Uzbekistan Quality Job Creation as a Cornerstone for Sustainable Economic Growth

Executive Summary

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Boosting Labor Productivity
Uzbekistan’s working age population increased from 11 million in 1990 to 
almost 19 million in 2017, and an additional 4.3 million are expected to enter 
the labor force by 2030. Yet the country’s high annual economic growth rate 
(8% during the last 12 years from 2004-2015) has not led to a sufficient rise 
in the number of jobs being generated. As a result, migration of workers to 
the Russian Federation and other Commonwealth of Independent States 
countries has been substantial: over 2 million Uzbeks currently reside abroad. 
In addition, women’s participation in the economy has continued to decline 
and informal employment has continued to grow. 
The structure of domestic employment is moving gradually toward industry 
and services and away from primary sectors, especially agriculture. The service 
sector has been accounting for almost 80% of all newly created jobs in the 
country. Most such jobs require both cognitive and noncognitive skills and 
hence attract graduates who follow education paths in appropriate fields. 
However, only 1.5% of the workforce is employed in high-tech industries
and science.
Males dominate high-paying jobs. Female workers in the labor market are 
mostly in professional and service occupations, and slightly fewer women 
than men are in positions such as legislators, senior officials, and managers. 
Meanwhile, female participation in the labor force remains low.
Informal workers account for more than half (54%) of the working age 
population in Uzbekistan, and the majority of them are young people. Reasons 
for this segment of the workforce being so large include the low level of 
education of such workers, a complex and uncertain tax system, and a high 
labor tax burden on large businesses. 
Uzbekistan has a strong emphasis on education and so has a relatively high 
level of human capital. Major education reforms are under way, however. They 
include moving from 12 to 11 years of compulsory schooling starting in 2018, 
and strengthening preschool education, higher education, and secondary 
special and professional education. 
While gender parity has been achieved in enrollment rates at primary and 
secondary levels, disparities begin at the level of specialized secondary and 
higher education. If this persists, women will continue to have unequal access 
to better jobs in the future.