When will unemployment reduce and number of employees grow?
In late 2016 the “army” of the unemployed in Armenia officially comprises 221 500. Although compared with 2015 the number has decreased by around 22 thousand, instead number of employees didn’t grow, and even decreased by about 66 thousand. Commenting on these indices, Gagik Makaryan, Head of the National Union of Employers, told 168.am that last year economic growth comprised 0.5%, and formerly numbers have always been exaggerated—3-3.5%.
“In fact economy was in stagnation. Occupation in economic growth, as a crucial component, could even decrease, as in such a temp migration may have negative implication, that part of employees leaves the country,” G.Makaryan said.
In his words unemployment officially comprises 18%, however, its real volume is doubled—around 30% and more, and poverty—29%. According to G.Makaryan currently there are only 65 thousand micro and small enterprises actively functioning in Armenia, which in total pay 10% of state taxes.
“Thus, there is no economy, they only solve the issue of occupation. 90% of tax burden is on SMEs, i.e. we have an immense number—65 thousand of householders, however, economically we have a rather weak group of employers. Moreover, 30-40 thousand out of 65 thousand are individual entrepreneurs, they buy and sell in fairs, earn their living and have no role in economy. 15-20 thousand are small enterprises and only 500—medium. In the previous years that number was big—85-90 thousand, tendency of decrease in the number of enterprises is observed in our country. If we add 2000 big ones, it turns out that we have only 67 thousand active enterprises, which provide reports, that’s why they’re considered active.”
G.Makaryan said for this very reason SRC recently studies also the enterprises, which haven’t provided reports throughout recent 3 years or are zero, and propose to remove them from the list, i.e. liquidate, “Process of cleaning is on. However, in fact, if we look economically, we have a decreasing number, which is a serious issue.”
According to Makaryan it’s also a serious issue that productivity of enterprises doesn’t grow, “The biggest issue, which may have an effect on occupation is raising productivity of enterprises. We almost have no enterprises, they just make both ends meet.”
“In any case, I consider, this year will be a good one, as important, interesting reforms by the government on boosting investments, fight against corruption, shadow and etc., build the basis of those buildings like positive pillars.”
By Gayane Khachatryan
