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RISING UNEMPLOYMENT REPORTED IN ARMENIA IN H1
World Markets Research Centre
Global Insight
August 6, 2009
The official unemployment rate in Armenia in the first half of 2009
averaged 6.7%, according to labour market figures from the country's
National Statistical Service. This result marks an increase in
joblessness compared with the rate of 6.3% reported for 2008 as
a whole. The number of officially registered unemployed in the
first half in the economy totalled 79,100, in an annual increase of
6.0%. Meanwhile, a total of 1.099 million people were reported to be
employed, marking a fall of 0.7% in annual terms. In addition, the
Statistical Service also reported that the average nominal monthly
wage for the period registered 98,138 dram ($266US), rising by 12.7%
year-on-year (y/y) in the first half and by 4.0% y/y in June alone.
Significance:The recent falling trend in reported Armenian
unemployment has reversed in the newest developments, with official
monthly figures for January-June suggesting a gradual but steady
increase in the jobless rate. This increase was expected, given the
significant downturn the economy is currently suffering. Moreover,
while indicating plausible trends, the official labour market data
do not fully reflect the severity of the recession. This is because
only a low share of the unemployed register as job seekers, due to
the still poor incentives of doing so. Consequently, the true jobless
rate is likely to exceed the reported one.
World Markets Research Centre
Global Insight
August 6, 2009
The official unemployment rate in Armenia in the first half of 2009
averaged 6.7%, according to labour market figures from the country's
National Statistical Service. This result marks an increase in
joblessness compared with the rate of 6.3% reported for 2008 as
a whole. The number of officially registered unemployed in the
first half in the economy totalled 79,100, in an annual increase of
6.0%. Meanwhile, a total of 1.099 million people were reported to be
employed, marking a fall of 0.7% in annual terms. In addition, the
Statistical Service also reported that the average nominal monthly
wage for the period registered 98,138 dram ($266US), rising by 12.7%
year-on-year (y/y) in the first half and by 4.0% y/y in June alone.
Significance:The recent falling trend in reported Armenian
unemployment has reversed in the newest developments, with official
monthly figures for January-June suggesting a gradual but steady
increase in the jobless rate. This increase was expected, given the
significant downturn the economy is currently suffering. Moreover,
while indicating plausible trends, the official labour market data
do not fully reflect the severity of the recession. This is because
only a low share of the unemployed register as job seekers, due to
the still poor incentives of doing so. Consequently, the true jobless
rate is likely to exceed the reported one.