THE IMPACT OF ARTIFICIAL INTELLIGENCE ON THE LABOR MARKET: OPPORTUNITIES AND CHALLENGES FOR YOUTH DECENT WORK, QUALITY EDUCATION AND HUMAN CAPITAL IN THE CONTEXT OF DIGITAL TRANSFORMATION IN KAZAKHSTAN
Main Article Content
Abstract
The diffusion of artificial intelligence (AI), and of generative AI in particular, is reshaping the demand for labour and skills, and young people entering the labour market are the group most exposed to its opportunities and risks, with direct consequences for decent work, quality education and reduced inequalities. This study assesses the impact of AI and digital transformation on Kazakhstan's youth labour market, identifies the opportunities and risks they present, and determines directions for adapting youth human capital to changing labour market demands. The study combines a structured synthesis of empirical evidence published in 2023–2026, a content analysis of national strategic documents, and an economic-statistical analysis of national and regional employment data of the Bureau of National Statistics of Kazakhstan for 2020–2025, using growth rates, the regional differentiation coefficient, the coefficient of variation and the Gini coefficient. The results show that average employment rose from 8,966.9 thousand in 2022 to 9,298.2 thousand in 2025 (+3.69%) and the average unemployment rate fell from 4.90% to 4.60%. In contrast, the regional differentiation coefficient of employment rose from 9.89 to 11.74, the coefficient of variation from 44.31% to 49.12% and the Gini coefficient from 0.232 to 0.252. The findings suggest that the current phase of AI diffusion is accompanied by employment growth rather than contraction, that the effects of AI on youth are dual, combining the substitution of standardized cognitive tasks with the augmentation of inexperienced workers, and that these effects will unfold unevenly across regions with persistent, moderately widening disparities.
JEL Classification Codes: J21, J24, J13, J68, O15, O33.
Downloads
Article Details
Section

This work is licensed under a Creative Commons Attribution 4.0 International License.
How to Cite
References
Acemoglu, D. (2025). The simple macroeconomics of AI. Economic Policy, 40(121), 13–58. https://doi.org/10.1093/epolic/eiae042
Alabri, A., & Shannaq, B. (2025). Enhancing employability outcomes through AI tools: A SEM-SPLS approach with TAM and soft skills mediation. Bangladesh Journal of Multidisciplinary Scientific Research, 10(3), 26–36. https://doi.org/10.46281/bjmsr.v10i3.2422
Al-Dmour, R., Al-Dmour, H., Al-Dmour, Y., & Al-Dmour, A. (2026). AI-enabled digital work and capability-related achievements among youth in Jordan: Institutional constraints and uneven outcomes. Strategic Business Research, 2(1), 100272. https://doi.org/10.1016/j.sbr.2026.100272
Arynova, Z., Kaidarova, S., Bekniyazova, D., Zolotareva, S., & Shelomentseva, V. (2025). Labor market–education system discrepancies in Kazakhstan’s digital era: Challenges and modeling solutions. International Journal of Innovative Research and Scientific Studies, 8(6), 1513–1523. https://doi.org/10.53894/ijirss.v8i6.9954
Autor, D. (2024). Applying AI to rebuild middle class jobs (NBER Working Paper No. 32140). National Bureau of Economic Research. https://doi.org/10.3386/w32140
Baidalinova, A., Alashbayeva, N., Turekulova, A., Baigireyeva, Z., & Ramazanova, K. (2026). Digital transformation and the gender gap in youth employment: Female labour force participation, human capital and decent work in Kazakhstan, 2005–2024. Bangladesh Journal of Multidisciplinary Scientific Research, 11(4), 26–40. https://doi.org/10.46281/bjmsr.v11i4.2944
Ball, S., McGann, M., Nguyen, P., & Considine, M. (2023). Emerging modes of digitalization in the delivery of welfare-to-work: Implications for street-level discretion. Social Policy & Administration, 57(7), 1166–1180. https://doi.org/10.1111/spol.12939
Barzhaksyyeva, A., Amirbekuly, Y., Smagulova, G., & Yucel, F. (2026). The impact of digitalization on youth unemployment in Kazakhstan: Evidence from an ARDL framework. Problems and Perspectives in Management, 24(1), 710–722. https://doi.org/10.21511/ppm.24(1).2026.46
Beisembina, A., Abuselidze, G., Nurmaganbetova, B., Kabakova, G., Makenova, A., & Nurgaliyeva, A. (2025). The labour market in Kazakhstan under conditions of active transformation of their economy. Economies, 13(5), 131. https://doi.org/10.3390/economies13050131
Berdibekov, A., Bordiyanu, I., Brauweiler, H.-C., Mambetkaziyev, A., & Nepshina, V. (2026). Management of employment in the youth labor market: The developing country case study. Industry and Higher Education. https://doi.org/10.1177/09504222261436788
Bick, A., Blandin, A., & Deming, D. J. (2026). The rapid adoption of generative AI. Management Science. https://doi.org/10.1287/mnsc.2025.02523
Bloom, D. E., Prettner, K., Saadaoui, J., & Veruete, M. (2025). Artificial intelligence and the skill premium. Finance Research Letters, 81, 107401. https://doi.org/10.1016/j.frl.2025.107401
Brioscú, A., Lauringson, A., Saint-Martin, A., & Xenogiani, T. (2024). A new dawn for public employment services: Service delivery in the age of artificial intelligence (OECD Artificial Intelligence Papers No. 19). OECD Publishing. https://doi.org/10.1787/5dc3eb8e-en
Broecke, S. (2023). Artificial intelligence and labour market matching (OECD Social, Employment and Migration Working Papers No. 284). OECD Publishing. https://doi.org/10.1787/2b440821-en
Brynjolfsson, E., Chandar, B., & Chen, R. (2025). Canaries in the coal mine? Six facts about the recent employment effects of artificial intelligence [Working paper]. Stanford Digital Economy Lab. https://digitaleconomy.stanford.edu/publication/canaries-in-the-coal-mine-six-facts-about-the-recent-employment-effects-of-artificial-intelligence/
Brynjolfsson, E., Li, D., & Raymond, L. (2025). Generative AI at work. The Quarterly Journal of Economics, 140(2), 889–942. https://doi.org/10.1093/qje/qjae044
Bureau of National Statistics of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan. (2026). Labour market statistics [Data set]. Retrieved from https://stat.gov.kz
Cazzaniga, M., Jaumotte, F., Li, L., Melina, G., Panton, A. J., Pizzinelli, C., Rockall, E. J., & Tavares, M. M. (2024). Gen-AI: Artificial intelligence and the future of work (IMF Staff Discussion Note SDN/2024/001). International Monetary Fund. https://doi.org/10.5089/9798400262548.006
Cui, Z. K., Demirer, M., Jaffe, S., Musolff, L., Peng, S., & Salz, T. (2025). The effects of generative AI on high-skilled work: Evidence from three field experiments with software developers. Management Science. https://doi.org/10.1287/mnsc.2025.00535
Dauyeshova, A., Zhanseitov, A., Amirova, A., Iskendirova, S., & Zhunissova, Z. (2026). Decent jobs and digital governance: A human-centered HRM ecosystem in Kazakhstan’s civil service. Bangladesh Journal of Multidisciplinary Scientific Research, 11(3), 76–92. https://doi.org/10.46281/bjmsr.v11i3.2901
Debnath, N. C., Islam, K. M. A., Amin, M. B., Chowdhury, S. P., Sony, M. M. A. A. M., & Debnath, G. C. (2026). Social business and tech-driven entrepreneurship: Inclusion or exploitation? A critical interpretive analysis from the Global South. Social Sciences & Humanities Open, 14, 103128. https://doi.org/10.1016/j.ssaho.2026.103128
Dell’Acqua, F., McFowland, E., III, Mollick, E. R., Lifshitz-Assaf, H., Kellogg, K., Rajendran, S., Krayer, L., Candelon, F., & Lakhani, K. R. (2026). Navigating the jagged technological frontier: Field experimental evidence of the effects of artificial intelligence on knowledge worker productivity and quality. Organization Science, 37(2), 403–423. https://doi.org/10.1287/orsc.2025.21838
Eloundou, T., Manning, S., Mishkin, P., & Rock, D. (2024). GPTs are GPTs: Labor market impact potential of LLMs. Science, 384(6702), 1306–1308. https://doi.org/10.1126/science.adj0998
Filippucci, F., Gal, P., & Schief, M. (2024). Miracle or myth? Assessing the macroeconomic productivity gains from artificial intelligence (OECD Artificial Intelligence Papers No. 29). OECD Publishing. https://doi.org/10.1787/b524a072-en
Gallagher, P., & Griffin, R. (2025). (In)accuracy in algorithmic profiling of the unemployed – An exploratory review of reporting standards. Social Policy and Society, 24(3), 401–414. https://doi.org/10.1017/S1474746423000428
Georgieff, A. (2024). Artificial intelligence and wage inequality (OECD Artificial Intelligence Papers No. 13). OECD Publishing. https://doi.org/10.1787/bf98a45c-en
Gmyrek, P., Berg, J., Kamiński, K., Konopczyński, F., Ładna, A., Nafradi, B., Rosłaniec, K., & Troszyński, M. (2025). Generative AI and jobs: A refined global index of occupational exposure (ILO Working Paper No. 140). International Labour Organization. https://doi.org/10.54394/HETP0387
Green, A. (2024). Artificial intelligence and the changing demand for skills in the labour market (OECD Artificial Intelligence Papers No. 14). OECD Publishing. https://doi.org/10.1787/88684e36-en
Hampole, M., Papanikolaou, D., Schmidt, L. D. W., & Seegmiller, B. (2025). Artificial intelligence and the labor market (NBER Working Paper No. 33509). National Bureau of Economic Research. https://doi.org/10.3386/w33509
Hui, X., Reshef, O., & Zhou, L. (2024). The short-term effects of generative artificial intelligence on employment: Evidence from an online labor market. Organization Science, 35(6), 1977–1989. https://doi.org/10.1287/orsc.2023.18441
Humlum, A., & Vestergaard, E. (2025). The unequal adoption of ChatGPT exacerbates existing inequalities among workers. Proceedings of the National Academy of Sciences, 122(1), e2414972121. https://doi.org/10.1073/pnas.2414972121
Ingold, J., Forde, C., & Robertshaw, D. (2025). Varieties of digitalization? A comparison of employment services digitalization in the UK and Australia. Australian Journal of Social Issues, 60(2), 384–400. https://doi.org/10.1002/ajs4.339
International Labour Organization. (2024). Global employment trends for youth 2024: Decent work, brighter futures. ILO. https://doi.org/10.54394/ZUUI5430
Islam, K. M. A., Bari, M. F., Al-Kharusi, S., Bhuiyan, A. B., & Faisal-E-Alam, M. (2023). Impact of transformational leadership, human capital, and job satisfaction on organizational performance in the manufacturing industry. Problems and Perspectives in Management, 21(3), 382–392. https://doi.org/10.21511/ppm.21(3).2023.31
Islam, K. M. A., Hasan, Z., Tawfiq, T. T., Bhuiyan, A. B., & Faisal-E-Alam, M. (2024). Bank becomes cashless: Determinants of acceptance of mobile banking (fintech) services among banking service users. Banks and Bank Systems, 19(2), 30–39. https://doi.org/10.21511/bbs.19(2).2024.03
Islam, K. M. A., & Khan, M. S. (2024). The role of financial literacy, digital literacy, and financial self-efficacy in FinTech adoption. Investment Management and Financial Innovations, 21(2), 370–380. https://doi.org/10.21511/imfi.21(2).2024.30
Kurmanov, N. A., Kabdullina, G. K., & Aliyeva, Z. Z. (2023). Development of Kazakhstan’s regional labour markets in the digital economy: Factors and conditions. Economy of Regions, 19(1), 99–110. https://doi.org/10.17059/ekon.reg.2023-1-8
Lane, M. (2024). Who will be the workers most affected by AI? A closer look at the impact of AI on women, low-skilled workers and other groups (OECD Artificial Intelligence Papers No. 26). OECD Publishing. https://doi.org/10.1787/14dc6f89-en
Liang, H., Fan, J., & Wang, Y. (2025). Artificial intelligence, technological innovation, and employment transformation for sustainable development: Evidence from China. Sustainability, 17(9), 3842. https://doi.org/10.3390/su17093842
Makrushin, A. O. (2023). The digitalization of the labor market: The experience of the countries in the Eurasian Economic Union. Bulletin of L.N. Gumilyov Eurasian National University. Law Series, 142(1), 162–175. https://doi.org/10.32523/2616-6844-2023-142-1-162-175
Mollah, M. A., Amin, M. B., Rahman, M. M., Islam, K. M. A., Debnath, N. C., Debnath, G. C., & Oláh, J. (2026). Synergetic role of digital leadership and artificial intelligence (AI) in HRM for sustainable performance: A dual-method approach using SEM and NCA. Telematics and Informatics Reports, 21, 100303. https://doi.org/10.1016/j.teler.2026.100303
Noy, S., & Zhang, W. (2023). Experimental evidence on the productivity effects of generative artificial intelligence. Science, 381(6654), 187–192. https://doi.org/10.1126/science.adh2586
Pande, S., Moon, J. S., & Haque, M. F. (2024). Education in the era of artificial intelligence: An evidence from Dhaka International University (DIU). Bangladesh Journal of Multidisciplinary Scientific Research, 9(1), 7–14. https://doi.org/10.46281/bjmsr.v9i1.2186
Pieterson, W., Baptista, D., Rosas-Shady, D., & Franco, A. (2023). The digital transformation of public employment services across Latin America and the Caribbean. Inter-American Development Bank. https://doi.org/10.18235/0005084
Ramazanova, K., Abauova, G., Beisengaliyev, Y., Turekulova, A., & Niyazov, M. (2026). Strategic management of the educational process under artificial intelligence implementation: Quality education, decent work, and human capital for the transforming labor market of Kazakhstan. Bangladesh Journal of Multidisciplinary Scientific Research, 11(4), 41–53. https://doi.org/10.46281/bjmsr.v11i4.2945
Salari, N., Beiromvand, M., Hosseinian-Far, A., Habibi, J., Babajani, F., & Mohammadi, M. (2025). Impacts of generative artificial intelligence on the future of labor market: A systematic review. Computers in Human Behavior Reports, 18, 100652. https://doi.org/10.1016/j.chbr.2025.100652
Samek, L., Squicciarini, M., & Cammeraat, E. (2021). The human capital behind AI: Jobs and skills demand from online job postings (OECD Science, Technology and Industry Policy Papers No. 120). OECD Publishing. https://doi.org/10.1787/2e278150-en
Serikkyzy, A., Baktymbet, A., & Baktymbet, S. (2025). Intergenerational dynamics in Kazakhstan’s labor market: Comparative analysis of Generations X, Y, and Z and policy implications for human capital development. Economic Series of the Bulletin of L.N. Gumilyov ENU, (4), 86–99. https://doi.org/10.32523/2789-4320-2025-4-86-99
Shannaq, B., & Alabri, A. (2025). Evaluating the impact of ChatGPT implementation on HR performance skills: A case study of academic institutions in Oman. Bangladesh Journal of Multidisciplinary Scientific Research, 10(1), 11–21. https://doi.org/10.46281/bjmsr.v10i1.2281
Shannaq, B., Alabri, A., Sriram, V. P., & Ali, O. B. (2025). Investigating the impact of AI on the workforce and the future of work in the region: A machine learning perspective. Bangladesh Journal of Multidisciplinary Scientific Research, 10(4), 1–10. https://doi.org/10.46281/a7zcns96
Shen, Y., & Zhang, X. (2024). The impact of artificial intelligence on employment: The role of virtual agglomeration. Humanities and Social Sciences Communications, 11, 122. https://doi.org/10.1057/s41599-024-02647-9
Sony, M. M. A. A. M., Amin, M. B., Ashraf, A., Islam, K. M. A., Debnath, N. C., & Debnath, G. C. (2025). Bias in AI-driven HRM systems: Investigating discrimination risks embedded in AI recruitment tools and HR analytics. Social Sciences & Humanities Open, 12, 102082. https://doi.org/10.1016/j.ssaho.2025.102082
Suieubayeva, S., Nurekenova, E., Rakhimberdinova, M., & Granetskiy, V. (2023). Digital entrepreneurship as a result of the transformation of the labor market in a pandemic. Buketov Business Review, 112(4), 104–115. https://doi.org/10.31489/2023ec4/104-115
Togaibayeva, L., Omarova, A., Rakhimberdinova, M., & Zeinullina, Z. (2026). Regional economic resilience: The impact of digitalization on labor productivity dynamics. Bangladesh Journal of Multidisciplinary Scientific Research, 11(2), 58–70. https://doi.org/10.46281/bjmsr.v11i2.2854
Utebaliyeva, D., Bermukhamedova, G., Beisengaliyev, Y., Tansykbayeva, G., & Turekulova, A. (2026). The role of the digital platform economy in transforming regional entrepreneurship and employment in the context of achieving Sustainable Development Goals. Bangladesh Journal of Multidisciplinary Scientific Research, 11(3), 93–104. https://doi.org/10.46281/bjmsr.v11i3.2902
Vaccaro, M., Almaatouq, A., & Malone, T. (2024). When combinations of humans and AI are useful: A systematic review and meta-analysis. Nature Human Behaviour, 8(12), 2293–2303. https://doi.org/10.1038/s41562-024-02024-1
Valtonen, A., Saunila, M., Ukko, J., Treves, L., & Ritala, P. (2025). AI and employee wellbeing in the workplace: An empirical study. Journal of Business Research, 199, 115584. https://doi.org/10.1016/j.jbusres.2025.115584
World Economic Forum. (2025). The future of jobs report 2025. World Economic Forum. https://www.weforum.org/publications/the-future-of-jobs-report-2025/
Zhang, L., & Zhang, C. (2026). Toward sustainable workforce development: How AI reshapes skill demand structure—Evidence from 67 million job postings in China. Sustainability, 18(10), 4905. https://doi.org/10.3390/su18104905