ORDER OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN

of December 29, 2016 No. 919

About approval of the Development program of productive employment and mass entrepreneurship for 2017 - 2021, modification and amendments in the order of the Government of the Republic of Kazakhstan of December 30, 2015 No. 1136 "About approval of the list of government programs and recognition voided some decisions of the Government of the Republic of Kazakhstan"

The government of the Republic of Kazakhstan DECIDES:

1. Approve the enclosed Development program 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 to take measures for program implementation.

3. To local executive bodies monthly in the terms specified in the Program to represent to the Ministries of Education and Science, national economy, agricultural industry, work and social protection of the population of the Republic of Kazakhstan in the directions of the Program information on the course of accomplishment of actions of the Program, including summary information on use of the funds allocated within program implementation.

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

5. Bring in the order of the Government of the Republic of Kazakhstan of December 30, 2015 No. 1136 "About approval of the list of government programs and recognition voided some decisions of the Government of the Republic of Kazakhstan" (SAPP of the Republic of Kazakhstan, 2015, Art. No. 77-78-79, 583) the following change and amendment:

in the list of government programs approved by the specified resolution:

5, to exclude line, sequence number;

add in the line, sequence number 6, of the following content:

     "

6.

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

Ministry of health and social development of the Republic of Kazakhstan

2017 – 2021

".

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

7. 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 December 29, 2016 No. 919

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

1. Passport (key parameters)

Name	The development program of productive employment and mass entrepreneurship for 2017 - 2021 "E? Beck"
Basis for development	The president's letter of the Republic of Kazakhstan of the Leader Nation of N. A. Nazarbayev to the people of Kazakhstan of December 14, 2012 "Strategy Kazakhstan-2050: new political policy of the taken place state"; the protocol of enlarged meeting of the Government of the Republic of Kazakhstan of September 9, 2016 No. 01-7.8
Instruction of the state body responsible for development and program implementation	The Ministry of Education and Science of the Republic of Kazakhstan - in the first direction of the Ministry of National Economy of the Republic of Kazakhstan Program, the Ministry of Agriculture 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 - in the third direction of the Program, general coordination of the Program
Purpose	Assistance of productive employment of the population and involvement of citizens in entrepreneurship
Tasks	1. Training with technical and professional education taking into account requirements of the labor market 2. Short-term professional training of personnel by the professions and skills demanded in the labor market. 3. Training in entrepreneurship bases. 4. Expansion of microcredit in the village and in the city. 5. Assistance in employment jobless and independently busy. 6. Increase in mobility of manpower. 7. Creation of the single digital platform on employment.
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 (3rd quarter 2016 – % 4,9) 2) the Share of manpower with the main, secondary, general and primary education in labor force composition – no more than 20% (3 quarter of 2016 - 27%) 3) the Share unproductively busy as a part of independently occupied population will constitute no more than 10% (3 quarter of 2016 - 16%) 4) the Surplus of actively acting subjects of MSB will constitute 10%. (3 quarter of 2016 - 1 241 thousand subjects)
Sources and amounts of financing	1) means from the republican budget: 2017 – 40 295 647 thousand tenges; 2018 – 67 392 995 thousand tenges; 2019 – 41 540 291 thousand tenges; 2) 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.

According to data of the World Bank (1), since 2000, the country entered in top-10 the most fast-growing economies of the world, having reached the actual growth of income per capita about 7 percent.

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-2020 Program measures for involvement of jobless, independently occupied and needy population in active measures of assistance of employment actively were implemented. The Road Map of Employment of 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 ("road maps of 2009 and 2010"), and included mechanisms of anti-recessionary reaction.

______________________________

(1) Analytical note of the World Bank, "Kazakhstan:

On the way to development of strategy of creation of workplaces", June, 2016.

At the same time, against the background of growth of economy, in addition to the structural problems connected with the insignificant market capacity of work there were unresolved problems connected with providing high-quality workplaces, high share of unproductive self-employment, shortcomings of professional training, availability of business activity and territorial imbalance in the labor market.

For the purpose of the solution of the remained problems in the labor market and acceptances 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 this regard the Development program of productive employment and mass entrepreneurship for 2017 - 2021 of Enbek (further - the 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.

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

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

2) single information base of the labor market "Employment exchange" - complex of the actions of assistance to labor mediation providing interaction between employers, job seekers and private employment agencies;

3) military technical school - the special educational institutions subordinated to bodies of the Ministry of Defence of the Republic of Kazakhstan;

4) the guarantor - Kazagrogarant joint-stock company, joint-stock company "Fund of development of entrepreneurship "Lady";

5) guarantee - the document confirming subsidiary responsibility of the Guarantor to the Creditor according to obligations of the borrower;

6) 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;

7) two-level model of training - the training system providing training of skilled workers of personnel and specialists of average link in the integrated educational programs of technical and professional education;

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

9) the creditor - the microfinancial organization / banks of the second level / FFPSH credit partnerships / autonomous areas;

10) local executive body concerning employment of the population - the structural division of local executive bodies of the area, the cities of regional value, area, city of republican value, the capital determining the directions of assistance of employment of the population proceeding from situation in the regional labor market;

11) local executive body in the field of education - the structural division of local executive bodies realizing management functions with provision of educational services;

12) local executive body concerning agricultural industry - the structural division of local executive bodies realizing management functions by agricultural industry;

13) local executive body concerning entrepreneurship - the structural division of local executive bodies realizing management functions by questions of development of entrepreneurship;

14) 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 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;

15) 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";

16) 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;

17) the organization of microcredit - Agrarian Credit Corporation joint-stock company, joint-stock company "Fund of development of entrepreneurship "Lady";

18) the organization of education - educational institution and / or training center, military and technical school and its branches;

19) operators of the 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 Agriculture of the Republic of Kazakhstan;

20) operator of non-financial support - National chamber of entrepreneurs of Atameken;

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

22) the operator on subsidizing - Agrarian Credit Corporation joint-stock company;

23) 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;

24) 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;

25) authorized body in the field of education - the central executive body of the Republic of Kazakhstan performing management and cross-industry coordination in the field of education;

26) authorized body in the field of development of agro-industrial complex - the central executive body of the Republic of Kazakhstan performing management and cross-industry coordination in the field of development of agro-industrial complex;

27) authorized body concerning entrepreneurship - the central executive body of the Republic of Kazakhstan performing management and cross-industry coordination in the field of entrepreneurship;

28) authorized body concerning construction and housing and communal services - the central executive body of the Republic of Kazakhstan performing management and cross-industry coordination in the field of construction and housing and communal services;

29) authorized body concerning employment of the population - the central executive body performing management and cross-industry coordination in the sphere of employment of the population;

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

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

32) 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;

33) the district (city) commission - the interdepartmental commission under local executive body of the area (city) concerning employment program implementation;

34) 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;

35) 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;

36) the social contract - the agreement between the participant of the Program and jobcenter of the population, and also the physical persons and legal entities involved in the organization of active measures of assistance of employment which contains the rights and obligations of the Parties, working conditions, the size and payment terms of work, term and sources of financing;

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

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

39) independently busy (self-employed) - physical persons from among the goods which are individually occupied with production (realization), works and services for income acquisition, members of production cooperatives, unpaid employees of family companies (farms) and employers using work of hired employees;

40) 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;

41) 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);

42) local executive body (akimat) - the collegiate executive body headed by the akim of area, city of republican value and the capital, area (city of regional value), exercising within the competence local public administration and self-government in the corresponding territory;

43) the unemployed - the persons who are not belonging to occupied population, looking for work and ready to work;

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

45) 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;

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

47) jobcenter of the population - the public institution 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 of the Republic of Kazakhstan "About employment of the population" (further - the Law);

48) AIS "Labor market" - the automated information system as a part of unified information system of the social and labor sphere intended for automation of activities of the operator of the Program, the center of development of manpower, authorized body concerning employment of the population, jobcenters of the population for the purpose of rendering mediation in employment, monitoring and forming of the reporting, and interdepartmental interaction, including integration with information systems of state bodies;

49) starting business (startup the 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 address to the creditor behind the credit/microcredit less than one year;

50)  No. 216 is excluded according to the Order of the Government of the Republic of Kazakhstan of 24.04.2018;

51) the applicant - the unemployed, irrespective of registration in jobcenters of the population, independently occupied worker, the beginning entrepreneur, agricultural cooperatives and their members, country and farms, participants of anchor cooperation irrespective of the term of their activities, the laid-off worker who did not reach retirement age, stipulated in Item 1 article 11 of the Law of the Republic of Kazakhstan "About provision of pensions in the Republic of Kazakhstan";

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

53) anchor cooperation – partnership of the small and average peasant farms and/or agricultural cooperatives and other applicants having the earth of agricultural purpose with average and large subjects of the AIC for the purpose of increase in production of agricultural products and the guaranteed sales of products.

3. Analysis of the current situation

In the labor market of Kazakhstan positive dynamics is over the last 10 years observed. In comparison with 2006 together with growth of number of economically active population by 11%, the number of hired employees increased by 1,5 of one million people, the number of the unemployed decreased by 178 thousand people and people, self-employed on 448 thousand.

The level of unemployment (general, youth, long-term) was reduced on average by 47%, and constitutes % 4,9 (445 thousand) from the number of economically active population today.

During action of the Road Map of Employment of 2020 Program (further - DKZ 2020) measures of the state support received 770 thousand citizens. 580 thousand people on permanent workplaces are as a result employed.

In recent years the level of unemployment decreased with % 5,2 in 2013 to 5% in 2014-2015 and 4,9 of % - in the third quarter 2016. The level of unemployment among youth which is also target group of the DKZ program 2020, decreased with % 5,5 in 2013 to % 4,2 in 2014 and 4,3 of % - in 2015, having constituted in the third quarter 2016 the minimum value from the beginning of the century - % 3,9.

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

1) low quality of manpower

Over the last 10 years (from 2006 to 3 sq. 2016) the share of manpower with the highest and not finished higher education grew from 25% to % 38,0, with technical and professional education - from 27% to 36%.

If in 2013 the labor force participation rate with the highest and incomplete higher education constituted 34%, then in 2014-2015 its indicator grew to 37%. At the same time, the labor force participation rate with technical and professional education remains at the average level in 33% in recent years (in 2013 - 32%, in 2014 - 34%, in 2015 - 33%).

It was promoted by the applied measures for forming of the National frame of qualifications. Regulatory legal acts are adopted, in particular, the changes in the Labor code of the Republic of Kazakhstan providing concept of the National frame of qualifications are made the technique of development and approval of professional standards is established.

At the same time, the taken measures cardinally did not change high-quality structure of occupied population. Despite decrease (from 48 to 27%) the high share of manpower with the main, secondary, general and primary education remains.

Dynamics of movement of graduates of the 9 and 11 classes of comprehensive schools for the last 3 years shows that on average 21 thousand people find a job without qualification.

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 and working professions.

In this regard it is necessary to provide access for youth to receipt of free first working profession, and also to carry out retraining and increase in skills of adult population by the working professions demanded in the labor market;

2) unproductive employment.

The number of independently occupied population was reduced with one million 2,2 (27%) in 2013 to 2, in one million people (25%) in 2014-2015, and the number of unproductively independently occupied population at the same time for the last three years was reduced by 40% - from 558 thousand people in 2013 to 430 thousand in 2014 and 331 thousand people - in 2015.

At the same time, the share of the independently employed people still constitutes 25%, or 2,2 of one million people. At the same time 360 thousand, from among self-employed are unproductively busy, that is or their activities are not registered in any way, or they have the income below subsistence minimum.

The high share self-employed is the share generally of the sector of agricultural industry and is characterized in addition to the low income and performance by vulnerability to poverty, increasing thereby potential receivers of the address public assistance.

In addition, access to more productive and profitable workplaces limits lack of education and professional skills. 56% occupied with the main, secondary, general and primary education treat unproductively busy.

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