LABOR MARKET TRANSFORMATION IN UZBEKISTAN: CHALLENGES IN EMPLOYMENT POLICY AND THE IMPACT OF DIGITAL ECONOMY TRANSITION
Keywords:
labor market, employment policy, unemployment, hidden employment, labor migration, digital skills, active employment programs, gig economy, UzbekistanAbstract
This study examines the transformation of Uzbekistan's labor market between 2018 and 2023, with a focus on the effectiveness of active employment policy (AEP) programs and the influence of digital economy development on employment outcomes. Employing a panel regression model across 14 regions over six years (N = 84), the research finds that a one-percentage-point increase in AEP expenditure relative to GDP reduces the unemployment rate by 0.41 percentage points (β = −0.412, p < 0.001). The digitalization index independently reduces unemployment by 0.29 percentage points (β = −0.289, p < 0.001). A field survey (n = 420, Jizzakh region) reveals that 71.4% of workers are willing to acquire digital skills, while 54.7% fear job displacement from automation. The study identifies regional disparity, skills mismatch, and the unregulated gig economy as key structural barriers to full employment. Six evidence-based policy recommendations are proposed, including a Digital Skills Passport system, a revised National Qualifications Framework, and legal protections for platform workers.
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