Labor Market - The Times Of Central Asia

Viewing results 1 - 6 of 28

Global Business Services

GBSF 2026 Highlights Uzbekistan’s Push for Global Business Services and AI

More than 450 participants from business and government, representing over 45 countries, gathered in Tashkent on July 24–25 for the Global Business Services Forum 2026. The event centered on Uzbekistan’s effort to become a regional center for global business services and business process outsourcing (BPO), with artificial intelligence (AI) also a major focus. Organizers described it as Central Asia’s largest international forum devoted to global business services and the digital economy. The forum follows May’s Global Tech Weekend in Tashkent, which brought more than 2,500 technology and investment professionals to the capital. Opening the forum, Uzbekistan’s Minister of Digital Technologies Sherzod Shermatov said recent reforms had improved conditions for international technology companies considering investment or expansion in the country. Shermatov said companies could draw on qualified specialists and modern digital infrastructure while reaching a fast-growing regional market. He also invited international firms to invest and develop long-term partnerships. Azamat Karamatov, CEO of IT Park Uzbekistan, said the organization now has more than 3,800 resident companies, including over 1,000 international businesses. Exports of technology services have surpassed $1 billion. He said IT Park gives foreign companies a route into Uzbekistan’s technology sector while helping develop local talent. Sessions examined AI and talent development. Other discussions covered international investment and outsourcing. Speakers also outlined tax incentives and support available to foreign companies entering the Uzbek market. The Soft Landing program and Zero Risk initiative are among the available schemes. Key Account Management services provide additional assistance. One speaker was Arseny Kucheryuk, an expert at Antal Uzbekistan, part of the British recruitment company Antal International. He drew on the firm’s recruitment work and salary surveys to describe changes in the labor market. Kucheryuk, who moved to Uzbekistan nearly five years ago, said employers once struggled to find highly qualified candidates. The market has since become more balanced, although strong candidates can still receive several offers within weeks. He said companies seeking experienced professionals often need to offer salaries well above candidates’ current income. Antal research found that more than 60% of candidates expect an increase of at least 20% when changing jobs. Kucheryuk added that pay alone does not determine retention. Career prospects and management quality also influence whether skilled staff remain with an employer. He said workplace culture is especially important when addressing religion or family. Speaking to The Times of Central Asia after his presentation, Kucheryuk said foreign investment was creating career opportunities in Tashkent and elsewhere in Uzbekistan. He attributed Uzbekistan’s appeal to cooperation between the government and private sector, which he said helps international companies enter the market and supports local businesses. Kucheryuk advised foreign investors to understand local business culture before entering the market. Although companies may bring senior executives from abroad, he said operational roles requiring knowledge of local law and business practice should generally be filled in Uzbekistan. Iyad Hafez, CEO and managing partner of Staff Arabia, said his first visit to Uzbekistan exceeded expectations. “I’m positively surprised,” he told The Times of Central Asia. “Very...

Wages

Turkmenistan’s Wage Puzzle: Official Salaries Rise, but Transparency Remains Elusive

In most Central Asian countries, checking the average salary is as simple as visiting the national statistics agency’s website. In Turkmenistan, however, wage data remain largely inaccessible. The State Statistics Committee does not publish salary figures online, and its annual statistical yearbooks are available only in printed form inside the country. Nevertheless, occasional official figures emerge, offering a glimpse into a labor market that differs markedly from those of its regional neighbors. As of January 1, 2025, Turkmenistan’s monthly minimum wage stands at 1,410 manats, equivalent to approximately $403 at the official exchange rate. An increase was introduced by presidential decree in July 2024 as part of a nationwide 10% rise in wages, pensions, and social benefits. The minimum wage was about $366 in 2024, and roughly $331 in 2023 at the official exchange rate. Unlike neighboring economies, where wages are increasingly shaped by labor-market conditions, inflation, and private-sector demand, Turkmenistan’s minimum wage is established exclusively by presidential decree and applies uniformly across all sectors, occupations, and age groups. The centralized system leaves little room for market-based wage formation. Although comprehensive official wage statistics remain unavailable, one rare set of figures attributed to the State Statistics Committee was published in 2017. According to those figures, the country’s highest-paid employees worked in the Merchant Marine Fleet, earning 2,387.6 manats per month, or about $682 at the official exchange rate then in use. They were followed by the National Space Agency under the President of Turkmenistan, at 1,909.9 manats, or about $546, and the state-owned Turkmenneft oil company, at 1,861.4 manats, or about $532. The lowest salaries were reportedly paid to employees of the Ministry of Trade and Foreign Economic Relations. The ranking, although dated, is revealing. Rather than finance or technology, which dominate wage tables in many countries, Turkmenistan’s highest-paid sectors in that snapshot were closely tied to state prestige projects and strategic natural-resource industries. A key factor complicating any assessment of income is the country’s dual exchange-rate system. The official rate has long been fixed at about 3.5 manats per U.S. dollar, which is used to calculate salaries in dollar terms for international reporting. However, the parallel market rate is substantially weaker, reducing the real international purchasing power of household incomes. Consequently, official salary figures converted into dollars should be interpreted with caution because they do not necessarily reflect the exchange rate available to ordinary citizens. The gap between official wages and actual living costs also appears significant. While the government continues to subsidize basic food staples such as bread and flour, shortages have often forced households to buy goods in private markets at much higher prices. Free natural gas and water supplies ended in 2019, and utility costs have gradually increased since then, despite continuing subsidies. Public cost-of-living data should be treated carefully, but they point in the same direction. The user-submitted database Numbeo estimates monthly costs for a single person in Ashgabat at about 6,475 manats before rent, more than four times the official minimum wage. Regional comparisons...

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.