Developed nations outpace Kazakhstan by a factor of five in terms of workforce efficiency.
Let's dig into the reasons for low labor productivity in Kazakhstan. Vice-Minister of Labor and Social Protection of the Population, Erjan Birkhanov, spilled the beans at a meeting of the Majilis committee on social and cultural development. Apparently, Kazakhstan's labor productivity is dragging behind the developed world, with an average that's about five times lower.
Birkhanov explained the issue lies mainly on the supply side of the labor market. He pinpointed two significant factors holding back labor productivity growth. The first being the low skill level among the workforce, including both newcomers to the labor market and the current older workforce. In fact, 79% of adults in Kazakhstan only possess basic ICT skills.
The second issue is the lack of continuous skill development among workers. With technology constantly evolving and job functions transforming, labor resources seem to be stuck in a rut, their skills mismatched with job requirements, especially during production modernization. Not great, considering only 17% of adults are actively improving their qualifications.
To remedy these challenges, it's clear action is needed. Kazakhstan is taking steps to address these issues and boost labor productivity. For instance, there's a focus on training qualified personnel in key sectors like the agro-industrial complex, where discussions led by Prime Minister Olzhas Bektenov emphasize the significance of the training piece.
Moreover, agricultural enterprises benefit from concessional lending programs that help modernize machinery, indirectly requiring higher technical skills from workers. The government is also investing heavily in the petrochemical sector, partnering with educational institutions and foreign firms for workforce training. Across industries, including gas and petrochemicals, Kazakhstan is deploying digital systems such as robotic warehouses and telemetry metering devices, requiring workers to be upskilled to manage new digital tools.
Legal and institutional frameworks are also being updated to support sector development and labor productivity growth. A new law on the petrochemical industry, for example, aims to improve resource access and financing support, encouraging technological advancement and skill enhancement in the industry.
In summary, Kazakhstan is taking a strategic approach to improving labor productivity. By investing in technology, infrastructure, and human capital development, they aim to equip workers with better skills and foster continuous skill improvement in key economic sectors. This aligns with national priorities to boost gross production and sustainable employment across regions.
- In the context of addressing low labor productivity in Kazakhstan, there is a focus on improving the skill level of the workforce, particularly in key sectors such as the agro-industrial complex and petrochemicals.
- The finance industry is playing a role in boosting labor productivity through concessional lending programs that help modernize machinery in agriculture, indirectly requiring higher technical skills from workers.
