UNEMPLOYMENT RATE AND LABOR MARKET CHALLENGES IN UZBEKISTAN: ANALYSIS AND SOLUTIONS

Abstract

The Republic of Uzbekistan is currently navigating a critical socio-economic juncture, characterized by the necessity to reconcile significant demographic expansion with the imperative for sustainable, high-yield job creation. With a cohort of approximately 600,000 to 700,000 new entrants joining the labor market annually, the domestic economy faces a persistent structural deficit, as current developmental trajectories generate approximately 500,000 formal positions per year. This systemic disparity necessitates a transition toward a "managed addressability" model of intervention. The Uzbek labor market exhibits a persistent structural bifurcated equilibrium between the formal and informal sectors; currently, nearly 60% of the workforce remains in informal arrangements, characterized by a lack of social protections and institutional oversight. Furthermore, rapid technological maturation and the strategic pivot toward a "green" economy are recalibrating labor demand, demanding a more agile and technically proficient workforce. To mitigate these frictions, the state has institutionalized data-driven, makhalla-level interventions. By utilizing advanced analytics to classify districts according to twenty socio-economic criteria and identifying granular skills gaps, the government seeks to operationalize poverty reduction and stabilize employment. This analysis synthesizes recent reforms and statistical indicators to provide a technical roadmap for labor market formalization.