2010
Actual unemployment rate in
Armenia
Household Survey Analysis
Yerevan
04/02/10
Contents
Introduction………………………………………………………………………………………………..1
Part 1. Organization of Survey Sample..……………………………………………………………..........5
Part 2. Househols'(HH) description……………………………………………………………………......8
Part 3. Economically active population ……………………………………………………………..........11
Part 3.1. Household members'employment by main activities …..……………………………….............11
Part 3.2. Additional employment of household (HH) members………………………………….….........20
Part 3.3. Satisfaction with current job...…………...………………………………………………...........23
Part 3.4. Non-employed members of households (HH)……………………………………………...........24
Part 4. Economically inactive population……………………………………………………………........29
Major conclusions………………………………………………………………………………………....30
Proposals………………………………………………………………………………………………......30
Annex- Classification of activity types in economy ………………………………………………….......32
Annex 2.Survey questionnaire ………………………………………………………………………........33
2
Introduction
The country’s development and prosperity greatly depends on high quality labour force, population’s
employment (underemployment), rates of employment and unemployment, composition of labour market,
as well as the number of population involved in informal employment. At the same time employment rate
is one of the most prior preconditions to reduce the poverty in developing countries such as Armenia.
Thus, to evaluate actual employment and unemployment rates in Armenia a number of surveys has been
conducted and works published, among them “Social situation and poverty in Armenia” (National
Statistical Service/NSS, 2008), “Labour force and informal employment in Armenia” reports (NSS and
TACIS, 2008) and Statistical Yearbook of Armenia (NSS, 2008).
“Social situation and poverty in Armenia” is an annual bulletin reported by National Statistical Service,
based on Integrated Household Survey (IHS) and the objective is to provide the Government and public
with updated information on population’s income, expenditure and change of social level.
The bulletin of 2008 with data referring to the year of 2009 is based on the survey covering 7872
households and information received from administrative statistical sources (administrative registries,
legal entity data in State Registry, Ministry of Justice).
The survey results have been analysed according to ILO methodology, and in some cases also compared
with the same results according to the NSS methodology.
“Statistical Yearbook of Armenia, 2008” is the annual complete statistical publication of the National
Statistical Service of RA, reflecting the socio-economic situation of the country in 2007.
Report on labour force and informal employment in Armenia is a one-off survey on RA labour market. It
was carried out in 2008 with an objective to improve the quality of statistical data collected on labour
market by using the internationally recognized ILO methodology. The survey is mainly directed to
studies and evaluation of labour market informal sector. The survey sample includes 2000 households
(HH) in different marzes (regions) of Armenia. The comparison of the data in above-mentioned reports
and yearbook discovers differences between the surveys’ reports, which are a consequence of different
methodologies used in them. Herewith an attempt is made to clarify the possible reasons of evident
differences.
Thus according to the methodology used in NSS bulletin to be considered unemployed the person must
be registered in State Employment Service and having achieved a status of unemployed officially on the
basis of RA Law on “Population’s employment and social protection in case of unemployment”, whereas
according to the ILO methodology the persons are considered unemployed, who during the 4 weeks prior
the survey have had no job or income activity, were actively looking for a job using all possible means,
were ready to start the job within 2 weeks once they get an offer.
The above-mentioned creates essential difference between the rates of unemployment as of the following;
according to NSS Yearbook the unemployment rate in Armenia in 2009 is 7%, whereas according to the
ILO methodology the unemployment rate indicates 28.4% in report on social situation and poverty in
Armenia.
3
According to ILO methodology the employed person is the one who during the 4 weeks prior the survey
has done a job for hire or not for hire, even if the job was for 1 hour, regardless the time when he will
receive the income from the job, whereas according to NSS methodology a person is considered to be
employed, if he has been performing a seasonal, temporary, casual or one-time work.
This can be the reason of difference between the indicators in NSS Yearbook (50.7%) and report on social
situation and poverty in Armenia (48.9%).
The NSS Yearbook and report on social situation and poverty in Armenia do not contain any data on
underemployment (according to the ILO definition a person is considered to be underemployed wishing
changes in current job, and willing to find a new or additional work as of the survey period), whereas
these data are important to estimate the level of labour force underemployment.
Informal employment in non-agricultural sector has been studied in Report on social situation and
poverty in Armenia, which does not introduce the complete number of population involved in the
informal sector of Armenian labour market. There are no such data in NSS Yearbook, since the latter is
referring to data received from administrative sources. Reasoning from the above-mentioned a survey and
evaluation on actual unemployment was launched.
Its main objective is to propose changes in employment legislation, provide conditions with job-seekers
and people willing to work, aiming to involve them in active labour market, clarify the type of change in
labour resources and heighten the productivity of projects implemented, draft new programmes for the
real unemployed and certain target groups. To carry this out information on labour force employment,
composition, structure, difference between actual and official rates of unemployment, as well as
employment and underemployment in formal and informal sectors is required.
4
Part 1. Organization of Survey Sample
To conduct the survey labor force employment and underemployment in formal and informal sectors,
employment level, composition, structure, labor force distribution by the spheres of economy and real
unemployment were evaluated based on the selected information on HH through a specially elaborated
questionnaire.
Sample designing
The sample included 2010 HH in total. This condition meets the requirement of the client in regard to the
number of HH, which should be not less than 2000. The sample was designed per total weight of HH in
Yerevan and marzes. As a result, the numbers were rounded with respect to have ten HH in one stratum
from each community.
The number of HH
The weight of HH in
the total number
The number of the HH
in the Sample
Yerevan
278,626
35.7
720
Marzes
501,927
64.3
1290
Aragatsotn
32,107
4.1
80
Ararat
63,516
8.1
160
Armavir
64,962
8.3
160
Gegharquniq
55,778
7.1
140
Kotayq
65,611
8.4
170
Lori
69,219
8.9
180
Shirak
68,620
8.8
170
Syuniq
37,247
4.8
100
Vayots Dzor
13,188
1.7
50
Tavush
31,680
4.1
80
780,553
100
2010
Totally
The volume of the sample has comprised 2010 HH, 720 of which in Yerevan, and 1290 in marzes, 670 of
which are rural HH, and 620 are urban.
5
Designing Sample Volume in Yerevan
The HH in each Yerevan community have been included in the sample by the above mentioned principle
(here too the numbers have been rounded). The weight of HH in each community has been calculated in
total number and the sample was designed by corresponding distribution.
Table 2. Designing the sample in Yerevan
The number of
HH in
communities
The weight of
HH in total
number in
percentage
The number of
HH in the
Sample
Ajapnyak
Avan
26,941
12,655
9.7
4.5
70
30
Arabkir
33,462
12.0
90
Davtashen
10,244
3.7
30
Erebuni
30,099
10.8
80
Kentron
33,017
11.8
90
Malatia-Sebastia
35,951
12.9
90
Nor Norq
35,828
12.9
90
Norq-Marash
3,022
1.1
10
Shengavit
35,455
12.7
90
Qanaqer-Zeytun
19,627
7.0
50
Totally
278,626
100
720
After designing it on the basis of HH number in each community involved in the sample, corresponding
number of addresses with reserve data of HH have been selected. The principal of its use was instructed
to the interviewers.
The definition of sample volume in marzes
The communities were selected by the method of simple random sampling. By random choice in each
marz 25 urban and 43 rural communities were selected, accordingly having 620 and 670 HH.
6
Table 3. Sample designing in marzes
The number of
urban communities
in sample
The number
of HH in
sample
The number of
rural communities
in sample
The number of
HH in sample
Aragatsotn
1
20
5
60
Ararat
3
50
5
110
Armavir
3
60
5
100
Gegharquniq
3
50
6
90
Kotayq
4
100
5
70
Lori
3
110
5
70
Shirak
2
110
4
60
Syuniq
3
70
2
30
Vayots Dzor
1
20
2
30
Tavush
2
30
4
50
25
620
43
670
Totally
Afterwards again addresses with reserve data were chosen for the selected urban communities. As for rural
communities the inquiries were performed by spiral method (for example, visiting every 5th house in the
street).
7
Part 2. HH description
In 2009 in Armenia women comprised 53.2% of the labour resources, whereas men - 46.8%.
Chart 1. Gender distribution of labour resources
46.8
Male
53.2
Female
The educational level of RA labour resources is presented in Chart 2. It shows that the highest share of
labour resources have general secondary education (41.5%), 18.4% have professional education, 17.1% higher education. The level of illiteracy in the country is quite low; people having no education at all or
having only primary education comprise 1% of labour resources. Only 0.2% of labour force has a
postgraduate degree.
Chart 2. Educational level of labour resources
1. Illiterate
5. Basic general
9. Middle professional
8
2. Incomplete primary
6. Incomplete secondary
10. Incomplete higher
3. Primary
7. Secondary general
11. Higher
4. Incomplete basic
8. Initial vocational
12. Postgraduate degree
Reviewing the structure of labour resources by the family status in 2009 the survey results show that
60.8% is married, 25.8 % has never been married, 10.8% widowed, 2.1% divorced, 0.6% cohabits.
Chart 3. Distribution of labour force according to family status
Over one month prior the survey 8.6% of the labour force has been absent from the country, 57.8% of
which was mainly conditioned by work activity. Besides this, being away from the HH has been reasoned
by education, service in the army, and family and other circumstances.
60.8
Married
Never married
Widowed
25.7
2.1
0.6
Divorced
Cohabiting
10.8
Chart 4. The main reasons for being away from HH, % of total number of people residing outside
Armenia as of the observed period
9
Other
25.4
Other family reasons
8.6
Marriage
0.5
Work
57.8
Treatment
0.5
Education
7.2
0
10
20
30
10
40
50
60
70
Part 3. Economically active population
The economically active population includes the employed and unemployed. Employed are considered to
be those people who at the time of survey have done a job for hire even if the job was for 1 hour or
performed a profitable activity.
Part 3.1.The main employment activities of HH members
The survey results show that in 2009 49.7% of adult population had some kind of a job for hire or a
profitable activity.
Chart 5. Distribution of presence of job for hire or profitable activity by settlements, % of total
number of labour resources
Having some activity
68.4
Tavush
Vayots Dzor
Having no activity
31.6
57.3
64.3
Syuniq
Shirak
Kotayq
Lori
42.7
35.7
43.0
57.0
41.2
46.5
58.8
53.5
52.3
Gegharquniq
Armavir
47.7
50.2
49.8
62.5
Ararat
37.5
77.3
Aragatsotn
Yerevan
22.7
43.3
49.7
Armenia
0%
10%
20%
56.7
50.3
30%
40%
50%
60%
70%
80%
90%
100%
In Yerevan 43.3% of observed HH members have had a job or a profitable activity. Aragatsotn was
ranked the top marz having the highest employment rate (77.3% of labour resources), and the lowest rate
was observed in Kotayk marz (41.2%).
Employment distribution according to age groups is presented in chart 6.
Chart 6. The distribution of surveyed HH having jobs or a profitable activity by age groups, % of
corresponding age groups
11
38.5
55 +
Aged 45-54
Aged 35-44
61.5
69.3
30.7
71.5
28.5
57.0
Aged 25-34
43.0
23.2
Aged 16-24
0%
76.8
20%
40%
60%
80%
Having a profitable activity
100%
Having no profitable activity
Thus, 23.2% of HH members aged 16-24 has had job on hire over the previous 7 days. One of the main
influencing factors here can be the age group, which is representing young people who have no work
experience. At the same time 61.5% of HH members aged 55 + has had no paid job over the previous 7
days. This can be explained by the fact that mostly pensioners are representing this age group, though on
the other hand people at this age are not flexible from the viewpoint of work or activity change, which
means they will have more difficulties to find a new job in case they lose their jobs.
Labour force distribution by education is shown in Chart 7.
Chart 7. Distribution of employment by the level of education, % of corresponding group
Employed
Postgraduate degree
Higher
Incomplete higher
Middle Professional
Initial Vocational
General Secondary (complete)
Incomplete secondary
General basic
Incomplete general basic
Primary
Incomplete primary
Illiterate
Non-employed
50.0
50.0
60.3
39.7
31.4
68.6
55.7
44.3
57.9
42.1
48.8
51.2
32.1
67.9
44.1
55.9
32.1
67.9
26.2
73.8
44.4
55.6
7.5
0%
92.5
10% 20% 30% 40% 50% 60% 70% 80% 90% 100
%
According to survey results the highest percent of employment has been observed among household
members having higher education (60.3%) and secondary professional education (57.9%). And the
lowest percentage was observed among those having no education (7.5%) or primary education (26.2 %).
12
Chart 1. Distribution of employment spheres by place of residence, %
Yerevan
1.3
12.2
Marzes
53.5
4.5
Armenia
37.0
6.9
0.3
1.7
1.3
Generation and distribution of energy, gas and water
3.4
3.3
3.3
Construction
Trade
Hotels and restaurants
Transport and communication
Financial activity and insurance
Real estate operation
State administration
Education
Health care
Social services (retirement home, asylum etc)
Culture, sports and other services, NGOs
Services for household management
Foreign organization activities
Totally
9.4
18.1
2.7
10.1
2.4
3.4
7.5
13.2
7.2
1.9
5.9
0.5
0.6
100
6.4
6.5
0.2
3.6
0.6
0.2
4.7
8.1
3.0
0.2
3.3
0.2
0.0
100
7.3
10.2
1.0
5.6
1.2
1.2
5.6
9.8
4.3
0.7
4.1
0.3
0.2
100
Agriculture, hunting, fishery
Processing industry
Mining industry
Distribution of employed population by sex and marzes is shown in chart 8.
Chart 8. Distribution of employed population by sex in marzes, %
Tavush
Vayots Dzor
52.6
50.0
47.4
50.0
Syuniq
53.3
53.0
46.7
47.0
56.6
47.7
43.4
52.3
53.2
46.8
56.8
53.1
43.2
46.9
Shirak
Kotayq
Lori
Gegharquniq
Armavir
Ararat
Aragatsotn
48.3
54.9
0%
10%
20%
30%
Female
51.7
40.5
59.5
Yerevan
Armenia
Male
45.1
40%
50%
60%
70%
80%
90%
100%
According to Chart 8 54.9% of population is male and 45.1%- female in 2009. The number of employed
female, however, prevails in Lori and Aragatsotn. In Vayots Dzor the employment is distributed equally
13
between male and female population. As for the type of activity and entrepreneurship in Yerevan and
marzes, in Armenia 66.4% of population works in private enterprises, 28% works in state sector, and
3.5% other (with state participation) enterprises. 2.3% of population is working in municipality, foreign
organization, NGO or joint organizations.
Chart 9. Distribution of entrepreneurship by type, % of the number of population in given
settlement
Public
3.4
Armenia
66.3
0.8
Joint
28.0
Foreign
marzes
1.7
Other (with state
participation)
72.8
0.9
23.4
Private (citizen)
7.0
Yerevan
0.0
Municipal
52.3
0.5
38.2
10.0
20.0
30.0
40.0
State
50.0
60.0
70.0
80.0
In Yerevan the weight of state employees is higher (38.2%) than the average number in the republic. In
marzes the average unit of this indicator is about 28%. While compared to the employed in state
enterprises the share of HH members having private businesses has comprised about 72.8 % that is higher
than
the
average
share
in
the
whole
country
(66.3%).
14
The distribution of employed, hired or non-hired labour resources by agricultural and non-agricultural
sectors is shown in chart 10.
Chart 10. Distribution of employed, hired or non-hired labour resources by agricultural and nonagricultural sectors, % of the number of employed population in given sector
Other
100%
0.1
90%
16.5
0.7 0.2
10.8
0.8
80.4
87.5
80%
Unpaid family workers
70%
60%
Self-employed
50%
40%
30%
Employers
20%
10%
Wage earners
0%
3.0
Agriculture
Non-agriculture
So, according to survey results about 80.5% of observed HH members are self-employed, 16.5% is
considered to be unpaid family workers, and 3%- wage earners. The biggest share of wage earners in nonagricultural sectors comprises 87.5%. Self-employed comprise about 10.8% of the employed population
in non-agricultural sectors, and only 0.8% are employers.
Activity type distribution of employers and self-employed in Yerevan and marzes is given in Chart 11.
Chart 11. Distribution of registered employers and self-employed by settlements, % of total number
of employers and self-employed accordingly
100
90
80
70
60
50
40
30
20
10
0
Employers
100
Self-employed
87.5
26.6
3.8
Marzes
Yerevan
15
According to survey results, in marzes and Yerevan 87.5 % of employers are carrying out officially
registered activities. However only 3.8% of self-employed in marzes, and 26.6% in Yerevan have
accordingly registered their activities.
The distribution of contract wage earners and wage earners on verbal agreement by marzes is shown in
chart 12.
Chart 12. Distribution of contract wage earners and wage earners on verbal agreement by marzes,
% of total number of wage earners
Working by contract
Working by verbal agreement
78.7
79.5
78.7
84.3
Tavush
Vayots Dzor
Syuniq
Shirak
Kotayq
Lori
Gegharquniq
Armavir
Ararat
Aragatsotn
Yerevan
Armenia
21.3
20.5
21.3
15.7
69.0
64.1
31.0
35.9
86.8
13.2
75.2
75.0
76.5
72.5
74.2
0%
10%
20%
30%
24.8
25.0
23.5
27.5
25.8
40%
50%
60%
70%
80%
90%
100%
According to the survey findings the biggest share of wage earners (74.2%) in Armenia is working on
the basis of written agreement. Gegharquniq and Shirak marzes are top two regions where the shares of
contract wage earners are the highest in the total number, accordingly comprising 86.8% and 84.3%. The
lowest indicator has been observed in Lori region comprising 64.1%.
Employment type distribution by marzes is given in Chart 13.
16
Chart 13. Distribution of employment types, % of the total number of the employed
100%
80%
1.3
2.1 3.2 1.7 4.0 1.6 0.4 2.3 1.4 1.4
8.0
15.1
19.5 16.6
21.9 14.3
24.6 26.9 24.3
22.1
28.6
One-time or
casual work
56.0
60%
40% 76.0 82.5
90.3
80.1 81.1
73.9
74.0 71.7 75.7
84.9
Temporary or
seasonal work
70.1
42.4
20%
0%
Ar
m
en
Y e ia
r
Ar e va
n
ag
at
so
tn
Ar
ar
Ar at
m
G
a
eg
ha vir
rq
un
iq
Lo
Ko ri
ta
yq
Sh
ira
Sy k
Va
u
yo n iq
ts
Dz
o
Ta r
vu
sh
Permanent work
Thus 76% of the employed has permanent work, 21.9% works on temporary or seasonal terms, and
about 2.1% has had a casual or one-time job.
The distribution of working day duration by marzes is given in Chart 14.
Chart 14. Work duration, % of the total number of the employed
Tavush
Vayots Dzor
Syuniq
Shirak
Kotayq
Lori
Gegharquniq
Armavir
Ararat
Aragatsotn
Yerevan
Armenia
32.5
61.7
34.9
41.4
38.4
48.8
51.5
54.8
72.2
54.1
46.8
34.2
53.2
31.9
58.0
50.6
59.4
51.7
20%
10.1
5.3
6.9
44.1
59.2
15.5
35.7
33.9
0%
5.8
16.3
7.1
6.8
23.7
4.1
11.7
40%
60%
17
25.1
12.6
80%
100%
Full-time working
day
Part-time working
day
Extra hours
Thus in Armenia 51.7% works a whole working day, 35.7% has a partial working day, and 12.6% works
extra hours. The highest share of the employed for the whole working day has been observed in Kotayk
(around 72.2%), and the lowest share - in Armavir.
The distribution of employment status of population by marzes is shown in chart 15. In Armenia about
56.3% of the employed is hired employees, 36.6% is self-employed, 6.5% is unpaid family workers, and
only 0.5% - employers.
The distribution of employment status by marzes is shown in chart 15.
Chart 15. Employment status by marzes, % of the total number of employed in given stratum
Tavush
Vayots Dzor
30.6
0.6
62.4
45.3
Syuniq
55.6
40.6
Shirak
Kotayq
0.6
0.9
57.5
46.4
Lori
Gegharquniq
32.5
41.1
0.9
41.9
1.7
59.1
58.6
56.3
0%
20%
0.5
40%
60%
Self-employed
21.1
12.1
0.9 9.9 0.60.2
88.4
Yerevan
Armenia
Employer
1.2 0.4
40.4
29.3
Wage earner
0.9
10.8
65.4
39.3
38.5
Aragatsotn
11.3
16.9
41.6
0.5
32.9
Armavir
Ararat
5.8 0.6
3.5
51.2
36.6
80%
6.5 0.1
Unpaid family
workers
Other
100%
In Armenia about 56.3% of population are wage earners, 36.6 %- self- employed, 6.5 %- unpaid family
worker, and only 0.5 %- employers.
In Yerevan the share of wage earners is rather big (88.4%). The share of self-employed is big especially
in Gegharquniq and Tavush, correspondingly comprising 65.4% and 62.4%.
Hidden (informal) employment
This section shows the studies of informal employment, which includes employers and self-employed
without official registration, wage earners working on the basis of verbal agreement, as well as unpaid
family workers.
Distribution of informal employment by agricultural and non-agricultural sectors is shown in Chart 2.
The weight of above-mentioned persons is calculated both by the total number of employed in the given
stratum and by total number of the employed population.
18
Chart 2. Informal employment by agricultural and non-agricultural sectors (%)
Including
% of the number of
employed in given
group
Total number
of informal
employed
Employers and
self-employed
Hired
employees
-
99.7
66.7
-
36.5
29.6
0.7
6.1
66.4
25.0
-
4.9
13.8
0.4
Family
members
Agriculture
% of the total number
of the employed
% of the number of
employed in given
group
-
Non-agriculture
% of the total number
of the employed
19.1
19
Informal employees in non-agricultural sector comprise 19.1% of the employed population. Although
the self-employed and employers comprise only 4.9% of the employed, their share is the highest (66.4%)
in total number of the self-employed and employers. In non-agricultural sector the family members are
totally 0.4 %, and hired employees- 13.8%.
Almost all employers and self-employed (99.7%) in agricultural sector have not registered their activity
thus forming informal employment and comprising 29.6% in total number of employed.
Part 3.2 Additional employment of HH members
The presence of additional employment in Yerevan and marzes is shown in chart 16.
Chart 16. Presence of additional employment in Yerevan and marzes, % compared to the number
of permanently employed population
97.7
Marzes
Yerevan
91.1
8.9
2.3
Had additional jobs
Had additional jobs
Had no additional jobs
Had no additional jobs
6.8% of the permanently employed population has had additional employment or a profitable activity
during the 7 days prior the survey. In Yerevan 2.3% of employed population have had additional
employment, and in marzes only 8.9% have been observed as household members having additional
employment.
As of the sectors of additional employment by marzes 87.3% of additional employments were observed
in agricultural sector, 3.4%- in trade sector, and 3.9% - in the sector of education.
20
Chart 17. Sector of additional employment, % of total share of additional employment1
Tavush
Vayots Dzor
Syuniq
Shirak
93.7
100
88.2
6.3
5.9 5.9
94.1
100
92.0
100
Kotayq
Lori
Gegharquniq
Armavir
Ararat
Aragatsotn
Yerevan
Armenia
13.6
4.5
5.9
20%
40%
6
8
13
4.5
87.6
0%
4
7
8.0
100
100
97.2
31.8
13.7
1
60%
14
2.8
16
22.8
9.1
17
3.9 2.7
3.6
0.6 1.0 0.6
80%
100%
In marzes most people having additional jobs have been mainly involved in agricultural activities (and in
some marzes all additionally employed people were involved in agriculture), some- in trade and
construction. In Yerevan 31.8% have been involved additionally in education sphere, and about 22.7 % - in
delivery of utility services and other social services.
As for distribution of additionally employed by the type of activity, in Armenia 98.5% are developing
additional activities in private sector of economy, 1%- in state sector, and 0.5% - foreign. People in marzes
aside the main job had additional jobs and 86.4% in Yerevan had jobs in private sector.
Chart 18. Types of enterprise, % of the total number of additionally employed
Marzes
100.0
Yerevan
9.1
86.4
Armenia 1.0
0%
4.5
98.5
10%
20%
State
30%
40%
50%
60%
Private
0.5
70%
The distribution of additional employment types is shown in chart 19.
1
Appendix-Sectors of economic activity
21
80%
90%
Foreign
100%
Chart 19. Distribution of additional employment types by marzes, % of the total number of
additionally employed
Permanent
11.8
53.8
76.5
62.5
h
r
us
zo
Va
Ta
v
ha
r
Ko
qu
ni
q
av
ir
m
35.3
D
23.5
G
eg
ar
at
64.7
11.1
Ar
ag
Ar
64.0
yo
ts
46.2
Ar
at
so
tn
va
n
re
52.9
100.0
45.5
24.0
Ye
37.5
88.9
77.8
ia
35.3
Sy
un
iq
76.0
36.0
ira
k
45.5
51.5
One-time or casual work
Sh
46.1
m
en
Ar
9.0
Seasonal
2.8
19.4
ta
yq
2.4
Lo
ri
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
51.5% of additional employment is observed as permanent, for 46.1% employed it is seasonal. 2.5% has
had it casually as a one-time job.
In Yerevan the number of additionally employed people has been distributed equally between permanently
employed and people having one-time jobs, comprising correspondingly 45.5% each. As for the marzes there
is not a constant tendency observed. For example, in Vayots Dzor observed additional jobs have been
permanent, and in Armavir marz they have been either seasonal or temporary.
The duration of additional work (working day) is shown in the chart below.
Chart 20. The duration of work, % of the total number of people having additional jobs
100
97.5
95.5
97.8
90
80
Full-time working day
70
60
50
Part-time working day
40
30
20
10
2.0
0.5
4.5
2.2
Extra hours
0
Armenia
Yerevan
Marzes
In Armenia 97.5% of additionally employed people worked on part-time terms, 2%- on full-time terms, and
only 0.5% worked extra hours. Moreover, both in Yerevan and marzes most of the additionally employed
people worked part-time, accordingly comprising 95.5% and 97.8%.
Chart 21 reflects additional employment sectors by marzes.
22
Chart 21. Additional employment by marzes, % of the total number of additionally employed
Tavush
Vayots Dzor
Syuniq 5.9
Shirak
Kotayq
Lori 4.0
Gegharquniq
Armavir
Ararat
Aragatsotn 11.1
13.6
Yerevan
Armenia2.0 3.9
0%
93.7
100.0
6.3
58.8
35.3
35.3
64.7
88.2
76.0
84.6
100.0
72.0
88.9
18.3
11.8
20.0
15.4
Employer
Self-employed
63.6
40%
Wage earner
working by verbal
agreement
28.0
4.5
76.8
20%
Wage earner
17.3
60%
80%
100%
Unpaid family
worker
76.8% of additionally employed were self-employed, 17.3%- unpaid family workers, 5.9%- wage
earners, 3.9% of whom worked on the basis of verbal agreement, and only 0.5% were employers.
Almost in all marzes self-employed and unpaid family workers comprised the biggest share in additional
employment rate.
Part 3.3 Satisfaction with current job
According to survey results 78.8% of HH members find that current jobs suit their professional
qualifications, 20.5% has jobs requiring less than their professional qualifications allow, and 0.7% vice
versa, i.e. jobs requiring more than their original qualifications are.
Chart 22. Correspondence of current jobs with qualifications of the employed, % of the total
number of the employed
Yes
78.8
Lower the qualification
20.5
0.7
Higher the
qualification
3.7% of the employed population have been searching additional jobs and 5.9%- new jobs over the
previous week. Over 90% of employed population both in Yerevan and marzes have not been searching
any
new
or
additional
job.
23
Chart 23. Distribution of employed by marzes seeking new jobs, %
18.2
Tavush
18.8
63.0
Vayots Dzor 2.3 4.7
Syuniq 3.0 10.0
Shirak 5.5
87.0
20.5
74.0
Kotayq 5.5 4.5
90.0
Lori 3.6 3.6
Gegharquniq 0.42.2
Looking
for a new
job
92.8
97.4
Armavir 1.6 1.2
97.2
Ararat 3.1 4.3
92.6
Aragatsotn 6.3 6.9
86.8
Yerevan 1.8 3.2
Was not
looking
any job
95.0
Armenia 3.7 5.9
0
Looking
for
another
job
93.0
90.4
20
40
60
80
100
53% of employed searching a new or additional job has explained their job seeking by the low salary
received for the current job, 32%- by unsatisfactory work conditions and professional discrepancy with
current job, 2.1%- expiry of work contract etc.
Chart 24. Motivations to search new or additional jobs, % of the total number of job-seeking
population
Expected l i qui da ti on of orga ni za ti on or s horteni ng of va ca nci es
0.7
Expi ry of work contra ct
2.1
Profes s i ona l mi s ma cht to the pres ent job
16
Uns a ti s fa ctory work condi ti ons
16
Hea l th condi ti on
1.4
Low pa yment
53.1
Other
10.7
0
10
20
30
40
50
Part 3.4. Non-employed HH members
During the 7 days prior the survey 32.8% of HH members did not work because they did not have any,
29%- were retired pensioners, 18.9% managed the households, and 14.7% were students.
24
60
Chart 25. Reasons of non-employment, % of the total number of non-employed population
4.8
36.2
Marzes
Other
28.9
16.1
14.0
Has no work
4.5
27.8
29.2
Yerevan
pensioner
22.8
15.7
Keeps a household
4.7
32.7
Armenia
29.0
Student
18.9
14.7
0
10
20
30
40
Both in Yerevan and marzes the main reasons of being non-employed were absence of jobs and
retirement.
Non-employed people have been observed from the viewpoint of looking or not looking for a job, as
well as their willingness to start the job within 2 weeks once they get an offer. The results are
summarized in Table 3.
Table 3. Job search of non-employed persons, their willingness to start up their own businesses or
start the job, % by the settlements
Has searched
paid work
Has wanted to
start up their
business
Neither, nor
Are willing
Are not
willing
Armenia
18.8
0.5
80.7
44.0
56.0
Yerevan
25.9
0.6
73.5
70.0
30.0
Marzes
13.0
0.4
86.6
26.7
73.3
According to the survey results in the republic 80.7% of non-employed population have not been
searching a job over the previous 4 weeks and have not initiated own businesses, 18.8% have been
searching paid work, and only 0.5 % of non-employed population have expressed wishes to start up a
business. In Yerevan 70% of non-employed population are willing to start the job in case they get
appropriate offer, whereas in marzes only 26.7% of non-employed are willing to start the job.
25
Chart 26. The reasons why non-employed do not search for a job, % of the non-employed and nonjob seeking population
Has already found job and will start
working beginning with the following week
Has found a job and waiting for work
invitation
Is retraining/requalification
38.3
40.6
Is waiting for an invitation from the
previous place of work
Doesnot hope that will succeed in finding
a job
Does not know how to find it
10.2
0.4
2.6
0.1
7.8
Other
The job search passiveness of non-employed population is conditioned by a number of reasons.
Particularly 40.6% were hopeless to find a job, and 38.3% did not know how to find a job, 10.4% have
already found a job and were waiting for invitation, and 2.6% were waiting to be invited to work by the
previous employer. About 10.2% had other reasons not to work.
Non-employed people used different means of job search. Particularly, their highest share, 80.9% have
applied directly to the employers, about 32.7% have been following the information in papers etc. or
announced themselves, 4.3% tried to find a job through the net of friends and relatives, and 25.7% used
other means.
Chart 27. Steps initiated by non-employed population to find a job, % of the corresponding stratum
(multiple answer)
Has applied to State
Employment Service Agency
Armenia 9.6 4.6
28.1 4.3
80.9
25.7
Followed the announcments
Gave announcements
Marzes 6.9
25.9
81.0
37.1
Asked friends and relatives for
help
Yerevan 11.2 6.4
29.4
7.0
80.7
18.7
Applied to the empoyer
Other
0%
20%
40%
60%
80%
100%
As for the number of registered non-employed in SESA, only 2.6% is registered.
26
Chart 28. Non-employed who are registered and who are not registered in State Employment
Service, % of the total number of non-employed
Tavush 4.0
Vayots Dzor
96.0
7.1
92.9
Syuniq 3.7
96.3
Shirak 3.6
96.4
Kotayq 1.2
98.8
Lori 3.3
96.7
Gegharquniq 0.9
99.1
Armavir 1.5
98.5
Ararat 4.1
95.9
Aragatsotn 1.6
98.4
Yerevan 3.2
96.8
Armenia 2.6
97.4
0%
20%
40%
Registered
60%
80%
100%
Not registered
In Kotayk and Gegharquniq accordingly 1.2% and 0.9% of non-employed have been registered in State
Employment Service. These are the lowest rates in the total number of registered non-employed.
27
Unemployment
The unemployed are persons who are at work age and during the 4 weeks prior the survey have had no
job or profitable activity, were actively looking for a job using all possible means, were ready to start the
job within 2 weeks once they get an offer.2
As noted in Introduction according to methodology used in NSS bulletins (particularly in Yearbook) to
be considered unemployed aside the above-mentioned conditions the person must not receive social
pensions prescribed by RA Law (except pension given in case of loosing the bread-winner) and must be
registered in State Employment Service.
Table 4 illustrates the distribution of employed and unemployed, i. e. economically active population by
marzes according to the first, ILO methodology definition.
Table 4. Distribution of employed and unemployed population by marzes, %
Employed3
Unemployed4
Armenia
49.7
27.5
Yerevan
43.3
29.8
Aragatsotn
77.3
10.3
Ararat
62.5
17.4
Armavir
50.2
29.8
Gegharquniq
52.3
22.5
Lori
46.5
36.9
Kotayq
41.2
38.0
Shirak
43.0
37.6
Syuniq
64.3
17.2
Vayots Dzor
57.3
21.1
Tavush
68.4
11.0
Unemployment rate reaches its highest peak in Shirak and Kotayk with 37.6% and 38.0% respectively.
The lowest unemployment rate was observed in the marz of Aragatsotn- 10.3%.
2
3
According to ILO methodology
Percentage of labour resources of each marz
4
Percentage of economically active population of the marz
28
Part 4. Economically inactive population
Economically inactive population includes able-bodied population at working age, who are not working
but neither are considered unemployed, i.e. have not searched job or been ready to start working
immediately in case of suitable job proposal.
Thus economically active and inactive population comprise country’s labour resources. Chart 29 reflects
their distribution by marzes.
Chart 29. Economically active and inactive population by marzes, % of marz labour resources
100
86.2
75.7
80
71.5
61.6
67.4
77.6
73.8
66.4
76.9
72.7
69
60
38.4
40
24.3
32.6
28.5
33.6
26.2
31
27.3
22.4
13.8
20
Dz
or
iq
ot
s
un
Va
y
Sy
ra
k
Sh
i
Ko
ta
yq
i
Lo
r
ir
Ge
gh
ar
qu
ni
q
Ar
m
av
Ar
ar
at
an
Ar
ag
at
so
tn
Ye
re
v
Ar
m
en
ia
0
Economically active population
Economically inactive population
29
23.1
Major conclusions

According to survey findings employed population comprise 49.7% of Armenia’s labour
resources, and Aragatsotn is the top marz with highest employment rate – about 77.3% of
employed labour resources, whereas lowest rate of employment has been observed in Kotayk –
41.2%.

The study of employment by age and gender distribution shows that employment rate is the
lowest in age group 16-24 comprising 23.2% and the average share of women in employed
population is 45.1 %. The low employment rate is especially sharp in rural regions.

The absence of work is a serious issue especially in rural communities of those marzes, which are
at relatively remote distance from Yerevan. It, in its turn, has resulted in high level of migration;
about 61.5% of people have left their places of residence for temporary jobs abroad.

In non-agricultural sectors the majority of employed – about 87.5% are wage earners, 10.8%self-employed, and 0.8% employers.

Observation of informal employment by agricultural and non-agricultural sectors show that in
agricultural sector 36.5% of the employed are informal or hidden employed, and in nonagricultural sector they comprise 19.1% of the total.

Almost all employers and self-employed in agricultural sector (99.7%) have been engaged in
hidden (informal) activities. The majority of this percentage is mostly comprised by selfemployed who do not register their profitable activities.

By the opinion of non-employed the main reason of having no job is the absence of work, 32.7%
of total number of non-employed, and 36.2% of non-employed in marzes.

The survey findings show that 40.6% of non-employed and ‘seeking-no-job’ have not had any
hope to find a job, therefore have not had any initiative to find one. At the same time the majority
of jobseekers around 80.9% have applied to employers to find a job.

The unemployed have comprised about 27.5% of economically active population; moreover this
indicator is the highest in Kotayk and Shirak - round 38%. Economically inactive population has
comprised 31.5% of labour resources.
Proposals

To mitigate unequal development of RA marzes and especially of rural communities, it is
necessary to provide directing of corresponding financial flows, due to which it will be possible
to create non-agricultural vacancies, which in its turn will promote increase of employment.

Both wage earners and employers and self-employed will prefer to carry out their activities in
formal field and register it. But high taxation system makes them develop their activities in
shadow economy to avoid taxes. That is why it is important to review and regulate the taxation
system legislation.
30

It is necessary to provide legislative regulation of labour mobility, which will promote legality of
migration.

Population engaged in land cultivation and thus getting their money and farm income regardless
the land size, category and zone, are considered to be employed. It is necessary to clarify their
status taking into consideration the above-mentioned peculiarities,

Since the share of the youth and women is relatively small in the number of employed, it is
necessary to consider them as target groups in the frames of activities directed to decrease the
unemployment rate,

The actual unemployment rate must be considered an important indicator in process of evaluating
the actual unemployment situation in Armenia and elaborating employment programs and
implementing activities,

Taking into consideration underemployment or partial employment of rural labour force, it is
necessary to make legislative changes to involve rural labour force in state employment
programs,

It is necessary to complete the unemployment indicators’ system measured with calculation of
mean unemployment indicator and evaluation of official unemployment rate.
Annex- Classification of economic activity types
1 Agriculture, fishery, aquaculture, hunting, forestry
2 Mining industry
3 Processing industry
31
4 Generation and distribution of energy, gas, water
5 Construction
6 Trade (except sale of air tickets, vehicles, repair of perishable, consumable items)
7 Hotels and restaurants
8 Transport and communication
9 Financial activity (also pawnshops and insurance)
10 Real estate operations, lease and delivery of services to consumers
11 State administration
12 Education
13 Health
14 Social services (retirement homes, orphanages and other establishments)
15 Delivery of utilities services and individual services (culture, sports, utilities and other services,
NGOs)
16 Services of HH management (persons working in HH)
17 Foreign organizations activities
32
Annex 2. Survey questionnaire
A specially elaborated questionnaire has been used as a main tool to collect data for estimation of real
unemployment as well as implementation of survey.
The questionnaire consists of 6 separate sections, which are given below.
Section 1. Description of HH, where data on HH members’ age, sex, education and marital status
are collected
Section 2. Main employment of HH members, where questions on main employment or presence of
any type of profitable activity, sphere of activity, any type of entrepreneurial activity, employment
status or other employment conditions of able-bodied HH members at working age are included
Section 3. Additional employment of HH members, where data on presence of additional
employment, activity sphere, type of entrepreneurship, employment status and other conditions of
able-bodied HH members are revealed
Section 4. Non-employed HH members, this section includes questions regarding HH members not
having any kind of employment, particularly the reasons of not working, job-search, wish and
willingness to work, initiatives taken to find a job or to start up own business etc.
Section 5. Satisfaction with current jobs. This section discovers professional correspondence of HH
members with their current jobs and their wish or motivation to seek a new or additional job
Section 6. HH employment in agriculture. This section reflects on land cultivation and/or cattle
breeding, i.e. cultivation of private or rented land, their whole or partial use, as well as the aim of
farming production (for satisfaction of own needs or for sale) by HH members
There are 43 questions in the questionnaire, the result of which will be more than 120 collected data on
average HH.
The analysis of data collected through given questionnaire will allow us to estimate the actual
employment, employment by demographic features, education, spheres of employment, as well as formal
and informal employment.
33
Questionnaire
On estimation of actual unemployment rate
Dear citizen,
Herewith a study is implemented to estimate the actual unemployment rate. The address of your household has been randomly included in
our sample. We ask you to participate in the inquiry, answer the questions, which will allow us to summarise the whole information and
implement general analysis.
The information presented by you will be confidential, therefore cannot be rendered to any other person or used for other purposes rather than
for survey.
Thank you in advance for cooperation.
Code of the questionnaire`
Code of the interviewer`
Marz`
The name of settlement`
Date of the interview`
Day
Month
34
Section 1. HH description
Q1
HH
member’s
tel.
Q2
HH
member’s
name
Q3
Sex
1.male
2.female
Q4
Age
Q5
Q6
Education
1. Illiterate
2. Incomplete primary
Primary
3. Incomplete basic
Basic
4. Incomplete secondary
5. General secondary complete
General
6. Initial vocational
9. Middle professional
10. Incomplete higher
11. Higher
12. Post graduate degree
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
35
Q7
Q8
Marital status
(above 16)
Is HH member absent
form the country?
The reasons of
leaving the country
1.
2.
3.
4.
5.
1. Yes
2. No
Next
section
1.
2.
3.
4.
5.
Married
Never married
Widowed
Divorced, living apart
Cohabiting (without official
registration)
Education
Treatment
Work
Marriage
Other family
reasons
6. Army
7. Other
Section 2. Main employment of HH members (group aged 15-75)
Q9. Please, note if you have had some job or a
profitable activity over previous 7 days
1.yes
2. no
1.yes
2. no
/If no pass to section 4 /
Q 13. Please, note if
the activity of HH
members have been
registered or not
1.Yes
2.No
Q10. Do the HH
members have any job
or are engaged in a
profitable activity?
Q14. Please, note the code of the
HH members’ activity
Code;
1. Permanent
2. Seasonal
3. casual/one-time
Q11. Please, note the code
of the sphere
corresponding with the
sphere of work or
enterprise of HH member
(According to annex)
Q15. Please, note the duration of
HH members’ working day
Q16. Please, note HH members’ employment status code
Code.
1.
2.
3.
4.
5.
Code;
1. Full-time working day
2. Part-time working day
3. Extra-hours
36
1.
2.
3.
4.
5.
6.
7.
Q12. Please, note the code of the type of
organization ownership
State
Municipal
Private (citizen),
Other (with state participation),
Foreign,
Joint,
Public
Wage earner
Employer
Self employed
Unpaid family worker
Production/Consumer’ co-operative member
Section 3. Additional employment of HH members
Q17.Please, note
the codes of those
HH members,
who have had
additional jobs
during the day
jointly with the
main job and
activity
Q18. Please,
note the
numbers of
those HH
members who
have
additional jobs
jointly with
the main job
Q19. Please
note the code
of work or
activity
sphere of
those HH
members who
have
additional
jobs
(according to
annex)
Q20. Please, note the type of
organization/entrepreneurship
Code;
1. State
2. Municipal
3. Private (citizen)
4. Other (with state
participation)
5. Foreign
6. Joint
7. Public
Q21. Please, note the
stability of HH
members’ additional
work
Q22. Please, note
the duration of
HH members’
additional job
Code;
1. Permanent
2. Seasonal
3. Casual/one-time
4. On contract basis
5. On verbal
agreement
Code;
1.Full-time
working day
2.Part-time
working day
3.Extra hours
Q23. Please, note the main status
of HH member’s
employment
Code;
1.Wage earner
2. Employer
3. Self-employed
5.Unpaid family worker
6. Production/Consumer’
cooperative member
7.Other
Section 4. Non-employed HH members
Q24.Please note
the numbers of
those HH
members who
do not work
Q25. Please note the reasons
why HH members do not
work
Code;
1. is a student/ is studying
2. is engaged in household
management
3. is a pensioner
4. doesn’t have work
5. other
Q26. Please, note the
numbers of those HH
members, who have
searched paid job or tried
to start up their own
business at the 4 weeks
prior the survey
Q27. Please note the
numbers of those HH
members who are
willing to start
working immediately
once they get a
suitable offer
37
Q28. Please note what HH members have done to get a job
Code;
1. Has applied to State Employment Service
2. Has applied to private recruitment agencies
3. Has followed announcements
4. Has announced job-search
5. Has tried to find a job through the net of friends and relatives
6. Has applied to employers
7. Other
Q29. Please note the numbers of those unemployed HH
members, who are willing to work but have not looked for it
Q30. Please note the reasons of not looking for a job
Code
1. Is waiting for an invitation from the previous employer
2. Is not willing to work
3. Is hopeless that will find a job
4. Does not know where to search a job
5. Other
Q31. Has any of HH members tried to start up his own
business
1. yes
pass to the next question
2. no
pass to Question33
HH/NN
Q32. Please note what the HH member have done to start up their
own business
Code
1.
2.
3.
4.
Have looked for areas, premises, machines, equipments
Have tried to achieve financial resources (loan)
Have applied to state authorities for permission
Other
HH member’s
number
Q32. Please note the members of those HH, who have been registered in
State Employment Service
38
Section 5. Satisfaction with current jobs
Q33. Please note the numbers of those HH members whose
present work suits their professional education, qualification,
and work experience
HH member’s
number
Main
Q34. Please note the numbers of those HH members who
have searched job at the 7 days prior the survey
Q35. Please, note the reasons of searching another job
HH
Ñ/Ñ
Code
1.
2.
3.
4.
5.
6.
7.
Expected liquidation of the organization or redundancies
Expiry of work contract
Profession (qualification) and current work mismatch
Unsatisfactory work conditions
Health condition
Low payment
Other
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Additional
Section 6. HH employment in agriculture
Q36. Please note the size and type of land, which is the property of HH member, or rented by HH member
Private land (hectare)
Homestead land (hectare)
Q37. Please note which part of the land is used`
Rented land (hectare)
Q38. PLease note the numbers of your HH
members engaged in land cultivation
1. Wholly (100%)
2.
More than the half (more than 50%, but not
100%)
3.
Less than the half (less than 50%)
4.
Not cultivating
Q39. Please note the reasons if you do not use the land wholly
1. Too far…….
3. There is no irrigation water……
5. There are no financial means
2. The land is not of good quality…..
4. Not profitable to cultivate it........ 6. Absence of agricultural machines
Q40. Is your HH engaged in cattle breeding?
1. Yes
2. No
Q41. Please note the numbers of those HH members, who are engaged in cattle breeding
Q42. For what purposes does the HH produce farming products?

To satisfy own needs
1. Yes
2. No

To sell
1. Yes
2. No
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7.I am sick, I am old
8.Other ----------------------
ANNEX
TYPES OF ECONOMIC ACTIVITY-CLASSIFICATION (question 11 and question 19)
1. Agriculture, hunting, forestry
2. Fishery, aquaculture
3. Mining industry
4. Processing industry
5. Generation and distribution of energy, gas, water
6. Construction
7. Trade (except sale of air tickets, vehicles, repair of perishable, consumable items)
8. Hotels and restaurants
9. Transport and communication
10. Financial activity (also pawnshops and insurance)
11. Real estate operations, lease and delivery of services to consumers (operation with IT equipment, elaboration of surveys and audition activities in the
sphere of justice)
12. State administration
13. Education
14. Health
15. Social services (retirement homes, orphanages, establishments for deaf and dump, blind, physically handicapped and mentally retarded persons)
16. Delivery of utilities services and individual services (culture, sports, utilities and other services, NGOs)
17. Services of HH management (persons working in HH)
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