Tripartite Constituents Renew Commitment to Advancing Formal Employment in Armenia

The event brought together representatives of government institutions, employers and workers’ organizations, UN agencies and development partners to explore coordinated approaches for expanding formal employment and preventing informalization through enhanced policy coherence.

In her opening remarks, Ms. Monica Sandri, UN Resident Coordinator a.i. in Armenia and UNHCR Representative, welcomed the continued collaboration between the Government, social partners, and development partners including UN agencies. She underscored that formal employment is essential for sustainable development and social justice, noting that transitions from informality to formality are critical to achieving the Sustainable Development Goals. She reaffirmed the UN system’s commitment to supporting Armenia in strengthening labour market institutions, advancing decent work and promoting inclusive economic growth.

Keynote Address: Global Efforts to Address Informality

Mr. Frédéric Lapeyre, Director of the ILO Priority Action Programme on Transition to Formality, delivered the keynote address, marking a decade since the adoption of ILO Recommendation No. 204 on the Transition from the Informal to the Formal Economy. He shared global trends, lessons learned from countries that have successfully formalized labour markets, and stressed the need for coordinated actions to create an enabling environment for formal employment.

Addressing Informality as a National Priority

Official statistics shows that nearly one in three workers in Armenia worked informally in 2023. Informality is associated with lower productivity, vulnerable working conditions, limited access to social and labour protection, and reduced public revenue, factors that hinder equitable development and essential social investments.

Tripartite Perspectives on Advancing the Transition to Formality

Mr. Davit Khachatryan, Deputy Minister of Labour and Social Affairs, highlighted that informality affects human dignity, labour rights, social protection, fair competition and long-term development. He stressed that progress depends on “tripartite partnership, evidence-based policymaking and the collective engagement of all parties,” reaffirming the Ministry’s commitment under the National Employment Strategy.

Ms. Tiruhi Nazaretyan, Deputy President of the CTUA, noted the Confederation’s advocacy for legislative reforms targeting informality in agriculture and construction—the most affected sectors. She emphasized the challenge of formalizing self-employed workers and shared CTUA’s experience in organizing informal workers, including domestic and agricultural workers, as well as self-employed individuals, to improve representation and access to protections.

Ms. Lilit Adamyan, Chief Executive Officer of RUEA, underlined that expanding the formal economy fosters economic stability, productivity and a supportive business environment. “This is a path where everyone benefits: employers, workers and the state,” she said. She also noted RUEA’s training initiative for entrepreneurs displaced from Nagorno-Karabakh.

Evidence-Based Insights and Policy Dialogue

The workshop featured the presentation and validation of the Diagnostic Report on Informality in Armenia, developed by Civitta AM under ILO’s guidance. The report analyses informal employment, labour market trends, and mechanisms for supporting the transition to formality. It concludes that formalization can unlock opportunities across society, strengthen long-term growth, improve labour protection and promote investment and innovation. Positive impact of formalization also include geographically balanced growth, higher women’s labour participation, and increased tax revenue for social investment.

Panel discussions further explored measures undertaken by the state and social partners to address informality and approaches to reducing gender disparities in employment. Participants expressed expectations for policy actions informed by the diagnostic findings.

Concluding the workshop, Mr. Lapeyre emphasized the multidimensional nature of the challenge:
“We must act on multiple fronts, deterring and addressing informality, preventing the informalization of the labour market by safeguarding decent working conditions, while creating more productive employment opportunities in the formal economy and an enabling environment for sustainable enterprises.”

The event was organised within the framework of the ILO RBSA-funded intervention on “Building the capacity of constituents of pre-empting informalisation of work and promote transition to formality in the context of a refugee crisis” in Armenia.