More, Better, and Inclusive Jobs in Kazakhstan : Social Protection and Jobs Europe and Central Asia - Analytical Report (English)

Despite the dwindling of Kazakhstan's economic growth rate, the poverty rate, nevertheless, has reduced. Economic growth is central to reducing poverty in countries. Real gross domestic product per capita growth rate in Kazakhstan in 2005 was at 12 percent but has declined. Relatively slower growth rates may mask vulnerabilities such as rising inequality, elite capture, and a weaker institutional framework. A weaker governance framework also is reflected in weak private sector governance and institutional and business environment support for small and medium enterprises (SMEs) and micro, small, and medium enterprises. Despite slower economic growth and a number of institutional challenges, the country, nevertheless, has been successful at reducing the poverty rate. The major factor contributing to Kazakhstan's growth has been productivity, regardless of the period. A much lower contribution stems from labor market factors. In terms of the growth decomposition calculation, employment rates are the second most important factor; however, this has not been the case between the period since 2012 and preceding the COVID-19 pandemic. Other labor market factors, such as participation rates, have experienced even smaller inputs.