Currently Armenia is in a period of post-crisis recovery, the country has started to slowly overcome
its effects. In 2010, the Armenian economy growth rate was 2.2%, in 2011 it reached to 4.7 %, and in
2012 it was 7.2%.
Until 2008, the economic growth in Armenia was accompanied by continuous growth in the
employment rate. However, due to the crisis in 2009, there was a decline in the employment rate,
which started to increase from 2010. In 2008-2010 the decline of income of the population resulted in
poverty increase. Poverty, abandoned factories, collapsed infrastructure and many other issues
resulted in the unprecedented decline of the living standards in both urban and rural areas.
Regardless of the economy’s present and potential level of progress, the employment sector is
considered to be one of the main directions of maintaining the socioeconomic stability in the country
and its state regulation and administration is required. The issue of state regulation is especially
acute in developing countries such as the RA. This is due to the quantitative and qualitative
instability prevalent to labor markets of developing countries. In this case, state employment
regulations and the necessity of continuous and comprehensive reforms are of great importance.