EC[ON]OMY

Kazakhstan Labor Market Stability: Key Insights Q1 2025

In the first quarter of 2025 Kazakhstan’s labor market remained relatively stable. The employment rate among adults stood at 64.4%, and the unemployment rate—according to ILO methodology—was 4.6%. While these figures may suggest a healthy labor market, a deeper look reveals structural imbalances and lingering vulnerabilities.

As noted by an expert from EconomyKZ.org, the headline numbers paint only part of the picture. Beneath the surface lie issues like a growing number of informally employed workers, limited opportunities for youth, and a significant portion of the population disengaged from the labor force altogether.

9.3 Million Employed: Who Works Where?

As of Q1 2025 9.3 million people in Kazakhstan were employed:

• 76.9% were wage employees (7.1 million people)

• 23.1% were self-employed (2.2 million people)

Employment is highly concentrated in four sectors:

1. Trade – 17%

2. Education – 13.4%

3. Industry – 12.5%

4. Agriculture – 10.3%

This breakdown reflects the economy’s continued reliance on traditional service sectors. Industrial and export-driven sectors remain relatively underdeveloped, despite government initiatives aimed at diversification.

Working Hours: How Long Do People Work?

Average weekly working hours also vary by employment type:

• General average – 39 hours/week

• Wage employees – 41 hours/week

• Self-employed – 36 hours/week

These numbers suggest that formal wage employment involves longer hours and perhaps more job stability, while the self-employed often have more flexible arrangements.

Unemployment: Declining, But Uneven

Kazakhstan recorded 451,500 unemployed individuals in Q1 2025—equivalent to 4.6% of the labor force, down 0.1 percentage points from the same period last year.

Among youth aged 15–34, unemployment stood at 3.1%. However, only 323,700 people were officially registered as unemployed with government job centers, making up just 3.3% of the labor force. This gap highlights limited public trust in employment services and the need to improve support mechanisms.

Conclusion: Solid Numbers, Fragile System

Kazakhstan’s labor market may look steady on paper, but that stability masks several long-term issues:

• Heavy reliance on low-productivity sectors

• Insufficient re-skilling and training

• Youth at risk of economic marginalization

• A large and growing population outside the workforce

To ensure resilience, policy must go beyond headline employment figures and focus on building a more inclusive, adaptive labor market.

 

Prepared by: Lina Yegil kizi, expert of the EconomyKZ.org portal

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