Armenia has recently unveiled a comprehensive strategic program aimed at increasing employment and creating a competitive workforce over the period from 2025 to 2031. This ambitious initiative, developed by the Ministry of Labor and Social Affairs, seeks to boost employment among specific groups, including women, youth aged 18-29, residents of Armenia’s regions, and working-age citizens receiving family and social benefits. The program is in line with Armenia’s broader Transformation Strategy until 2050, which focuses on increasing employment rates, elevating GDP per capita, improving the quality of life, and reducing poverty.
Addressing Workforce Uncompetitiveness
The Current Landscape
A central concern addressed by the new initiative is the current uncompetitive state of a significant portion of Armenia’s workforce. This situation is primarily attributed to a lack of necessary skills and knowledge among a large segment of the population. According to data from 2022, approximately 15% of the labor force, equating to around 339,000 individuals, were deemed underutilized. The strategic program aims to activate these underutilized labor resources, thereby creating additional value within the country’s economy.
The program sets clear objectives to address the gaps and inefficiencies in the labor market. By focusing on improving the skill set of the labor force, it hopes to ensure that more citizens are capable of contributing productively to the economy. This includes not only reducing unemployment but also ensuring that those employed are performing at their optimum potential. As a part of this, specialized training programs and educational initiatives are planned, targeting both the youth and the existing workforce to equip them with market-relevant skills.
Key Target Groups
The program outlines several key demographic groups as central to its efforts. Women and young people, particularly those between the ages of 18 and 29, are primary targets. Historically, these groups have faced significant barriers to employment, including factors such as gender discrimination and lack of experience. Additionally, the program focuses on residents in rural and regional areas of Armenia, where employment opportunities are typically more limited. By offering targeted incentives and support to these groups, the program aims to foster a more inclusive labor market.
Working-age citizens currently receiving family and social benefits also feature prominently in the program’s plans. The goal is to transition these individuals from dependency on social welfare to active participants in the labor market. This not only benefits those individuals by providing them with greater self-sufficiency and dignity but also alleviates the financial burden on the state’s social welfare system. Integrative approaches, such as offering vocational training and job placement services, are among the methods planned to achieve these transitions efficiently.
Objectives and Policy Transformation
Employment Growth Beyond Agriculture
One of the primary objectives for the years 2025 to 2031 includes increasing employment outside the agriculture sector. While agriculture remains a vital component of Armenia’s economy, the program recognizes the need for diversification. By promoting employment in sectors like technology, manufacturing, and services, the program aims to create more stable and sustainable job opportunities. This shift is expected to not only reduce poverty but also drive Armenia towards a more modern and resilient economic structure.
Integration of unemployed youth into the labor market is also a key focus area. By investing in skill development and education, particularly in high-demand fields such as information technology and engineering, the program anticipates a significant increase in youth employment rates. This approach not only addresses the immediate need for job creation but also positions Armenia’s workforce to meet future economic demands, ensuring long-term growth and stability.
Enhancing Human Capital
Incorporating more women into the workforce and integrating working-age citizens on social benefits into employment are also critical goals outlined by the strategic program. By addressing gender disparities in the workplace and providing necessary support systems, the program aims to create a more equitable and productive labor market. Public policy transformation plays a crucial role in this regard, facilitating the enhancement of human capital. Policies will be reformed to increase job opportunities and address the gap between labor market supply and demand, ensuring a better alignment of workforce skills with market needs.
The Ministry anticipates that through these reforms and targeted initiatives, the program will significantly lower Armenia’s poverty rate to 19% by 2031. Furthermore, the number of employed citizens is expected to increase by 252,000, reflecting a substantial positive impact on the national economy. Specific targets include raising the regional employment rate to 60.7%, reducing the unemployment rate among 20-29-year-olds to 19.6%, boosting the employment rate for women aged 15-74 to 50.9%, and cutting the underutilized labor force by more than half to 7%.
Anticipated Outcomes and Future Steps
Measuring Success and Expert Opinions
While the program’s goals are undoubtedly optimistic, experts have taken a cautious approach, noting the necessity for time and further analysis to understand and assess the projections fully. The success of this initiative greatly depends on effective implementation and continuous monitoring. Stakeholders from various sectors, including education, industry, and government, are expected to collaborate closely to ensure that the program’s objectives are met.
The strategic program sets forth a detailed plan to enhance Armenia’s labor market by focusing on key demographic groups, improving skill development, and aligning public policies with market demands. If executed successfully, it is poised to foster substantial economic growth and reduce national poverty levels, changing the socio-economic landscape of Armenia by 2031. This initiative not only aims to create jobs but to cultivate a workforce that is robust, competitive, and well-equipped for the future.
Looking Ahead
Armenia has recently introduced a thorough strategic program intending to boost employment and cultivate a competitive workforce from 2025 to 2031. This ambitious endeavor, crafted by the Ministry of Labor and Social Affairs, aims to enhance job opportunities for several targeted groups. These groups include women, youth aged 18-29, residents of various regions within Armenia, and working-age citizens who are beneficiaries of family and social benefits. This initiative aligns with Armenia’s broader Transformation Strategy, which extends until 2050. The strategy focuses on raising employment rates, increasing GDP per capita, improving the quality of life, and reducing poverty levels. A key element of this plan is to ensure that these improvements benefit the entire population, fostering a more inclusive and prosperous society. By concentrating on these specific demographics, Armenia aims to create a more dynamic and equitable economy that can sustain growth and provide better living standards for all its citizens.