Assiya Burkutova
MinTax Group

For material support of young specialists, the Government has introduced a number of measures.

Based on the youth labour market indicators for the Republic of Kazakhstan in 2001–2018[1], we can see that the youth unemployment rate in the Republic of Kazakhstan is declining. In particular, according to results of the 4th quarter of 2018, the youth unemployment rate was 3.6%, while in the 4th quarter of 2016, the youth unemployment rate was 4.2%. Despite this, the problem of employment of young personnel remains important to this day.

One of the main difficulties faced by young people when they are looking for job is the lack of experience. Not every employer is willing to spend time and money to train young people. So, due to the lack of work experience, yesterday’s graduates of  prestigious universities are often forced to change their field of activity.

On 5 October 2018 the Head of State Mr. Nursultan Nazarbayev announced 2019 as the Year of Youth. Today, many programs are being implemented in Kazakhstan to address the issue of young personnel employment, one of which is “Yenbek” State Program for the Development of Productive Employment and Mass Entrepreneurship for 2017–2021 approved by the Resolution of the Government of the Republic of Kazakhstan #746 dated 13 November 2018 (the “Program”).

The Program provides for a number of measures aimed at material support of young specialists on the part of the Government.

In accordance with the Program:

  • youth practice is organized for the graduates of educational organizations in order to provide the graduates with initial work experience in the profession (specialty) acquired;
  • financing of youth practice is carried out at the expense of the republican or local budgets, as well as from other sources not prohibited by the legislation of the Republic of Kazakhstan;
  • financing of wages paid to the participants of youth practice who are graduates is carried out during 6 months;
  • the amount of a monthly subsidy paid from the republican or local budgets comprises 25 MRI[2](including taxes, mandatory social assessments, compensations for unused vacations and banking services) without payments of environmental premiums;
  • by the employer’s initiative, in the presence of a vacancy and by consent of the youth practice participant, the person can be hired for a permanent job till expiry of the concluded employment contract.

State programs for organizing and financing of youth employment help reduce unemployment among university and college graduates, and provide young professionals with the opportunity to put their theoretical knowledge into practice.

[1] Youth means the citizens of the Republic of Kazakhstan from fourteen to twenty nine years of age, in accordance with the Law of the Republic of Kazakhstan  #285-V ZRK  dated 9 February 2015 “On State Youth Policy in the Republic of Kazakhstan”.

[2] Minimum reference index established by the Law on the republic’s budget for the next financial year. In 2019 one MRI comprises KZT 2,525 (25*2,525= KZT 63,125).

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