The formal private sector has the greatest potential to create good jobs, says in the recent World Bank Report –Transitioning to Better Jobs in the Kyrgyz Republic: A Jobs Diagnostic, which was presented today during a round table meeting in Bishkek.
The productivity of workers engaged in the formal sector is significantly higher than in the informal sector, allowing for significantly higher wages (with the wage premium for working in the formal sector estimated at about 90% in 2012 ). But the Kyrgyz private formal sector remains small in size and has not exhibited significant employment creation, particularly given its relatively strong output growth. Only 11% of all of domestically employed workers in the Kyrgyz Republic are employed in the formal private sector, the lowest proportion of all CIS countries. Moreover, despite the fact that formal sector output has grown by about 6.6 percent a year since 2009, job creation has averaged less than 0.4% a year (excluding public sector employment, the formal sector actually shed jobs at a rate of more than 0.5 % a year), says in the report.
Original url : kabar.kg