In Armenia, Which Sectors Have Experienced Growth in Employment and Wages Over 4 Years?

Over the past four years, the total number of wage earners and microbusiness entities in Armenia has increased from 597,800 to 752,300, while their average salary rose from 194,000 AMD to 297,000 AMD. This information was reported by the Ministry of Economy of Armenia, based on official operational data received from the State Revenue Committee. Sputnik Armenia conveys the news.

Accordingly, the indicators have grown significantly in the IT and gambling sectors. According to the State Revenue Committee, as of the end of May 2024, the number of taxable individuals (those with income-generating jobs) reached 752,260, marking an increase of 4.7% compared to May 2023. The average taxable base across the economy (average salary) was 296,690 AMD, with a nominal increase of 6.7%. The total tax base amounted to 223.2 billion AMD, showing a nominal rise of 11.7%.

In the IT sector, the number of employees more than doubled, increasing from about 12,400 to 27,400, while the average salary nearly doubled as well, rising from 666,700 AMD to 1,180,000 AMD. Meanwhile, the number of employees in the gambling sector increased from 3,900 to just over 8,000, with salaries rising from 334,000 AMD to 680,000 AMD.

In both the IT and gambling sectors, the increase is partly attributed to the entry of foreign companies into Armenia. Numerous medium and small enterprises from Russia have moved to Armenia for programming, as well as more than ten large organizations. In the gambling sector, for instance, the Swedish company Evolution opened a major office in Armenia in October 2022.

However, foreign companies and specialists are not the only factors driving the rapid development in these sectors, as local companies have also seen substantial growth. Additionally, employment in the public catering and construction sectors has nearly doubled—growing from 16,500 to 31,500 in public catering and from 9,000 to 17,000 in construction. In the public catering sector, the average salary has risen from 87,000 to 145,000 AMD, while in construction, it increased from 226,000 to 376,000 AMD.

In many cases, this growth may also be linked to the legalization of shadow employment, as many workers in these sectors have long been paid 'off the books,' either fully or partially formalizing their salaries.

Both employment and wages in these sectors have risen due to increased demand, driven by the arrival of relocating professionals and tax incentives that have spurred a construction boom.

There is also notable growth in the hospitality sector, where official employment increased from 4,000 to 7,000, and the average salary rose from 124,000 to 220,000 AMD. Employment in the finance sector has seen a comparatively modest increase, going from 16,600 to 19,000 people, but wages have more than doubled—from 416,000 to 874,000 AMD. In this area, there is no need to bring jobs and salaries 'out of the shadows,' as the banking sector is one of the most transparent in Armenia's economy.

Bank owners often increase their employees' salaries to retain them from moving to IT companies. It is noteworthy that the official average income of microbusiness entities has slightly decreased, while employment numbers and salaries in the light industry sector have experienced modest growth.

The number of individuals employed in the public sector has remained roughly the same, around 190,000 to 200,000, while the average salary increased from 164,000 to 219,000 AMD, considering the professional certification of civil servants.