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Sultanov Jasur Aminbayevich, PhD researcher of Urgench State university E-mail: sultanovjasurbek@mail.ru Chuponov Sanat Otanazarovich, Assistant teacher of Urgench State university E-mail: s_khorazmiy@mail.ru
The role of employment support centers of controlling local labour market
Abstract: In this issue there were analyzed the features and directions of controlling local labour market in Khorezm region of the Republic of Uzbekistan and the role of employment support centers at this process.
Keywords: Labour market, unemployment, labour resources, economically active population, economically inactive population, the level of labour market tightness, employment support center, household affairs.
Labour market is a complex and diverse socio-economic branch of market economy, which controls attitudes between employers and people who are working and not working and directly controls demand and supply of labour forces at the base of agreements which take into consideration their private interests.
The main elements of labour market's structural part are as follows: Demand for the workers and its supply, value, cost and competition of employment.
Unemployment is one of the main problems of labour market and none of the countries of the world can get rid of this "defect" today. Before creating the ways of decreasing the quantity of unemployment it is needed to clarify the basic meaning and actual condition of unemployment.
Economic point of view of unemployment is a position when economic active population are not earning from any activity. There are many various comments about the meaning of unemployment by international organizations and countries. For instance, in the
USA unemployed person is a person who did not work during last week and who is applied for any employers or labour exchange agencies because of a new job. If a person did not work one hour during the last week, this person is considered as an unemployed in Japan, In the UK unemployed person is a person who did not work during the last week and actively looking for work [7; 8; 9].
In our labour legality unemployed people are persons between the ages of sixteen and to the acquisition of pension rights, persons who are not working and have not any earnings (gainful employment), persons applied to the local labour agencies for assistance in finding employment and registered them as job seekers, persons ready to start working, to go training, retraining or upgrading qualification recognized as unemployed [1].
Ministry of Labour and Social Security of the Population of the Republic of Uzbekistan informs that the quantity of unemployed people and the share ofunemployed people on the structure of economic active population are decreasing. [10] (Table 1).
Table 1. - The dynamics of unemployment level in The Republic of Uzbekistan and the low part of Amudarya territory (Republic of Karakalpakstan and Khorezm) (Made by calculation of author on the base of information of Ministry of Labour and Social Security of the Population of the Republic of Uzbekistan) (Calculation on thousands)
Regions Years Changes from 2008 to 2012
2008 2009 2010 2011 2012 +, - %
Republic of Uzbekistan 567,7 631,5 628,2 622,4 626,3 58,6 110,3
Including:
Republic of Karakalpakstan 41,9 42,2 44,5 41,7 41,3 -0,6 98,6
Khorezm 28,0 35,1 33,6 34,6 35,6 7,6 127,1
As shown in Table 1, during 2008-2012 years the value of unemployed population increased to 58.6 thousand people or 10.3 percent. In Khorezm region during this period the increasing rate of similar types of people (27.1 percent) growth are higher than the medium size of republic. And during this period, the number of unemployed people contains 41.9 thousand or 1.4 percent decrease only in the Republic of Karakalpakstan among other regions of the Republic [8].
For the aim of increasing the number of employment of labour force, strengthening the responsibility of labour institutions on creating necessary condition, development of infrastructure of labour market and solving problems of employment, the president of the Republic of Uzbekistan made a decision № PQ-1251 "About the ways of improving the structure of Ministry of Labour and Social Se-
curity of the Population of the Republic of Uzbekistan" on the 30th of December, 2009. In this decision it is focused that, in the structure of regional center oflabour and social security of the population made some changes. For example, the name of the department labour, employment and social security of the population changed into employment support and social security of the population centers, and made a decision about organizing stationary places near big local authority which provides employment of unemployed people. This center deeply differs from old departments and the quantity of services are increased and given new tasks to this centers.
From the calculation of methodology of international labour organization of Khorezm regional labour and social security department of the low part ofAmudarya territory, real level of unemployment contained about 2,8 percent in 2014 year in Khorezm region.
Table 2. -The labour resources in Khorezm region are divided as following
Years 1994 2000 2012 2013 2014
1 2 3 4 5 6
The quantity of population, (thousand people) 1183,9 1338,2 1641,5 1668,8 1696,1
The role of employment support centers of controlling local labour market
1 2 3 4 5 6
At the capable age of labour force 542,0 645,4 914,2 932,8 951,4
The quantity of labour force 551,7 663,9 918,4 934,5 953,2
Their share on the population (%) 46,6 49,6 55,9 56,0 56,2
The quantity of economic active population 446,2 469,7 679,1 696,9 697,2
Their share on the population (%) 80,9 70,7 73,9 74,6 73,1
The quantity of employed population on the economy, (thousand people) 444,9 467,2 643,4 660,4 678,6
Their share on the labour resources (%) 80,6 70,4 70,1 70,7 71,2
Source: [9; 10]
Nowadays at the cause of appearing unemployment the following types have been identified in the region:
— Structural — the process of structural changes in labour market occurs when new fields of economy appear while the old one finishes its activities and changes the diversification of properties.
— Shadow — especially, this type of unemployment belong to agriculture and this fact has little demands for real labour force.
— Seasonal — it provides employment in some seasons and depends on producing, reproducing them and period of preparing of agricultural products.
— Unemployment of technical change — occurs when new changes or modernization of technology appear. For example, putting in use machinery instead of hand making at the result of research and technical achievements.
Analysis of persons applied to the labour exchange centers for assistance in finding a job in the districts of Khorezm region showed that during 2007-2011 years the quantity of applicants decreased to 2.1%, their quantity increased more in some districts than other districts. For example, in this period the quantity of applicants who applied to labour exchange centers increased to 125.0% in Kushku-pir district, 123.1% in Yangibazar district, 122.2% in Khanka district, 121.9% in Urgench district.
The main part of applicants, who applied for finding a job are being provided with jobs. For example, 76,3 percent applicants who applied to labour exchange centers of districts and Urgench city were provided with jobs in 2010 and this number reached nearly 90,0 percent in 2014.
For the aim of support to find job and decline the period of searching jobs, there have spent 450 free workforce regional exhibitions during 2007-2014 and 53,2 thousands of people, includes the youth, graduates of educational establishments, graduates of periodical army and persons who returned from prison took directions for jobs.
In the Republic of Uzbekistan there is a financial aid for social supporting unemployment, people who have not a job are attracted to gainful public works and being taught to profession.
According to the decision number 353 of the Ministry of the Republic of Uzbekistan on July 19 in 1999 "On Approval of Organizing Paid Public Works", paid public works are organized for the following aims [4]:
• paid public works are organized in order to provide temporary earnings (labour income) of citizens registered through labour authorities as job seekers and provide them with financial aid during that period;
• creating conditions for the temporary employment of citizens recognized by the labour authorities as an unemployed;
• attract persons who are first-time job seekers and do not have a profession (speciality) to labour activity:
• labour rehabilitation of persons who have significant interruptions in professional activity (previously occupied by child-
rearing, caring for sick and elderly family members, released from penal institutions and others) for various reasons;
• ensure with labour forces of socially important facilities of the economy and the social sphere.
As mentioned in the statute of Ministry of Labour of the Republic of Uzbekistan April 24, 1999 year "About prepare to profession and retraining of persons registered as unemployed, organize improving of their qualification" [5], in the republic of Uzbekistan prepare to profession and retraining of persons registered as unemployed, the system of improving their qualification includes teaching to profession and retaining and the stages and ways of improving qualification of them. These systems are following:
• The departments of the Ministry of Labour and Social Security of the Population of the Republic of Uzbekistan are specialized for preparing to profession and retraining unemployed people;
• Educational centers of regional labour authorities are specialized to give all types of skillful education for preparing to profession and retraining unemployed people;
• Profession and skill colleges;
• Educational departments of companies and organizations;
• Educational establishments of higher and secondary schools (academic lyceums) of the system of improving qualification and retraining;
• Commercial and private organizations and associations which ownership of permission for doing education;
• Entrepreneur master handicraftsmen's schools which members of the association "Hunarmand" are specialized to teach apprentices.
In the decision number 117 which was made on April 20, 2012 by the Ministry of the Republic of Uzbekistan "On Approval of Quarterly Estimates Status Indicators of The Business Environment and the Level of Socio-Economic Development in the Republic of Karakalpakstan, Regions and Tashkent city" [3] main indicators of labour market are being counted like these:
1. Unemployment level — over 10 percent critical, from 6 percent to 10 percent medium, from 3 percent to 6 percent moderate, less than 3 percent low level.
2. The level of labour market tightness (as example quantity of unemployed persons to 1 free workplace) — critical level over 6 people, Medium from 4 to 6 people, moderate from 2 to 4 persons, Low level up to 2 persons.
3. The level of employment of persons who have applied for work to the employment support and social protection centers — low level less than 75 percent, moderate from 75 percent to 85 percent, medium level from 85 percent to 90 percent, high over 90 percent.
According to the accounts, nowadays unemployment and the crisis level of labour market is constant in the region, the level of providing with jobs of applicants who applied to employment support and social security of the population centers is medium.
There is being taken following measures in order to provide labour resources with jobs in Khorezm region:
1. The activity of employment support and social security of the population centers are becoming stronger.
2. Employer who is creating new workplace is gaining enthusiasm. They are given tax, credit and other special privileges.
3. There is being taken actions of improving the level of quality and competition of labour force in labour market. For that, the system of preparing and preparing to the profession of labour resources are being developed.
4. The main intensive branches of providing population with jobs are developing. They are little business, private entrepreneur-ship, household affairs and services.
5. Some parts of population who need social protection are being given financial aid and there is a special system of workplace quotas for them.
6. At the participation of state and local budget sources there are being created temporary and public jobs.
7. Being given great attention to the correction of internal and external migration.
According to the order number PF-3706 of the president of the Republic ofUzbekistan on January 5, 2006 "On Measures to Stimulate Expansion of Cooperation between Large Industrial Enterprises and Services Based on the Development of Household Affairs"; large industrial enterprises have begun doing household affairs.
Strengthening cooperation between large industrial enterprises and homeworkers solves an important problem of increasing the income of family budgets, can dramatically reduce the number of
unemployed population and engage in productive activities of its active part. This provides the account of the strength of work years of homeworkers, which gives the right to the appointment of their pensions and social insurance benefits.
And one of the important facts about the development of home works is the decision of the ministry in July 1, 2008 about "On measures to improve the organization of home work and responsibility of heads of state authority and economic management for the execution parameters of its development".
During 2007-2014 years nearly over than 15 thousands of home work places are created. There are special privileges to the enterprises which participating in the creation of work place and to persons who are doing home works. There is one important fact that the role of home works at the employment ofpeople and income of family budgets is increasing day by day. As a first, we can emphasize that home works have a great social importance on providing with jobs of women, woman members of a large family, amputees and other persons who are not able work.
As a conclusion, simultaneously the quantity of labour resources and the quantity of employed population are increasing with high speed in region. While the amount of economic inactive population are increasing in a country, the amount of economic active population of the labour resources are increasing and economic inactive population decreasing in the region. The course of these results is a clever role of state on controlling labour market. Labour market is activating day by day on effective using of labour resources and its infrastructures are working successfully in the region.
References:
1. Labour code of the Republic of Uzbekistan//www.lex.uz
2. The Law of The Republic of Uzbekistan "On Approval of providing with jobs of population", Article - 5//www.lex.uz
3. The decision number 117 which was made on April 20, 2012 by the Ministry of the Republic of Uzbekistan "On Approval of Quarterly Estimates Status Indicators of The Business Environment and the Level of Socio-Economic Development in the Republic of Karakalpakstan, Regions and Tashkent city"//www.lex.uz
4. The decision number 353 of the Ministry of the Republic of Uzbekistan on July 19 in 1999 "On Approval of Organizing Paid Public Works"//www.lex.uz
5. The statute of Ministry of Labour of the Republic of Uzbekistan April 24, 1999 year "About prepare to profession and retraining of persons registered as unemployed, organize improving of their qualification"//www.lex.uz
6. Report of the President of the Republic of Uzbekistan Islam Karimov at the meeting of the Cabinet of Ministers dedicated to the socioeconomic development in 2014 and the most important priorities of economic program for 2015.
7. Muminov Kh. I. Bukhara viloyatida mehnat bozorini shakllantirish va uning faoliyatini rivojlantirish. - T.: UzR SA of economic institute, 2008. - P. 89.
8. Sadullayev A. Quyi Amudarya mintaqasining demografik rivojlanishi. Monografiya. Urgench, 2014.
9. Labour and employment in Uzbekistan. Statistical Yearbook. Tashkent 1994-2015.
10. The information of Statistics Committee of the Republic of Uzbekistan.
