Publication Details
Issue: Vol 9, No 4 (2026)
ISSN: 2576-5973

Abstract

This study examines the dynamics of youth employment in Uzbekistan, with a particular focus on the role of small enterprises and the digital economy in shaping labor market outcomes across rural and urban areas This research is driven by the gap between youth unemployment rates and general unemployment, as well as the significant amount of youth that fall under the NEET classification (not in employment-education-training). The main aim is to analyze how structural, technological and entrepreneurial forces interact to determine job opportunities for youth. This study uses a quantitative, data-driven approach derived from secondary sources of 2023–2025 data. The methodology used in this analysis brings together descriptive statistics, comparative analysis, trend evaluation and correlation-based assessment. The main variables addressed are youth unemployment rates, NEET indicators (Not in Education, Employment or Training), internet penetration and usage of digital platforms, as well as the share attributable to self-employment, with a particular focus on rural–urban differences. The joint conclusion is that, although youth unemployment has stabilised and showing sign of recovery but it still stands consistently more than 10%, which is more side`s than the current average at national level; which means we are looking at serious structural imbalance in job market. Furthermore, around 42% of the youth are NEETs, indicating significant under exploitation of human capital. The results also confirm that small businesses and self-employment are a key driver of job creation, representing almost half (48%) of total employment. Additionally, the digital economy is found to promote better career opportunities, especially in urban centers where access and use of digital platforms are much more  prevalent. However, a digital divide is particularly acute for rural youth, deepening existing disparities. In addition up to date also share on entrepreneurship, digitalization and spatial dissimilarity in one overall model which the study contributes up to literature. In other words, from a more practical view of policy activities, the results highlight the demand for targeted programs to stimulate skills alignment and broaden digital access while supporting the expansion of small business. Overall, the research highlights that inclusive and sustainable youth employment in Uzbekistan depends on addressing both structural constraints and emerging digital inequalities.

Keywords
Youth unemployment NEET population Labor market segmentation Small and medium-sized enterprises (SMEs) Self-employment dynamics Digital economy Digital labor platforms Rural urban employment disparity Internet penetration Youth labor market integration Entrepreneurship development Structural labor market imbalance