Rising Unemployment in Kazakhstan: 4.6% Unemployment Rate Amidst Persisting Structural Challenges
In Kazakhstan, the government is actively addressing various challenges in the labor market. According to Askar Biakhmetov, Vice Minister of Labour and Social Protection of the Population, the unemployment rate stands at a record low of 4.6% in 2024.
The average nominal wage in Kazakhstan in 2024 was 405,416 tenge (US$746). Prime Minister Olzhas Bektenov has highlighted the country's target to employ 3.3 million citizens by 2030, including 2.3 million young people.
However, significant challenges remain. The gender pay gap persists, with men earning 26.5% more than women on average. To address this issue, efforts to tackle gender pay disparities are part of broader labor market reforms and social protection policy enhancements linked to human rights and gender equality commitments.
Regional labor disparities are another concern. About 360,000 youth enter the labor market annually until 2035, intensifying job demand. Regional labor surpluses in the south contrast with shortages in the north; internal migration adds urban infrastructure strain. Economic diversification is limited in some regions, further constraining opportunities.
To combat these challenges, Kazakhstan is focusing on digitalizing labor market management. The Digital Development Ministry is creating a unified digital platform to integrate data across state authorities and businesses for real-time job creation tracking. This platform will also aim to modernize education and professional standards by identifying skill gaps and matching workers with job vacancies or training.
Addressing the shadow economy, which accounts for approximately 30% of workers not contributing to pension funds and operating under unclear labor standards, is another priority. The government is working on formalizing these workers and improving labor regulation enforcement.
Investment projects are required to allocate at least 30% of their budgets to wages, with this commitment monitored through an Innovative Project Navigator system. This system ties investments to job creation, ensuring sustainable and permanent employment creation. Regional authorities are personally responsible for employment plan implementation.
The sectors showing the strongest real growth in 2024 were finance (+14% year-on-year), telecommunications (+13.7%), and water supply and waste management (+14%). The number of employed workers reached 7.1 million, while the number of self-employed was 2.1 million.
In the first half of 2025, nearly 197,000 citizens took part in active employment programs. The projected demand for workers in the medium term stands at nearly three million people.
Policy priorities are shifting towards strengthening market infrastructure, investing in human capital, and supporting scientific research, innovative projects, and R&D programs, as suggested by Arslan Aronov from the analytical center of Halyk Finance.
Kazakhstan ranked 92nd out of 146 countries in the latest Global Gender Gap Report by the World Economic Forum, 16 spots down from last year's performance. Existing programs aimed at developing women's entrepreneurship, ensuring equal access to high-paying professions, and promoting career advancement must be further strengthened.
The structure of employment in Kazakhstan's economy demonstrates pronounced age specifics. Young people aged 16 to 24 largely work in trade, while people aged 55 to 64 are more likely to work in industry, agriculture, transport, and education.
Real wage growth remained at 1.7%-2.7% year on year in 2024, significantly below pre-pandemic levels of 9.1%. However, with the government's focus on digitalization, employment initiatives, and addressing regional disparities, Kazakhstan continues to strive towards a more equitable and dynamic labor market.
- The President of Kazakhstan has underscored the importance of education and self-development in combating regional labor disparities, stating that empowering youth with skills aligned to the needs of the digital economy is key to employment.
- In line with policy priorities, the government is also prioritizing general news coverage of efforts to address the gender pay gap and promote gender equality, recognizing these as critical components of overall education and self-development initiatives.
