New ILO initiative to address formality in response to the refugee crisis in Armenia

The United Nations (UN) reported that many of the working-age refugees lacked access to employment opportunities, making their socio-economic integration difficult. According to a survey conducted by the International Organisation for Migration (IOM), 48.6% of refugee workers are jobless. Ms. Francoise Jacob, UN Resident Coordinator in Armenia, stressed that “job is the number one priority for refugee because income allows them to cope with difficulties”. 

The labour market impact of the crisis may be felt by a broader group, according to an ILO analysis. While informal employment was on the decline in Armenia prior to the crisis, the current situation is likely to stall or rewind the progress, affecting working conditions and workers’ rights, unless consorted interventions prevent it.

Against the backdrop, “the ILO mobilizes funding and specialists of various fields such as employment, labour standards, enterprises, and gender equality, to support Armenia’s a sustainable recovery and resilience from the crisis” explains Mr. Mikhail Pouchkin, Director of ILO’s office for Eastern Europe and Central Asia. The ILO partners with the government, workers’ and employers’ organizations, UN agencies in this new initiative.

Regarding the complexity of addressing the informal economy and employment, Mr. Frédéric Lapeyre, Director of the ILO Priority Action Programme on Formalization, emphasizes that “we must work on multiple fronts simultaneously, preventing informalization of the labour market by safeguarding decent working conditions, assisting refugees’ access to jobs, and creating more productive employment opportunities and enabling environment for sustainable enterprises”.

The Armenian economy recorded a high growth in 2022-2024. “Economic growth is a prerequisite to reduce informality; however, the process is not automatic”, says Mr. Lapeyre, stressing the vitality of well-designed and coordinated policy interventions.

A window of opportunity is open for Armenia to address the chronic challenges of informal employment. The new ILO initiative intends to translate the growth momentum into creation of decent work and formalization of deep-rooted informal employment, focusing on refugees.