people); in the peasant (farm) economy – 1,4% (0,1 million people). The share of employed in urban areas is 57,2%, which is 4,8 million, and the share of employed in rural areas is 42,8%, this is 3,7 million people.

The share of self-employed persons amounted to 25,8% (2,2 million people), of which: the share of employers – 1,4% (0,1 million people), the share of self-employed workers – 24,3% (2,1 million. human).

If we look at gender development, then among the employed population, the number of men in 2016 was 4440,400 people (52%), and women – 4113,0 thousand people (48%), that is 4% less. Including hired workers: men – 3228 thousand people, and women – 3114,8 thousand people; selfemployed: 1212,3 thousand men and 998,2 thousand women [2].

Let us analyze the employed population by the level of education and sex (Table 4).

Table 4 – The employed population by level of education and gender in 2016

According to Table 4, we should note that among the employed population in the category "Higher and incomplete higher education, postgraduate education" had 37,6% of the total number of employees, which is 3.2 million people, among them: men – 17,2% % (1,4 million people), and women – 18,3% (1,6 million people); on the category "Secondary (professional) special education" – 34,9% (3 million people), of which: men – 18,3% (1,6 million) and 16.6% women (1, 4 million people); by category "Primary, main, secondary general, primary professional" – 27,5% (2,4 million people), including: 16,5% men (1,4 million people) and 11 % of women (0,9 million people). Thus, to note that in 2016 women with higher education are more than men by 18,5% or 2,8 million people, and with an average (prof) Special, the education of men is more by 9% than women or by 0,2 million people; 3 categories are also dominated by more men. Further, we will mention the unemployed population by sex and age in 2016 (the data in Table 5).

Table 5 – Unemployed population by sex and age in 2016

The unemployed are persons of an age set for measuring the workforce, which during the period under review met three basic criteria simultaneously: they were unemployed (did not have profitable employment), were actively searching for it, were ready to start work for a certain period of time [2 ].

According to Table 5 above, we should note that the number of unemployed persons (persons aged 15 and over who did not have a profitable occupation, actively searched for it and were ready to start it) in 2016 amounted to 445,5 thousand people and decreased compared to with the same period in 2015 by 8,7 thousand people or by 2%.

The unemployment rate was 5,0% (445,5 / 8553,3 – the proportion of the number of unemployed in the labor force, measured in percent). The share of unemployed men in 2016 was 45,8% (203,7 thousand people), women – 54,2% (241,6 thousand people). In 2016, in the total number of unemployed, the share of young people aged 15-28 was 20,8% (44,1 + 48,7) / 445,5) or 92,8 thousand people. The level of youth unemployment at the age of 15-28 years was 1%. Also, the share of the unemployed increased by the age category "29-44" years and amounted to 51% ((120,1 + 106,2) / 445,5) or 226,3 thousand people, of which 97,8 thousand men ( 22%) and women 128,6 thousand people (29%). The unemployment rate by category of age "29-44" years was 2,5%, including 1% for men and 1,5% for women. We should note that women predominate in the total number of unemployed.

In Table 1, we reviewed labor market indicators in the Republic of Kazakhstan. It provides data on the number of people registered as unemployed in the employment services, so in 2016 37,5 thousand people applied, and in 2015 – 34,6 thousand people, that is, increased by 8,3% or increased by 2,9 thousand people. The share of registered unemployed in the labor force was 0,4% (37,5 / 8553,3 – determined by dividing the number of unemployed registered in the employment agencies by the number of labor,%).

We should also pay attention to persons who are not part of the workforce. They are persons of the age specified for measuring the workforce are not employed or unemployed during the period under consideration, that is, because of retirement age or inactivity, so in 2016 they amounted to 3855,0 thousand people, and in 2015 – 3867,4 thousand people, the number decreased by 12,4 thousand people. The proportion of people who are not part of the labor force in the population in 2016 was 30% (3855 / 12853,8).

Thus, in the course of social and economic reforms in the country, a dynamically developing labor market has been created:

• The level of economic activity of the population increased by 1,3% in 2016 or by 111,3 thousand people; the number of employed increased by 120 people or (1,4%), with employment prevailing in private enterprises;
• The unemployment rate fell to 5,0% in 2016. The number of unemployed population was 445,5 thousand people, decreased by 29,3 thousand people or by 6%, in relation to 2012.

Despite the positive indicators characterizing the labor market, today there is a large group of people in the country with extremely low economic activity:

1. 445,5 thousand unemployed, the largest group of which are people under the age of 44;
2. About 1,1 million unproductively employed, these are unregistered self-employed workers, persons engaged in personal subsidiary farming production only for their own consumption and unpaid family workers;
3. 646,4 thousand low-income citizens, some of whom are unemployed and self-employed. In general, it is about 2.0 million people, about 80.0% of whom live in the countryside.

2.8 million Employees do not participate in the system of pension savings and social insurance.

To ensure 5% of the level of unemployment across the country until 2020, it is necessary to provide employment for more than 500 thousand people.

The situation aggravates by the instability of global development, which has already caused a slowdown in the rate of economic growth in Kazakhstan to 5% and may further slow the development and creation of new jobs.

In addition, we did not created enough new jobs in the countryside this is significantly hampered by:

1. The distance from the markets;
2. Underdevelopment of transport, production and communal infrastructure;
3. lack of access to financing, second-tier banks are not represented in rural areas;
4. Low qualification of the population living in the countryside.

Conducted in the late 90s of the last century, the institutional transformation of the employment service reduced the effectiveness of labor market regulation.

Thus, the situation not only slows down the pace of poverty reduction, but also means underutilization of the existing labor resources in the country in spite of the growing demand for labor in the conditions of transition to a new round of economic growth.

Therefore, having analyzed the labor market in Kazakhstan, it is necessary to pay attention to the following measures that will contribute to further development:

Measures for the medium term (until 2020):

1. Creation of a system of professional orientation from the initial stage of education;
2. Development of a mechanism for forecasting the needs of the economic sectors in qualified personnel;
3. Informing the population about employment issues, the situation on the labor market, the wide popularization of sought after specialties by raising their prestige through the media;
4. Coordination of job creation planning (permanent, temporary);
5. Reduction of possible negative consequences of the global crisis for the social and economic situation in Kazakhstan and providing the necessary basis for economic growth;
6. Development of entrepreneurial activity;
7. Improvement of the mechanism for attracting foreign labor (introduction of measures to stimulate the employment of Kazakh citizens);
8. Redistribution of labor resources through the organization of intraregional and intra-district migration;
9. Increasing the productive employment of the self-employed population, formalizing their status;
10. Strengthening the targeting of social support measures, reducing dependency and stimulating labor activity;
11. Development of a clear strategy for internal migration, based on long-term forecasting and planning, incl. creation of incentives for the resettlement of migrants taking into account the priorities of the country's spatial and territorial development, as well as economic and labor expediency [3].

Measures for the long term (until 2050):

1. Creation of highly productive jobs in priority areas;
2. Improving the forecasting of the economy's need for personnel;
3. Ensuring the growth of labor productivity;
4. Increase of territorial and professional mobility of labor resources;
5. Legalization of informal employment;
6. Attracting the best foreign specialists to compensate for the shortage of qualified personnel;
7. Exclusivity of the labor market;
8. Modeling and adaptation of the national labor market taking into account changing conditions, the formation of universal specialists, easily changing the specialty in the modernization of production [4,5].

Thus, these measures could provide for increasing the efficiency of employment, reducing unemployment, improving the quality and competitiveness of the workforce, providing social guarantees to citizens in the field of labor, medical insurance, obtaining vocational education, and compliance with a number of other social standards and standards.

List of used sources

1. Statistical yearbook "Kazakhstan in 2016" / Astana 2017, / http: //www.stat.gov.kz
2. Economic activity of the population of Kazakhstan in 2012-2016 / Statistical compilation, Astana 2017. www.stat.gov.kz
3. Employment Program 2020 / Decree of the Government of the Republic of Kazakhstan dated 29.12.2012 No. 1772
4. Message from the Head of State Nursultan Nazarbayev to the People of Kazakhstan "Kazakhstan Way - 2050: Unified Goal, Common Interests, Unified Future" / Astana, January 17, 2014
5. Nazarbayev N. A. "Social modernization of Kazakhstan: Twenty steps to the Society of General Labor" / Astana, July 10, 2012