The doctoral candidate of PhD, ZH.S. Bulkhairova

Master of management, Kuzmenko S.S.

Management chair,   Kazakh Agro Technical University of S.Seifullin, Kazakhstan

 

ASSESSMENT OF LABOUR POTENTIAL OF SELF-EMPLOYED PEOPLE IN RURAL AREAS OF KAZAKHSTAN.

 

World practice shows that with increasing economic level country and the growth of demand for labour interest in self-employment falls.

Recently in the Republic considerable efforts aimed at the formalization of labor relations self-employed and apply active measures to increase the availability of productive employment this category, especially in rural areas. Activities within the program "Employment-2020", along with other measures to provide employment, have a positive impact on the situation on rural labor market.  A brand new programme of employment where the employment is included in the social structure of the unemployed people by providing them with opportunities to work in self-organization conditions that allows you to implement the right to useful employment and providing for themselves and their families financially.

Theoretical approaches to the self-employment problem  in Kazakhstan has changed under the influence of transformational phenomena in the economy. Despite all efforts to the formalization of labor relations self-employed, "category" population is not strictly constituted by the concept. It did not specify the work object and the labour object. To some extent this is due to the fact that the law "About employment of the population still lack the clarity of the "self-employed" concept ". At the same time, a Large economic dictionary (2007), given the following concept: "self - employed population is persons engaged industrial activity, including those who currently are unemployed for reasons beyond their control". From the definition it follows that in this group as the economically active population includes both employed and unemployed labor or unemployed. This group of the population at different scales is available in all countries. Thus, the U.S.A. share of the self-employed amounted to 6.8% of total employment, Germany - 11,6, France - 11, Norway is 6.8%. However, in some European Union countries, their share in total employment is quite high and is, for example, in Greece 36.8 percent, Turkey - 37,1, Italy - 25,1, Poland - 22,4, Portugal is 21.9%. Among the Customs Union countries, the highest proportion of self-employed in Kazakhstan - 31,7%, while in Russia - 6% [1].

The organization for Economic Cooperation and Development classifies self-employed persons as individual entrepreneurs, it does not involve wage labour; entrepreneurs unincorporated business that attracts hired labor; members of producers' cooperatives; unpaid family workers [2]. In the classification of the International labour organization to include self-employed the first two categories, while members of production cooperatives and unpaid family workers business is treated separately [3].

In Kazakhstan in accordance with the updated Methodology to determine the number of self-employed and their average monthly income in Kazakhstan (2013) in this category of employment includes the following: employers; employed on an individual basis (registered and active); employed on an individual basis (inactive from the registered and unregistered); engaged in private plots in the production of goods for own consumption; engaged in personal part-time farm production only for the sale (exchange); members of cooperatives; unpaid family workers [4].

 Thus, under the employment you should understand this form of employment in which a person independently organize economic activity, usually aimed at making a profit (income). The scope of self-employment covers persons engaged in formal and informal business activities, and other types informal economic activity, which, unlike businesses, do not require special investment but can generate income.

In the economic literature there are different forms of self-employment - from household production for own consumption to small enterprises employing wage labour, melding the concepts of self-employment and business. Direct forms, within which the functioning of this employment type, advocates private property, based on personal labour, and individual, including both intellectual and entrepreneurial abilities.

Domestic experience shows that the system jobs, in addition to increasing the activity rate of rural employment, it also creates jobs in other, not directly related to agriculture, activities (services, manufacturing, construction, transport, etc.). In other words, one job in agriculture can contribute to the creation of 5 or more in other related fields. Therefore, in modern conditions economic factors efficient use of labor potential of self-employed population of the village should primarily include those associated with increased investment in agricultural production and to go to progressive structural changes, the development of a rational and productive system jobs.

Thus, self-employment represents a fairly broad term, therefore, the attitude towards self-employment should be on a multi-criteria basis, in particular with regard to employment, participation in the work members of one or several households, the use and degree organisation employment, legal status, size of capital, production and income received (cash or in kind, going directly for consumption), time spent at work, and some other" [5].  A further increase in economic activity of the rural population contributes to the formation of a layer owners and entrepreneurs in rural areas, the growth of competitiveness private sector in the goods production and services in the agriculture sectors.

In rural areas of the Republic, the self-employed number for the last 11 years (2001-2012) decreased only by 1.6% and is, as before, to 1.9 million people, while their share in the total employed population decreased by 12 % (from 59.4 to 47.4%) (figure 1).

As can be seen in figure 1, in recent years with the adoption of active measures to increase the scope this employment form of the rural population, the tendency growth to be subsiding (with 2010 year annually reduced by 20 thousand people).

years

 

the self-employed proportion

 

the self-employed number

 

Figure 1 - Dynamics the self-employed number and share of the rural population for 2001 to 2012.

 

Effective measures for the conduct of industrial policy provide to be self-employed labour mobility and to realize the employment potential in the forms that are most adequate to the real employment in rural areas. This employment form allows you to apply your abilities and gives you the opportunity to act as independent free private entrepreneur, an active participant of market relations and competition where it can, to the maximum extent to develop and exercise their entrepreneurial spirit, innovative energy, initiative, the ability to make decisions independently and to choose the direction and modes of operation, i.e., to fully realize the potential of their abilities, knowledge, experience. When self-employment has the opportunity to utilize the rural population towards entrepreneurship in the self-employment process, to revive national crafts, self-realization, where features are: the inextricable link of personal income with the economic management results; economic responsibility for the management results; mobility, flexibility of structure and production technology; self-organization and economic freedom.

Due to the fact that self-employment is an extremely heterogeneous phenomenon from the point view of work nature and professional qualification level, positive trends in their development can be traced in the business services sphere, where labour is creative, innovative character, and the main means of labor are knowledge and information. These include both representatives of creative professions with a high level education and skills (doctors, lawyers, architects, programmers) and unskilled workers, handicraft labor.

Thus, for rural areas, where more than 45% of the population, one third of which works on a standalone basis, the development of self-employment, assistance in the establishment of domestic enterprises and enterprise organization and performance of work in the personal sector through hiring employees will help to minimize social tensions in rural areas. On the other hand, this will give the opportunity to create many new jobs with minimal capital expenditures and will attract to the active employment of people previously were unable to work (pensioners, invalids, women with small children, etc.). In addition, government support of self-employment in opening your own village or organization home business, and measures to increase their skills will largely mitigate the employment problem on the permanent jobs, especially among young people.

 

References:

1. Self-employed individual countries.- www.oecd.org, 10.08.2012

2. The organization for economic cooperation and development.- http.// oecd moscow.9.com1.ru/oecd_rf.htm.

3. International recommendations on labour statistics.-M: Finstat-inform, 1994.

4. Method of determining the self-employed number, their average monthly income and the unemployed number of population Kazakhstan. - Astana: Agency of the Republic of Kazakhstan on statistics, January 10, 2013 № 3.- 12 p.

5. Zherebin V. M. Self-employment of the population: different approaches to the determination and evaluation of // Questions of statistics