Labor Market in Kyrgyzstan

Wages and Labor Market. In January-May 2014, the average monthly nominal wage of one employee (excluding small enterprises) amounted to 11,668 soms, increasing by 7.9 percent compared to January-May 2013, while its real value, calculated taking into account the consumer price index, rose by 1.9 percent.

Based on the official exchange rate set by the National Bank of the Kyrgyz Republic, the average monthly wage of one employee in January-May 2014 was 222.1 US dollars.



In May of this year, compared to May of last year, there was an increase in the growth rates of both nominal and real wages. In January-May 2014, compared to January-May of the previous year, an overall increase in wages in the budget sector was noted across the republic. The acceleration of the growth rate of the average monthly accrued wage was observed in most sectors of economic activity, except for enterprises and organizations in the mining sector, hotels and restaurants, healthcare, and social services.



The total amount of wage arrears across the republic as of June 1, 2014, compared to the same date of the previous year, increased by 4.8 percent.

Of the total amount of overdue wage arrears, a significant share was accounted for by debts to employees of enterprises and organizations in Chui (27.9 percent), Jalal-Abad (22.2 percent), and Batken (12.8 percent) regions.

According to the Ministry of Labor, Migration and Youth of the Kyrgyz Republic, the number of unemployed individuals registered with employment services in search of work as of July 1, 2014, was 93.7 thousand people, which is a decrease of 2.7 percent compared to the same date in 2013, while the number of registered unemployed was 58.5 thousand people, a decrease of 2.3 percent.

Of the total number of registered unemployed, 34.7 percent were women. The registered unemployment rate was 2.3 percent of the economically active population.

Minimum Subsistence Level. The minimum subsistence level in the II quarter of 2014 amounted to 5,011.43 soms, which is an increase of 6.7 percent compared to the corresponding period of the previous year, and the growth compared to the I quarter of 2014 was also 6.7 percent.

According to the structure of the minimum subsistence level approved by the Resolution of the Government of the Kyrgyz Republic No. 694 dated November 6, 2009, the share of food products was 65 percent, non-food products - 16 percent, services - 17 percent, and taxes - 2 percent. The energy value of the food basket was at the level of 2,101 kcal, and its chemical composition contains 73 grams of protein and 71 grams of fat.

Poverty Level. In 2013, the poverty level across the republic was 37 percent, which is a decrease of one percentage point compared to the previous year. In urban areas, the poverty level decreased by 6.9 percentage points, while in rural areas, it increased by 1.8 percentage points.

To assess the poverty level, the poverty line of 2012 was used as a threshold value, indexed to the average annual consumer price index. The monetary value of the overall poverty line in 2013 was 27,768.5 soms per year per capita, and the extreme poverty line was 16,249.1 soms.
In 2013, 2 million 135 thousand people lived below the poverty line, of which 73.6 percent were residents of rural areas.

Source: National Statistical Committee of the Kyrgyz Republic, Department of Consolidated Work and Dissemination of Statistical Information.