THE IMPACT OF DIGITALIZATION ON YOUTH EMPLOYMENT IN KAZAKHSTAN

This research inspects the effects of digitization on the youth employment in Kazakhstan, trying to assess how the development of digital infrastructure relates to the labor market outcomes from 2014 until 2023. The analysis uses secondary data obtained from the Bureau of National Statistics in Kazakhstan focusing on five key indicators: youth employment rate (YUR), investment in ICT as a part of GDP (ICTI), Internet penetration (% of population) (IP), education level (TEL), and urban labor market participation rate (ULMP). To identify the digital factors affecting youth employment, the study used descriptive statistics, correlation analysis, and multiple regressions. The result turns out that among those various digital factors, the most significant predictor of youth employment is Internet penetration. It also correlated negatively with the youth unemployment rate, as shown in r = -0.939, p < 0.001. The higher the access to the Internet, the more probable it was for a young person to find a job or acquire skills plus participate digitally. On the contrary, ICT investment and TEL were positively correlated to urban labor market participation. These variables were not shown to have an immediate and significant effect on youth employment, however. These findings also underline the need for a more holistic approach to digitalize infrastructure with education and skills development. This study finds that increased internet access and digital literacy programming offer real potential for a significant reduction of youth unemployment in Kazakhstan. Results thus provide critical evidence for policymakers, educators, and industry players in pushing for at inclusive digital transformation strategies resulting in equitable access to employment in the digital economy. Future studies should look into causal mechanisms, sectoral impacts, and geographical differences for a more granular understanding of digitalization and youth employment complexities. Keywords: Digitalization, Artificial intelligence, ICT investments, youth employment, Internet penetration.