Cashback for graduates

Employers will be able to receive subsidies from the state for the employment of graduates who completed their studies in higher and secondary vocational education institutions in 2020. The Ministry of Labor proposes to expand the current program of subsidizing job creation to this category of citizens. According to the department, among all groups of the unemployed, it was the graduates who had the greatest difficulties with employment during the pandemic.

The Ministry of Labor proposes to subsidize employers to hire graduates of higher and secondary vocational educational institutions in 2020, the corresponding draft resolution is published on the portal. According to the department, this will reduce the level of unemployment in the Russian labor market. According to the instructions of the President, by the end of the year the Ministry of Labor should return it to the pre-crisis level (below 4.7%).

Now this figure is 5.4%. This means that by the end of the year the number of unemployed should be reduced by about a million people – the Ministry of Labor plans to cover about 40% of unemployed with employment support programs. Three projects are being implemented at the federal level, the most ambitious one is subsidizing employment. It should cover 220 thousand people. Employment centers can provide subsidies to companies in the amount of three minimum wages (minimum wages) for the employment of citizens who were registered as unemployed before January 1, 2021. The first payment is transferred one month after the unemployed is employed, the second – three months later, the third – six months later.

As follows from the text of the draft resolution, this program will be extended to graduates of 2020 who have not found a permanent job and registered at employment centers – both before and after January 1, 2021. As explained to Kommersant in the Ministry of Labor, graduates of 2020 turned out to be one of the most affected categories of citizens – “because of their little work experience, it is difficult for them to find a job in a normal situation, and because of the coronavirus, they also had to compete with more experienced specialists who lost their jobs during the pandemic. ” They also noted that employers are not interested in hiring graduates, because then they will have to spend money on their adaptation in the first job.

The department explained that the program can be used by “any employer from any industry in any region.” Subsidies can be used to organize the workplace, to offset the cost of mentoring or other needs. Now, according to the Ministry of Labor, about 15 thousand people fall under the criteria of the program – these are graduates who are already registered with the employment services.

It should be noted that labor market research does record the difficulties that young workers face when looking for a job. According to Rosstat, the unemployment rate in the 19–25 age category is about twice the average. However, the potential for increasing interest in graduates with the help of state subsidies is limited – it is unlikely that such modest payments will be able to help overcome the large-scale discrepancy between the opportunities of Russian education and the requirements of the labor market.

Anastasia Manuilova

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