Labor Market - The Times Of Central Asia

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Education reform

Kazakhstan Reshapes Education System to Meet Industrial and Labor Market Needs

Kazakhstan has begun a large-scale restructuring of its education system in 2025-2026 as authorities attempt to address labor shortages, overloaded school infrastructure, and the growing mismatch between graduates’ qualifications and the needs of the economy. While previous reforms focused primarily on expanding access to education, the government is now shifting toward tighter administrative management of student enrollment, stronger support for technical and vocational training, and the integration of digital technologies into schools. As previously reported by The Times of Central Asia, the reforms are unfolding amid growing pressure on Kazakhstan’s labor market. One of the most pressing issues remains the condition of the country’s school infrastructure. Rapid urbanization and internal migration have created chronic shortages of school places in major cities and southern regions. To address the problem, authorities launched the “Comfortable School” national project, which envisioned the construction of 369 schools with capacity for 740,000 students during 2023-2024. However, implementation has faced delays caused by contractor failures and rising construction material costs. According to project operator Samruk-Kazyna Construction, by the end of 2025 authorities had commissioned 208 schools, creating more than 217,000 new student places. Most of the facilities were built in Astana, Almaty, and Turkistan Region. President Kassym-Jomart Tokayev previously warned that even accelerated school construction would only temporarily alleviate the problem, since at current population growth rates the shortage of school places could reach 400,000 in the medium term. Against this backdrop, authorities are increasingly turning to technological solutions. In May 2026, Tokayev signed a decree introducing artificial intelligence into the secondary education system. Under the initiative, AI technologies are expected to serve as auxiliary tools for personalized learning, identifying gaps in student knowledge, and reducing teachers’ workloads. By August 1, schools participating in the pilot program are expected to be equipped with high-speed internet access, while by September 1 authorities plan to approve national standards governing the use of AI in education. At the same time, Kazakhstan is strengthening support for technical and vocational education. For the 2025-2026 academic year, around 70% of state-funded grants in the technical and vocational education system were allocated to engineering and technical specialties, including metallurgy, mechanical engineering, energy, construction, and information technology. Authorities are also attempting to expand elements of dual education programs involving private businesses. According to official data, more than 4,000 enterprises have established partnerships with colleges. However, full-scale implementation remains largely confined to major industrial regions, while small and medium-sized businesses in other areas remain reluctant to participate in organizing practical training for students. Significant changes are also affecting higher education. Minister of Science and Higher Education Sayasat Nurbek announced a redistribution of state grants toward professions facing the most acute labor shortages, including thermal power engineering, industrial engineering, water management, and materials science. University financing will now depend directly on institutions’ positions in national rankings and on graduate employment rates. For weaker regional universities, this could effectively mean automatic reductions in state funding. Leading universities have also been granted the right to independently raise admission thresholds...

minimum wage

Kyrgyzstan Retains Lowest Minimum Wage in the Eurasian Economic Union

Kyrgyzstan continues to have the lowest minimum wage among member states of the Eurasian Economic Union (EAEU), according to Eurasian Economic Commission (EEC) data cited by local media. As of March 2026, Kyrgyzstan’s minimum monthly wage was about $38. By comparison, the minimum wage stood at $337 in Russia, $292 in Belarus, $174 in Kazakhstan, and $199 in Armenia. Analysts say Armenia’s economy is broadly comparable in scale to Kyrgyzstan’s. According to official statistics, the minimum wage in Kyrgyzstan has risen far more slowly than in other EAEU countries and remains significantly below both the country’s average salary and the official subsistence minimum. Data from Kyrgyzstan’s National Statistical Committee show that the subsistence minimum currently stands at around $105. Meanwhile, minimum wages in Russia and Belarus have nearly doubled over the past several years. Against this backdrop, the situation regarding average salaries in Kyrgyzstan appears somewhat more positive. According to the EEC, Kyrgyzstan and Belarus recorded the highest rates of average wage growth in the region. Over the past year, average wages in Kyrgyzstan increased by around 10%, while Belarus recorded growth of approximately 9%. Despite this, average wages in Kyrgyzstan remain the lowest among EAEU member states. By the end of 2025, the average monthly salary in Kyrgyzstan stood at approximately $508, compared to $783 in Armenia, $877 in Belarus, and $1,203 in Russia. No data for Kazakhstan were included in the published EEC statistics. Kyrgyzstan’s National Statistical Committee previously stated that nominal wages in the country have roughly doubled over the past five years. Per capita household spending has also increased significantly, which officials say reflects rising consumption levels and gradual improvements in living standards. At the same time, consumer spending continues to account for the largest share of household expenditures in Kyrgyzstan.

Demographics

Kazakhstan’s Demographic Shift Puts Labor Market Under Strain

Kazakhstan’s population surpassed 20.5 million in the spring of 2026, but the country’s rapid demographic growth is increasingly being accompanied by structural economic imbalances. Kazakhstan is simultaneously facing the effects of declining birth rates, population aging, and a widening gap between the education system and labor market needs. Economists warn that the country is entering a phase in which the large generation born during the baby boom of the 2000s is placing growing pressure on the labor market, even as the share of the working-age population gradually declines. According to Kazakhstan’s Bureau of National Statistics, the number of births peaked in 2021, when 446,500 children were born. By 2025, this figure had fallen to 335,000, the lowest level in the past five years. The total fertility rate also declined to 2.57 children per woman, marking the lowest level since 2009. The decline in births has occurred despite a growing number of women of reproductive age. By early 2026, their number had reached a record 4.79 million. Analysts note that the drop in the overall birth rate to 16.43 births per 1,000 people, the lowest level in more than two decades, points to changing household behavioral patterns. In Kazakhstan’s largest cities, including Almaty and Astana, families are increasingly postponing childbirth because of high housing costs and rising debt burdens. The average age of motherhood has approached 30 years, reaching 29.9. High inflation is adding further pressure on households. Annual inflation remained in double digits in early 2026, which, combined with mortgage expenses, has made raising large families significantly less affordable for the urban middle class. Kazakhstan’s demographic dynamics are also becoming increasingly uneven. In the southern and western regions, fertility rates remain above the replacement level of 2.1 children per woman. However, in northern regions, fertility has declined to between 1.63 and 1.75, approaching levels more typical of Eastern European countries. Population growth is still supported by rising life expectancy and relatively low mortality, around 6.64 deaths per 1,000 people over the past four years. Nevertheless, demographers warn that the current increase in population masks a gradual future decline in the labor force. One of the key risks is the shrinking share of the working-age population. Over the past decade, it has fallen from 64% to 57.7%, increasing pressure on employed citizens to finance pension and social welfare systems. Experts warn that a decline in the number of contributors paying mandatory social contributions creates long-term risks for Kazakhstan’s Unified Accumulative Pension Fund and the Social Health Insurance Fund. At the same time, an aging population is increasing state healthcare expenditures. Businesses are already facing labor shortages in some industrial and agricultural regions. In the North Kazakhstan Region, employers have reported shortages in agriculture, manufacturing, and other key sectors. Kazakhstan adds more than 350,000 new labor market entrants each year, thanks to the generation born in the early 2000s. However, instead of entering industry or agriculture, many young people are increasingly choosing jobs in the urban service economy, including taxi services, delivery...

Labor Market

Kazakhstan Faces Shortage of Doctors and IT Specialists

Kazakhstan continues to face labor shortages in healthcare, information technology, engineering, and the creative industries, according to the Ministry of Labor and Social Protection. The ministry published a list of the country’s most in-demand professions based on data from state information systems and the Enbek.kz employment portal. The most acute shortages remain in the medical sector. According to the ministry, there are only around 100 job seekers’ resumes for 469 vacancies for obstetricians and gynecologists. For pediatricians, 448 vacancies were recorded against 139 resumes, while anesthesiologists and intensive care specialists accounted for 300 vacancies and only 75 resumes. “Shortages are also observed among oncologists, neonatologists, and endocrinologists,” the ministry said. Demand also remains high for information technology specialists. More than 500 vacancies are currently open for software application developers, while around 355 vacancies are available for graphic designers. According to the Unified System for Recording Labor Contracts, more than 45,000 employment contracts have been signed since the beginning of 2026 in the country’s most in-demand professions. The largest number of contracts, around 8,000, involved software developers. Obstetricians-gynecologists, pediatricians, and application programmers were also actively recruited. The ministry acknowledged that Kazakhstan is partially addressing labor shortages by attracting foreign specialists. “To attract valuable personnel, Kazakhstan operates a simplified employment procedure for foreign specialists,” the ministry said. According to officials, the list of in-demand professions includes more than 50 occupations and allows highly qualified foreign workers to obtain permanent residence permits in Kazakhstan. This year, 55 labor contracts have been signed with foreign specialists, primarily in the automation sector. The ministry said that, overall, the domestic labor market covers demand for most key professions, although shortages in the healthcare sector remain persistent. The Times of Central Asia previously reported that Kazakhstan’s small and medium-sized businesses are also facing a severe labor shortage.

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.

Uzbek Diaspora

Over 100,000 Uzbek Workers Recruited to Work in Russia in 2025

Around 106,000 citizens of Uzbekistan went to work in Russia in 2025 through organised recruitment programs, according to a report prepared by Rahim Khakimov, Deputy Adviser to the President of Uzbekistan, and cited by the Russian state news agency TASS. The report states that about 50,000 of these workers were employed by major companies, including Gazprom, Lukoil, Kamaz, AvtoVAZ, Ozon, and SPAR. Overall, an estimated 1.3 million Uzbek citizens are currently working in Russia on a temporary basis. The document also highlights ongoing efforts to simplify labor migration procedures. Agreements reached in 2025 provide for the partial transfer of work patent processing stages to Uzbekistan, allowing migrants to complete key formalities before departure. Authorities also plan to expand Russian-language testing by opening new centres in the cities of Jizzakh and Andijan to better serve the densely populated Fergana Valley, where nearly one-third of the country’s population lives. At the same time, migration trends are gradually shifting. According to Uzbekistan’s Central Bank, Uzbek labor migrants are no longer concentrated solely in traditional destinations such as Russia, Kazakhstan, South Korea, and Turkey. Increasing numbers are seeking employment opportunities in Europe and other parts of Asia. This diversification is reflected in remittance flows. Data show that transfers to Uzbekistan from the United Kingdom have increased by 39% in recent years, while remittances from European Union countries have risen by 37%. Significant growth has also been recorded from countries such as Ireland, Croatia, Slovakia, Lithuania, and the Netherlands, as well as from the United States and South Korea. Analysts attribute this trend to stable demand for labor abroad, relatively steady wage levels, and favorable currency exchange rates. According to the International Fund for Agricultural Development (IFAD), Uzbek labor migrants typically send home between $200 and $300 per month. Separate estimates from the Migration Observatory at the University of Oxford suggest that migrants in the United Kingdom remit between £1,000 and £3,300 annually per person. Overall, the average yearly remittance per recipient in Uzbekistan is estimated at between $2,000 and $4,000. Alongside these broader trends, consular support for Uzbek citizens abroad continues. On March 22, the Dunyo news agency reported that representatives of Uzbekistan’s embassy visited a Temporary Detention Center for Foreign Citizens in Russia’s Tula region. During the visit, Consul General Mehriddin Khairiddinov reviewed living conditions and held talks with Russian officials on accelerating document processing and facilitating the return of detained Uzbek nationals. “Supporting fellow citizens and providing them with the necessary assistance remain among the priority tasks of the diplomatic mission,” Khairiddinov said, emphasizing that the protection of citizens’ rights is a key principle of Uzbekistan’s state policy.