Behind the Numbers: The Hidden Problems in Kazakhstan’s Job Market

On paper, Kazakhstan’s labor market appears stable: unemployment is declining, informal employment is decreasing, and new jobs are being created. But should we take government reports at face value? Analysts are skeptical, reports Orda.kz.

Experts at Halyk Finance reviewed Kazakhstan’s labor market trends in 2024 and concluded that the situation is not as positive as authorities suggest. Employment remains unevenly distributed across the country, hidden unemployment persists, and women and young people continue to face significant barriers to entering the workforce.

Last year, around 9.7 million people were employed in Kazakhstan — about 70% of the working-age population. Of these, 7 million were formally employed and 2.2 million were self-employed. The largest employment sectors were trade (16.6%), education (13%), and industry (12.6%).

However, while jobs are concentrated in major cities, regions face shortages. Almaty accounts for 11.8% of all employed people in the country, and Astana for 7.4%. Among the regions, Turkistan (8.9%), Almaty (7.8%), Qaraganda, and Jambyl (both 5.9%) lead in employment figures.

The lowest rates are in Abay (3.1%) and Ulytau (1%).

The situation leads to active internal migration: on the one hand, this boosts economic growth in major cities, on the other, it leads to an overload of urban infrastructure and increased competition for jobs. As a result, a significant part of the working population, especially young professionals, has difficulty finding permanent employment,notes analyst Arslan Aronov. 

Of those employed, 46.4% have a higher education, and about half hold technical or vocational qualifications. Most employed citizens (66.9%) live in cities. While urban employment is nearly balanced between men and women, rural areas see more men working.

Women face not only a higher level of unemployment, but also lower employment in many sectors of the economy and limited access to high-paying jobs. These challenges are reinforced by cultural expectations and unpaid household labor. Despite the existence of government initiatives to support women's employment, systemic measures are still insufficient to overcome the “glass ceiling” and close the gender gap,Arslan Aronov emphasizes. 

The female unemployment rate is 0.8% higher than the male rate. Women also experience longer periods of joblessness, particularly among the younger population.

There’s still gender discrimination in hiring — employers often avoid hiring women of childbearing age due to potential maternity leave. In technical fields, women make up only 18.5% of applicants. Moreover, the economic structure itself doesn’t support female employment. Traditionally, 'female' sectors like education and healthcare are chronically underfunded, while "male" high-paying sectors like oil and gas are better supported,Aronov added. 

In the Atyrau and Mangystau regions, men earn 41.5% more than women. The gender pay gap in Almaty is 15.3%, and in Astana, 18.2%. The only region where women’s earnings slightly exceed men’s is Almaty Region, by just 0.9%.

Women in rural areas aged 35–44 are among the most vulnerable to unemployment. A major factor is that Kazakhstani women spend nearly twice as much time on unpaid housework. In many areas, a lack of nurseries prevents mothers from returning to work after maternity leave. In regions such as Mangystau and Jetisu, the unemployment rate among women has reached 7.3%.

Youth unemployment is another concern. Officially, it’s declining — but that’s partly due to a change in the definition of “youth,” now expanded from under 28 to under 34. The NEET category (Not in Education, Employment or Training) remains large, with 354,000 young people falling into this group.

This group becomes economically and socially isolated, increasing the risk of marginalization, poverty, and mental health issues. Many rely financially on parents or spouses. A high number of NEET youth slows economic growth, weakens the labor market, and places greater social strain on the state,said Aronov. 

Alarmingly, 58% of NEET youth are not even looking for work, and 18% are not interested in further education.

Most do not come from disadvantaged rural areas: 62.1% live in cities, and the majority have higher education. The highest NEET rate is in the Mangystau region, at 12%.

Another issue involves the self-employed, who make up 23.4% of Kazakhstan’s labor market. Most are concentrated in trade (30.5%), agriculture (24.9%), and transport (12.5%). Regionally, the majority live in the Turkistan (17.2%) and Almaty (10.3%) Regions.

These individuals are generally classified as “productively employed,” meaning their income exceeds the subsistence minimum. However, 105,000 Kazakhstanis are considered “unproductively employed” — they have formal jobs but earn little.

The presence of unproductively employed people may point to a deeper issue closely related to the correct classification of the self-employed — hidden unemployment. In labor economics, hidden unemployment refers to people who have stopped actively looking for work and are therefore no longer considered part of the labor force. It also includes those who underuse their labor potential and their skills. That’s why, as we’ve written before, the official unemployment rate in Kazakhstan — lower than in many developed countries — may not reflect the real picture due to hidden unemployment, says Arslan Aronov.  

Statistics show that during periods of economic crisis, many Kazakhstanis who lost their jobs did not register as unemployed but instead moved into the self-employed category. Some of those listed as self-employed are not actually working.

The official unemployment rate in Kazakhstan stands at 4.7%. On the surface, this seems low, even below the global average. But if you add the unproductively employed to that figure, the real number could be one and a half to two times higher.

To address these labor market issues, the expert suggests several measures:

• Stimulating economic growth in regional centers, not just in Astana and Almaty
• Relocating some universities, government institutions, and major company offices to the regions
• Developing urban agglomerations to ease pressure on transportation and housing
• Increasing funding for kindergartens to help women return to the workforce after maternity leave
• Promoting blue-collar jobs and entrepreneurship in schools and universities to reduce the number of NEET youth

Original Author: Nikita Drobny