Leading and Lagging Regions in Kazakhstan's Labour Productivity: Identifying Front-Runners and Laggards
Strutting Their Stuff: The heavyweights in labor productivity hail from regions dominating the extractive industry and major economic hubs. Leading the pack is Atyrau, boasting an impressive figure of 36,680 thousand tenge per employed individual. Following closely are Ulytau, Almaty, Nur-Sultan, and Karaganda. The oil sector powers Atyrau's performance, financial and trade sectors fuel Almaty, while manufacturing drives Ulytau's success. [Insight: These regions play a crucial role in Kazakhstan's economy.]
The Stragglers: Painfully Slow Progress
On the flip side, several regions battle critically low productivity levels. Turkestan, Zhambyl, and Almaty regions struggle to keep up, with productivity levels significantly lower than the national average. The staggering eightfold gap between Atyrau (the top performer) and Turkestan highlights the deep-rooted structural imbalances threatening national growth and social stability. [Insight: These regions could be lagging due to their predominantly agricultural, mining, or resource extraction economies.]
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Progression and Retrogression: A Regional Snapshot
The productivity dynamics paint a concerning picture. While the country as a whole shows growth, 11 out of 20 Kazakh regions experienced a decline in productivity. [Insight: Some regions are vulnerable to commodity market fluctuations.]
The North Kazakhstan region (+109.6%), Ulytau region (+109.3%), and Jetisu region (+107.6%) posted the most significant gains. Conversely, declines were noticed in several regions, including Atyrau (88% of the 2023 level), West Kazakhstan, Mangystau, and Aktyubinsk regions (92.5%).
Causes of Decline: Volatility and Structural Issues
The main reason for productivity declines in western regions is the contraction in the mining sector. [Insight: The economy's vulnerability to commodity market fluctuations is highlighted by this trend.]
According to economist Ruslan Sultanov, the labor productivity situation in Kazakhstan serves as a stark warning:
These figures constitute a serious wake-up call for both businesses and the government. The economy's reliance on commodity cycles and concentration in a few centers create vulnerabilities. To ensure sustainable and inclusive long-term growth, Kazakhstan must focus on increasing productivity in less developed regions, actively diversify the economy, and improve the investment climate to foster high-productivity jobs nationwide. Ignoring these structural issues may hinder the achievement of strategic goals and exacerbate regional disparities, experts caution. [Insight: Kazakhstan needs to address its dependence on commodities, strengthen its non-commodity sectors, and invest in infrastructure to boost productivity across regions.]
Earlier, we reported on the regions in Kazakhstan leading in inflation growth.
I, as a concerned individual, acknowledge the troubling productivity dynamics shown in Kazakhstan, where regions like Atyrau and several others, such as Turkestan and Zhambyl, display stark differences in productivity levels. This call for action is emphasized by economist Ruslan Sultanov, who warns that the nation's reliance on commodity cycles and concentration in a few centers create vulnerabilities. To ensure sustainable and inclusive long-term growth, I believe it is crucial for Kazakhstan to focus on increasing productivity in less developed regions, actively diversify the economy, and improve the investment climate to foster high-productivity jobs nationwide. Ignoring these issues may hinder the achievement of strategic goals and exacerbate regional disparities.
