KYRGYZSTAN: successful youth – successful country
CHAPTER 5. LABOR AND EMPLOYMENT Work occupies an important place within the concept of human development, because work that meets a person’s needs and provides adequate income is the basis for a decent standard of living. The main problem for young people in the job market is that, while they have high salary expectations, their qualification and experience often do not meet employers’ requirements. Youth in Kyrgyzstan compose a significant part of labor force, but they do not have the competitive advantages of older, more experienced workers.
5.1. Analysis of the labor market
One of the important characteristics of the Kyrgyz labor market is the fast-growing working population, which is underpinned by the country’s high birth rate. 53 Youth comprise 51 percent of “supply” in the labor market. In 2007, 62 percent of youth were economically active 54 (as compared with 65 percent of all Kyrgyz citizens). 55 The employment rate among youth (56 percent) is slightly lower than the employment rate for the country overall (60 percent). A share of women among employed youth makes 39.3 percent. The employment of young people by sector reflects the structure of Kyrgyzstan’s economy. Despite the overall positive dynamics of employment indicators from 2003 to 2007, there remains an oversupply of workers in the labor market. However, the number of workers employed in construction, trade and services, and the textile industry has grown significantly. Urban workers are employed mainly in the private trade and services sectors. Most employed workers live in rural areas (65 percent). Around 38 percent of all employed youth work in the agricultural sector, which is characterized by seasonal work and low salaries. 56 In 2007, the finance sector offered the highest average monthly salary (around $290), while the healthcare and education sectors offered lower salaries (around $70), and agriculture provided the lowest (around $48). Agriculture was the only sector that was losing workers and the workers it was losing are youth.
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http://mz.kg/ru/analytics. Economically active population is a narrower segment of population than labor resources. It is a population offering its labor to produce/ manufacture goods and services. Economically active population includes both employed and unemployed.
Results of an Integrated Examination of Households in 2007. National Statistical Committee.
56 Results of Integrated Examination of Households in 2007. National Statistical Committee.
Diagram 5.1 Distribution of employment among Kyrgyzstanis aged 15 to 34 in 2007 (%)
The fact that 16 percent of all employed youth work in business, repair automobiles, fix household goods, or produce personal use items is not accidental. This sector offers higher incomes and is characterized by high cash flow; startup and operating expenses are relatively low. Young people are drawn to this sector by the convenient locations of the jobs: markets, stores and other sales outlets are located within the city, not far from places where young people live and study. According to 2007 State Committee for Migration and Employment research, the workers in highest demand are those with higher and secondary educations (22.6 percent), qualified technical workers (20.4 percent), equipment operators and engineers (22.3 percent) and laborers (17.7 percent). The need for blue collar professions is two to three times greater than the need for office workers and managers. The result is that young people who prefer to get university degrees instead of entering blue collar professions end up filling the country’s low-paid jobs.
Trade and Repair Works 17% Construction 11% Agriculture 38% Education 5% Industry 10% Transport & Communications 5% Hotels & Restaurants 3% Public Administration 4% Other 7%