Informal employment in Kazakhstan: scale and factors of spread

2026

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DOI 10.51885/3107-2755_ssadh_2026_2_1
Data confidence 70 medium
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Abstract

Informal employment in Kazakhstan remains one of the most acute and complex problems of the modern labor market. The absence of official employment contracts, non-payment of taxes and social contributions, and instability of employment and income pose risks not only to employees, but also to social and economic stability in the country. The relevance of the research is due to the need for a comprehensive understanding of the scale, structure and factors contributing to the spread of informal employment in order to develop effective public policy.The purpose of the study is to analyze current trends in informal employment in Kazakhstan and identify key socio–economic and institutional factors influencing its development.The paper uses methods of quantitative and qualitative analysis: processing of official statistics, data from international organizations, scientific research, expert assessments and inter-regional comparisons. The results of the study showed that informal employment is particularly prevalent in sectors such as agriculture, construction, trade, and consumer services. Gender and age analysis revealed a higher involvement of men in productive but informal industries, while women are more often employed in low-paid and socially vulnerable areas. It hasalso been found that even a high level of education does not always guarantee formal employment, which indicates structural inconsistencies in the labor market.The practical significance of the work lies in the development of proposals to improve labor policy: stimulating the legalization of employment through tax and social measures, the development of retraining programs, improving the mechanisms for registering the self-employed and strengthening the institutional framework of employment. The results of the study can be used in the development of a comprehensive strategy to reduce informal employment and strengthen social protection of workers in Kazakhstan.