Labor Market - The Times Of Central Asia

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Labor Market

Kazakhstan to Require Up to 3 Million Skilled Workers in Coming Years

Kazakhstan will need approximately 3 million qualified specialists over the next three to five years, according to Deputy Minister of Labor and Social Protection of the Population Askar Biakhmetov. Speaking at a recent government meeting, Biakhmetov emphasized that this forecast should guide national strategies in education, vocational training, and workforce retraining. Workforce Priorities Data from the Ministry of Labor show that the highest demand (29%) will be for professionals in public services, including government administration, education, healthcare, and social security. This is followed by business services (21%), logistics and transport (16%), industry (13%), and construction and agriculture, each accounting for 7%. “These data must be taken into account when approving professional standards, developing educational programs, allocating state education grants, and organizing retraining initiatives,” Biakhmetov said. He noted the importance of prioritizing retraining programs, as automation and technological change continue to render many professions obsolete, while new sectors demand different competencies. Structural issues persist, including uncompetitive wages and regional imbalances in the labor force, particularly a labor surplus in the south and shortages in the north. Internal migration has also led to oversaturation in major urban centers, straining social and municipal infrastructure. The Ministry also flagged informal employment as a major challenge. In 2024, an estimated 30% of the working-age population were employed without pension contributions. Moreover, about 30% of university graduates are working in fields unrelated to their studies. “Often, graduates don’t study what they want due to low grant scores. As a result, they are trained in one field but work in another,” Biakhmetov explained. By 2025, Kazakhstan’s economically active population is projected to reach 11.3 million, about 60% of the total population of 20.3 million. The unemployment rate currently stands at 4.6%. Looking ahead, the annual growth of the labor force is expected to hit 360,000 by 2035. To address the evolving demands of the economy, the Ministry of Labor is developing an AI-based digital platform designed to identify skills gaps across enterprises and match individuals with relevant job vacancies or training programs. Linking Investment to Job Creation Prime Minister Olzhas Bektenov underscored the need for both foreign and domestic investors to take greater responsibility for employment generation within the scope of active and planned investment projects. He stipulated that at least 30% of investment budgets should be allocated to wages. “An Innovative Project Navigator has been developed to monitor employment trends and ensure investors meet their obligations. Currently, the system covers only large projects, but by September 1, data on all investment projects for 2025-2027 must be entered,” Bektenov said. He also ordered that key performance indicators (KPIs) for regional and municipal leaders regarding employment expansion be introduced starting in 2026. As previously reported by The Times of Central Asia, 979,000 people were employed in Kazakhstan in 2024.

Construction

Kyrgyzstan Tops EAEU in Construction Growth Despite Labor Woes

Kyrgyzstan recorded the highest growth in construction activity among member states of the Eurasian Economic Union (EAEU) during the first half of 2025, according to data published by the Eurasian Economic Commission (EEC). Infrastructure Boom Drives Expansion Between January and May 2025, construction volumes in Kyrgyzstan nearly doubled compared to the same period in 2024. Last year, the sector had already grown by 38% year-on-year. Armenia followed with a growth rate of 29%, while Kazakhstan, Belarus, and Russia posted more modest increases of 15.4%, 12.3%, and 5.5% respectively. Across the EAEU, construction grew by an average of 6.8%. The primary drivers of Kyrgyzstan’s construction boom include extensive state and private investment in housing, infrastructure, and industrial development. The government has focused on building hydroelectric power plants, residential complexes, and administrative buildings. Notably, the state mortgage program offers housing loans at 4-8% interest rates, well below market levels. From January to April 2025, the Cabinet of Ministers allocated nearly $500 million toward housing projects, supplemented by $77 million in equity financing. To help stabilize construction costs, the government also classified cement as a socially significant good, subject to price controls. According to The Times of Central Asia, investment in housing, infrastructure, and social facilities rose by 62% year-on-year during the first four months of 2025, reaching approximately $800 million, the highest figure in recent years. The construction sector contributed an estimated 3% to Kyrgyzstan’s GDP growth in the first half of the year. Quality and Labor Concerns Persist Despite these achievements, concerns are growing over construction quality and labor shortages. Residents in major cities report poorly planned developments that lack supporting infrastructure, including roads and essential utilities such as water and electricity. Speaking to The Times of Central Asia, construction auditor Bakhtiar Kasymaliyev highlighted critical challenges in project execution. “We have serious problems with quality and professionalism,” he said. “There is a shortage of skilled concrete workers and bricklayers. They are in high demand. As a temporary solution, companies are bringing in labor from Pakistan, India, and Egypt, but most of them are unskilled. To improve quality, we need to attract qualified specialists from abroad.” According to Kasymaliyev, the labor shortage is already impacting project timelines and structural integrity, raising red flags amid the sector’s rapid expansion.

Migration

Kyrgyzstan Expands Labor Cooperation with Japan to Promote Safe Migration

Kyrgyzstan is strengthening labor migration ties with Japan as part of a broader strategy to diversify employment opportunities for its citizens abroad. The Ministry of Labor, Social Security and Migration is working to establish safe, legal, and skills-based pathways for Kyrgyz workers to access the Japanese labor market, in line with international labor standards and Japan’s workforce demands. On July 2, officials from the Ministry’s Center for Employment of Citizens Abroad met in Bishkek with representatives from the Japan Association for Construction Human Resources (JAC), an organization that facilitates the recruitment of specified skilled workers in Japan’s construction sector. The two sides discussed plans to create a specialized training center in Kyrgyzstan to prepare construction professionals according to Japanese industry standards. They also agreed to develop free Japanese language courses to enhance the employability of Kyrgyz job seekers. In May, Kyrgyz Minister of Labor Ravshanbek Sabirov held talks with Hitoshi Kanamori, President of IM Japan, the largest Japanese organization overseeing the technical intern training program. The discussions focused on expanding structured employment pathways for Kyrgyz nationals in Japan. The Kyrgyz side reiterated its commitment to training workers in fields currently in high demand in Japan, including IT, social services, hospitality, and skilled trades such as welding. Both parties stressed the importance of integrating vocational training with Japanese language instruction. Minister Sabirov also emphasized the need to ensure labor protections for Kyrgyz citizens working abroad. “It is important that Kyrgyz specialists not only secure employment but also have access to social insurance, legal protection, and consistent communication with Kyrgyz government bodies,” he said. While Russia remains the primary destination for Kyrgyz labor migrants, recent years have seen growing interest in alternative destinations such as Turkey, South Korea, Japan, and parts of Europe.

Labor Market

Kazakh Schoolchildren Offered Summer Job Opportunities

Kazakhstan’s Minister of Labor and Social Protection, Svetlana Zhakupova, announced at a recent government meeting that the ministry is prepared to assist nearly 1.4 million schoolchildren aged 14 to 18 in finding summer employment. Under the country’s Labor Code, minors are permitted to work under certain conditions, including a reduced schedule of no more than 24 hours per week. Importantly, such work must be undertaken outside of school hours. “To facilitate employment, the following measures will be available to students during the upcoming summer holidays: selection of suitable vacancies through the Electronic Labor Exchange, online training programs, public works initiatives, and career guidance services,” Zhakupova stated. The Electronic Labor Exchange, accessible via enbek.kz, now includes a dedicated section titled “My Summer Vacation”, which allows teenagers to register, upload their résumés, and search for job opportunities independently. For students under the age of 16, registration and the creation of a personal account must be handled by a parent or legal guardian. As previously reported by The Times of Central Asia, approximately 1.8 million young people aged 15 to 28 were employed in Kazakhstan in 2024, a 0.6% increase over the previous year.

Labor Market

Kazakh Women Increasingly Turn to IT Careers, but Face Persistent Pay Gaps

In Kazakhstan, a growing number of women are entering the IT sector, yet their salaries continue to lag behind those of their male counterparts. Women in STEM: Statistics and Trends According to a study by Ranking.kz, the number of female students enrolled in IT disciplines has more than tripled between 2019 and 2024. At the start of the 2019/2020 academic year, only 4,500 women were studying IT at universities across the country. By 2024, that number had surged to 15,300. Interest in information security has been particularly strong, with female enrolment rising 5.8-fold over this period. Despite this growth, the proportion of women among all IT students has actually declined, from 31.7% in 2019 to 24% in 2024. This shift reflects a sharp increase in male enrolment, which has skewed the overall gender balance. Women in Kazakhstan are also showing increasing interest in STEM (science, technology, engineering, and mathematics) more broadly. In the most recent academic year, they made up the majority in several scientific disciplines. In physical and chemical sciences, women represented 75% of all students, growing 6.2 times to reach 7,100. In mathematics and statistics, 61.7% of students were women. Labor Market Disparities On the employment front, progress has been less marked. From 2019 to 2024, the share of women working in the information and communications sector remained steady at around 42%. In absolute numbers, female employment in the sector rose from 68,000 to 79,100, a 16.3% increase over five years. Nearly half of these women (35,500) work in Kazakhstan’s two largest cities, Almaty and Astana, reflecting the concentration of IT firms and economic activity in these hubs. However, some regions show stronger female representation: in the Aktobe region, women account for 71.1% of information and communications sector employees; in the Kyzylorda region, the figure stands at 56.9%. The scientific research landscape has also evolved. The number of women in research and development (R&D) increased by 43.6% over the past five years, reaching 12,900. Of these, 2,600 are in engineering and 3,600 in the natural sciences. Gender parity has nearly been achieved in these fields: women constitute 45.4% of engineering researchers and 54.3% in the natural sciences. Gender Pay Gap Persists High wages remain a key draw to the IT sector. In 2024, the average monthly salary in IT stood at $1,395, nearly double the national average of $790. Yet, a significant gender pay gap persists: on average, men in ICT earn 45.4% more than women. For instance, in the field of computer programming, male professionals earn an average of $1,930, compared to $1,327 for women. Global Context and Local Barriers Kazakhstan is not unique in facing gender inequality in IT. Globally, as of 2024, 70% of men and 65% of women had internet access. The United Nations has called for equal opportunities in digital education and careers across genders. In Kazakhstan, the gender gap in internet access is minimal, 96.6% for men and 95.9% for women aged 16-74, but entrenched social stereotypes and cultural norms still hinder...

Labor Market

Kazakhstan’s Young Workforce Grows, But Sectoral Gaps Persist

The youth labor market in Kazakhstan remains a vital topic amid the country’s ongoing economic transformation. According to analysts from Finprom.kz, approximately 1.8 million young people aged 15 to 28 were employed across the country in 2024, an increase of 0.6% compared to the previous year. Regional Distribution of Youth Employment The highest concentration of young workers is in Almaty, where 243,200 young people are employed, up 5% from 2023. Almaty is followed by the Turkestan region. In contrast, the Ulytau, North Kazakhstan, and Zhetysu regions recorded the lowest figures for youth employment. Of the total number of employed youth, 1.4 million (77.7%) work as salaried employees. Additionally, the country is home to 331,900 young individual entrepreneurs, 58,300 self-employed workers, 2,700 founders or participants in economic partnerships, joint-stock companies, or cooperatives, and 2,400 engaged in private practice. Sectoral Breakdown Among all employed young people, the largest group, 424,400 individuals, are professionals, although this marks a 1.3% decrease from the previous year. They are followed by service and sales workers (291,700), unskilled laborers (281,700), technical and support staff (195,100), and industrial, construction, and transport workers (142,600). In terms of industry sectors, youth are primarily employed in wholesale and retail trade, automotive repair, education, and agriculture, including forestry and fishing. The lowest youth employment is seen in utilities (water and electricity supply) and real estate. Youth Unemployment: A Gradual Decline Youth unemployment is on the decline. In 2024, the number of unemployed individuals aged 15 to 28 dropped to 62,000, a 6.7% decrease from 2023. The unemployment rate stood at 3.7% among 16 to 24-year-olds and 3% among those aged 25 to 28. For comparison, the overall unemployment rate for the working-age population in Kazakhstan reached 4.7%. Almaty recorded the highest number of unemployed youth (11,100), followed by Astana (7,800) and the Almaty region (7,700). Ulytau, Pavlodar, and North Kazakhstan regions reported the lowest youth unemployment figures. As for the length of time spent job hunting in 2024, 18,200 young people searched for one to three months, 16,200 for three to six months, and 16,000 for less than a month. A smaller share, 7,500, searched for more than six months, and 4,000 had been looking for work for over a year. Broader Context and Causes of Unemployment Nationwide, 448,200 Kazakhstani citizens were unemployed in the fourth quarter of 2024. The unemployment rate was 4.2% among men (211,100) and 5.1% among women (237,100). The most affected age groups were 35 to 54 (256,900 people) and 55 to 64 (69,700). The most frequently cited reasons for unemployment included family responsibilities (61,400), layoffs or company closures (50,300), and difficulty finding suitable jobs (112,500). Other contributing factors were domestic duties (44,200), health issues (17,500), and challenges securing employment post-graduation (16,600). Policy Implications Experts highlight the importance of developing flexible employment policies tailored to the evolving labor market. Enhancing conditions for self-employment and youth entrepreneurship is seen as a potential key strategy for reducing youth unemployment in the long term.