Worries grow over rising unemployment in Armenia
Unemployment may rise further in Armenia in 2009,
says head of the country`s Employment Department, Sona
Harutunian.
According to official figures, 6.8 per cent of the Armenian able-bodied population, which makes up only 1.2 million, was unemployed in 2008, but independent analysts put the figure as high as 27 per cent.
Harutunian admitted that the global economic crisis has paralyzed Armenia`s extractive industries sector, which is a key source of revenues for the South Caucasus republic`s economy. The woes have brought about widespread lay-offs.
Armenia`s copper, lead, zinc and molybdenum industries are chiefly controlled by international companies. The ongoing economic downturn has affected the global standing of most companies operating in the country. Due to the improper policy of the local government on crisis management, these companies are having to cut costs by slashing jobs. For instance, in Gafan, the Deno gold mining firm, which is a key enterprise for the town, has suspended its activity for three months, leaving 1,526 people jobless.
Also, 450 workers were laid off at a molybdenum enterprise in the Agara settlement, 400 km away from the capital Yerevan. The trade union in Agara said half of the able-bodied residents there are currently unemployed, which should send an alarm signal to the Armenian government.
As for the copper mines in Alaverdi, northern Armenia, 1,044 employees were dismissed in November 2008. 70 per cent of the town`s population earns a living by working at the company.
But the mines and chemicals makers in Gumru and Vanadzor had managed to weather the crisis until December, although they had to send part of their employees on unpaid leaves.
In Yerevan, a rubber plant, one of the city`s biggest enterprises, in December suspended half of its 2,800-people-strong workforce for four months.
According to official figures, 6.8 per cent of the Armenian able-bodied population, which makes up only 1.2 million, was unemployed in 2008, but independent analysts put the figure as high as 27 per cent.
Harutunian admitted that the global economic crisis has paralyzed Armenia`s extractive industries sector, which is a key source of revenues for the South Caucasus republic`s economy. The woes have brought about widespread lay-offs.
Armenia`s copper, lead, zinc and molybdenum industries are chiefly controlled by international companies. The ongoing economic downturn has affected the global standing of most companies operating in the country. Due to the improper policy of the local government on crisis management, these companies are having to cut costs by slashing jobs. For instance, in Gafan, the Deno gold mining firm, which is a key enterprise for the town, has suspended its activity for three months, leaving 1,526 people jobless.
Also, 450 workers were laid off at a molybdenum enterprise in the Agara settlement, 400 km away from the capital Yerevan. The trade union in Agara said half of the able-bodied residents there are currently unemployed, which should send an alarm signal to the Armenian government.
As for the copper mines in Alaverdi, northern Armenia, 1,044 employees were dismissed in November 2008. 70 per cent of the town`s population earns a living by working at the company.
But the mines and chemicals makers in Gumru and Vanadzor had managed to weather the crisis until December, although they had to send part of their employees on unpaid leaves.
In Yerevan, a rubber plant, one of the city`s biggest enterprises, in December suspended half of its 2,800-people-strong workforce for four months.
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