Direct Request (CEACR) - adopted 2020, published 109th ILC session (2021)

Employment Policy Convention, 1964 (No. 122) - Mongolia (Ratification: 1976)

The Committee takes note of the information provided by the Government in light of the decision adopted by the Governing Body at its 338th session (June 2020). The Committee proceeded with the examination of the application of the Convention on the basis of the information contained in the Government's report received in September 2020.

Articles 1 and 2 of the Convention. Employment trends, implementation of an active employment policy and measures to address the COVID-19 pandemic. In its previous comments, the Committee requested the Government to provide information, including statistical data disaggregated by age and sex, on the impact and effectiveness of active labour market measures taken under the national employment policy to reduce unemployment and promote the objectives of full, productive and freely chosen employment. The Committee has also requested the Government to provide disaggregated data on the labour market situation, levels and trends of employment, unemployment and underemployment. The Government indicates that active labour market policies and employment promotion measures are implemented through the standard labour market services and employment promotion measures (Clause 6.2 of the Law on Employment Support) to support full and productive employment. In this regard, the Committee notes the detailed statistics provided by the Government in its report on employment trends, services and funding for the period 2016-2019. In particular, the Committee notes that during the period 2016-2018, the Employment Promotion Fund allocated 66.4 billion Mongolian tugrik (MNT) to 18 programmes, two pilot projects and other measures to meet the demands of 146.400 citizens from vulnerable groups, such as youth, persons with disabilities, long-term unemployed, herders, parents with children with disabilities and older workers. As a result, in the second quarter of 2019, 15,682 employments have been created (6,125 permanent and 8,351 temporary jobs), and 20,595 citizens have benefited from employment promotion programmes (57.5 per cent women and 42.5 per cent men). Concerning the labour market situation, the Government indicates that at the end of 2018 the labour force was estimated to be 1.4 million (59.6 per cent in urban and 40.4 per cent in rural areas) out of which 92.2 per cent were in employment, and 7.8 per cent were unemployed (57.7 per cent males and 42.3 per cent females). The Committee notes that the national unemployment rates were higher in urban areas (9.4 per cent) than in rural areas (5.2 per cent) and that the highest unemployment rate was registered among young first-time jobseekers (ages 15-24). It further notes that in the reporting year, 61.3 per cent of unpaid family workers were women. The Committee requests the Government to continue to provide up-to-date, detailed information on the results of the measures implemented and on trends in the labour market, especially in relation to the economically active population, employment and unemployment, disaggregated by sex and age. The Committee further requests the Government to provide information on the manner and extent to which the measures implemented have enabled the beneficiaries to obtain full, productive and sustainable employment. The Government is also requested to provide information on the impact of the COVID-19 pandemic on the implementation of the Convention.

Vocational training and education. The Committee previously requested the Government to provide updated detailed information on the impact and effectiveness of the measures taken in the area of vocational training and education and their relation to prospective employment, including available statistics disaggregated by age and sex. It also requested the Government to provide information on measures taken or envisaged to provide vocational training and education in rural areas and remote communities, as well as to particular groups, such as young persons, people with disabilities, older workers, herders and those working in the informal economy. The Government indicates that since September 2018, the Ministry’s Division on Vocational Education and Training was re-organised to oversee the training and vocational education of citizens through 86 educational institutions, such as the Vocational Training and Production Centre, Polytechnical College, etc. The Government indicates that three programmes were initiated during 2016-2018 and renewed in 2019 by the Resolution No.1 of the National Employment Council to promote employment and provide education and training to citizens. These programmes were implemented throughout 21 aimags (provinces) and nine districts of Ulaanbaatar in order to promote employment through skill training, preparation for the labour market, on-the-job apprenticeship, experience exchange and knowledge sharing. The Committee notes the detailed information concerning the results of the implementation in 2019 of the Program for Work Preparedness and Employment Skills Training, the Herders’ Employment Promotion Program and the Program to Develop Veteran Experts’ Consultancy Service. The Committee requests the Government to continue to provide information on the impact of the measures taken in the area of education and training, including those adopted in the framework of the three aforementioned programmes, and on their relation to prospective employment opportunities. It also requests the Government to provide information on progress made in providing vocational training and education in rural areas and remote communities. The Government is also requested to provide information on the measures taken or envisaged to ensure that technical vocational education and training curricula and programmes are coordinated with existing and anticipated employment opportunities, to meet the current and evolving needs of the labour market.

Employment services. Collection and use of employment data. The Committee previously requested the Government to provide updated detailed information on the functioning and impact of the employment centres as well as on the online employment registration system, including information on the numbers of persons placed in employment through this system. The Government indicates that the employment service centres carry out activities such as providing information to jobseekers and employers as well as collecting and processing information with the assistance of the central labour Market Information System (LMIS). The LMIS software connects all staff, divisions, departments and other units in public and private employment agencies (aimags, Capital city and its districts, soums (counties) and khoroos (sub-districts)) and provides online services through its website (http://www.hudulmur-halamj.gov.mn). The Government further indicates that local employment service centres collect and publish information on vacancies received from employers in their administrative territories and provide advertising services to the unemployed through its showrooms. The Committee notes that job intermediary services, employment and professional orientation services, as well as advisory and information services, are provided through private employment services on a contract basis. The Committee notes that from 2016 to the second quarter of 2019, these services have provided jobs, professional orientation, advices, and information to 272,300 persons among which 98,107 persons were placed in new jobs and 107,871 were registered as unemployed. The Committee requests the Government to continue to provide information on the activities of the employment services, including the number of beneficiaries of these services placed in lasting employment.

Small and medium-sized enterprises. In its previous comments, the Committee requested the Government to continue to report on the impact of measures taken to promote job creation in small and medium-sized enterprises (SMEs). The Government indicates that since 2016, the Ministry of Agriculture and Light Industries that is in charge of SMEs has adopted a proactive policy and carries out measures to promote employment for micro-businesses, household businesses and self-employed people. The Committee notes that the Law on SMEs, adopted in 2019, incorporates a provision to promote entrepreneurship and support employment of the self-employed, partnerships and cooperatives. It also provides entrepreneurs with business development support and loan services. The Government indicates that, in 2016-2018, the National Employment Council introduced the Job Support Program to help the development of household and micro-businesses by providing training and financial support or microloans (up to MNT 10 million) to job seekers and entrepreneurs. The programme was renewed in 2019 (Resolution No.1 of 2019 of the National Employment Council) and is being implemented throughout 21 aimags and nine districts of Ulaanbaatar. The Committee notes that by the second quarter of 2019, the programme has served 18,194 citizens and provided employment to 11,748 persons. The Government indicates that small loans were provided by the Employment Promotion Fund to support self-employed, micro-production, service businesses, herders, and citizens who plan to establish partnerships and cooperatives. The Committee notes that in 2016-2018, the Employment Promotion Fund provided loans (MNT35.9 billion) to 4,874 small businesses which helped to retain 4,000 jobs and create about 3,000 new jobs. The Government also indicates that since 2019, a “Pilot Program to Support Labour Market” was implemented within the framework of a general programme of financing (Resolution No.2 of the National Employment Council, 2018). The programme plans to allocate MNT8.0 billion for small loans to support micro-businesses. The Committee notes that in 2019, agreements were concluded to provide such small loans through commercial banks in 21 aimags. The Committee requests the Government to continue to provide updated information on the effectiveness of financial measures and programmes implemented in support of SMEs and their impact in terms of improving the SMEs business environment, enhancing workers’ skills and creating new enterprises. It also requests the Government to provide statistical information on the number and type of enterprises established and the number of jobs created by such enterprises. In addition, the Committee requests the Government to provide information on the impact of the new Law on SMEs, adopted in 2019, on the promotion of entrepreneurship and creation of small and micro enterprises.

Specific categories of workers. The Committee previously requested the Government to provide updated information on the impact of the measures taken to create opportunities for sustainable and lasting employment for young persons and persons with disabilities, workers in rural areas and remote communities as well as the measures taken to facilitate the transition of workers from the informal to the formal economy and those taken in the area of labour migration. The Government indicates that the National Employment Council has adopted and implemented employment promotion programmes and projects for different groups of the population through departments/divisions in charge of labour issues at aimags, capital city and district levels. In this respect, the Program to Support Youth Employment and Start-up Businesses, which has created 195 jobs for youth, is being implemented throughout all 21 aimags and nine districts in Ulaanbaatar. The Government further indicates that the “Employment Promotion Program for the Disabled” is providing incentives to employers and skill training as well as employment and financial support to persons with disabilities. By the second quarter of 2019, the programme has provided employment for 662 persons with disabilities. With regard to the workers in the informal economy, the Government indicates that the non-agricultural informal sector employs 918.900 persons (73.3 per cent) which are primarily concentrated in urban areas (54.8 per cent of the employees in non-agricultural sectors are in Ulaanbaatar). The Committee notes that, in 2018, 220.000 persons were working in the informal economy ((131.700 men (59.9 per cent), and 88.300 women (40.1 per cent)). The Government indicates that the Law on Employment Promotion of 4 February 2015 has been amended to facilitate the transition to the formal economy through the extension of loans to the private sector and citizens willing to form partnerships or establish cooperatives as well as offering financial support to micro and small enterprises. The Government further indicates that, in 2017-2018, Memorandums of Understanding (MoU) on cooperation to send workers abroad have been concluded with Japan and the Republic of Korea. It further indicates that the Ministry of Labour and Social Protection has drafted a Law on Migration of the Labour Force, in consultation with interested parties, which has been submitted to Cabinet for review before referral to the Parliament. The Committee requests the Government to continue to provide detailed and updated information, including statistics, on the impact of measures taken to promote employment, in terms of job creation, in particular for young persons, persons with disabilities and agricultural workers in rural areas and remote communities. It further requests the Government to provide updated information on the measures taken to facilitate the transition from the informal to the formal economy as well as on the status and the content of the draft Law on the Migration of the Labour Force.

Article 3. Consultation with the social partners. In its previous comments, the Committee requested the Government to provide information on the outcome of the consultations held with the representatives of employers’ and workers’ organisations on the formulation and implementation of employment measures. The Government indicates that the National Council composed of three representatives from the Government, the Confederation of Mongolian Trade Unions (CMTU) and the Mongolian Employers Federation (MONEF) is in charge of developing proposals on policies, strategies and programmes of action to implement the Law on Employment Promotion. The Committee notes that, in 2017, the National Employment Council updated the “Charter of aimags, Capital city and district councils of employment” to enable local governors to chair local tripartite councils (30 such councils have been established) in order to oversee the implementation and coordination of labour market policies in soums (counties) and khoroos (sub-districts). The Government indicates that, in 2016-2019, the National Employment Council implemented programmes and projects to create employment for job seekers, long-term unemployed, herders, self-employed, including through the establishment of cooperatives. The Committee requests the Government to continue to provide information on consultations held with the social partners in accordance with Article 3, as well as to provide information on the manner in which representatives of persons affected, including those in the informal economy and in rural areas are consulted in the formulation and implementation of adopted or envisaged employment policies and programmes.