The Ministry of Labor and Social Affairs of Armenia is developing a new system to evaluate citizens' poverty levels. Unlike the current system, which has been in place for over 20 years, the new approach aims to encourage employment rather than foster dependence on state support. This was announced by Minister of Labor and Social Affairs Narek Mkrtchyan during an interview on Armenian Public Television.
According to the minister, the existing system has significant shortcomings in targeting and does not meet modern challenges. The new method will involve a comprehensive analysis of family income and assets, utilizing digital technologies and data from various agencies. Importantly, applications for benefits will primarily be treated as job applications, as reported by the ARKA news agency.
One key feature of the new system, as highlighted by the minister, is that citizens who find employment will initially not lose their social benefits. However, if an able-bodied individual refuses job offers without valid reasons, sanctions will be applied, up to and including exclusion from the benefits system.
In recent years, the employment sector has shown steady progress. As of November 2024, the number of jobs in the country reached 782,832, an increase of 44,946 or 6.1% compared to the previous year. Simultaneously, the number of families receiving benefits has decreased from 90,000 in 2018 to 60,000, which the minister attributes to improved administration and overall economic growth.
Youth unemployment remains a pressing concern, with approximately 130,000 individuals aged 18–29 neither studying nor working. To address this issue, the government plans to launch large-scale retraining and upskilling programs.
According to the National Statistical Committee, Armenia's poverty rate fell to 23.7% in 2023, with extreme poverty at 1.1%. The government has set a goal to eradicate extreme poverty entirely by 2026.
