Despite a slowdown in 2014, Mongolia has experienced rapid economic growth in recent
years, with real per capita gross domestic product increasing by an annual average of 6.7 percent
from 2000 to 2013. This growth has been driven largely by infrastructure spending and
strong fiscal and monetary stimulus measures fueled by major strides in natural resource
exploitation. One challenge the government now faces is to develop a robust labor market that
is responsive to the needs of a fast-growing economy and that can promote sustained economic
growth and development.
RAND has joined with the new Institute for Labour Studies of the Mongolian Ministry
of Labour to diagnose key issues in labor-market performance, jointly conduct a survey on
Mongolian youth—a labor-market issue of importance to Mongolian policymakers—engage
in capacity building, and provide recommendations for policy measures to improve the labor
market and enhance opportunities for youth. This report provides a diagnosis of key issues in
labor-market performance, the results of the youth survey, and policy implications.
The Mongolian Ministry of Labour sponsored this research. This report should be of
interest to Mongolian policymakers, Mongolian analysts focusing on the labor market, and
researchers more generally interested in developing country labor markets.