ORDER OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN

of November 13, 2018 No. 746

About approval of the State program of development of productive employment and mass entrepreneurship for 2017 - 2021 of Enbek

According to the subitem 1) of article 66 of the Constitution of the Republic of Kazakhstan the Government of the Republic of Kazakhstan DECIDES:

1. Approve the enclosed State program of development of productive employment and mass entrepreneurship for 2017 - 2021 of Enbek (further - the Program).

2. To the central and local executive bodies and other organizations (in coordination) to take measures for program implementation.

3. To responsible central and local executive bodies, the organizations (in coordination) to provide information according to the Actions plan on program implementation according to the order of the Government of the Republic of Kazakhstan of November 29, 2017 to No. 790 "About approval of System of state planning in the Republic of Kazakhstan".

4. Recognize invalid some decisions of the Government of the Republic of Kazakhstan according to appendix to this resolution.

5. To impose control of execution of this resolution on the Ministry of Labour and Social Protection of the population of the Republic of Kazakhstan.

6. This resolution becomes effective after ten calendar days after day of its first official publication.

Approved by the Order of the Government of the Republic of Kazakhstan of 2018 No. 746

The state program of development of productive employment and mass entrepreneurship for 2017 - 2021 of Enbek

1. Passport of the Program

2. Introduction

3. Analysis of the current situation

4. Purposes, tasks, target indicators and indicators of results of program implementation

5. Main directions, ways of achievement of effective objectives and tasks of the Program, adequate measures

6. Necessary resources

1. Passport of the Program

Name	The state program of development of productive employment and mass entrepreneurship for 2017 - 2021 of Enbek
Basis for development	The message of the First President of the Republic of Kazakhstan - Elbasy N. A. Nazarbaeva to the people of Kazakhstan of December 14, 2012 "Strategy Kazakhstan-2050: new political policy of the taken place state"; The president's letter of the Republic of Kazakhstan of K. K. Tokayev to the people of Kazakhstan of September 2, 2019 "Constructive public dialogue – basis of stability and prosperity of Kazakhstan"; The strategic plan of development of the Republic of Kazakhstan till 2025 approved by the Presidential decree of the Republic of Kazakhstan of February 15, 2018 No. 636
State body responsible for development of the Program	Ministry of Labour and Social Protection of the population of the Republic of Kazakhstan
State bodies and organizations responsible for program implementation	The Ministry of Education and Science of the Republic of Kazakhstan, the Ministry of Labour and Social Protection of the population of the Republic of Kazakhstan – in the first direction of the Program, the Ministry of national economy of the Republic of Kazakhstan, the Ministry of Agriculture of the Republic of Kazakhstan, the Ministry of Labour and Social Protection of the population of the Republic of Kazakhstan - in the second direction of the Program, the Ministry of Labour and Social Protection of the population of the Republic of Kazakhstan, the Ministry of the industry and infrastructure development of the Republic of Kazakhstan - in the third direction of the Program, general coordination of the Program; The Ministry of Education and Science of the Republic of Kazakhstan, the Ministry of Labour and Social Protection of the population of the Republic of Kazakhstan, the Ministry of national economy of the Republic of Kazakhstan and the Ministry of Agriculture of the Republic of Kazakhstan – in the fourth direction of the Program.
Purpose	Assistance of productive employment of the population and involvement of citizens in entrepreneurship
Tasks	Task 1. Training with technical and professional education taking into account requirements of the labor market. Task 2. Short-term professional training according to requests of employers and qualifications and skills demanded in the labor market. Task 3. Training within the project "Mang_l_k Ate Zhastara — Industriyag!" (Serp_n). Task 4. Professional training of the workers working according to the employment contract, including laid off. Task 5. Training in entrepreneurship bases in the Bastau Business project. Task 6. Expansion of microcredit in rural settlements, the small cities, the cities and monotowns. Task 7. Guaranteeing the credits/microcredits in rural settlements and the small cities, the cities and monotowns. Task 8. Provision of state grants on realization of the new business ideas. Task 9. Rendering active measures of assistance of employment of the population and carrying out social professional orientation for jobless and separate categories of the busy persons determined by the Government of the Republic of Kazakhstan. Task 10. Increase in mobility of manpower. Task 11. Development of the single digital platform in employment. Task 12. Realization of complex actions of the national project "The Zhastar — Ate T_reg _".
Realization terms	2017 – 2021
Target indicators	By accomplishment of the tasks set in the Program by 2021 the following target indicators will be reached: 1) the level of unemployment will not exceed % 4,8; 2) the share of manpower with the main, secondary, general and primary education in labor force composition will constitute no more than 20%; 3) the share unproductively busy as a part of other categories of occupied population will constitute no more 9,0 of %; 4) the surplus of actively acting subjects of small and medium business will constitute 10%.
Sources and amounts of financing	1) means from the republican budget: 2017 – 40 347 965 thousand tenges; 2018 – 66 364 449 thousand tenges; 2019 – 86 280 228 thousand tenges; 2020 – 132 731 397 thousand tenges; 2021 – 80 042 511 thousand tenges; 2) means at the expense of target transfers from National fund of the Republic of Kazakhstan: 2019 – 49 200 315 thousand tenges; 3) means from reserve of the Government Republic of Kazakhstan: 2020 – 3 000 000 thousand tenges; 4) means at the expense of the local budget: 2017 – 45 038 436 thousand tenges; 2018 – 45 311 093 thousand tenges; 2019 – 45 453 119 thousand tenges.

 

2. Introduction

During independence Kazakhstan achieved significant progress in social and economic development and passed into group of the countries with income level above average.

Such strong growth allowed to reduce considerably poverty level, to provide considerable part of the population with more productive workplaces, to improve welfare of people, to raise labor productivity and to reduce the number of the unemployed and persons occupied with unproductive work, especially in the rural zone.

For the solution of these problems since 2011 within the Road Map of Employment of 2020 Program (further - the DKZ Program 2020) measures for involvement of jobless, independently occupied and needy population in active measures of assistance of employment actively were implemented. The DKZ 2020 program was logical continuation of the Action plan of the Government on implementation of the Message of the Head of state to the people of Kazakhstan of March 6, 2009 (The strategy of employment and retraining of personnel of "road maps of 2009 and 2010") and included mechanisms of anti-recessionary reaction.

For the purpose of market development of work and acceptance of additional measures for increase in level of living of the population by the Head of state on September 9, 2016 the task on stimulation of mass entrepreneurship and employment was set for the Government.

Upgrade of policy of employment and compensation, improvement of quality of human capital, full support of entrepreneurship, ensuring targeting of social support are determined as development priorities according to Strategy "Kazakhstan - 2050" and the Concept by inclusion of Kazakhstan into number 30 of the most developed states of the world.

In the Message of the First President of the Republic of Kazakhstan - Elbasy N. A. Nazarbaeva to the people of Kazakhstan of October 5, 2018 "Growth of welfare of Kazakhstan citizens: increase in the income and quality of life" is noted that complex support of youth and institute of family shall become priority of state policy.

In the Message it is entrusted to create wide platform of social elevators which will include full range of measures of support of all categories of youth.

In this regard, the State program of development of productive employment and mass entrepreneurship for 2017 - 2021 of Enbek (further - the Enbek program) is oriented to creation of effective system of receipt of the professional skills and qualifications demanded in the labor market, development of mass entrepreneurship, creation of effective model of labor mediation, including support of socially vulnerable national groups, and also realization of complex actions of the national project "The Zhastar — Ate T_reg _".

In the President's letter of the Republic of Kazakhstan of K. K. Tokayev to the people of Kazakhstan of September 2, 2019 "Constructive public dialogue - basis of stability and prosperity of Kazakhstan" the emphasis on further development of system of social support is placed, it is also noted that actually domestic system of training of specialists is torn off from the real labor market.

In execution of the order of the President of the Republic of Kazakhstan the Enbek program is added with provisions on the organization of short-term professional training for requests of employers, and also involvement of mothers having many children in micro and small business, including at home.

2.1. In this Enbek program the following main terms and determinations are used:

1) regional chamber of entrepreneurs of Atameken (further - RPP) - the operator of non-financial support at the local level;

2) the district (city) commission - the interdepartmental commission under local executive body of the area (city) concerning program implementation of Enbek and measures of assistance of employment;

3) JSC FFPSH - "Fund of Financial Support of Agricultural Industry" joint-stock company;

4) unified information system of the social and labor sphere (further - AIS "Labor market") - the hardware and software intended for automation of activities of authorized body concerning employment of the population, local authorities of employment of the population, jobcenters of the population, the center of development of manpower and interdepartmental interaction for the purpose of provision of the state services to the population in the social and labor sphere;

5) social workplace - the workplace created by the employer on contractual basis with jobcenter of the population for employment of the unemployed with subsidizing of their salary;

6) the social contract - the agreement determining the rights and obligations of the Parties on participation in active measures of assistance of employment between the citizen of the Republic of Kazakhstan or kandasy from among jobless, separate categories of the busy persons determined by the Government of the Republic of Kazakhstan and also other persons in the cases provided by the Law of the Republic of Kazakhstan "About employment of the population" (further - the Law), and jobcenter of the population, and in the cases provided by the Law with the physical persons and legal entities involved in the organization of active measures of assistance of employment and also about rendering the government address public assistance;

7) social professional orientation - complex of the interconnected actions directed to rendering the practical help in the choice of professions, change of occupation and advanced training taking into account professional knowledge, skills, interests of the personality and requirements of the labor market;

8) the social student's credit - the unified unit of measure of amount of socially directed, socially useful activities performed by the student for the benefit of physical and (or) legal entities, and which are stimulated the interest at the expense of means of the republican budget;

9) operators of the Enbek program - Ministry of Education and Science of the Republic of Kazakhstan, Ministry of national economy of the Republic of Kazakhstan, Ministry of Labour and Social Protection of the population of the Republic of Kazakhstan, Ministry of the industry and infrastructure development of the Republic of Kazakhstan, Ministry of Agriculture of the Republic of Kazakhstan;

10) starting business (startup project) - business projects of participants of the Program which term of state registration as legal person / registration of the status of the individual entrepreneur constitutes at the time of the request for the state grant, to the creditor behind the credit/microcredit less than one year;

11) the organization of education - educational institution and / or training center, including under employers, or independent;

12) dual training - the training form combining training in the organization of education with the obligatory periods of inservice training and professional practice at the company (organization) with provision of workplaces and compensation payment to students in case of equal responsibility of the company (organization), educational institution and the student;

13) the state Internet resource "Employment exchange" (further - Electronic employment exchange) - the electronic information resource containing single information base of the labor market, functioning on the Internet which is followed by the center of development of manpower for the purpose of rendering the state measures of assistance of employment of the population;

14) able-bodied person (the able-bodied family member) - person or the family member aged since sixteen years to age, stipulated in Item 1 article 11 of the Law of the Republic of Kazakhstan "About provision of pensions in the Republic of Kazakhstan", except for persons with disability of the first or second group and (or) persons having diseases in case of which the term of temporary disability can be established more than two months;

15) subsidizing of the salary - compensation of part of costs of the employer for compensation of the workers employed on social workplaces in the directions of jobcenter of the population;

16) the national project "The Zhastar — Ate T_reg _" - the project including measures of the state support for assistance of employment of youth by means of development of youth entrepreneurship "Zhas Kas_pker" and training of qualified personnel on demanded specialties in the labor market "Zhas mammon" by the principle 100/200;

17) young family - family in which both spouses did not reach age of twenty nine years, or incomplete family in which child(children) is brought up by one of parents who did not reach age of twenty nine years;

18) youth practice - type of the labor activity performed by graduates of the organizations of education realizing educational programs of technical and professional, postsecondary, higher and postgraduate education for the purpose of acquisition of initial work experience by the received profession (specialty);

19) jobless person - the physical person performing job search and ready to get to work;

20) private employment agency - the physical person or legal entity rendering the labor mediation registered according to the procedure, established by the legislation of the Republic of Kazakhstan;

21) the platform private online on employment - private service for job search and personnel recruitment;

22) the acting entrepreneur - the entrepreneur whose term of state registration as the individual entrepreneur or the legal entity constitutes at the time of the appeal to BVU/JSC FFPSH"/MFO/KT behind the credit/microcredit more than three years;

23) anchor cooperation - partnership based on the signed civil agreement irrespective of the term of its action of the peasant farms and/or agricultural cooperatives and other applicants having the earth of agricultural purpose, with average and large subjects of agro-industrial complex for the purpose of increase in production of agricultural products and its guaranteed sale;

24) professional informing - submission of information on situation in the labor market, employment opportunities on the available specialty, retrainings, advanced trainings;

25) the guarantor - the affiliated organization of joint-stock company "National managing holding "Bayterek" (DO of JSC NUH Bayterek on guaranteeing), authorized on provision of guarantees, joint-stock company "Fund of development of entrepreneurship "Lady";

26) guarantee - the document confirming subsidiary responsibility of the guarantor to the creditor according to obligations of the borrower;

27) the agreement of guarantee - the tripartite written agreement signed between the guarantor, the creditor and the borrower about provision of a guarantee in the forms approved by authorized bodies concerning entrepreneurship and in the field of development of agro-industrial complex;

28) the creditor - local executive body (through the confided (agent), the microfinancial organization / banks of the second level / FFPSH credit partnerships / autonomous areas;

29) the credit/microcredit - the borrowed funds provided by the microfinancial organizations (IFIs)/banks of the second level (BVU) / credit partnerships of KT/JSC FFPSH to the participant of the Enbek program for the agreement on provision of the credit/microcredit / not renewable credit line in national currency of the Republic of Kazakhstan on the terms of the paid nature, urgency, recoverability, security and purpose;

30) large family - the family incorporating four and more jointly the living minor children, including children who are studying full-time in the organizations of secondary, technical and professional, postsecondary, higher and (or) postgraduate education after achievement of age of majority by them until the termination of the organizations of education (but no more than before achievement of twenty-three-year age);

31) operator of non-financial support - National chamber of entrepreneurs of the Republic of Kazakhstan of Atameken (further - NPP Atameken);

32) social jobs - the types of labor activity organized by jobcenters of the population, which are not requiring preliminary professional training of the worker, having socially useful focus for providing them with temporary employment;

33) the immigrant - the internal migrant moving to the regions determined by the Government of the Republic of Kazakhstan;

34) short-term professional training - the part of system of technical and professional education providing implementation of educational programs with the reduced term of training in professional training and retraining of personnel;

35) the project "Mang_l_k Ate Zhastara — Industriyag!" (Serp_n) - the project directed to provision of the higher, technical and professional education of youth from excess working regions and their employment in trudodefitsitny regions;

36) the organization of microcredit - the affiliated organization of joint-stock company "National managing holding "Bayterek" (DO of JSC NUH Bayterek on crediting), authorized on crediting, joint-stock company "Fund of development of entrepreneurship "Lady";

37) the microfinancial organization - the legal entity, being the commercial organization which official status is determined by state registration in judicial authorities and passing of accounting registration, performing activities for provision of the microcredits, and also the additional types of activity permitted by the Law of the Republic of Kazakhstan "About the microfinancial organizations";

38) mobile training center - the portable training center realizing educational programs of additional education with ensuring practice and possibility of transportation of structural elements and the equipment to the place of training;

39) unproductively busy - occupied with the income is lower than the size of subsistence minimum and/or occupied with low-skilled work;

40) educational institution - the organization of education realizing educational programs of the higher, technical and professional, postsecondary education;

41) training center - the organization realizing educational programs of additional education with the obligatory organization of work practice;

42) regional commission - the interdepartmental commission under local executive body of area (the city of republican value, the capital) concerning program implementation of Enbek and measures of assistance of employment with participation of local representative bodies, representatives of employers, labor unions and chambers of entrepreneurs of areas, cities of republican value and the capital;

43) the confided (agent) - person who on the basis of the agreement of the order makes from name and at the expense of the creditor (principal) or the administrator of the budget program and according to its instructions the certain orders connected with the budget crediting;

44) screening - the marketing research at the district level on identification of potential niches and perspective directions for business development which is carried out by the operator of non-financial support of NPP Atameken;

45) the operator on subsidizing - local executive body concerning agricultural industry;

46) needy persons (families) are persons (family) having the average per capita income per month below the poverty line, established in areas, the cities of republican value, the capital;

47) training with technical and professional education - the part of system of technical and professional education providing training of skilled workers of personnel and specialists of average link;

48) the applicant - jobless person, person from among separate categories of the busy persons determined by the Government of the Republic of Kazakhstan, youth of category NEET, the member of needy and/or large family, the able-bodied disabled person who is beginning/beginning young and the acting entrepreneur, agricultural cooperatives and their members, country and farms, participants of anchor cooperation irrespective of the term of their activities;

49) jobcenter of the population - the legal entity created by local executive body of the area, the cities of regional and republican value, the capital for the purpose of realization of active measures of assistance of employment, the organization of social protection from unemployment and other measures of assistance of employment according to the Law;

50) the beginning young entrepreneur - the individual entrepreneur aged up to twenty nine years (inclusive) which term of state registration as the individual entrepreneur constitutes at the time of the address to the creditor behind receipt of credit/microcredit/guarantee in rural settlements, the small cities, the cities and monotowns less than three years;

51) the beginning entrepreneur - the entrepreneur whose term of state registration as the individual entrepreneur or the legal entity constitutes at the time of the appeal to BVU/JSC FFPSH"/MFO/KT behind the credit/microcredit less than three years;

52) youth of category NEET - the youth which owing to certain circumstances of social and economic nature does not study does not work and does not improve skills;

53) productive workplace - the permanent or temporary, operating of three months workplace with wage payment / income above average on region/industry.

3. Analysis of the current situation

In the labor market of Kazakhstan over the last 10 years (from 2008 to 2018) positive dynamics is observed. In comparison with 2008 together with growth of number of labor on 8,6 of % the number of hired employees increased by % 27,2. The number of the unemployed decreased by 114 thousand people and people, self-employed on 575 thousand.

The level of unemployment was reduced by 0,7 of percent point or with % 6,6 to % 4,9 following the results of 2018.

At the same time for the specified period reduction of number of young labor power (at the age of 15-28 years) on % 10,1, it procedure for 233,8 of thousand people is observed.

From 2010 for 2018 economic activity of youth is at rather high level (44%), but yields to average for the countries of Organization for Economic Cooperation and Development a little (further - OECD) to value in 47%.

In the country following the results of 2018 economically active part (labor power) of youth aged from 15 up to 28 years are 2 087,6 thousand people, from them 2 007,9 thousand people (96%) from which 1 536,6 thousand people or 76,5 of % - hired employees, 471,3 of one thousand people (% 23,5) - independently busy is busy.

In case of the general level of unemployment on the republic of 4,9 of % youth unemployment made 3,8 of % or 79,7 of one thousand people.

At the same time, the following system problems influencing as the labor market, and further economic growth remain:

1) discrepancy of quality of manpower to requirements of the labor market.

In 2015-2017 the labor force participation rate with the highest and incomplete higher education constituted 38%, the labor force participation rate with technical and professional education grew from 38% in 2015 to 42% in 2018.

At the same time, the high share of manpower with the main, secondary, general and primary education, despite decrease from 24% in 2015 to % 22,6 in 2016 remains.

Now the education system does not provide sufficient level of training of youth for the labor market.

So, in 2018 11 classes of school were ended by 143,1 of one thousand people from whom 20,3 of one thousand people (% 14,2) arrived in colleges, one thousand 75,4 (53%) entered to the UNIVERSITY, 7, one thousand people (% 2,1) went abroad, 11 thousand people (% 7,6) got a job, are called in armed forces 494 people (% 0,3). Among graduates of the eleventh classes of 28 thousand people (% 19,6) did not continue training and were left without qualification.

In 2018 the number of graduates with technical and professional education (further - TIPO) constituted 143,1 of one thousand people; from them continued by 14,3 of one thousand people (10%) training in HIGHER EDUCATION INSTITUTIONS, were employed by one thousand 97,4 (68%) in year of release, and 24,5 of one thousand people (17%) did not continue training and were not employed. Still 23,2 of thousand which initially arrived did not finish education and were disposed, that is were left without qualification.

In 2018 the number of university graduates according to the program of bachelor degree made 130,8 of one thousand people; from them were employed by one thousand 98,9 (% 75,6) in year of release, and 31 thousand people (% 23,7) did not continue training and were not employed. 12 thousand more which initially arrived did not finish education and were disposed, that is were left without qualification.

For the beginning 2017-2018 academic years among the disposed students of 20% do not finish education because of financial straits, and 19% - because of poor progress or for violation of subject matter (7%), regulations and the charter of educational institution (12%). 39% of students were disposed for the unknown reasons (at own will or other reasons).

Thus, only following the results of 2018 in general 55, thousands young people were left without qualification, and 54,2 of one thousand graduates of TIPO and HIGHER EDUCATION INSTITUTIONS could not find a job in year of release.

At the same time, because of problems of discrepancy of qualification of manpower to requirements of the labor market annually about 20 thousand vacancies declared by employers remain not filled.

Surveys of the companies of the country conducted by national experts showed that about 73% of need for personnel are the share of specialists of technical and professional education.

According to projection by 2025 growth of number of able-bodied youth aged from 15 up to 24 years on 446 thousand people to 2 845 thousand from 2 399 thousand in 2017 is expected. For successful integration of this youth into the labor market, they need to give urgent, quality education already now and to provide with high-quality workplaces.

The number of young people aged from 15 up to 24 years which are annually entering the labor market from education system will grow on average for 3% a year up to 2025. And during the period from 2025 to 2030 acceleration of growth to 5% a year under the influence of growing of the children who were born in the period of baby boom of the end of the 2000th years is expected.

In this regard it is necessary to provide access for youth to receipt of free first working profession, assistance in employment in partnership with employers, especially for youth of category NEET, to carry out career consultation and development at early stages of labor activity, and also retraining and increase in skills of adult population on the working qualifications demanded in the labor market.

2) unproductive employment.

The number of independently occupied population was reduced with one million 2,3 (27% of occupied population) in 2015 to 2,1 of one million people (23%) in 2018. The number of unproductively independently occupied population which is performing activities without registration or having the income is lower than subsistence minimum, for the last three years was also reduced by 66% - with 330,9 of one thousand people in 2015 to 301,2 of one thousand people in 2016 and to 217,7 of one thousand people in 2017.

The greatest share of unproductively independently occupied population in 2017 is concentrated in agricultural industry (58%) where one of the lowest labor productivity levels is observed (1 402 thousand tenges per capita). Level of the income of the population is directly connected with labor productivity level in economy industries.

Access to more productive and profitable workplaces limits lack of education and professional skills. 49,1 of % unproductively busy have only the main, secondary, general and primary education.

Involvement of unproductively occupied population in productive economic activity will promote growth of economic activity and increase in their income;

3) regional disproportions and demographic imbalance.

In 2015 population of northern regions made 2 946 thousand people, and in 2017 - 2 934 thousand, that is decreased by 12 thousand people. At the same time in the southern regions population grew by 186 thousand people from 6 564 thousand people in 2015 to 6 750 thousand in 2017. At the same time, the share of the population is younger than 15 years in relation to all population in northern regions in 2017 averaged 19% while in southern - on average 34%.

According to the projection which is carried out by national experts, population of the country by 2050 will make one million 24,5 persons. At the same time it is expected that when preserving the current tendency the population of northern regions will be reduced by 0,9 of one million people, and the population of the southern regions will grow by 5,3 of one million people. Density of resettlement of the southern regions will be four times higher, than in northern.

Therefore taking measures to stimulation of territorial mobility of manpower through assistance in voluntary resettlement of citizens from excess working regions to trudodefitsitny regions is reasonable.

4) insufficient generation of productive workplaces in private sector of economy.

The share of public sector (public institutions and the companies from shares of state-owned property more than 50%) in employment averaged 25,4 of % of occupied population in 2015 - 2017. This indicator is one of the highest in comparison with the countries of OECD where average value of share of public sector in structure of employment of the population makes 18%.

In comparison with the countries of OECD the contribution of small and medium business (further - MSB) in employment is insufficient. The average share occupied at the companies of small and medium business constitutes 64% in OECD that there is 1,4 times above than the level of Kazakhstan (45%).

Thus, it is necessary to stimulate development of mass entrepreneurship for creation of workplaces in private sector. Successful experience of developed countries of the world demonstrates that development of microcredit increases efficiency and scales of entrepreneurship, promoting the solution of questions of employment and creation of new workplaces.

In world practice for the problem resolution in the labor market active measures of assistance of employment which are performed through development of manpower (professional training and retraining), increase in labor demand (subsidizing of wage payment / employment, social jobs), enhancement of activities of institutes of the labor market, including information maintenance, and also development of entrepreneurship are used.

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