'Increase in employment and competitive workforce': strategic program in Armenia

JAMnews

Yerevan

Employment program in Armenia for 2025-2031

The growth of employment among women, youth aged 18-29, residents of Armenia‘s regions, and working-age citizens receiving family and social benefits are strategic objectives outlined in the Employment Program for 2025-31, approved at the last government meeting of the year.

The employment program, developed by the Ministry of Labor and Social Affairs, defines the main development directions and goals. It focuses not only on creating new jobs but also on “forming a competitive workforce.”

“The program is based on the goals outlined in Armenia’s Transformation Strategy until 2050 and the government’s program. These include increasing employment, GDP per capita, improving quality of life, and overcoming poverty,” the initiative’s rationale states.

‘Significant portion of the workforce is uncompetitive’

At the government meeting, Minister of Labor and Social Affairs Narek Mkrtchyan stated that a large number of employees lack the necessary knowledge and professional skills to perform their jobs:

“A significant portion of the workforce is uncompetitive in the rapidly changing modern labor market. The goal of this program is to activate labor resources that are only partially utilized, including the unemployed and potential workforce. Together, they make up an underutilized segment of the labor force.”

According to the minister, in 2022, this segment accounted for 15% of the labor force, or 339,000 people. This figure indicates untapped potential that, with competitive jobs, could create significant added value in the economy.

Program’s strategic objectives

For 2025-31, the government has set the following objectives for each target group:

Increasing employment outside the agricultural sector in the regions;
Involving unemployed youth aged 18-29, who are neither studying nor working, into the labor market by offering skill development opportunities while expanding avenues for their implementation;
Engaging women in the workforce to unlock their potential, particularly entrepreneurial opportunities;
Integrating working-age citizens receiving family and social benefits, with no health limitations, into employment
Transforming the public policy system in the field of employment aimed at “developing human capital (labor market supply), increasing job opportunities (labor market demand), and reducing the gap between labor market supply and demand for workforce”.

Proposal to shorten Armenia’s workday by an hour is flawed: economist’s opinion

Economist Agasi Tavadyan says the project’s authors did not assess how this step will impact the economy, productivity, or national profitability.

“Program will significantly reduce the poverty rate”

The Ministry of Labor and Social Affairs also announced the expected outcomes by the time the program concludes in 2031:

“The employment program will have a significant impact on the poverty level, which is expected to decrease to 19% by 2031. It is also anticipated that by 2031, the number of employed citizens will increase by 252,000.”

If the project is successfully implemented, the authors promise breakthroughs in all areas and even provide very specific figures:

By 2031, the employment rate in the regions will reach 60.7% (up from 51.2% in 2022);
The proportion of unemployed youth aged 20-29 will be 19.6% in 2031 (down from 35% in 2022);
The proportion of employed women aged 15-74 will increase to 50.9% (up from 41.5% in 2022);
The underutilized labor force will amount to 166,000 people in 2031, a decrease of 50.8% compared to 2022, representing 7% of the labor force instead of 15% in 2022.”

Experts have refrained from commenting on these optimistic forecasts, as assessing them requires time and analysis of all the parameters and figures provided.