On December 27, the Armenian Cabinet approved a labor market transformation program to be implemented from 2025 to 2031. The primary goal of this new strategy is to engage two key demographic groups - youth and women - in the economy.
According to Minister of Labor and Social Affairs Narek Mkrtchyan, the country faces an alarming trend: a significant portion of potential workers lack the necessary skills for the modern job market. Particularly concerning is the situation with young people. Currently, approximately 130,000 Armenians aged 18 to 29 are neither employed nor pursuing education, the minister noted.
The government aims to achieve tangible results by 2031. The strategy seeks to reduce the percentage of unemployed youth to 19.6% and increase women's employment to 50.9%. Special entrepreneurship development programs will be designed specifically for women aged 30 to 40.
Another focus will be on developing regional cities, where employment rates are targeted to rise to 60.7%. The program also includes plans to modernize the social support system, encouraging welfare recipients to seek employment.
By the end of the strategy’s implementation, the number of unused labor resources is expected to decrease by more than half, dropping to 166,000 people. Minister Mkrtchyan emphasized that another key objective is to change societal attitudes toward work and promote a culture of professional development.
Earlier, BMG reported that the unemployment rate in the second quarter of 2024 reached 13.8%, 2 percentage points higher than the same period last year. According to the Central Bank of Armenia, this rise in unemployment is attributed to a decline in the number of employed individuals rather than an increase in labor force participation.
