ArmInfo. Involving unemployed citizens in the economy and reducing unemployment can offset Armenia's shrinking working-age population. This conclusion is contained in the flagship report of the Eurasian Fund for Stabilization and Development (EFSD), "Economic Growth, Demography, and the Labor Market: Reality and Challenges," presented at the EFSD International Economic Conference in Astana.
The authors of the report note that from 2010 to 2024, Armenia's economy grew 2.1 times, and from 2022 to 2025, it grew by an average of 8.5% per year. Public investment, including in the North-South transport corridor, played a significant role.
"Real wages increased by 60%, and the poverty rate fell from 36% to 21.7%. The employment structure has also changed significantly: the share of informal workers has fallen from 52% to 30%. Armenia has completed its demographic transition, and by 2040, its working-age population will decline by 12%, or 230,000 people," analysts note in the EFSD report.
According to the report's calculations, if current employment levels are maintained, the number of employed people will decrease by approximately 130,000, but increased economic activity and lower unemployment could fully offset this decline. The potential for growth is significant: unemployment in 2024 was 13.4%, and among young people aged 15-24, it was 27%.
The Fund also highlights new opportunities. In particular, under favorable conditions, a reduction in labor supply could stimulate technological modernization of the economy. Incoming specialists, including highly qualified ones, also serve as a resource for the labor market. And changes to the rules for access to social assistance adopted in 2026 will help more accurately assess the employment situation.
The Eurasian Fund for Stabilization and Development (EFSD) is a $9.8 billion regional financial mechanism established in 2009 by the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan. The EFSD's key mandate is to promote the economic and financial stability of its member states and support their sustainable development. The EFSD is an integral part of the global financial safety net and its regional element for Eurasia.
