Publication Details
Abstract
The service sector has become a key driver of economic development in Uzbekistan, significantly contributing to GDP and employment. As globalization and digital transformation progress, effective management of labor potential within this sector is essential. Labor potential, comprising employees' knowledge, skills, and motivation, plays a crucial role in service enterprises' competitiveness and efficiency. Previous studies have highlighted labor productivity and employee qualifications as primary factors affecting service quality and economic outcomes. While much research has focused on labor productivity and economic efficiency, limited attention has been given to the comprehensive development of labor potential, including education, professional skills, and innovative capabilities, particularly in the context of Uzbekistan’s service enterprises. This study aims to analyze the labor potential in Uzbekistan’s service sector, identify key factors influencing labor productivity, and develop organizational and economic mechanisms to enhance labor potential. The research reveals that labor productivity in the service sector has increased by 36.6% from 2020 to 2024, driven by digital technologies, innovative services, and workforce training. However, challenges remain in certain areas, including low-skilled labor and regional disparities. The study introduces region-specific recommendations for enhancing labor potential through targeted employee training, digitalization, and innovative service development, contributing new insights to the field. The findings suggest that improving labor potential is crucial for enhancing economic stability and competitiveness in Uzbekistan's service sector. Further research is needed to explore the integration of international best practices in labor potential development tailored to national conditions.