Labour market developments and economic growth in the republic of Armenia

Author(s):  G.R. Ayrapetyan, candidate of Sciences, Yerevan State University, Yerevan, Armenia., grigor.hayrapetyan@ysu.am

Issue:  Volume 46, № 3

Rubric:  Sectoral markets and market infrastructure

Annotation:  In this article the labor market development specifications of the Republic of Armenia are discussed. Labor market and its regulation are very important for economic development and efficiency. Labor market regulation can solve market imperfection issues and stipulate economic efficiency. In Armenia despite the economic growth the number of employed people for recent years decreased significantly from 1163 thousand people to 1011 thousand people. The most popular explanation of this fact is the increasing productivity. However we assume that it’s not a case. After the independence among main problems in the Republic of Armenia’s economy there still continue to be high unemployment level, low labor productivity and low wages. We found out that high level of poverty is due to relatively high unemployment level and enrollment level in agriculture (almost 31.3 percent of total employed). The training, education level and wages have not significant positive impact on employment. Contrary to that high unemployment level, private transfers and migration has negative impact on employment. To improve the Republic of Armenia's labor market developments are required the trade unions’ regulation, reorientation of the small and medium enterprises activities, attraction of the foreign direct investments, and internationalization of the RA's economy.

Keywords:  labour market, unemployment, poverty, economic growth.

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