WDC created The first National Report titled The Labor Market in Kazakhstan
6 December 2021 18:01

WDC created The first National Report titled The Labor Market in Kazakhstan

NUR-SULTAN. KAZINFORM - The first National Report titled The Labour Market in Kazakhstan: Development in the face of a New Reality has been drafted by analysts of JSC Workforce Development Center (hereinafter – WDC).

It compiles up-to-date information on global trends, current challenges, ongoing changes in the economy and the labour market, including those influenced by the COVID-19 pandemic, government support on employment, and identifies key factors for the future competitiveness of the labour force, Kazinform has learnt from iac.enbek.kz.

Currently, the world is rapidly changing under the influence of global social, technological, economic and political trends, and the COVID-19 pandemic has only accelerated economic transformations. The labour market is also adapting to the changes underway: new work formats and occupations are emerging, and skills requirements for the workforce are increasing. The importance of these changes lies not so much with the changes themselves as with the consequences they entail for all participants in the labour market: employers, citizens, and the government.

«Today, it is important to understand existing national challenges, global trends and how they will affect the economy, the labour market and citizens themselves in order to develop effective measures and strategies. It is, therefore, necessary to explore all these issues in a variety of ways. To this end, we have prepared the first National Report on the labour market in Kazakhstan, which contains up-to-date information on the current state and prospects of its development in the new reality,» – pointed out Daulet Argandykov, president of the WDC.

The report consists of 6 chapters, each devoted to a specific topic related to the labour market.

The analysis identifies global trends that affect the national labour market in one way or another. For example, more than half of jobs in Kazakhstan (52%) are at high or significant risk of automation, slightly higher than the OECD average (47%).

This means that many Kazakhstanis will have to retrain or acquire new in-demand skills, primarily digital, cognitive and socio-behavioural. Therefore, human capital development today should be seen in the context of lifelong learning, from early childhood to active ageing. This requires, above all, more flexible and less costly learning options that combine the features of formal, non-formal, and distance education.

In addition, the structure of the workforce is changing, with the majority of Kazakhstan’s workforce consisting of millennials and generation Z (63%) by 2025, both of whom demonstrate high levels of digital literacy and digital inclusion. The Report considers how new generations and their values are changing the labour market to suit their needs.

At the same time, the National Report is in one way or another structured around estimating the impact of the COVID-19 pandemic on the economy and the labour market. For the first time in two decades, the GDP growth turned negative, while there has not been a large-scale increase in unemployment, and WDC analysts explained this phenomenon in detail.

One of the main features of the Report is access to unique information derived from the analysis of data from the information systems of the Ministry of Labour and Social Protection of the Population of the Republic of Kazakhstan. For the first time, detailed results of the implementation of Enbek state program for the development of productive employment and mass entrepreneurship for 2017-2020 are published; data from some2.7 million participants allowed to identify the profile of a registered unemployed person, information on the foreign labour force involved and much more.

«In preparing the report, we acted as independent researchers. We drew conclusions and formulated hypotheses solely on the basis of verified information, official and departmental statistics, and internationally recognised publications. Therefore, we openly write about all the existing challenges in the labour market in order to draw attention to them and jointly find effective solutions. For example, our analysis results have shown that the local labour market does not adequately reward educational qualifications. The difference in average income between a doctor and a car driver in Kazakhstan is 31%, while in Germany amounts to 172%, it stands at 174% in Brazil and –261% in the USA,» – said Alexandra Molchanovskaya, one of the authors of the report and WDC managing director.

Sources of information for the Report include materials of the Bureau of National Statistics of the Agency for Strategic Planning and Reforms of the republic of Kazakhstan, national reports, interesting cross-border cases, and publications of international organisations, such as the World Bank, the International Labour Organization, OECD, the Big 3 and the Big 4 firms. Perspectives of more than 20 international and national experts from different sectors have been collected to show different opinions and visions on a particular issue.

«We live in an era of abundance of information, but it is often difficult to find reliable sources and time to read all the publications of interest in such a large flow of information. Therefore, in our Report we have tried to collect the most relevant and interesting data from various sources, to show the current situation not only on the basis of statistical indicators, but also expert opinions, and to present everything in a clear and accessible form. This is because the labour market development issues are important not only for the state but also for every individual,» – noted Alexandra Molchanovskaya.

it is planned to publish the National Report on the labour market on relevant topics annually. Information transparency is the key to the involvement of a wide range of citizens in the implementation of public policy measures.

«We hope this Report will serve as an open source of objective information on the labour market and will provide an opportunity for citizens to understand the current situation and trends on such an important topic, and for government agencies and the expert community to use the materials for further discussion to jointly establish an effective strategy for the development of the labour market in the new reality,» – said Daulet Argandykov, president of the WDC.

The National Report titled The Labour Market in Kazakhstan: Development in the Face of a New Reality is available on the WDC website https://iac.enbek.kz/ru/node/1220.

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