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Employment Policy Convention, 1964 (No. 122) - Kyrgyzstan (RATIFICATION: 1992)

Other comments on C122

Observation

Direct Request

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Articles 1 and 2 of the Convention. Implementation of an active employment policy. The Committee notes that the Government reports on the National Development Strategy of the Kyrgyz Republic for 2018-2040 (hereinafter the 2018-2040 Development Strategy), highlighting that, according to UN estimates, population growth in the current decade is expected to be some 900,000 persons, the most significant growth in the entire history of Kyrgyzstan. The Committee notes from the 2018-2040 Development Strategy that unemployment and the lack of jobs have forced hundreds of thousands of Kyrgyz citizens to seek work abroad. There is also significant internal migration, associated primarily with the search for work, which negatively affects the development of rural areas. According to the 2017 ILO/OECD report “How immigrants contribute to Kyrgyzstan’s Economy”, in 2015, immigrants to Kyrgyzstan represented 3.4 per cent of the population, while emigrants represented 12.8 per cent. In this context, the Committee notes with interest the range of measures undertaken by the Government with a view to attaining the objectives of the Convention within the framework of a coordinated economic and social policy. The Government refers to the implementation of the “Programme to promote employment and regulate internal and external migration until 2020”, which includes among its main objectives: strengthening active employment measures to promote the employment of unemployed persons and persons in vulnerable situations; improving the regulatory legal framework on employment; developing a labour market information system; and improving the quality and efficiency of employment and migration services. The Committee further notes the adoption of the 2018-2040 Development Strategy in November 2018, which defines long-term strategic benchmarks for the development of Kyrgyzstan and identifies priority medium-term steps to be taken. The Strategy focuses the national economic policy on providing employment and stable incomes, as well as creating productive jobs, taking into account future challenges in the labour market. In this framework, it calls for the adoption of measures to guarantee the economic well-being of the population by 2040, through the creation of productive jobs that provide decent employment and stable incomes, with the goal of ensuring that 80 per cent of the working population are able to enjoy decent wages and labour conditions. The Committee also notes the adoption in March 2019 of the medium-term “Development Programme of the Kyrgyz Republic for the period 2018-2022: Unity, Trust, Creation” (hereinafter referred to as the 2018-2022 Development Program), which is aligned with the 2018-2040 Development Strategy. The 2018-2022 Development Programme includes among its priority areas the provision of an economic basis for ensuring the well-being of people through a broad range of measures, including through the development and implementation of long-term development plans to promote employment growth and gradually increase the number of urban residents to ensure an even distribution of the population throughout the country. With regard to employment trends, the Committee notes that, according to the statistical information available to the ILO Department of Statistics, the labour force participation rate in Kyrgyzstan in 2021 was 65 per cent (78 per cent for men and 52.5 per cent for women). The employment-to-population ratio was 62.3 per cent (74.9 per cent for men and 50.2 per cent for women), while the unemployment rate was 4.1 per cent (4 per cent for men and 4.3 per cent for women). Finally, the Government indicates that, as of 1 August 2019, 14,300 persons (of which women represented 67.3 per cent and young people 22 per cent), secured employment after receiving employment counselling provided by the public employment services. The Committee requests the Government to provide updated detailed information on the manner in which it determines and keep under review, within the framework of a coordinated economic and social policy, active labour market policies and measures to achieve the objectives of full, productive and freely chosen employment. It further requests the Government to provide updated detailed information, including statistical data disaggregated by age, sex and region, on the nature, scope and impact of the measures adopted to promote full, productive and freely chosen employment. The Committee also requests the Government to provide updated information, including statistics, disaggregated by sex and age, with respect to labour market trends, specifically labour force participation, employment both in the private and the public sector, and unemployment.

Education and training. The Committee notes that, according to the 2018-2022 Development Program, that the educational system does not provide a significant proportion of Kyrgyz citizens with the skills and knowledge necessary to enable their competitive participation in the labour market. Key challenges highlighted in the 2018-2022 Development Programme include: the vocational education system does not meet the needs of a changing labour market or development priorities; higher education available does not provide tangible benefits to graduates; the working population does not have access to opportunities for advanced training and retraining; and key stakeholders are not fully involved in the education reform process. In this respect, the Committee notes that the “Programme to promote employment and regulate internal and external migration up to 2020” contemplates the adoption of measures with the aim of strengthening training, retraining and skills development training systems to improve the workforce’s competencies. In addition, the 2018-2040 Development Strategy includes among its development objectives ensuring that every citizen has access to quality education and that the education system allows them to fulfil their potential and provides them with practical knowledge and competencies. With a view to attaining this goal, the 2018-2040 Development Strategy calls for the adoption of a set of measures, including ensuring access to and full coverage of pre-school and school education; improving vocational training quality in accordance with labour market demands; establishing a continuous development system and a National Qualifications System (NQS). In the same vein, the 2018-2020 Development Programme places priority on introducing dual education and strengthening communication with employers in relation to vocational education. Finally, the Government refers to the implementation of various initial vocational education programmes, as well as to vocational training, retraining and skills development programmes. The Government reports that, as of January 2019, there were 29,870 students participating in such programmes (with 30 per cent female participation), and that 77 per cent of those that graduated were subsequently employed in their area of specialization. The Committee requests the Government to provide detailed updated information, including statistical data disaggregated by sex and age, on the nature, scope and impact of the measures taken in the area of education and training. It also requests the Government to provide information on the progress made in the establishment and functioning of a continuous development system and a National Qualifications System (NQS).

Poverty reduction. The Committee observes that, according to the Labour Force Survey (LFS), in 2018, the working poverty rate stood at 15.5 per cent.The Committee notes that, in its concluding observations of 29 November 2021, the UN Committee on the Elimination of Discrimination against Women (CEDAW) expressed concern with regard to the high poverty rate (38 per cent), disproportionately affecting women, especially rural women, women single heads of household and women engaged in unpaid care work (document CEDAW/C/KGZ/CO/5, paragraph 37). The Committee notes that the 2018-2040 Development Strategy contemplates the adoption of a set of measures to introduce a system of social contracts with recipients of state benefits with labour potential; to promote employment coordinated with local self-government bodies and vocational education institutions in order to efficiently contribute to poverty reduction; and to measure multidimensional poverty. The Government indicates in this respect that a draft Government Decision was developed on the provision of one-off social support to low-income and disadvantaged families based on the social contract was developed. Moreover, the 2018-2020 Development Programme includes among its main objectives ensuring the dynamic development of the economy (at least 4 per cent) and stable growth in the incomes, with the aim of reducing levels of poverty to 20 per cent. The Committee requests the Government to provide updated detailed information on the impact of the measures implemented under the “National Development Strategy of the Kyrgyz Republic for 2018-2040”, and the “Development Programme of the Kyrgyz Republic for the period 2018-2022: Unity, Trust, Creation”, in terms of poverty reduction. In addition, it requests the Government to provide a copy of the draft Government Decision once it is available.

Ethnic minorities. The Committee notes that, in its concluding observations of 30 May 2018, the UN Committee on the Elimination of Racial Discrimination (CERD) expressed concern about the extremely low living standards of the Mugat, characterized by a high unemployment rate, low school attendance and high rates of school dropout, particularly among girls, as well as limited access to social services, notably due to a lack of documentation (document CERD/C/KGZ/CO/8-10, paragraph 23 (a)). The Committee requests the Government to provide updated information on the nature and scope of measures taken or envisaged to increase the opportunities of ethnic or national minorities in education and vocational training, as well as to ensure them equality of access in relation to employment and occupation. It also requests the Government to provide updated statistical information, disaggregated by sex and age, on the participation of ethnic or national minorities at all stages of education and vocational training.

Women’s employment. The Committee notes that, in its concluding observations of 29 November 2021, the CEDAW expressed concern about the low employment rate of women (44 per cent) and the persistent gender pay gap, including barriers to women’s promotion to management positions, higher paid jobs and decision-making positions; the concentration of women in the informal economy (64 per cent), often in exploitative conditions and without access to labour and social protection; and the limited access to decent employment for disadvantaged and marginalized groups of women, including women belonging to ethnic minorities, migrant women and women with disabilities. The CEDAW also expressed concern at the concentration of women’s entrepreneurship in low-profit sectors, such as wholesale and retail trade and agriculture, and in home-based work (document CEDAW/C/KGZ/CO/5, paragraphs 33(a), (b) and (f), and 37(c)). Against this background, the Committee notes that the 2018-2020 Development Programme established gender as a cross-cutting issue across all development measures taken and contemplated the adoption of measures to ensure equality of opportunity and treatment between men and women in respect of the right to work, as well as ensuring equal access to social and economic benefits. The Committee therefore requests the Government to provide updated detailed information on the measures taken or envisaged to promote women’s participation in the labour market, including in non-traditionally female occupations. It also requests the Government to provide statistical information on the labour market situation of women and men in the public and private sectors, disaggregated by sex, age, economic sector and occupation.

Youth employment. The Committee notes that, according to data available to the ILO Statistics Department, in 2021, the youth unemployment rate was 8.3 per cent (7.9 per cent for men and 9 per cent for women), and the share of youth not in employment, education or training (NEET) was 15.9 per cent (10 per cent for men and 22 per cent for women). The Committee notes that the 2018-2040 Development Strategy’s principal targets include ensuring that young people are actively involved in national development, creating an efficient youth development system and establishing the necessary legal framework for the effective implementation of the national youth policy. In connection with the latter, the 2018-2040 Development Strategy provides that the national youth policy should focus on promoting employment and self-realization of young persons in the country. The Committee requests the Government to provide detailed information on the nature, scope and impact of the measures adopted or envisaged, including those under the youth policy,to promote decent, productive and lasting employment for young women and men.

Informal economy. The Committee notes that, according to the 2018 OECD report, the informal sector increased from 60.2 per cent of total employment in 2002 to 71.8 per cent in 2014. The 2018 OECD report highlights that the rate is higher among men than women and higher in rural areas than in urban areas. Furthermore, the Committee notes from the 2015 World Bank report on “Transitioning to Better Jobs in the Kyrgyz Republic: A Jobs Diagnostic” that the growth in informality was fuelled by a complex regulatory environment for non-resident employment. The 2015 report emphasizes that, despite its Law on Internal Migration, the Kyrgyz residential registration system remains a modified version of the Soviet Propiska system, which requires employees to have official residential status. The process by which residential status is acquired is both complicated and non-transparent. The 2015 report points out that, as a result, many internal migrants do not register, and thus cannot be legally employed, creating large pools of unregistered cheap labour, a situation which contributes to increasing the size of the informal economy. The Committee notes that the 2018-40 Development Strategy contemplates the adoption of measures to facilitate the transition from the informal to the formal economy, such as promoting the advantages of effective transition to the formal economy and protecting the property rights of economic units during their transition to the formal economy. The Committee requests the Government to provide detailed information onthe nature and impact of measures taken to integrate informal economy workers into the formal labour market, especially internal migrants.

Small and medium enterprises (SMEs). The Committee notes that, according to the report of the 2015 World Bank report, approximately 60 per cent of domestic employment (formal and informal) takes place in firms with five workers or fewer, and only 6 per cent takes place in organizations of more than 60 workers. The 2015 report points out that formal sector employment is predominantly found in large enterprises, while informal employment is mostly found in small economic activities. The Committee notes that the 2018-2040 Development Strategy includes among its main goals increasing the share of SMEs to 50 per cent of the GDP by 2023. With a view to achieving this goal, the 2018-2040 Development Strategy contemplates the adoption of, among other measures, expanding financing programs, reducing the conditions of lending, establishing a special regime of administration and taxation for SMEs, and providing information as well as consulting support to businesses. It also envisages the additional allocation of KGS 15 billion to support SMEs over the next 5 years. In this regard, the 2018-2020 Development Programme contemplates developing and implementing a comprehensive national programme for the development of small and medium-sized businesses, establishing business services centres to support SMEs on the principle of a "single window" in all regions to ensure unified coordination of financial and non-financial support provided to entrepreneurs; improving financial support mechanisms to SMEs; continuing reforms to create an enabling regulatory environment and reduce administrative barriers. The Committee requests the Government to provide updated detailed information on the measures adopted to support the establishment of SMEs and on their result in terms of generating employment, including for specific groups, such as women, young persons and other groups in vulnerable situations. It further requests the Government to provide information on the status of the adoption of the comprehensive national programme for the development of small and medium-sized businesses and to transmit a copy once it has been adopted.

Article 3. Participation of the social partners in the formulation and implementation of employment policies. The Government indicates that an inter-agency working group, which will include representatives of the social partners, is being established with a view to developing a new programme to promote employment. With regard to the participation of persons affected by the employment measures, the Committee notes that the 2018-2040 Development Strategy contemplates providing support to civil society institutions and ensuring public access in the process of developing, adopting, implementing and monitoring decisions affecting national interests. It also notes that the 2018-2020 Development Programme contemplates the establishment of a set of qualitative and quantitative indicators agreed upon by all interested parties to monitor and assess progress made in advancing and achieving the economic and social priorities identified under the programme. The Committee requests the Government to provide updated information on progress made in the establishment of the inter-agency group contemplated. It also requests the Government to provide information concerning the manner in which the social partners are engaged and how their opinions are taken into account in the formulation and implementation of employment measures. It also requests the Government to provide information on consultations held with representatives of the persons affected by the measures taken, such as young people, women, ethnic minorities and other specific groups, in relation to the development and implementation of such measures.