Labor - The Times Of Central Asia

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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%).

Migrant Workers

Uzbekistan Officials Intervene Over Wage Delays for Migrant Workers in Russia

Uzbek diplomats and migration officials have intervened to resolve wage disputes affecting dozens of Uzbek citizens working in Russia’s Tyumen region, according to a report by Dunyo Information Agency. Representatives of Uzbekistan’s Consulate General in Yekaterinburg, together with officials from the Migration Agency, traveled to the city of Tobolsk, where they met with more than 100 Uzbek citizens working temporarily for local companies. The delegation organized an on-site reception, providing legal and consular assistance and clarifying issues related to passport processing and compliance with migration laws. During the meetings, officials also warned workers about the risks of engaging with illegal or extremist groups and reminded them that joining private military companies could lead to criminal liability. A key issue raised during the visit was delayed wage payments. Authorities found that a subcontractor had failed to pay salaries for February and March to 26 Uzbek workers. Following negotiations involving the main contractor and the employer, the companies acknowledged the debt and agreed to settle it. As a result, approximately 2 million rubles (about $24,945) in wages have been accrued and are expected to be transferred to the workers’ bank accounts in the coming days. In addition, the employers committed to repaying outstanding wages to around 80 other Uzbek citizens who had previously left the company without receiving full payment. Officials also inspected living and working conditions and held discussions with employers aimed at preventing similar cases in the future. According to Dunyo, Uzbekistan’s government considers the protection of its citizens abroad and ensuring fair pay for their work a priority. Such outreach visits and rapid interventions are seen as an important tool for strengthening legal protections for Uzbek migrant workers in Russia and addressing their concerns directly on the ground. As previously reported by The Times of Central Asia, Russia expressed its readiness to facilitate the transfer of more than 3,000 Uzbek prisoners to serve their sentences in Uzbekistan, although the process remains constrained by legal limitations.

Migration Policy

Kazakhstan Drafts New Migration Policy Concept Through 2030

Kazakhstan’s Ministry of Labor and Social Protection has developed a draft Concept of Migration Policy through 2030, aimed at fostering a more balanced approach to migration management while mitigating associated risks. The proposal is currently under government review. A central element of the draft is the enhancement of migration monitoring via the digital platform migration.enbek.kz. This platform will integrate data from multiple ministries to create a unified system for tracking internal, inbound, and outbound migration. The goal is to strengthen forecasting, analysis, and decision-making through improved access to real-time migration data. The policy also places significant emphasis on internal labor migration. Particular attention is given to internal relocants and, ethnic Kazakhs returning from abroad. The draft proposes annual regional quotas to incentivize resettlement in northern, eastern, and central regions of the country. These measures will be complemented by initiatives to boost rural incomes, support small businesses, and promote agricultural cooperatives. Officials believe this strategy will help redistribute labor resources and bolster regional demographic stability. On the external migration front, the concept outlines measures to protect the rights of Kazakhstani citizens working abroad, attract skilled foreign professionals and international students, and enhance support for returning Kazakhs. Proposed tools include bilateral labor agreements, expanded digital monitoring, and the development of specialized universities to aid in the educational and cultural integration of returnees. Internal migration remains one of the country's most pressing challenges, as major urban centers such as Almaty and Astana continue to attract young people from less developed regions, exacerbating regional disparities. The new policy aims to address these imbalances by providing targeted support for underpopulated areas.

Education

Kazakhstan Aims to Redefine the Role and Status of Teachers

Kazakhstan is preparing sweeping changes to the role of teachers, aiming to significantly strengthen their legal protections and professional autonomy. The proposals, announced at an educators' conference in August, are being described by experts as revolutionary for the country’s education system. Protecting Teachers' Rights President Kassym-Jomart Tokayev participated in the conference and proposed amendments to the Law on the Status of Teachers to shield educators from non-core responsibilities. “The issue of protecting teachers' rights should always be a priority,” said Tokayev. “Teachers must be exempt from tasks unrelated to their primary duties. Unfortunately, local authorities often grossly violate the law in this regard. The Prosecutor’s Office must take strict action against such violations.” In many post-Soviet countries, it has been common for teachers to be assigned duties unrelated to education. In Kazakhstan, for instance, teachers are often tasked with running polling stations during elections or referendums, ensuring voter turnout, cleaning school premises, organizing community celebrations, and more. Tokayev also spoke out against holding teachers accountable for incidents outside school grounds. “It is inappropriate to immediately punish teachers for any accident involving children,” he stated. “If an incident occurs outside school or due to parental negligence, the teacher should not be held responsible.” He referred to a recent case in the Almaty region, where a graduate died in a fight at a private residence. The school’s principal and teachers were dismissed, but the Ministry of Education later intervened on their behalf. Responsibility Within the School While calling for greater protections, Tokayev also emphasized the critical role of teachers within school walls. He urged educators to take active roles in combating social issues such as drug and gambling addiction, domestic violence, bullying, vandalism, and dependency. Teaching has long been one of Kazakhstan’s least attractive professions due to high workloads and low pay. However, since 2019, the education budget has tripled, 1,200 new schools have opened, and teacher salaries have doubled. More than 500,000 teachers now receive performance-based bonuses. Fighting Dependency and Exploitation Kazakh political analyst Marat Shibutov emphasized the importance of ending the exploitation of teachers and addressing broader societal issues such as dependency. “At a meeting with teachers, the president spoke out against parasitism, which has become widespread, especially in rural areas, where social benefits discourage work and promote idleness,” Shibutov said. “Some families even avoid treating disabled children to retain their benefits.” He added that around 60 children had fallen from windows in Astana since the start of the year, yet the blame is often shifted to the state rather than to parents, who bear responsibility for safety at home. “Dependency is more than just a lifestyle, it’s an ideology of aggressive laziness eating away at youth,” he said. On the issue of non-core assignments, Shibutov remarked: “It’s time to get rid of Soviet relics, teachers are not free labor or child supervisors”. A Remedy in Mathematics Political analyst Gaziz Abishev called for deeper educational reforms to address the psychological and cognitive vulnerabilities of young people in the digital age....

Labor

Fifteen Killed in Industrial Accidents in Kazakhstan Since Start of 2025

Kazakh authorities are tightening oversight of hazardous industrial facilities and will require operators to promptly modernize aging equipment, which is frequently cited as a leading cause of workplace accidents. “From January to May, 11 accidents occurred in Kazakhstan across the petrochemical and mining industries, as well as at boiler and gas facilities and during the processing of vegetable raw materials. These incidents resulted in over 60 emergency situations, injuring 22 workers and claiming the lives of 15,” Emergency Situations Minister Chingiz Arinov reported during a government meeting. Officials from the Ministry of Labor and Social Protection added that in 2024, more than 1,400 people were injured in industrial accidents, and 202 Kazakh citizens lost their lives. Additionally, nearly 16,000 individuals lost their ability to work, with approximately half of the cases linked to occupational illnesses and the other half to workplace injuries. Currently, over 445,000 jobs in Kazakhstan are classified as harmful or dangerous. Since the beginning of the year, inspections of around 16,000 facilities for industrial and fire safety revealed more than 100,000 violations. Authorities suspended operations at more than 7,500 production sites for severe infractions. Arinov emphasized that outdated and poorly maintained equipment is a key contributor to these accidents. “To address this, the ministry plans to legislate mandatory renovation and technical upgrade plans for owners of hazardous facilities,” he said. “These plans will require official approval by our department.” The Ministry of Labor has also proposed the implementation of continuous digital monitoring in high-risk sectors. This would involve installing sensors linked to a unified automated information system to track working conditions in real time. As previously reported by The Times of Central Asia, President Kassym-Jomart Tokayev ordered comprehensive inspections of industrial facilities following the deaths of seven Kazakhmys Corporation workers at the Zhomart mine in the Zhanaarka district of Ulytau region in February.

Migrants

Uzbekistan and Russia Hold First Meeting on Labor Migration and Migrant Rights

On April 29, an interagency delegation from Uzbekistan visited Moscow for the inaugural session of the Uzbekistan–Russia working group on labor migration and migrant rights. The Prosecutor General’s Office of Uzbekistan reported that the delegation was led by Uzbekistan’s Deputy Prosecutor General Shohrukh Aminov. The Russian delegation was headed by Deputy Prosecutor General Pyotr Gorodov and included representatives from the Prosecutor General’s Office, the Federal Security Service, and the Ministries of Foreign Affairs and Internal Affairs. Uzbekistan’s delegation comprised officials from the Prosecutor General’s Office, the State Security Service, the Migration Agency, and the Ministries of Foreign Affairs, Internal Affairs, and Health. During the meeting, the two sides discussed the current state of labor migration, identified ongoing challenges, and explored potential solutions. They agreed to develop joint measures to regulate legal migration while balancing the interests of both countries. The delegations also agreed to strengthen oversight of the rights of Uzbek citizens working in Russia and Russian citizens visiting Uzbekistan. Both countries’ Prosecutor General’s Offices pledged to closely monitor the protection of migrant rights. At the conclusion of the meeting, a protocol was signed outlining the decisions made. The implementation of these agreements will be jointly monitored by both Prosecutor General’s Offices. The session followed Russian Foreign Minister Sergey Lavrov’s recent visit to Uzbekistan, during which he stressed the importance of migrants understanding Russian laws and language. While warning of an increase in migrant-related crime, he also acknowledged Russia’s ongoing need for foreign labor.