Young people face many challenges in the global labor market, and Kazakhstan is no exception. According to the International Labour Organization (ILO), there are 73 million unemployed young people worldwide, with one in five not engaged in either employment or education.
Young people are particularly vulnerable in the labor market, especially during economic instability. After completing higher or secondary specialized education, many young people encounter the “first-hire trap,” where existing job vacancies do not align with their needs. This mismatch often forces them to work outside their field of study or remain unemployed for extended periods.
Anna Alshanskaya.
In Kazakhstan, young people under 35 constitute about 40% of the country’s workforce. Most of these young people, over 75% in 2023, are paid employees. The service sector, in particular, is a significant area of employment, engaging 40% of the young workforce.
Employed youth: Barriers to employment
Young people in Kazakhstan encounter several obstacles that hinder their ability to secure employment and advance their careers.
Firstly, although the youth unemployment rate in Kazakhstan was 3.5% in 2023, significantly lower than the national average of 4.7%, the issue remains significant. Youth with lower levels of professional training face a higher likelihood of unemployment. Additionally, young women experience higher unemployment rates (4.3%) compared to young men (2.9%).
Secondly, young people are more frequently engaged in informal employment than adults, with young men being the most affected. Informal employment is prevalent among rural self-employed youth, especially those with low education and income levels.
Thirdly, approximately 7.3% of Kazakh youth fall into the Not in Education, Employment, or Training (NEET) category. This statistic varies significantly across regions, with the highest shares of NEET youth in the Karagandy (10.3%) and Mangystau (10.2%) Regions.
The future of the labor market
Kazakhstan is set to experience a “demographic window” for economic growth over the next 10-15 years due to an increasing share of youth in its population. However, this “youth bulge” will be temporary, followed by a declining birth rate and a growing elderly population.
International studies indicate that younger workers are demanding new working conditions, with a strong emphasis on global trends like work-life balance. Flexible employment is expected to become more popular among young people. Currently, less than 1% of Kazakhstan’s employed population works remotely, but experts estimate the potential for remote work is around 30%.
In light of these trends, the labor market will need to adapt to the younger generation’s needs and expectations. Companies must prepare for these changes by implementing new employment models and developing relevant educational programs.
The author is Anna Alshanskaya, head of the Department of Economic Policy and Analysis at the Kazakhstan Institute for Strategic Studies under the President of Kazakhstan (KazISS).
The article was originally published on the Kisi.kz website.
