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Literacy in Uzbekistan is almost universal, and workers are generally well-educated and well-trained. However, worsening corruption in the country's education system in the past few years has begun to erode Uzbekistan's advantage in terms of its human capital, as grades and degrees are routinely purchased. Most local technical and managerial training does not meet international business standards, but foreign companies engaged in production report that locally hired workers learn quickly and work effectively. Foreign firms generally find that younger workers, untainted by the Soviet system, work well at all levels. The government emphasizes foreign education and each year sends about 50 students to the United States, Europe, and Japan for university degrees, after which they have a commitment to work for the government for 5 years. Reportedly, about 60% of the students who study abroad find employment with foreign companies on their return, despite their 5-year commitment to work in the government. Some American companies offer special training programs in the United States to their local employees. In addition, Uzbekistan subsidizes studies for students at Westminster University--the only Western-style institution in Uzbekistan. In 2003, Westminster admitted about 360 students and the government funded about half of the students’ education. Education at Westminster costs $4,800 per academic year.
With the closure or downsizing of many foreign firms, it is relatively easy to find qualified, well-trained employees, and salaries are very low by Western standards. The government has implemented salary caps in an attempt to prevent firms from circumventing restrictions on the withdrawal of cash from banks. Some firms had tried in the past to evade these limits on withdrawals by inflating salaries of employees, allowing firms to withdraw more money. These salary caps prevent many foreign firms from paying their workers as much as they would like. Labor market regulations in Uzbekistan are similar to those of the Soviet Union, with all rights guaranteed but some rights unobserved. Unemployment is a growing problem and the number of people looking for jobs in Russia, Kazakhstan, and Southeast Asia is increasing each year. According to official Ministry of Labor estimates, around 100,000 citizens of Uzbekistan work abroad. However, business analysts estimate that the number of Uzbek citizens working abroad is far higher. Estimates range from lows of 3 million to highs of 5 million Uzbek citizens of working age living outside Uzbekistan.
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