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Unemployment rate rising in Armenia

08 July 2014 [09:40] - TODAY.AZ
By AzerNews

Armenia keeps its leading position among the CIS and South Caucasus countries for high unemployment rate.

The post-Soviet country suffers from high unemployment rate which increases year by year as the government is still unable to resolve the pressing problem.

Weak economy, inefficient social policy, and oligarchic system are regarded as major reasons behind the unpleasant challenge in the country.

The unemployment rate amounted to 17.8 percent during the first quarter of 2014, increasing by 0.9 percent point compared to the same period of 2013.

The experts of the UN International Labor Organization predict that the unemployment rate in Armenia may exceed 19 percent in 2014 should no radical reforms are implemented. This will lead to the fact that in 2018 one in five people would be unemployed.

Monopolistic market and unfavorable conditions for the development of small and medium-sized businesses are viewed as other reasons for the high level of unemployment in the country.

"The unemployment rate was 25.4 percent in the cities, while in the villages the indicator was 6.8 percent during the reported period," the Armenian National Statistics Service reported.

The number of economically active population in Armenia in the first quarter of 2014 amounted to 1,429.600 people.

The number of job-seekers was 65,000 people by the end of May, 61,900 of which were unemployed, the report further noted. In the capital city Yerevan 17,100 people were looking for a job.

The number of unemployed increased from 230,200 to 253,900 people during the reported period, the official statistics show.

The funds allocated from the state budget to tackle the employment problem is not enough, so the government can no longer cope with the rising unemployment.

An official unemployment rate was 16.2 percent in Armenia in 2013. The UN International Labor Organization reported that the unemployment rate in Armenia was 18.64 percent in 2013, while it was 17.3 percent in 2012.

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