Employment - The Times Of Central Asia

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Employment

Kazakhstan Climbs 13 Positions in the World Bank Human Capital Ranking

Kazakhstan has significantly improved its position in the World Bank’s Human Capital Index Plus (HCI+), rising by 13 places to rank 42nd out of 161 countries by the end of 2025. The index evaluates human capital development, including health, education, and workforce skills, all of which directly influence economic growth and investment attractiveness. Charles McLean, founder of Borderless Consulting Group, shared his assessment of the factors behind this progress in an interview with Inbusiness.kz. According to McLean, Kazakhstan’s rise reflects not only quantitative improvements but also qualitative changes in the country’s socio-economic landscape. “Kazakhstan’s rise by 13 positions is a highly positive and significant signal for the country’s socio-economic development, primarily driven by reforms implemented by President Kassym-Jomart Tokayev,” he said. He noted that improved indicators point to the emergence of a healthier, better-educated, and more skilled workforce, contributing to higher productivity and supporting sustainable long-term growth. Stronger positions in international rankings also enhance investor confidence and reinforce economic resilience. McLean identified two main drivers of progress: education and healthcare. In education, investment has increased at all levels from preschool to higher education. Improvements in teacher training, the quality of school education, and the alignment of national testing systems with international standards have contributed to higher skill levels across the population. Positive changes are also evident in the healthcare system. Enhanced medical infrastructure, expanded preventive programs, and improved access to healthcare services have contributed to rising life expectancy and lower infant mortality. McLean also highlighted Kazakhstan’s shift toward a more integrated approach to human capital development. This includes the digitalization of educational institutions and the expansion of vocational training programs. Additional emphasis is being placed on developing professional skills, delivering both short-term employment gains and long-term improvements in labor productivity. “If the current course is maintained, Kazakhstan can not only strengthen its position but also become one of the leaders among emerging markets in terms of human capital development,” McLean said. Given current trends, he assessed further improvements in Kazakhstan’s position in the HCI+ ranking to be realistic. Continued investment in human capital is expected to drive productivity growth, improve living standards, and enhance the country’s global competitiveness.

household income

Kazakhstan Targets Growth in Real Household Income

The government of Kazakhstan plans to increase real household income by 2–3% by 2029, according to the Ministry of National Economy. The program includes measures to stimulate employment, raise wages, support entrepreneurship, and create sustainable jobs. Key priorities include increasing wages for public utility workers, civil servants, and agricultural workers; expanding the share of wages in GDP; creating jobs in the manufacturing sector; supporting export-oriented enterprises; and reducing the financial burden on households. The ministry said 2026 will be a pivotal year for establishing sustainable income growth. A joint plan by the government, the National Bank, and the Agency for Regulation and Development of the Financial Market aims to reduce inflation to 9-11% in 2026, 5.5-7.5% in 2027, and 5-7% in 2028. Authorities expect that slowing inflation will increase the purchasing power of incomes. Inflation has already declined from 12.9% in September 2025 to 11% in March 2026. From April 1, tariff policy will be implemented more cautiously. The ministry estimates that tariff increases will add no more than 0.35 percentage points to inflation. At the same time, electricity and transportation tariffs for producers of socially significant goods are set to be reduced by up to 70%. The government also plans to limit the growth of budget expenditures, with their share of GDP expected to decline to 15.1% in 2026. Reductions in transfers from the National Fund will continue, and for the first time in five years, the budget is expected to be executed without targeted transfers. In 2025, targeted transfers from the fund amounted to approximately $6.9 billion, while the guaranteed transfer for 2026 has been set at $5.8 billion. According to the National Statistics Bureau, nominal household income grew by 10.2% in 2025, while real income declined by 1.1%. Average per capita income stood at approximately $506. The ministry noted that the decline in real incomes indicates that economic growth is not sufficiently translating into improved living standards, underscoring the need for additional measures to create jobs and raise wages. The Times of Central Asia previously reported that Prime Minister Olzhas Bektenov called for increasing the share of wages in GDP to 40%.

Labor Migration

Private Employment Agencies Expand Overseas Recruitment of Kyrgyz Migrants

Private recruitment agencies that arrange overseas employment for Kyrgyz citizens contributed about $230,000 in tax payments to the state budget last year, according to data published on the Open Budget portal. At the same time, some migrants say that working conditions abroad do not always match the promises made by intermediaries. Kyrgyz media report that 159 companies in the country currently hold official licences to facilitate employment abroad. While Russia remains the main destination for labor migration, interest in jobs in Europe and Southeast Asia has increased in recent years. Kyrgyz citizens can seek employment abroad through the Ministry of Labor, Social Security, and Migration, which has intergovernmental agreements with several countries, including the United Kingdom, Italy, Slovakia, and South Korea. However, many migrants continue to use private agencies, citing faster processing times and a broader choice of destinations. According to official information, licensed companies offer employment opportunities in 26 countries, with the largest number of permits issued for sending workers to Bulgaria, Turkey, Russia, Germany, and the Baltic states. Migrant experience One Kyrgyz migrant, Nurbek Nogoibayev, said he decided to seek work in Europe for the first time after previously working in Kazakhstan and participating in a Work and Travel programme in the United States. A welder by profession, he said a Bishkek-based agency offered him a factory job in Kaunas, Lithuania. “They promised inexpensive housing, a two-year residence permit, and stable work. I had an interview via WhatsApp, and since I speak English and Russian and have experience, they quickly accepted me,” he told The Times of Central Asia. After completing paperwork, obtaining a visa, and paying for travel, he arrived in Lithuania three months later. According to Nogoibayev, the contract signed in Bishkek specified a salary of €5.5 per hour with the possibility of gradual increases. However, he said he was asked to sign a new contract with different conditions upon arrival. He also reported higher housing costs than initially promised and changes to his working schedule, including a six-day work week and mandatory night shifts without additional compensation. When he contacted the agency in Bishkek, he said he was told it could not assist further. Nogoibayev added that he cannot easily change jobs. According to his understanding of local regulations, foreign workers are required to remain with their first employer for a certain period before switching employment, or risk losing their residence permit. He also said that leaving earlier could result in financial penalties. “I would like to work overtime to earn more, but that is not possible,” he said. Calls for oversight Cases such as this have prompted discussion about the need for stronger oversight of private recruitment agencies and improved protection of Kyrgyz citizens working abroad. Observers note that while overseas employment provides an important source of income for many households, disputes over contracts and working conditions remain a recurring concern.

Employment

Kazakhstan Authorities Acknowledge Gap Between Real Scale of Shadow Employment and Official Data

Kazakhstan’s authorities have acknowledged a significant discrepancy between official estimates of informal employment and administrative data, highlighting the scale of the country’s shadow labor market. Minister of Labor and Social Protection Askarbek Yertaev said the actual number of people working outside the formal economy could be almost three times higher than indicated by official statistics. He made the statement during a Senate meeting devoted to regional development issues. Presenting the ministry’s assessment of informal employment, Yertaev noted that out of a workforce of 9.7 million people, only 6.7 million made mandatory pension contributions at least once in 2025. Of these, 5.3 million were employees and 1.4 million were self-employed. This leaves around 3 million people without recorded pension contributions. According to the minister, the figure significantly exceeds official estimates. Data from the National Statistics Bureau indicated that at the beginning of 2025, informal employment accounted for about 12% of the employed population, or just over 1.1 million people. Yertaev said the discrepancy suggests that a substantial number of citizens either work informally or underreport their income. Additional evidence of the scale of shadow employment comes from differences between statistical data and digital administrative records. While official statistics show 7.1 million registered employees, the Unified System for Accounting for Employment Contracts records contracts for only 4.1 million people. Among the factors driving workers into informal employment, Yertaev cited overdue debts and the freezing of bank accounts, which he said may encourage individuals to conceal income and avoid formal labour arrangements. To address the issue, the Ministry of Labor plans to expand the use of digital tools aimed at facilitating formal employment. This includes the introduction of AI solutions on the Electronic Labor Exchange portal. According to the ministry, an AI-based system will automatically match job seekers with vacancies based on their education and professional background, while also supporting users throughout the job search process. Deputy Chairman of the State Revenue Committee of the Ministry of Finance Zhanibek Nurzhanov also presented the results of a pilot project on platform employment. Implemented jointly with the Ministry of Labor, the initiative led to the registration of more than 43,000 taxi drivers as individual entrepreneurs under a special tax regime. The State Revenue Committee’s information systems are now integrated with 31 online platforms, a step authorities say should help bring more workers into the formal economy. Participants in the Senate discussion stressed that efforts to reduce shadow employment should combine enforcement measures with policies that encourage voluntary legalization of labor relations. As The Times of Central Asia previously reported, proposals to combat the payment of undeclared wages included sectoral agreements on salary levels and requirements for companies to disclose employment structures.

Labor Migration

Tajikistan Seeks to Expand the Geography of Labor Migration

Tajikistan has stepped up efforts to expand destinations for labor migration, including countries in Europe and East Asia. The announcement was made by Minister of Labor, Migration and Employment Soleha Kholmahmadzoda at a press conference summarizing the ministry’s work in 2025. According to the Kholmahmadzoda, a memorandum of cooperation with relevant agencies of the Kingdom of Belgium was signed in November last year and is currently undergoing internal approval procedures. The agreement provides for the possibility of organized employment for Tajik citizens in the Benelux countries, namely Belgium, the Netherlands, and Luxembourg. The most in-demand sectors include agriculture, construction, social services, and healthcare. The Ministry of Labor said the initiative is intended to create transparent and legal employment channels, enhancing protection for migrant workers and reducing the risks associated with illegal employment. Cooperation with Japan is also advancing. The ministry has established a special working group and developed a mechanism to attract Tajik citizens as “specially qualified” workers. Relevant documents have been sent to the Tajik Embassy in Japan for publication on the website of the Japan International Training Cooperation Organization (JITCO). In addition, the Agency for Employment Abroad has prepared a draft agreement with Japanese employers. As a result, the first 10 citizens of the republic have already secured jobs. Special attention is also being given to cooperation with South Korea. In 2025, the Korean side allocated 800 quotas for labor migrants from Tajikistan. After completing professional training and passing the EPS-TOPIK exam, 21 people were employed through the Korean job portal, while documentation is still being processed for 12 additional candidates. Despite the expansion of destinations, Russia remains the primary labor market for Tajik citizens. According to the Ministry of Labor, in 2025, 30 licensed entities sent 35,747 citizens abroad through organized channels, an increase of 18,805 compared with the previous year. Of these, more than 31,000 were employed in Russia, Deputy Minister of Labor, Migration and Employment Norzoda Sharif Sanginmurod said. These figures broadly correspond with estimates from the Russian side. Official data indicate that more than 1 million Tajik citizens are currently working in Russia, mainly in construction, housing and utilities, transport, and logistics.

Employment

Kyrgyzstan Reduces Working Hours for Certain Professions

The Kyrgyz government has approved a new list of worker categories subject to “special working conditions,” for whom reduced working hours will now be implemented. According to the official decree, the measure aims to formally regulate the working time of employees in high-stress or hazardous roles, taking into account the specific nature of their professional duties. The order applies to over 100 professions across healthcare, sanitary and epidemiological control, pharmaceuticals, diagnostic and laboratory services, as well as social and educational institutions. Under the new regulations, many employees in these fields will see their workday reduced to five or six hours, depending on their role and workplace conditions. Medical professions associated with elevated occupational risks received particular attention in the drafting of the list. Among the affected are personnel working with infectious diseases, psychiatric and tuberculosis patients, emergency medical services, pathology departments, and morgues. The list also includes laboratory specialists handling dangerous pathogens or toxic substances, as well as those exposed to ionizing radiation or radioactive materials. Special provisions have been made for medical workers involved in gamma therapy and experimental gamma irradiation. For these roles, the government has set a maximum working day of four hours, the shortest among all categories covered by the regulation.