Employment - The Times Of Central Asia

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Labor Migration

Uzbekistan Expands U.S. Labor Migration Talks in New York

A delegation from Uzbekistan held a series of meetings with international organizations, educational institutions, employers, and law firms during the International Migration Review Forum (IMRF) in New York, as Tashkent seeks to expand legal labor migration opportunities in the United States. According to Uzbekistan’s Migration Agency, the delegation included officials from the agency, the Ministry of Foreign Affairs, and Uzbekistan’s embassy in Washington. The push comes as labor migration remains a major part of Uzbekistan’s economy. The Central Bank of Uzbekistan said remittance inflows reached high levels in 2025, with $9.9 billion arriving through traditional money transfer systems and another $8.6 billion credited directly to bank cards through P2P transfers. That scale has made overseas employment both a household income issue and a policy priority for Tashkent. The forum opened with remarks by UN Secretary-General António Guterres and Amy Pope, director general of the International Organization for Migration (IOM), who outlined priorities for global migration policy and international cooperation. During the event, Behzod Musayev, the head of Uzbekistan’s Migration Agency, presented information on migration reforms underway in Uzbekistan, including vocational and language training programs designed to prepare citizens for overseas employment. Musayev said labor migration should be viewed as an economic necessity and an investment in human capital. The delegation also met with Ugochi Daniels, IOM’s deputy director general for operations, to discuss protecting the rights of citizens of Uzbekistan working abroad and organizational issues related to an international migration forum scheduled to be held in Tashkent. Several meetings focused on expanding cooperation with U.S. educational institutions and employers. Uzbekistan signed a cooperation agreement with Logan University in Missouri on training medical personnel for the U.S. labor market, launching joint educational programs, and developing human resources. Representatives of Missouri Trucking School discussed creating a 160-hour training program to prepare drivers from Uzbekistan according to U.S. standards and support their employment opportunities. Talks with the National Council of Agricultural Employers focused on organizing labor forums with employers and expanding seasonal work programs for citizens of Uzbekistan. The delegation also reached agreements with the recruitment organization Head Honchos on H-2A visa processing, promoting agricultural workers from Uzbekistan in the U.S., and launching preparatory programs lasting eight to ten weeks. In meetings with the New York-based law firm Ballon Stoll, officials discussed work opportunities through O, H-2A, H-2B, H-1B, and E visas, as well as stronger legal protections for citizens of Uzbekistan employed in the U.S. The U.S. route is still at an early stage and will depend on American visa rules and employer demand. Under U.S. regulations, H-2A and H-2B petitions are generally limited to nationals of countries designated by the Department of Homeland Security, though USCIS can approve petitions for workers from non-designated countries on a case-by-case basis if it determines that doing so is in the U.S. interest. The discussions follow statements made earlier this year by President Shavkat Mirziyoyev, who instructed Uzbekistan’s diplomats to begin talks with Washington on including the country in U.S. seasonal labor recruitment programs. The...

Industrial Production

Kyrgyzstan’s Industrial Output Rises as Employment Falls

Industrial production in Kyrgyzstan has increased more than six times over the past 15 years, although the sector’s share of the national economy has declined and employment in industry has fallen sharply, according to data from the National Statistical Committee. By the end of 2025, industry accounted for 17.7% of Kyrgyzstan’s GDP, compared to 20.7% in 2010. At the same time, industrial output increased by more than 530% over the same period. In 2010, the value of industrial production was estimated at around $1.4 billion, while by 2025 output had reached approximately $9.1 billion. The figures indicate significant industrial growth, although other sectors of the economy, particularly trade and services, have expanded even faster, analysts say. The sector has also experienced a sharp decline in employment. Around 268,000 people worked in industry in 2010, but by 2025 that number had fallen to 144,000. At the same time, the number of industrial enterprises increased from roughly 2,000 to 2,400, which statisticians say points to structural changes and rising productivity. Manufacturing remains the backbone of Kyrgyzstan’s industrial sector, accounting for nearly 80% of all industrial enterprises. The country’s main industrial segments include food processing, textile production, construction materials, and primary raw-material processing, including metallurgy. High-tech industries such as machinery manufacturing, electronics, and advanced chemical processing remain underdeveloped. Energy accounts for around 10.2% of industrial production, while mining contributes 9.2%. Economists note that much of Kyrgyzstan’s processing industry still produces goods with relatively low added value. The raw materials sector, particularly gold mining, continues to be one of the main drivers of industrial growth despite its comparatively modest share in the overall production structure. At the same time, energy development remains one of the biggest constraints on further industrialization. Despite active construction of solar and wind power plants, small hydropower stations, and implementation of the large Kambar-Ata-1 hydropower project, Kyrgyzstan continues to face electricity shortages during the winter season. The energy deficit limits the launch of energy-intensive industries and continues to restrain investment inflows into the industrial sector.

SMEs

Kazakhstan’s SMEs Face Severe Labor Shortage

Small and medium-sized enterprises (SMEs) in Kazakhstan have become one of the country’s main sources of employment, but are facing a severe labor shortage, according to a joint report by Mastercard and KPMG. The report identifies workforce shortages as one of the most pressing challenges for SMEs, with nearly half of businesses reporting acute staffing deficits. The main reasons cited are the limited supply of qualified specialists and their high cost. According to the report, SME executives say, “It is difficult to find qualified employees, especially production managers: candidates do not meet requirements, and staff are not motivated to develop, despite high salaries and good working conditions. Scaling up the business requires increasing the number of skilled employees, which is constrained by limited financial resources and labor shortages.” At the same time, 90% of surveyed business leaders say they face high salary expectations from potential employees, which smaller firms struggle to meet. Around 70% of respondents also acknowledge that SMEs are widely perceived as less prestigious places to work. Labor productivity in micro and small businesses remains more than twice as low as in medium and large enterprises. In 2025, a worker in a small business generated an average of about $10,100, compared with $34,300 in medium-sized firms, and the gap continues to widen. Limited access to financing and the high cost of borrowing also remain major constraints for SMEs. Additional factors hindering SME development include an unstable tax and regulatory environment, as well as broader macroeconomic volatility. Despite these challenges, SMEs are a key source of employment in Kazakhstan. Over the past five years, employment in the sector has grown from 40% to 50% of the workforce. Today, around 4.7 million people out of 9.3 million employed nationwide work in SMEs, meaning roughly one in two workers is employed in this segment. According to the report, SME employment has been growing at an average annual rate of 6%, while employment in other sectors has declined by about 3% per year. “The concentration of employment in SMEs makes the labor market vulnerable to tax and regulatory changes: negative shocks in the sector could directly translate into rising unemployment,” the report notes. As previously reported by The Times of Central Asia, SMEs currently account for about 40% of Kazakhstan’s GDP, a figure that remains below benchmark countries such as Turkey (41%), the United States (44%), and Uzbekistan (52%).

Labor Market

AI in Kazakhstan to Affect Four Million Jobs in Next Decade, Says Labor Ministry

Around half of all professions in Kazakhstan are expected to change under the impact of AI over the next decade, with some jobs declining and others disappearing entirely, lawmakers and government officials have said. Daniya Yespayeva, Deputy Chair of the lower house of parliament, the Mazhilis, citing data from the Ministry of Labor, stated that by 2035, transformations will affect 562 jobs, about 44% of the labor market, equivalent to roughly 4 million workers. According to her, employment in 46 professions, covering around 362,000 people (about 4% of the labor market), is expected to decline, while 14 professions, employing approximately 49,000 people, may disappear completely. Yespayeva did not specify which professions are at greatest risk. However, Minister of Science and Higher Education Sayasat Nurbek noted that couriers and taxi drivers could be among the first affected. He said that around 700,000 people in Kazakhstan currently work in these sectors through platforms such as Glovo, Yandex, and Wolt. “These are temporary forms of employment. As early as this year, several Kazakh companies are launching autopilot technologies in both taxi services and delivery, so within a few years, couriers and taxi drivers may no longer be needed,” Nurbek said, urging citizens to focus on more sustainable career paths. Earlier reports indicated that a pilot drone delivery project could be launched in Almaty, while driverless taxis are planned for introduction in Astana. Askhat Aimagambetov, a Mazhilis deputy, also warned about risks facing several popular academic fields. According to him, in 2025, the highest competition for university admissions was in programs such as Translation Studies, International Relations, and Law, fields that, in his view, could be among those most affected by automation. Aimagambetov stressed the need to revise the allocation of state-funded educational grants to avoid encouraging training in professions at high risk of decline. He also noted that employment among young developers aged 22-25 declined by nearly 20% over the past year, despite significant investment in IT education. “We are training an army of coders at a time when AI is already writing code itself. It is no longer enough to train ‘coders of yesterday,’” he said. Nurbek agreed with this assessment, pointing to a shortage of specialists in eight key sectors, including advanced manufacturing, digital technologies, clean energy, finance, life sciences, defense, creative industries, and professional services. According to him, part of the gap is being addressed through private-sector involvement. Kazakhstan has established 75 joint laboratories across 19 universities in partnership with companies such as Amazon Web Services, Cisco, Huawei, Schneider Electric, and Honeywell, as well as Eurasian Resources Group, Freedom Holding, and KEGOC. More than 7,500 students are currently studying in these laboratories across 179 disciplines. Business investment in these initiatives has totaled around $5.2 million, although the minister noted that such efforts remain limited in scope. “If this gap is not addressed, the education system will continue to train specialists for yesterday’s economy,” Nurbek said, emphasizing that aligning education with economic needs has become a matter of national security.

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%.