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United Nations Department of Economic and Social Affairs Sustainable Development

Uzbekistan Public Works Programme

International Labour Organization (
Government
)
#SDGAction33555
    Description
    Intro

    The generation of a sufficient number of jobs remains a key development challenge for Uzbekistan. Unemployment in 2019 constituted 9% but increased to 13.2% due to COVID-19-related shutdowns during first six months of 2020. The Public Works Programme (PWP) is the largest labour market programme in the country managed and coordinated by the Ministry of Employment and Labour Relations (MELR) in collaboration with public and private sector employers. It is one of a range of active labour market programmes (ALMPs) offered to those who register as unemployed or as job-seekers with Employment Promotion Centres (EPCs).

    Implementation of the Project/Activity

    The PWP is managed by the MELR. The Government allocates funds to the PWF, which funds the PWP. Uzbek citizens register as unemployed or as job-seekers with EPCs (affiliated to the MELR). Local government, NGOs, and private sector employers submit applications to EPCs to hire workers under the PWP. The EPCs consolidate these requests and submit them to the Public Works Fund (PWF), which allocates funds. The EPC also monitor employer activities. All employers have to offer work under one of the 18 (increased from 9 pre-COVID-19) areas of public work and must indicate the number of people, duration, and skills requirements. While for local government the PWF covers the full salary, for NGOs and the private sector, it initially only covered 50 percent, increased to 100 percent after COVID-19. The PWF does not cover non-wage costs. There are different wage rates paid under the PWP, which are determined by the type of work. Before November 2020, wages were between 10 and 65 percent higher than the official minimum wage per month. Private employers can pay higher salaries, but they must pay the difference. In October 2020, the Uzbek Government increased the wages in the PWP (in line with increases in unemployment benefits). Participants previously had access to temporary jobs, between two weeks and three months, but after COVID-19 the period was increased to six months. Participation in the PWP does not impact access to other social protection benefits, but those in the PWP cannot receive unemployment benefits. For 2020, the Government allocated 450 billion soums to the PWF, which funds all the salaries and costs associated to the implementation of the PWP. The total amount includes an additional allocation of 200 billion soums to respond to COVID-19 jobs crisis.

    Results/Outputs/Impacts

    By October 2020, the PWP had provided temporary work to approximately 500,000 people across Uzbekistan, of whom 270,000 were women. 1,927 requests for 6-month contracts from private sector employers have been processed under the PWP, implying that 45,444 citizens received about 30 billion soums in salaries paid by the PWF. This further implies that private sector employers on average each employ 23.5 PWP workers.

    Enabling factors and constraints

    The PWP is based on partnerships between the MELR, EPCs, and public and private sector employers. The PWP is also assisted by the International Labour Organization (ILO). The Government is making adjustments and improvements to the PWP, to make it more effective, not least in the context of COVID-19. Together with the ILO, existing procedures, the overall institutional performance, and the quality of the public work service provision have been reviewed.

    Sustainability and replicability

    PWPs can be used as a mechanism to create jobs to address mass unemployment created by the COVID-19 pandemic. PWPs can be used both during the health crisis with appropriate safety measures and as part of the package for economic stabilization in the post-COVID-19 world. The Uzbek PWP and its review provide a template for how PWPs can be extended beyond the conventional approach of creating infrastructure, based on current experiences and innovations. The Uzbek PWP has generated good results and has underlined that having PWPs in place can significantly contribute to the management of potential social instabilities, including after the health crisis of COVID-19.

    COVID-19 Impact

    The PWP has become a key part of the Government response to the effects of the COVID-19 pandemic. It aims to respond to an anticipated rise in unemployment as well as the possible return of Uzbek migrant workers, who will add to the number of people seeking employment in the country. The Government has also made key adjustments in response to the crisis, including: increasing the funds of the PWF by an additional 200 billion soums; increasing the number of pre-determined areas of public works from 9 to 18 (including COVID-19-related activities such as monitoring quarantines, guarding checkpoints, and supporting the vulnerable); and increasing the salary cost threshold which private sector employers and NGOs can receive from 50 to 100 per cent.

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    Timeline
    01 June 2020 (start date)
    30 November 2020 (date of completion)
    Entity
    Ministry of Employment and Labour Relations
    Ongoing
    No
    SDGs
    Other beneficiaries

    The PWP is addressed to those who register as unemployed or as job-seekers with the EPCs (at present, only Uzbek citizens). The PWP specifically reaches the most vulnerable, including women and youth. The PWP is managed by the MELR but implemented through local governments, NGOs, and private sector employers. The EPCs consolidate requests from these employers and submit them to the PWF, which allocates funds.

    More information
    Countries
    Uzbekistan
    Uzbekistan
    Contact Information

    Azizkhon, ILO National Coordinator for Uzbekistan