Foreign Employment Practices Are Relevant in Russia

2 july 2015

Experts of the Analytical Center prepared the social newsletter “Foreign Experience in Implementing Current Employment Programs during the Global Financial Crisis”.

The experts write that their analysis shows a great similarity of activities under current employment promotion programs in some foreign countries (the USA, Canada, and Germany) and in Russia, both during the global financial crisis and in the post-crisis period. It also shows the efficiency of such activities in terms of their effect on national labor market parameters, as well as other macro, social and economic indicators (poverty level, social stability, etc.).

Experts said that in addition to the similarity, these programs abroad were found to make use of a variety of other activities having no analogs in the domestic practice. Among them the experts mentioned professional training and retraining programs for elderly people, people with disabilities, indigenous people, preferential taxation programs for people and businesses, especially small and medium ones, direct governmental investment programs, in particular, in the social and transport infrastructures, and business lending programs.

“It is important that these programs in foreign countries are used as tools of active labor market regulation rather than of anti-crisis measures, including macroeconomic ones,” assured authors of the bulletin. According to them, such approach seems appropriate for application in Russia, in particular, when designing activities for the governmental Employment Promotion Program and similar programs at the level of constituent entities, as well as within additional actions in the employment area focused on reducing the tension in the labor markets of the Russian Federation. The experts believe that a diversity of programmatic tools and ensuring an integrated and systematic approach will enhance the manageability of employment programs and the efficiency of budget spending for the said purposes.

It is also reasonable to apply in the domestic practice some approaches to implementing investment programs that are used as measures of active employment policy in foreign countries in crisis conditions, according to the experts. In their view, it is required to have specialized target investment programs managed by various entities, while the level of investment program co-financing from the state budget should not exceed 75%. In addition, it takes using specialized funds (both governmental and non-governmental) as entities managing investment projects and combining competitive and non-competitive principles to select investment projects and their participants.

Please see details in the Newsletter Foreign Experience in Implementing Current Employment Programs during the Global Financial Crisis.

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