Dear Members of the Investment Council and Business Associations,

We have prepared an analytical brief on the current state of workforce training and the adaptation of the education system to labor market demands. This brief examines the key aspects of interaction between educational institutions and the labor market, as well as initiatives aimed at enhancing human capital quality and the competitiveness of our economy.

ANALYTICAL BRIEF ON THE CURRENT SITUATION IN WORKFORCE TRAINING

Analysis of the Current Situation

Modern labor market trends are characterized by rapid technological advancements and significant shifts in workforce skill requirements. According to the World Economic Forum’s report on the future of work, it is essential to consider the fast-evolving labor market, driven by new technologies like automation and digitalization. These technologies are transforming skill and qualification demands, leading to the emergence of new professions and reduced demand for traditional roles. In light of these changes, the development of a national qualifications system, aimed at raising professional skills and competencies, becomes crucial for global competitiveness.

Under the National Development Strategy of the Kyrgyz Republic for 2018-2040, one of the priorities is creating conditions for the comprehensive development of human potential. In this direction, the government is taking steps to improve educational programs, implement dual education, develop training and production centers, and stimulate private investments in the education system. These measures are aimed at improving education quality and aligning it with current labor market demands. Consequently, the state is undertaking efforts to reform the education system, develop new professional standards, and enhance workforce training mechanisms.

National Qualifications System

To improve specialist training quality, the Cabinet of Ministers of the Kyrgyz Republic approved a methodology for developing professional standards and industry qualification frameworks on July 15, 2021. Currently, the Register of Professional Standards includes 67 professional standards across various sectors, including healthcare (e.g., nurses and paramedics), agriculture (e.g., agronomists and livestock specialists), information technology (e.g., cybersecurity experts and software developers), and construction (e.g., civil engineers and designers). Additionally, a National Qualifications Council has been established to coordinate activities among government agencies, employers, and educational institutions in the development of the national qualifications system.

National Qualifications Council and Its Role

The National Qualifications Council (the "Council") is an advisory body created to coordinate the activities of government agencies, employers, educational institutions, and NGOs in planning, implementing, and monitoring the development of the national qualifications system. The Council includes representatives from various ministries, business associations, and industry organizations, enabling it to effectively consider the interests of all labor market participants.

Council Composition:

• Deputy Chair of the Cabinet of Ministers of the Kyrgyz Republic, Social Affairs, Chair of the Council;
• Deputy Minister of Labor, Social Protection, and Migration of the Kyrgyz Republic, Deputy Chair of the Council;
• Deputy Ministers of Education and Science, Finance, Economy and Commerce, Agriculture, Transport and Communications, Health, Energy, Natural Resources, Ecology and Technical Supervision, Digital Development of the Kyrgyz Republic;
• Senior Vice President of the Kyrgyz Republic Chamber of Commerce and Industry;
• Presidents and heads of various industry associations, including Bio-KG Organic Movement Federation, Mining and Geologists Association, Builders’ Union, Communications Operators Association;
• Representative of the Federation of Trade Unions of Kyrgyzstan;
• Directors of light industry, public catering, and leading restaurateurs and hoteliers’ associations, software developers, and service providers;
• Head of the Secretariat of the National Alliance of Business Associations;
• Head of the Resource Center LLC "Kyrgyz Knauf Marketing";
• Head of the Training Center of North Electric Joint-Stock Company.

The Council performs the following functions:

1. Coordinating Function: Ensuring collaboration between all stakeholders (government bodies, labor market representatives, educational service providers, international organizations, etc.) for the comprehensive development of national qualifications system elements, ensuring consistency and transparency of procedures, their compatibility with international methods, and recognition of qualifications at regional and transnational levels. For example, a sectoral qualifications framework was successfully developed in construction, improving workforce training quality and international qualifications recognition.
2. Methodological Function: Developing elements of the national qualifications system (sectoral frameworks, professional standards, assessment tools, etc.) for comparability of results. One successful example is the development of professional standards in IT, creating clear criteria for specialist training and improving educational quality.
3. Educational Function: Coordinating the training of entities involved in the development and application of the national qualifications system. For instance, training seminars were organized for educational institutions’ representatives to implement dual education and improve teacher qualifications.
4. Informational Function: Disseminating information to the public, providing access to methodological and regulatory documents on national qualifications system development. The Council also launched an awareness campaign to encourage employers’ involvement in shaping educational standards, significantly boosting private sector engagement.

Business Community’s Role in the Council

The business community actively participates in the National Qualifications Council's work. Employers can offer suggestions on workforce training and professional standards development, crucial for aligning education and training systems with actual labor market demands. If you have ideas or initiatives on this topic, you may contact the Ministry of Labor, Social Protection, and Migration’s Labor Decision-Making Office. Your initiatives and suggestions will help make this mechanism even more effective and adaptable to economic realities.

Key Challenges and Solutions

A major challenge remains improving the interaction between educational institutions and the labor market. According to World Bank research, over 50% of graduates in the Kyrgyz Republic struggle to find jobs due to a mismatch between acquired knowledge and employer requirements. This underscores the need for close collaboration between educational institutions and businesses to create programs that meet contemporary labor market demands. Existing programs should be more flexible to address the constantly changing market needs and provide graduates with up-to-date knowledge and skills. Strengthening private sector participation in curriculum development and workforce training is crucial for aligning the educational process with professional demands.

Further work is also needed on lifelong learning, a vital factor for supporting professional mobility and adaptation to changes. Specific steps, such as establishing adult education centers, creating advanced training courses, implementing remote learning, and expanding retraining programs for various professional groups, are underway. Recognizing informal and spontaneous learning, as initiated under the National Strategy, is another effective tool.

Recommendations and Future Prospects

To improve the situation, the following recommendations are proposed:

• Strengthening ties between education and business. Private companies should actively participate in forming educational programs and student internships.
• Developing continuous learning. Educational institutions should provide opportunities for workers’ skill enhancement throughout their professional lives.
• Investing in educational infrastructure. Improving the technical base of educational institutions and incorporating modern technologies into the learning process is essential.
• Creating new professional standards. Based on economic needs, professional standards should be created and revised to match current and future market demands.
• Forming professional communities and platforms for knowledge exchange. Creating industry associations and communities can become an essential step in sharing knowledge and best practices.

Conclusion

The Cabinet of Ministers of the Kyrgyz Republic has created a working mechanism allowing employers to actively shape workforce training. Employers can use this mechanism to submit proposals for educational program improvements, develop professional standards, and participate in the National Qualifications Council's activities. For example, companies can apply to create specialized courses to train specialists in specific sectors or arrange student internships, which have been successfully implemented in IT and construction.

The National Qualifications Council and other institutions described above provide a platform for collaboration among government bodies, businesses, and educational institutions, making workforce training more efficient and aligned with modern labor market requirements.