ANCOR Staffing company has been operating in Central Asia since 2007. ANCOR offers a variety of solutions in temporary staffing, outstaffing, business processes outsourcing, recruitment and consulting in Kazakhstan, Uzbekistan, Georgia, Armenia, Azerbaijan, Mongolia, Kyrgyzstan, Tajikistan, and Turkmenistan. In this article managing director Valeria Petrunina explained why foreign companies are increasingly hiring employees from Central Asia.
Valeria Petrunina, Managing Director, ANCOR, linkedin
The labor market in Central Asia, particularly in Kazakhstan, is evolving rapidly, driven by a combination of economic reforms, demographic trends, and increasing integration into global markets. Here's an overview of the key developments and why foreign companies are increasingly hiring from this region:
1. Economic Diversification. Kazakhstan has been actively working to diversify its economy beyond the traditional oil and gas sector. There has been a growing emphasis on sectors such as manufacturing, finance, agriculture, ICT, and renewable energy. This diversification is leading to the creation of new jobs and demand for a broader range of skills.
2. Government Initiatives. The Kazakh government has implemented various programs to boost employment, including investments in education and vocational training. Programs like “Bolashak”, which funds education for Kazakh students abroad, aim to improve the skills of the workforce. The government is also focused on developing digital skills to support the growing IT sector.
3. Youth and Urbanization. Kazakhstan has a relatively young population, which is contributing to a growing labor force. The country is also experiencing significant urbanization, with more people moving to cities like Almaty, Astana, and Shymkent in search of better job opportunities.
4. Labor Market Challenges. Despite progress, the labor market faces challenges such as the need to create more high-quality jobs, address regional disparities in employment opportunities, and manage the balance between public and private sector employment.
Why foreign companies hire employees from Kazakhstan
1. Cost-effective workforce. Kazakhstan offers a relatively low-cost labor force compared to more developed economies. This is particularly attractive for foreign companies looking to minimize costs while accessing a skilled workforce. This cost-effectiveness is especially beneficial in sectors like manufacturing, IT services, and outsourcing.
2. Skilled and educated workforce. The emphasis on education and vocational training has resulted in a growing number of well-educated and skilled workers, particularly in fields such as engineering, IT, and finance. The presence of technical universities and government scholarships has enhanced the talent pool.
3. Multilingual capabilities. Many Kazakh workers are bilingual, often fluent in both Kazakh and Russian, with a growing number also proficient in English. This linguistic ability is particularly advantageous for companies operating in or dealing with Russian-speaking markets.
4. Strategic location and market access. Kazakhstan's location makes it a strategic hub for accessing both European and Asian markets. Foreign companies often hire locally to gain insights into the regional market and establish operations that can serve surrounding countries.
5. Improving business environment. Kazakhstan has been improving its business environment, offering various incentives for foreign investment. This includes tax breaks, simplified regulations, and free economic zones that make it easier for foreign companies to operate and hire locally.
6. Political stability. Compared to some of its regional neighbors, Kazakhstan enjoys relative political stability, which is a key factor for foreign companies considering long-term investments and hiring in the region.
In summary, Kazakhstan's labor market is developing rapidly due to economic diversification, government initiatives, and an expanding workforce. Foreign companies are drawn to Kazakhstan for its cost-effective and skilled labor force, strategic location, and improving business environment.
