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Ayzada. A Aytugan – candidate’s degree in Economic sciences of the «Chair of Finances» of Kyzylorda State University after Korkyt Ata,   Bissenbekova Zhaniya – student grope of the Fin-06-5

 

A problem of unemployment during the crisis and its ways of solution

 

 Our country’s President N.A. Nazarbayev told the following in his message to nation in March of 2008: “A policy of permanent supplying the people with employment is being and will be the most powerful social policy. I consider that the state is obliged to take up a full responsibility in supporting the most helpless members of society.

In connection with this a policy of social aid is not to be defined by “necessities of social groups”, on the contrary, it must be concentrated on the obligatory range of “preparing the employable citizens to and to the rows of workers. A state system of supporting the citizens must be formed in direction of encouraging their reinstruction and new profession.

The following is told at the Ninth Extra Congress of people’s Democratic Party of “Nur Otan” on the fourth of July, in 2007: “A state must strive, for supplying all the citizens with worthy employment. A whole employment of people must be achieved.”

140 milliards were allocated to the supplement of people’s employment and for staff prequalification. A number of economically active population composed 8413,5 thousand people even in the first quarter of 2009 and it was 8464,8 thousand people in the second quarter and a number of economically non-active people reduced from 3548,8 to 3497,7. I think it is owing to our President’s right policy. People from hundreds of states have become unemployed during the crisis, and our Republic of Kazakhstan people allocated 140 milliard tends just for elimination of unemployment. This is much help for the people left jobless.

The right tendencies in Kazakhstan economics and its aim to enter the row of the most competitive 50 states are putting new tasks before the state regulation. One of them is to achieve a high level in employing the people. By the methods of defining the countries’ competitive ability of the World Economical Forum and Institute of management Development the index of employment enters the block of “economical development” together with price, international trade and home economical development indices.

As an analysis of unemployment has shown, every third unemployed is not employed due to the absence of any work (36,7%  from total number), every fifth (12,9%) due to the absence, of work by profession after graduating from the universities, every tenth (10,8%) due to the staff reduction. From their total number 6,6% were left jobless due to closing of enterprise, 11,9% dismissed from works by own requests, 6,5% left their job due to the end of contracts. Also there are persons who partially or totally lost their skills during their long search for new work. 38,5% from a total number of unemployed had been looking for a work from month till six and 18,1% looked for it for 6 and 12 month and 26,5% of them looked for it for more than a year. The most part of unemployed (48,3) looked for a hiring job and 67,5% of them preferred to work in state establishments, 24,2%-in non-state organization and 51% preferred any work. It is necessary to point out, that a number of those who wants to work in non-state organization increased to 20% and also there was an increase of the number of people preferring to get jobs in state organs.

Nowadays 6 million and 500 thousand of people live in villages. 3 million and 300 thousand of them is considered to be employed. 700 thousand of them those who supply themselves, i.e. who breeds a cattle and 2 million 100 thousand people are hired workers. The rest part is unemployed. Agency of statistics of the RK declared that 653,8 thousand people were unemployed in May, of this year. It compiled 8,2% of the employable population. And just 258 thousand people were registered in republic. 128 thousand of them are people from villages.

There are regions where a share of poor is more than 50 per cents due to unemployment in villages. A Government had offered a program of reduction of a number of the poor for twice in our country till 2015. If the living minimum wage was 7400 tinges in 2008, then a number of those who live under living minimum wage increased to 19,9 per cents in the second quarter of that year and in number it means about 3 million people. Village people compile a great part of people whose living minimum wage is the lowest. An average money income per person compiled 15819 tinges by estimation of 2008. It is hardly 9 thousand tinges in villages. The reason is their limited possibilities in getting money income and a low productivity of their industry.

The youth policy is going through the process of being built as institutional structure and as important and special element of taking part in social and economical development of state.

Conception of state youth policy of the Republic of Kazakhstan was adopted in 1999, a program of “The Kazakhstan youth,2009” in 2008 and the considered to be one of the principal groups in the Program of state population employment of the Republic of Kazakhstan for 2006-2008 for whom a system of special measures is directed to. The adopted documents are directed to give the youth professional and social potential according to modern economics and also to use that potential for the necessities of the country and its citizens.

It is very important to unify peculiarities of the youth lab our market during the use of the world practice for preparing the youth principal policy.(Table 1.)

 

           Table 1. The youth lab our market in the world economics

Peculiarities

The developed countries

The Republic of Kazakhstan

Common

·                                absence of vocational knowledge, work practice of the unemployed youth;

·                                in coincidence of demand and offer by quantity and quality;

·                                formation of the youth and employment program;

·                                support for self- employment and opening small business enterprises

·                                appearance of the new forms of employment connected with the development of information technologies;

·                                search for marketing business partners;

·                                help for inserting new business ideas and innovations

 

 

Special

·                                use of the distant (home) work;

·                                supply of the small business subjects with the primary fund

·                                in coincidence of the youth professional  skills and qualifications with the lab our market necessities;

·                                little practice of the private recruiting agencies;

·                                absence  of the practice of teaching the young specialists for account of the firm

 

 

Unemployment compiled 7,8% in republic and 8,6% in cities and 6,8% in village.

By the analysis made on the youth employment status most of the hired workers live in cities and the youth working by themselves live in village. It influences the reduction of unemployment in villages.

By the results of analysis 51,3% of the self- employed people and 78,4% of the village self- employed people have primary and secondary knowledge. It is one of the obstacles during getting a job; therefore a professional knowledge is becoming an important element of the infrastructure. It equalizes the demand and offer of lab our. The knowledge levels analysis made in the RK proves it a share of those who have incomplete higher knowledge increased to 9 (from 3,3% of 1999 to 27,7% of 2008) and a share of those who have general secondary education reduced to 3,2% (from 47,4% to 14,5%). It is explained by the following; most of the young people consider a complete education to be the main term in getting a dreamt social status and high material conditions, the safest way from unemployment. Also a share of the young people with just primary education is increasing.

Different sorts of methods are being used for solution of the youth unemployment problem. One of them is employing with a part-day job. The analysis results indicate that employing with a part-day job can not influence much the employment problem, the reason is that the share of employed between 2001 and 2008 did not get even 1%. Also it is necessary to point out that the main people who receive a part-day job are the young people from villages. The reason is that it is very difficult to find a full-day job in villa gees and there is no market to sale their produced products, therefore the Development of Employment and coordination of Social Programs is realizing measures (re-instruction and prequalification, participation in the public workers, organization of social vacancies) directed to the employment of the youth, Concluding everything I insert my own offers during the crisis:

1.                 further development of the village youth employment, direction of the students to work in  villages for 5 years by contract by diving them grants during their study;

2.                 employment in mining, chemical and agricultural spheres;

3.                 making up convenient conditions for vocational preparing and reinstructing the workers;

4.                 replenishment of the prequalification courses’ professions;

5.                 involving the young people in public works;

6.                 raising of the wages of the young people;

7.                 declaring through all the mass media about the vacancies;

8.                 free consultations;

9.                 employment  of the young people with vacant vacancies;

10.            making up convenient conditions for opening small business and reconsideration of getting credits;

11.            free trainings for the unemployed;

12.            a psychological aid to the unemployed;

13.            passing through practice in enterprises with an aim of further employment;

14.            Extension of the public works.

                                 

 Literature

1.     The people’s Conception of People’s Democratic Party of “Nur Otan” for 2007.

2.     A message of the President of the Republic of Kazakhstan to its people from 2008.

3.     A strategically message of the President of the Republic of Kazakhstan “Kazakhstan 2030”.

4.     A message of the President of the Republic of Kazakhstan, 2009.

5.     Web-site www.stat.kz

6.     Statistical bulletin.

7.     “Money, Credits, Banks” by Zhunusov, 2003.

8.     “Finances” by Kulpybayev, 2005.

9.     “Al-Pari” magazine, ¹3-4 of 2006.

10. Egemen Kazakhstan ¹ 45, 2006.

11. Syr Boyi ¹ 31, 2008.

12. Materials of the Kyzylorda oblast municipality.