Employers in Uzbekistan Face Talent Shortage Amid Rising Salaries

Specialists are increasingly moving toward self-employment, turning down traditional employment in favor of flexible schedules. Despite strong macroeconomic growth and the creation of new jobs, companies in Uzbekistan are struggling to find qualified staff as more workers opt for independent forms of employment. This was reported by Mikhail Tuzov, Head of Business Analytics at LavoroSolutions.

In Q1 2026, the country’s GDP grew by 8.7%, while the poverty rate dropped to 5.8%. The government plans to provide income to 4.5–5 million citizens through state programs. However, rapid economic expansion has led to a sharp rise in job vacancies that the labor market cannot keep up with.

The core issue lies in a mismatch of expectations. Traditional employers offer standard 9-to-6 schedules and formal employment contracts. Today’s candidates, however, prioritize flexibility and fast access to earnings, often ignoring conventional corporate roles. The problem is not a lack of vacancies or specialists, but a fundamental disconnect: businesses offer one model, while the market chooses another.

More citizens are opting for economic independence. By mid-2025, the number of self-employed individuals exceeded 5.5 million — a 56% increase from the previous period. The sole proprietorship sector is also growing: from October 2025 to April 2026, the number of individual entrepreneurs rose from 281,900 to 324,100. People are deliberately leaving traditional employment in favor of running their own businesses.

Simply raising salaries no longer attracts talent. In Q1 2026, nominal wages grew by 17.4%, and real wages by 9.5%, yet the volume of applications remained unchanged.

Businesses are now competing not with other companies, but with the freedom that freelancing offers. To bring specialists back into the workforce, employers must offer stronger guarantees and greater social protection.

Another barrier to filling vacancies is the failure to engage women. According to World Bank research, 42% of young Uzbek women are not in education or employment, compared to just 8.8% of men. Integrating this group could boost national income by 29%. Experts note that part-time or hybrid arrangements are essential to attract women, as full-time roles often conflict with family responsibilities.

The talent shortage is becoming a permanent feature of the local labor market. Companies will need to rethink their hiring approaches and make greater use of project-based work, outsourcing, and civil law contracts. Simplifying employment processes will help businesses regain the interest of specialists who currently prefer to work independently.

Image: Magnific

Source: Kapital.uz