Abstract
This article provides a comprehensive analysis of the efficiency and effectiveness of labor costs in Kazakhstan’s industrial sector. The main indicators of labor productivity, such as the volume of output, labor input per unit of time, and labor costs per unit of production, are examined. The study is conducted at three levels – enterprise, industry, and national economy – in order to identify the structure of labor costs and their impact on overall production efficiency. Special attention is given to the role of digital transformation, including automation, IIoT, ERP systems, artificial intelligence applications, and workforce retraining programs, in optimizing labor costs and enhancing productivity. The article presents real examples of Kazakhstani enterprises, such as “Asia Auto,” the Karaganda Foundry and Engineering Plant, and Eurasian Resources Group (ERG). These cases illustrate how digital technologies reduce nonproductive costs, increase per-worker output, and improve the cost-efficiency of production. At the macroeconomic level, the study examines state programs (“Digital Kazakhstan”, Industrial and Innovation Development Program) as well as international indices (WIPO Global Innovation Index, OECD digital framework assessments, IMF data) to evaluate Kazakhstan’s position in the global digital economy. Empirical findings, based on correlation and regression analysis, demonstrate that digitalization is the key driver of labor productivity growth in Kazakhstan. The results highlight that while the number of employees and working time have a positive but limited effect, the introduction of digital technologies significantly boosts efficiency and competitiveness. Thus, fostering digital transformation alongside workforce reskilling and innovation ecosystem development is essential for sustainable industrial growth and strengthening Kazakhstan’s global economic position.