Uzbekistan Quality Job Creation as a Cornerstone for Sustainable Economic Growth

Uzbekistan Quality Job Creation as a Cornerstone for Sustainable Economic Growth
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(iii) the Russian Federation’s financial crisis and Uzbekistan’s administrative 
change in 2014–2017 (period III). 
Throughout the three periods, private sector businesses have been expanding 
steadily, led by small businesses (Figure 4.1 and Table 4.1). The number of 
small businesses has grown rapidly, in the 5%–7% range annually, and they 
comprise more than 70% of all enterprises across all periods. As of the third 
quarter (Q3) of 2018, Uzbekistan had 316,668 registered enterprises, 81% of 
which (257,127) were small businesses. The number of small businesses has 
increased 168% since 2003.
The majority of operating commercial enterprises are limited liability 
companies (57% of enterprises in 2017), followed by private companies (not 
state owned, 33%).
1
Due to the progress of privatization, only 1% of enterprises 
are fully state-owned, but joint-stock companies are still fewer, at only 0.3% 
(Uzbekistan Statistics 2017a).
Enterprises employed 13.5 million people as of 2017, of which 78% (10.5 million 
people) worked in small businesses (Figure 4.2). Although the growth pace is 
slowing, the aggregate number of people employed by small businesses has 
gradually increased, accounting for 66% in period I, 75% in period II, and 78% 
in period III, with no serious influence from external factors such as the global 
and the Russian financial crises. By contrast, the number employed by medium 
and large enterprises has been shrinking: by 6% in period I and 0.3% in period 
II, although it grew by 0.5% in period III. Against the increase of aggregate 
employment, however, the number of workers employed per small business 
(employment size) has been decreasing, from 61 on average in period I to 52 in 
period II and 49 in period III.
Despite weak job creation in enterprises, gross value added (GVA) by all 
enterprises has expanded sharply: by 313% in period I, 149% in period II, and 
58% in period III, although the pace is slowing (Figure 4.3). As of Q3 2018, 
GVA amounted to SUM210,905 billion ($26 billion),
2
half of which was 
generated by small businesses. GVA growth was driven by small businesses 
during periods I and II but was led by other businesses during period III.
1
The data exclude farmers and dekhkan (family) farms.
2
The exchange rate refers to domestic currency per U.S. dollar, end of period. International Monetary Fund, 
International Financial Statistics (IFS).

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