“Labour Market of Kazakhstan: On the Way to Digital Reality” National Report
“Labour Market of Kazakhstan: On the Way to Digital Reality” National Report
Analysts of the JSC Workforce Development Center (hereinafter referred to as the WDC) prepared the second National Report on the labour market - “Labour Market of Kazakhstan: On the Way to Digital Reality”. It includes up-to-date information on how the digitalization of various economies and industries is taking place, how this affects professions and skills, whether “technological unemployment” threatens us, what opportunities the digital employment ecosystem provides, and much more.
Digitalization is changing the structure of the economy, work, public narrative and social paradigm at a rapid pace. It is not only in production of goods and services, but also in the daily life of every person. The digital transformation of individual industries has changed business processes, where companies that have made the transition to digital a priority, invested in technology and human capital, have become dominant.
According to the World Bank, digital economy accounts for 15.5% of global GDP and is growing two and a half times faster than the global economy over the past 15 years. But when the risks of digitalization are considered, the first concern is the degree of its impact on the labour market.
Thus, the National Report raises topical issues to the labour market related to the risks of “technological unemployment” and its consequences, sheds light on the concept of a “future without work” in Kazakhstan, assesses the readiness of human potential for upcoming changes, and also identifies existing trends and challenges of the gig economy. In general, the study goes beyond the concept of the labour market, but also considers the scale of digitalization of economies across the world and Kazakhstan overall, as well as individual industries, discusses the existing barriers and possible solutions to succeed in the digital race.
The National Report consists of 7 chapters, each of which is devoted to a specific topic directly related to digitalization.
As a part of the study, relevant information was collected about the features of digitalization in Kazakhstan, including international ratings, in accordance with which the country has great potential and advantages in comparison with others. Moreover, in order to assess the scale of job losses due to digitalization the forecasts of international experts were attempted to scrutinized. At the same time, our own assessment of the impact of digitalization on the labour market was carried out and it was determined that 22% of occupational groups in Kazakhstan which employ 587 thousand people, or 7% of employees are at high risk of automation.
In the context of digitalization, many countries are facing a shortage of qualified IT specialists, and Kazakhstan is not the exception. According to the WDC analysis, today 69.5 thousand ICT specialists have 84.1 thousand electronic labour contracts with Kazakhstani enterprises, which means that one in five workers simultaneously work in several organizations. The average monthly salary of an ICT specialist is 516 thousand tenge, and the median salary is 352 thousand tenge. The Report also reviews the number and salary of backend, frontend, data science and cyber security specialists, the assessment of universities for the employment of IT graduates, as well as in-demand IT skills.
At the same time, the National Report sheds light on the freelance market, which has become an integral part of the labour market. According to the WDC analysis, 1 million 49 thousand people worked as freelancers in Kazakhstan in 2021, while for 228.3 thousand people freelancing was the main way to earn money, 820.5 thousand people worked both as freelancers and employees.
In addition, an overview of a platform employment where about 500 thousand people are estimated to work in Kazakhstan was also made. The assessment of the current situation and the existing barriers faced by participants of the gig economy were identified based on the interviews with representatives of online platforms (Yandex.Taxi, Naimi.kz , Glovo, Quick Work, InDrive and Chocofood) and their employees.
The sources of information for the Report were the materials of the Bureau of National Statistics of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan, national reports, publications of such international organizations as the World Bank, World Economic Forum, International Labour Organization, OECD, Big 3 and Big 4 companies, etc. Also, in order to show the different views on a particular digitalization or labour market related issue the opinions of more than 40 international and national experts from different industries were collected.
The Second National Report on Labour Market of Kazakhstan will become a reliable source of information and a catalyst for discussions and proposals on the pace and prospects of digitalization of the economy and the labour market among the common population. It will also serve as a guide for the further career development, as well as dispel myths and doubts about the “harm” of digital transformation for citizens.
The National Report is for informational purposes only and is not an offer or an attempt on the part of JSC “Workforce Development Center” to provide reporting, business or other professional advice or services. The study is based on information and data obtained from reliable external and internal sources, which the WDC considers reliable. However, we do not claim that all the information provided is absolutely accurate.
JSC "Workforce Development Center" does not undertake the obligation to correct the publication in connection with the loss of relevance of the information contained in it, as well as in the event of a discrepancy between the data given in the analytical publication and reality. The information published in the work is available for personal use, but is not intended for commercial distribution and may not be reproduced, transmitted or published, in whole or in part, without reference to the source.
JSC “Workforce Development Center” is not responsible for damage caused to any person as a result of action or refusal to act based on the information contained in this publication.