Gender Problems of the Labor Market in Armenia

Armine Mhitaryan,
Lecturer of the course "Introduction to Gender Theory",
Yerevan State Medical Institute
Gulnara Oganessyan,
Ph.D., Senior lecturer of the chair "Labor Economics" of the
Yerevan State Institute of Economics

During years of independence the number of employed among economically active population reduced rapidly. Women have suffered more, than men. The highest reduction in the level of male and female employment was observed in the first years of economic reforms. According to statistics employed population today is 65.5% of economically active population with 42.4% of employed being women (54% in 1990) and 57.6% of employed being men (46% in 1990). Currently women are being withdrawn from areas with high level of income, industry, for example, (percentage of employed women in 1997 - 15.8%, in 2002 -12%). Reduction of women's jobs in industry unlike men's jobs in heavy industry is mainly caused by structural changes in light industry (for example, textile industry lost state support already at the initial stages of economic reforms). As a result market was overfilled with cheap Iranian, Syrian and Chinese products of not the best quality.

According to official data, rate of unemployment in Armenia in 2003 was 10.1%, with 68.8% of unemployment rate among women, being mainly of the age between 30 and 50. Situation among women of the age of 50-55 and men of the age of 60-62 gives rise to concern. 495 registered unemployed completed professional training, 79% of them being women. 363 people of those trained found jobs, 71.4% of them being women.

Gender discrimination on the labor market is obvious everywhere. Most employers in the country prefer to hire mainly "only men". The results of sample survey of the labor force, carried out by the National Statistical Service of the Republic of Armenia, have shown, that in 2002 63% of retrenched and dismissed were females.

Women are engaged mainly at low-paid and unfavorable jobs. This can be clearly seen at carpet-making enterprises, owned by foreign companies. A working day there is not fixed, days-off practically do not exist, average wages amount to $50.

Women in Armenia have high educational level and constitute an important part of the work force. Educational level of women is higher as compared to men, nevertheless educated and highly qualified women have difficulties in employment. The most vulnerable are women with young children and disabled children, as well as unmarried mothers.

Terms of access to employment by males and females were not equal already at the initial stage of formation of the private sector. This was explained by views, that "women are less reliable and more costly employees". Reduction of female employment was considered as a protective mechanism to prevent growth of male unemployment.

Often women are forced to work, since one wage is not sufficient to ensure well-being level. Even with two incomes (of husband and wife) in the families with two and more children standards of living declined to the poverty line, and sometimes even lower.

Labor market in Armenia is strictly segregated, women are mainly engaged in the so-called "female" spheres. Such division is explained by both economic structural adjustments and discrimination on labor market.

Important spheres of attraction of the work force currently are considered to be areas of health, education, trade, catering and hotel business. Thus, concept of "women's jobs" is related today to sphere of services. However, fact of availability of "women's professions" itself does not imply discrimination of women. The problem lies in the fact, that opportunities for female employment are significantly limited. Number of "women's" sectors and professions is relatively small, implying, that a 60% gap in payment of female and male labor may serve as an example of indirect discrimination of women.

It is easier to define existing segregation on the labor market, rather than to measure it. In Armenia there is not only horizontal, but vertical segregation as well. Most part of specialists and managers are being men. Even in "women's" spheres and professions men occupy positions, providing for higher level of qualification, responsibility, power and income. Most teachers are women, but the managing board of the educational establishments is mainly represented by men. Most doctors are men, middle and junior medical staff are women. Number of women at the managing positions remains to be low, few women manage to have a career of the first manager. Most female managers are responsible for those spheres of activity, which are not very significant for a company or considered to be supportive or auxiliary.

Difficulties for women's careers are caused by employers' prejudices. Women are to make more efforts to get appointments. Apart from that, to be appointed to managing positions, women are to prove their abilities of efficient management, whereas men are trusted to do the same job on the base of belief in their abilities. Thus, difficulties for women's careers are caused by gender discrimination. Such discrimination is observed already at the initial stages of male and female careers with different attitudes to women and men with the same educational level even inside one organization.

Discrimination in terms of wages exists even in such sectors, where women constitute majority of employees, since they are employed at low-paid jobs, at non-full rate or on part-time basis. As a result, an average monthly wage of women in Armenia is only 39% of the wage of men, more than two thirds of working women earn up to 8,000 dram (16 dollars).

Wage differences inevitably arise between different sectors of production. In industry, construction, crediting and insurance level of wages exceeds wages in the country 1.6 times; 1,5 times and 3.9 times, respectively. Wages in trade and catering amount to 50.7% of the average wages, 42.6% - in health, 53.3% - in education, 42.9% - in culture. This difference is continuously rising, since in "male" spheres of employment wages grow more quickly, than in the economy of the country, as a whole.

Thus, women earn less, than men with the same educational level. Consequently, the same level of human capital does not ensure equal income. Difference in amounts of male and female wages, not caused by differences in impact on production efficiency and time costs, is being 15-50%.

In conditions of economy globalization the task of increasing efficiency of labor resources use becomes of paramount importance. However, high level of gender segmentation of labor market in Armenia is one of the major reasons for its inefficient functioning. Today it is difficult to identify a more urgent problem, than ensuring equal opportunities for men and women on the labor market.