Thursday13 February 2025
centralasiabusiness.com

Labor migration: current situation, challenges, and solutions.

It can be said that Uzbekistan is not effectively utilizing its demographic potential, as many of its citizens serve as low-cost labor in various developing economies. What steps need to be taken to shift this trend towards developed countries?
Трудовая миграция: актуальное состояние, существующие проблемы и возможные решения.

This is discussed by experts from the Development Strategy Center, Jamshid Sharipov and Ramziddin Nuriddinov, in an article prepared for Kun.uz.

One of the key challenges for Uzbekistan is the effective utilization of the demographic dividend. At the same time, a significant portion of the working-age population migrates abroad in search of better working conditions. According to data from December 2023, the number of labor migrants from Uzbekistan reached two million: 1,452,300 men (72.4%) and 547,700 women (27.6%). The number of returnees to Uzbekistan in 2023 reached 218,800 individuals (214,800 individuals in 2022), while the number of migrants who left was 233,200 (221,500 in 2022).

The majority of labor migrants from Uzbekistan are in the Russian Federation (1.2 million people or 60% of the total number of migrants), followed by Kazakhstan (191,800 people or 10%), the Republic of Turkey (113,800 people or 6%), the Republic of Korea (68,100 people or 3%), and other countries (424,400 people or 21%).

Labor migrants from Uzbekistan abroad are employed in construction (52.7%), industry (12.8%), services (9.7%), public catering (6.9%), trade (6.7%), transportation (4.3%), agriculture (4.1%), and other sectors (2.8%)[1].

According to research conducted by the World Bank as part of the "Listening to the Citizens of Uzbekistan" project, the proportion of households with labor migrants currently stands at about 13%, while in 2022 this figure reached 20%. Experts from the World Bank believe that migration is more prevalent among the less affluent segments of the population and in rural households.

According to the Central Bank (CB) of Uzbekistan, from January

to October 2024, the volume of remittances to Uzbekistan reached $12.6 billion, which is a 34% increase compared to the same period last year. Remittances from Russia grew by 35% to $9.8 billion, while its share decreased to 78% (before the onset of the conflict in Ukraine, this figure was about 90%). From Kazakhstan, $699 million was received, from the USA - $470 million (a 37% increase), from South Korea - $458 million (71%), from Turkey - $331 million, and from the UK - $109 million (76%)[2].

Problems and Challenges of Labor Migration

The analysis conducted by experts from the Development Strategy Center revealed deeply rooted problems in the field of labor migration that require a comprehensive approach to solving, specifically:

Illegal migration. The Agency for External Labor Migration faces challenges in providing legal employment for all wishing to go abroad, forcing many migrants to turn to intermediaries, increasing the risks of illegal migration, exploitation, and human trafficking. In their quest for a better life, migrants often encounter harsh working conditions, forced labor, violations of their rights, as well as limited access to education and medical services.

According to data from the International Organization for Migration (IOM), despite the efforts of the Agency for External Labor Migration of Uzbekistan,

in 2023 only 38,400 people (or 16.5% of the total number of outgoing migrants) used legal employment channels, resulting in 141 cases of human trafficking with 193 victims, while the main destinations for the exploitation of Uzbek migrants are Russia, Kazakhstan, Turkey, and the UAE.

According to IOM estimates, in 2020, 4,317 migrants died on migration routes worldwide. By 2023, this figure nearly doubled, reaching 8,565 individuals. Regarding Uzbekistan, according to the responsible ministry, in 2020 alone, the bodies of more than 200 deceased citizens were returned home due to accidents abroad. One of the most tragic incidents involving migrants was the bus fire that occurred on January 18, 2018, on the Shymkent-Samara highway, which resulted in the deaths of 52 citizens of Uzbekistan who were heading to Russia for work. Additionally, 13,000 citizens of Uzbekistan were detained while attempting to enter the USA illegally. This data highlights the scale of the illegal migration problem and necessitates urgent measures.

Legal and Social Vulnerability of Migrants

In recent years, migrants from Uzbekistan have frequently faced issues that negatively impact their lives and work in Russia. Among the most common difficulties are worker exploitation, frequent unscheduled inspections, non-payment of wages, violations of working hours, and other labor rights violations, which create additional challenges for migrants, depriving them of the ability to secure decent living conditions.

In 2023, human rights defenders from the Labor Dispute Resolution Center provided free legal assistance in labor disputes to approximately 400 citizens of Uzbekistan in Russia, helping them protect their rights in challenging conditions. This underscores the need for more effective protection of migrant rights and stricter enforcement of labor legislation.

The language barrier and lack of skills are primary reasons for migrants working in low-paying sectors. According to IOM data, the majority of registered labor migrants from Uzbekistan abroad were employed in the construction sector (52.7%). This confirms that the lack of qualifications limits migrants' opportunities for employment in higher-paying industries such as information technology, healthcare, engineering, etc.

It should also be noted that due to the language barrier, most migrants from Uzbekistan go to work in Russia and Kazakhstan. The lack of language proficiency restricts the geographical scope of migration to European and Western countries, where there are more opportunities for better living standards and higher incomes. For instance, the average salary of a labor migrant from Central Asia in Moscow is 54,500 rubles (approximately $597 or 7.5 million soums), while the minimum wage in European Union countries ranges from 399 euros in Bulgaria to 2,387 euros in Luxembourg. This highlights the importance of language training for expanding the opportunities of labor migrants and increasing their incomes.

International Practices and Foreign Experience

According to the UN, there are approximately 281 million international migrants worldwide, accounting for 3.6% of the total population. The number of people leaving their countries due to conflicts, violence, political or economic instability, as well as climate change and other disasters continues to rise. However, experts from the World Bank emphasize that migration can be a powerful source of prosperity and development: if managed correctly, it benefits everyone — both countries of origin and destination.

Top 20 Destination Countries (left) and Origin Countries (right) of International Migrants

It is important to note that the volume of global remittances has risen to $831 billion, significantly exceeding the volume of official development assistance and foreign direct investments in developing countries. According to the CB, in 2023, the volume of foreign direct investment (FDI) in Uzbekistan's economy amounted to $7.2 billion, while remittances reached $11.4 billion. These figures underscore the significance of migration for the country's economic development, confirming their key role in supporting the national economy and improving citizens' well-being.

According to the "World Migration Report 2024," migrants play a vital role in the global economy and innovation, occupying key positions in science, art, and entrepreneurship. Additionally, the immigration of young workers helps alleviate the burden on pension systems in high-income countries with aging populations.

To study best practices in labor migration, the experiences of the Philippines, Indonesia, Pakistan, and India – leading countries in labor force export – were analyzed.

Philippines . Organized migration is primarily conducted through private agencies. These agencies must be licensed by the Philippine Overseas Employment Administration (POEA) and deposit a minimum of 1 million pesos (approximately $22,000) to comply with established legal requirements.

Furthermore, agencies are required to negotiate better hiring conditions and disclose all labor migration regulations. It is also important to note that agencies share joint responsibility with employers. Job seekers can verify licensed private agencies using the online tool DOLE to check agency licenses.

Filipinos can also find jobs on six (POEA Website, WorkAbroad.ph, JobStreet.com, OFWguru.com, Kalibrr, and Seaman Jobsite) overseas job portals. All these websites are safe, legal, and monitored by the Philippine Overseas Employment Administration, ensuring a secure job search experience.

Additionally, key measures undertaken in the Philippines to organize labor migration include active investment in language training, professional skills, and cultural adaptation for migrants, as well as an active marketing campaign aimed at creating a positive image of Filipino workers as highly qualified and disciplined professionals.

Indonesia . To enhance the protection and support of migrant workers, Indonesia has implemented the Indonesian Migrant Workers Information System (SIPMI) application, developed by the Ministry of Manpower. This application not only improves the quality of services for Indonesian migrant workers but also provides convenient access to information for their families.

The SIPMI application has several key features: