Social Protection System Review of Kyrgyzstan by OECD

Author:OECD
Language: eng
Format: epub
Tags: Finance and Investment/Social Issues/Migration/Health/Development
Publisher: OECD Publishing
Published: 2018-06-12T16:00:00+00:00

Public Employment Services

Public Employment Services (PES) are the gateway for labour market policies. PES date back to Soviet times, when they allocated labour across the economy. From 1991, their mandate changed to matching labour supply and demand, and helping unemployed workers – often the victims of mass lay-offs by a state enterprise – find work. PES functions include registering unemployed workers, matching employers to jobseekers, and referring unemployed workers to active labour market policy instruments, such as training, micro-credit agencies or public works programmes.

The vacancy registration service attempts to simplify the process of vacancy notifications, provide recruitment assistance, systematise communications between PES and employers, and facilitate job searches. However, there is a mismatch between the supply of vacancies registered at PES – mostly low-paid jobs in the public sector – and the employment demanded by jobseekers. Registered vacancies are mostly in urban areas, leaving rural areas (where informal employment is the norm) underserved by PES (Schwegler-Rohmeis, Mummert and Jarck, 2013[25]). Only 15% of all jobseekers found work through PES in 2010; personal referrals by friends and relatives are a much more common means (Schwegler-Rohmeis, Mummert and Jarck, 2013[25]).

PES provide free training for registered unemployed individuals across all regions, but training mostly takes place in urban areas. It is also apparent that the MoLSD lacks adequate information regarding national labour market trends (GoK, 2014[24]). Participants receive a stipend of 1.2 times (120%) the unemployment benefits. Training is implemented through public providers or in partnership with private institutions. Between 2009 and 2011, 8 000 to 8 600 participants per year received training. In 2014, participants comprised 24% (8 352 participants) of the 34 800 beneficiaries of the active labour market policies.

PES also directs the registered unemployed towards the ministerial micro-credit agencies. Ala-Too Finance, an agency overseen by the MoLSD, assesses eligibility and processes the application (Schwegler-Rohmeis, Mummert and Jarck, 2013[25]). In 2014, 4% of all active labour market policy beneficiaries participated in the micro-credit programme, nearly half of whom were women (Schwegler-Rohmeis, Mummert and Jarck, 2013[25]).

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