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Hire In Kazakhstan

Introduction

Kazakhstan is a landlocked country in Central Asia. The country is enriched with hydrocarbon and mineral resources, such as fossil fuel, natural gas, iron ore, manganese, chromium ore, nickel, cobalt, copper, lead, zinc, bauxite, etc. The country also has a large agricultural area, and subsequent agribusiness is also developed. The oil and gas exploration & production industry of the nation is booming mainly by the recent huge expansion of the oil field. Kazakhstan's gigantic hydrocarbon and mineral reserves, especially in the Caspian Basin, form the nation's economic backbone. The country is the world’s largest producer of uranium. The huge agricultural sector of Kazakhstan features livestock and grain.

Overview of Kazakhstan

Population:  1.9 Crore (June 2021)

GDP: $ 187.84 billion (2021) 

Economic Overview

Kazakhstan's economic growth is mainly dependent on gas and oil revenues (35% of GDP and 75% of exports). Prior to COVID, the GDP grew by 4.5% in 2019, as domestic demand, construction boom, and business spending supported the economic activity. In 2020, as the pandemic affected worldwide export business, Kazakhstan's economy experienced a setback and resulted in a negative growth balance of 2.6%. According to the IMF's economic forecast, in 2021, the growth is expected to resume— estimated at 3.2% of GDP; in 2022, it will stabilize at 4%.

Market Size

Kazakhstan’s market size is large enough to accommodate most of the working-age people. The service sector, especially the financial sector, is quite stable and absorbing a good percentage of the population seeking employment. As the nation's economy has started to recover after the initial effects of the pandemic, the unemployment rate in Kazakhstan also decreased to 4.9% in the fourth quarter of 2020 from 5% in the third quarter of 2020.

A brief glimpse of industries

  • Even with the government's diversification efforts, Kazakhstan is still largely dependent on oil prices, and the economy relies on hydrocarbon exports.
  • Economic diversification policy of the government is facing multiple challenges like the weakening of global demand for fossil fuels, greater regional competition to attract investment, and increased risks of instability in the financial sector. 
  • Agriculture in the country is extensive—Kazakhstan is one of the leading wheat producers in the world. Agribusiness is quite developed; dairy industries and livestock account for a significant share of the agricultural sector. 
  • The manufacturing sector has developed in the last few years in Kazakhstan. The most prominent industries in the nation are hydrocarbon production, textiles, chemicals, and pharmaceuticals, ferrous and non-ferrous metals, and fertilizers.
  • The tertiary sector is the significant one in Kazakhstan and growing steadily even after the pandemic. The main services produced in the country are in the financial sector, transport and technology.
  • The tourism, retail, hospitality, wholesale, and transport sectors account for around 30% of employment and are mostly concentrated in cities.
  • The average fixed broadband internet speed in Kazakhstan is 49.12 Mbps. The average download speed is 58.35 Mbps per second, and the upload speed is 55.23 Mbps.

Cost of living in Kazakhstan

The cost of living in Kazakhstan varies greatly from city to city. Plus, the ever-fluctuating value of the tenge makes it quite difficult to generalize the standard cost of living in the nation. The living cost also depends on your lifestyle, location where you stay, choice of accommodation, and so on. The following table shows a snapshot of the common average living cost in Kazakhstan.  

A Breakdown of the Average Living Cost in Kazakhstan

Category

Area of expense

Estimated Monthly Cost (USD)

Rental

Monthly rent for a 3 bedroom apartment

$ 516

Rental

Monthly rent for a 1 bedroom apartment

$ 336

Food and beverage

Meal (Inexpensive Restaurant)

Domestic Beer (0.5 Liter)

Milk (1 Liter)

$ 5.86

$ 1.17

$ 0.77

Transport costs

Monthly ticket public transport

$ 16.06

Utilities

Including water, cooling, heating, and garbage services

Internet (Unlimited Data, Cable/ADSL)

$ 50.23

$ 11.40

Personal care

Membership at a fitness club

$ 53

Salary structure for various roles in Kazakhstan

The following table represents the average annual salary of different sectors in Kazakhstan.

Working Area

Average salary depending on the role (KZT)

Accounting and Finance (Chartered Accountant)

KZT 356,000

Administration / Reception / Secretarial (Office Manager)

KZT 351,000

Advertising / Graphic Design / Events (Graphic Designer)

KZT 249,000

Airlines / Aviation / Aerospace / Defense (Aerospace Engineer)

KZT 495,000

Architecture (Architect)

KZT 485,000

Automotive (Mechanic)

KZT 156,000

Banking (Bank Branch Manager)

KZT 734,000

Bilingual (Teacher)

KZT 299,000

Business Planning (Business Analyst)

KZT 478,000

Construction / Building / Installation (Construction Project Manager)

KZT 686,000

Customer Service (Customer Service Manager)

KZT 518,000

Engineering (Electrical Engineer)

KZT 406,000

Food / Hospitality / Tourism / Catering (Hotel Manager)

KZT 720,000

Health and Medical (Nurse)

KZT 312,000

Human Resources (Human Resources Manager)

KZT 576,000

Information Technology (Developer / Programmer)

KZT 382,000

Law Enforcement / Security / Fire ( police Officer)

KZT 238,000

Media / Broadcasting / Arts / Entertainment (Journalist)

KZT 468,000

Cost of renting

When it comes to accommodation cost, it varies with the position of the apartment plus the type of the apartment. Apartments are more expensive in the city center compared to those outside of the city. Modern apartments in complexes are more expensive than Soviet-style apartments. Excessive house rents increase the cost of living in Kazakhstan's cities a lot.   

Your cost of living in Kazakhstan depends on your location

Name of the Cities

Average Monthly Net Salary (After Tax)

Cost of Living without rent /person

Rent

Almaty

$ 487.89

$ 437.84

$ 229.21 - 356.31

Nur-Sultan / Astana

$ 537.84

$ 453

$ 211.17 - 317.97

Kyzylorda

$ 425.34

$ 365

$ 141

Aktau

$ 228.43

$ 303.40

$ 183.52 – 242.09

Karaganda (Qaraghandy)

$ 345.57

$ 298.57

$ 164.00 – 206.17

Pavlodar

$ 251.86

$ 302.99

$ 109.33 - 146.43

Qapshaghay

$ 187.43

$ 279.04

$ 93.71 - 140.57

Shymkent

$ 283.13

$ 298.98

$ 128.27 - 135.65

The top sectors that are expected to hire in Kazakhstan in 2021

To address the impact of the pandemic, the government has taken multiple initiatives. The service sector has started to regain its vitality and is hiring people to meet the new requirement of the industry. The manufacturing industry is also being alive and employing skilled people.

S.No

Industries

Employment by sector (in % of Total Employment)

Value Added (in % of GDP)

Value Added (Annual % Change)

1

Agriculture

15.4

4.4

0.9

2

Industry (food and beverages processing, textile, electronic parts, consumer goods manufacturing, etc. )

20.5

33.1

6.3

3

Services (tourism, banking, and finance, broadcast and entertainment, computer hardware, etc.)

64.1

55.5

3.9

Top Skills in Kazakhstan

Though the pandemic has paused the economic growth, Kazakhstan has resumed the businesses and started employing people to catch up the pace. There are several job opportunities for the fresher as well as experienced professionals.  

Significant industries hiring in Kazakhstan are:

  • Computer hardware & software
  • Oil & gas exploration & production
  • Consumer products manufacturing
  • IT services
  • Banking and credit unions
  • Mining
  • Airlines
  • Telecommunication Services

Top Skills City-wise Occupation-wise

Almaty, the largest city of Kazakhstan, is the major commercial and cultural center of the nation.  Finance is one of the largest industries in Almaty. The city offers job opportunities in industries like:

  • Customer services
  • Banks
  • Metallurgy of non-ferrous metals
  • Airlines
  • IT services

Country capital Astana or Nur-Sultan offers plenty of job options in conventional electricity, airlines, oil and gas exploration & production, pipelines, IT services, accounting, construction, and telecommunication services.

Shymkent and Taraz are the cities offering employment options in industries like Education, banks and credit unions, and consulting. 

Pavlodar is a city with varieties of job options. Most of the jobs are available in customer product manufacturing, banks and credit unions, and food and beverage manufacturing industries.

Hiring Cost

Cost-per-hire is an essential metric for any organization. When planning to recruit in a foreign country, you need to be thorough about the cost of living, availability of talent and skills, market competition, etc. Hiring cost is a cumulative sum of all the costs associated with filling a position, such as advertising expenses, recruiting events costs, recruitment software fees, onboarding cost, training cost, travel costs, administrative costs, and benefits.

Employment Laws in Kazakhstan

The Constitution of Kazakhstan declares a number of people’s rights in the field of labor and industrial relations, such as 

  • Right to freedom of forming associations 
  • Freedom of labor & the free choice of occupation and profession
  • Right to safe and hygienic working conditions
  • Remuneration without discrimination
  • Social protection against unemployment
  • Right to individual and collective labor disputes (Article 24 of the Constitution).

There are several other legal acts also in Kazakhstan that regulate labor and industrial relations, but not covered by the Labor Law, such as:

  • The Law on Collective Agreements
  • The Law on the Occupation of the Population

The Law on Collective Labor Disputes and Strikes

  • The Edict on Approving a Position on Qualification Classes of State Employees
  • The Law on Employment of Population
  • The Law on State Service

How Can Skuad Help You In Hiring in Kazakhstan?

Hiring in a foreign country needs a talent hunt plus in-depth knowledge of the country's employment laws, city-wise living cost, hiring costs, etc. To make the hiring smooth, easy, and cost-effective for your organization, you can consider Skuad as your Employer of Record partner. Skuad acts as your legal employer to help you hire employees and also takes responsibility for all formal employment tasks. Contact Skuad to know more.

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