Armenia’s labor market: transformation and new growth drivers — EADB

In recent years, Armenia’s labor market has strengthened considerably. Against a backdrop of economic growth averaging around 8% per year, the employment rate rose from 48% in 2019 to approximately 52% in 2025, while unemployment fell from 18.2% to around 13%. These findings are contained in a macroeconomic review published by the Eurasian Development Bank.

Wages have also increased substantially. Compared to 2019, nominal salaries have grown by nearly 70%. The sharpest gains were recorded in high-productivity sectors: IT and finance, where incomes have nearly doubled, driven by an influx of skilled professionals and business relocation. These shifts are most visible in sectors with higher productivity levels. Employment is growing in IT, finance, trade, and tourism, and these sectors are playing an increasingly significant role in the country’s economy.

One of the most striking examples is the IT sector, whose share of total employment rose from 2.9% to 3.7% between 2019 and 2024. Business relocation was one contributing factor: in 2022–2023 alone, around 13,000 companies moved to Armenia. Growing demand for digital services provided an additional boost.

Overall, the Armenain labor market is gradually transitioning to a new level of maturity, with higher-productivity, higher-value-added sectors, particularly services and high technology, playing an ever greater role.