Author: Tatyana Gracheva
EU report: Despite continued economic growth, businesses in Georgia are facing number of challenges
Despite continued economic growth in 2023 and early 2024, businesses in Georgia are facing number of challenges, primarily driven by political uncertainty and workforce shortages, says the newly released EU Business Climate Report Georgia 2024. The survey, conducted among up to 200 companies with European links, highlights concerns that could hinder long-term economic stability. The […]
Read moreIncome gaps and protest risks put Kazakhstan’s regional policy under scrutiny
Plans for implementing the country’s regional policy concept for 2025-2030 has been published on the Legalacts.egov.kz portal by Kazakhstan’s Ministry of National Economy. Significant economic disparities between regions, ongoing migration from rural areas to cities and the potential risk of mass protests are in its spotlight. Notably, regional inequality marks Kazakhstan’s economic growth. For example, the difference in gross regional product (GRP) per capita between the Atyrau and Turkestan regions is 10.7%. The Atyrau region (30%) and the cities of Astana (15.9%) and Almaty (10.2%) concentrate more than half of the country’s fixed assets.
However, mining remains the main industry (76%) in western regions, despite their overall contribution to GDP declining from 29.9% in 2019 to 25.9% in 2023. Meanwhile, the share of southern regions in GDP increased from 13.2% to 15.1%, despite the low labor productivity (approximately $10,800 per worker, compared to the national average of $23,000).
Unevenness also touches infrastructure development across Kazakhstan. Utility networks remain critically the deteriorated, while 98% of urban residents and 94.8% of rural residents have access to water supply, and 58% have access to gas supply. 64% is the wear -and-tear rate for power supply, 55.9% for wastewater systems and 53.1% for heating infrastructure.
Strain is also present in education infrastructure. Repairs are required in nearly 17.6% of schools, while the student seat shortage achieved 270,100 in 2023.
Another social issue is the unemployment rate, that surpassed national average of 4.7% in Kazakhstan’s western and southern regions. 46% of workers are self-employed in the Turkestan region and up to 9% of residents in the south live below the subsistence minimum.
NEET category, i.e. not in education, employment or training, includes approximately 400,000 young people (7.3%). A risk of social instability and growing protest sentiment is especially significant in the Mangystau, Karaganda and Turkestan regions due to the high concentration of NEET youth.
Another issue highlighting regional disparities is migration patterns. 184,800 people left the Turkestan region, while 116,400 moved out of the Zhambyl region, according to recent statistics. On the contrary, in Astana and Almaty, there was an influx of 51,500 and 43,200 migrants, respectively.
Population decline is also actual for Northern regions. The decrease consisted 40,800 residents over the past five years, while the share of elderly people in the East Kazakhstan region has attained 15.6%.
According to the policy concept, there are three groups of the regions: high-growth (Astana, Almaty and southern regions), stable (the Aktobe and Zhambyl regions) and depressed (northern regions). The plan proposes economic diversification, infrastructure modernization, measures to mitigate social risks, to prevent destabilization and to ensure sustainable development.
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Read moreThe increase of business sector turnover attained 10% in Q4
The increase of the volume of business sector turnover reached 10.0 % and amounted to 62.0 billion GEL in the IV quarter of 2024, compared to the same quarter of the previous year. Meanwhile, the growth of production value equaled 23.5 billion GEL in the reporting period (10.8 % more year-on-year).
Overall, 67.6 % of total turnover accounted for large businesses, 14.9 % for medium size businesses, and 17.5 % for small business in the reporting period. Meanwhile, large businesses generated 43.8 % of total production value, 25.1 % – medium, and 31.1percent – small businesses.
Totally, purchases of goods and services attained 33.2 billion GEL (year-on-year 8.6 % more) in the reporting period, while the purchase of goods and services for resale reached 18.8 billion GEL (year-on-year 0.6% less). In October-December 2024, business sector employed 811.8 thousand people (up 3.8 %мyear-on-year). 43.7 % of them were female and 56.3 % were male.
Out of 764.2 thousand employees, 41.7 % worked for large businesses, 21.5 % for medium, and 36.9 % – for small businesses. Enterprises reported the total personnel costs of 5 536.6 million GEL (year-on-year 10.9 % more). In the reporting period, an employee earned 2 367.0 GEL a month (170.8 GEL increase year-on-year) on average, while women earned 1 847.3 GEL (159.7 GEL increase year-on-year) a month. Average monthly salary in large business was 2 466.2 GEL, in
medium business – 2 750.1 GEL, and 1 969.8 GEL in small business.
The highest share (35.1%) in the total turnover in business sector in the reporting period accounted for the arts, entertainment and recreation. Then followed trade sector (including repair of motor vehicles and motorcycles) (33.7%), construction (7.0%), manufacturing (6.9%), transportation and storage (4.6%), and other sectors (12.7%).
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Read moreFive more foreign nationals got Neo Nomad Visa from Kazakhstan
Five more foreign citizens, including three from the United States, one from the United Kingdom, and one from Latvia, got the Neo Nomad Visa from Kazakhstan.
Professionals can reside in Kazakhstan for up to one year while working remotely for foreign employers on this visa. The Ministry of Tourism and Sports reported the following requirements on March 11: a stable monthly income of $3,000, health insurance, and a certificate of no criminal record.
Mainly IT, marketing, finance, design, and consulting experts who wish to combine work and travel are targeted by the visa.
Only five people previously received the Neo Nomad Visa: a U.K. citizen working in the energy sector and citizens of South Korea and Singapore.
As Deputy Minister of Tourism and Sports Yerzhan Yerkinbayev hopes, the visa will make Kazakhstan a “favorite place” for neo nomads in a recent interview with The Astana Times.
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Read moreLabor market in Ukraine. Who are employers looking for?
The Ukrainian labor market will focus on attracting youth, women, veterans, and people with disabilities According to Maria Abdullina, head of the ‘Work’ direction at one of the recruitment portals, in the Ukrainian labor market in 2025, the greatest attention will be paid to candidates with flexible skills and the ability to learn and adapt […]
Read moreLabour market in Serbia – Workers are not the problem because there are none
The labour market in Serbia is becoming increasingly scarce, while small businesses are struggling to survive, calling for lower taxes and subsidies to encourage the employment of domestic workers. Large companies are being forced to raise wages and introduce additional benefits for employees while digitalising as much as possible to minimise the need for workers. […]
Read moreKazakhstan Grants Neo Nomad Visa to Five More Foreign Nationals
Kazakhstan has granted the Neo Nomad Visa to five more foreign citizens, including three from the United States, one from the United Kingdom, and one from Latvia. This visa allows professionals to reside in Kazakhstan for up to one year while working remotely for foreign employers. To qualify, applicants must prove a stable monthly income […]
Read moreBusiness sector turnover up 10% in Q4
In the IV quarter of 2024, compared to the same quarter of the previous year, the volume of business sector turnover increased by 10.0 percent and amounted to 62.0 billion GEL. The increase was observed in the production value of the business sector as well. In the IV quarter of 2024, production value equaled 23.5 […]
Read moreIn Serbia unemployment rate achieved 8.6% in Q4 2024
As the National Institute of Statistics reported yesterday, the number of unemployed people in Serbia in the fourth quarter of 2024 was 273,100 (unemployment rate of 8.6%).
The previous data showed that the number of employed people equal to 2,894,900, and an employment rate of 51.4%.
Data from the Labour Force Survey report that the population outside the labor force was 2,462,200 people (43.7%).
The increase of the number of employed people is 50,700, compared to the fourth quarter of the previous year. Nevertheless, the decrease of the number of unemployed people is 11,600, and the downfall of the number of people outside the labor force is 65,300.
The increase of the employment rate is 1.1 percentage points, while the decrease of the unemployment rate is 0.5 percentage points. The rate of the population outside the labor force decreased by one percentage point.
The number of employed people decreased by 28,600, compared to the third quarter of 2024, while the number of unemployed increased by 16,000, and the number of the population outside the labor force raised up by 6,300.
11.9% was the overall informal employment rate. Agricultural sector demonstrated a rate of 48.5% and non-agricultural sectors – 6.8%.
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Read moreA surge of the demand for Blue-Collar Workers makes Kazakhstan Boost Vocational Training
Deputy Minister of Labor and Social Protection Askar Biakhmetov reports a growing demand for blue-collar workers in Kazakhstan, particularly in the construction, agriculture, manufacturing, and healthcare sectors.
As he stated, 979,000 job seekers were employed in Kazakhstan, including 714,000 individuals who secured permanent jobs, in 2024.
The aim of Kazakhstan’s Labor Market Development Concept is to increase the number of high-quality, well-paid jobs from 2.5 million in 2024 to 3.8 million by 2029 with the help of vocational training programs.
67,500 people took part in short-term vocational courses in 2023.
One of them is the Skills Enbek online training platform. 57,700 people used it and 14,600 secured jobs after completing one of 858 online courses (311 are free).
The statistics show that the total demand for labor over the next six years is estimated at 1.6 million workers. Biakhmetov added that around 900,000 jobs will require vocational education, including 400,000 positions in blue-collar professions.
Meanwhile, steps are taken by the government to reduce reliance on foreign labor. As Svetlana Zhakupova, Minister of Labor and Social Protection, announced, they will reduce Kazakhstan’s annual foreign labor quota from 22,000 to 15,000 in 2025.
The government’s priorities are to develop workforce through training initiatives and employment programs and to ensure sufficient skilled labor for the country’s growing economy, as Kazakhstan continues to modernize its labor market.
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