ECONOMIC GROWTH IN ARMENIA DOES NOT PROMOTE GROWTH OF VACANCIES
By Ara Martirosian

AZG Armenian Daily
23/05/2007

According to a research by the World Bank, the impressive
economic growth in Armenia does not promote growth of the number of
vacancies. Arvo Cudo, head of the Word Bank "Job Market Dynamics in
the Republic of Armenia" research group stated that in 1990-2005 that
employment in Armenia has reduced by 32% – 1 million 630 thousand to
1 million 105 thousand. He said that in spite of certain progress
during the last few years is obvious, the level of unemployment in
Armenia remains very high.

It is also worthy mentioning that in Yerevan, the capital of the
Republic of Armenia, the level of employment (38%) is lower than the
average level for the whole republic (48,7%). It comes out that in
general employment in rural areas of Armenia (67,2%) is higher than
in urban settlements (38,4%).

Mr. Cudo said that most employees in Armenia work in the spheres of
agriculture, construction, retail trade and service – 40-45%. 26% of
Armenian employees work over 51 hours a week. 56% of the employees
are dissatisfied with their wages and say they hardly fit their
minimum expenses.

Armenia has a problem with opening new job vacancies.

So as to provide normal level of employment by 2015, Armenian employers
will have to open 120 thousand new vacancies. In order to reach the EU
minimum employment level (65%) 340 thousand vacancies must be created,
and do reach the Lisbon standard of 70% – 470 thousand vacancies.

The World Bank emphasizes establishment of positive business atmosphere
in Armenia, which will contribute the economic growth and the opening
of new vacancies.

The research results say that certain progress in this aspect was
made through 2005-2006, and Armenia reached the 34-th place in the
business-rating list. Still there is a number of problems to be
solved. Most of all Armenian businessmen complain of bureaucracy in
tax system, inaccessibility of financing and tax rates.

The Word Bank proposes Armenia to align the education programs with
the economic market. As compared with the neighbor-states, in Armenia
the employers spend fewer resources on trainings for the employers.