Future employment challenges are navigated by Kazakhstan’s youth

There are many challenges for young people in the global labor market, in Kazakhstan as well. The International Labour Organization (ILO) reports 73 million unemployed young people worldwide, with one in five engaged neither in employment nor in education.
Economic instability makes young people particularly vulnerable in the labor market. Having completed higher or secondary specialized education, many young people accept existing job vacancies not aligning with their needs, often outside their field of study, or remain unemployed for extended periods.
About 40% of the country’s workforce in Kazakhstan is constituted by young people under 35, and over 75% of them were paid employees in 2023. 40% of the young workforce are employed by the service sector.
Nevertheless, there are some obstacles that hinder young people’s career development and their ability to secure employment.
The first barrier is unemployment: the issue remains significant, although its rate in Kazakhstan was 3.5% in 2023, significantly lower than the national average of 4.7%. Young people without high levels of professional training are more likely to remain unemployed. Also, higher unemployment rates are registered among young women (4.3%) compared to young men (2.9%).
The second obstacle is informal employment, which young people are more frequently engaged in compared to adults, especially young men. Rural self-employed young people, especially those with low education and income levels, are the most affected by informal employment.
The third problem is the Not in Education, Employment, or Training (NEET) category. Approximately 7.3% of Kazakh youth fall into it. The highest shares of NEET young people are in the Karagandy (10.3%) and Mangystau (10.2%) Regions, but this statistic varies significantly across the country.
As for the future of the labor market, it is necessary to mention a “demographic window” for economic growth that an increasing share of youth in its population will make Kazakhstan experience over the next 10-15 years.
Nevertheless, a declining birth rate and a growing elderly population will follow this temporary “youth bulge”.
According to international studies, younger workers are demanding new working conditions and emphasize on global trends like work-life balance. Flexible employment is another popular expectation among young people. At present, remote work is actual for less than 1% of Kazakhstan’s employed population, but, according to experts’ estimations, it has the potential for around 30%.
All these trends will make the labor market adapt to the younger generation’s needs and expectations. New employment models must be implemented and relevant educational programs must be developed by companies to prepare for these changes.

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