The Republican Union of Employers of Armenia (RUEA), with support from the International Labour Organization (ILO), convened a high-level conference in Yerevan on “Formalization of the Economy as a Precondition for Business Growth,” bringing together government representatives, employers’ and workers’ organisations, and international partners to explore practical pathways for reducing informality and strengthening Armenia’s economic framework.
The event featured senior participation from the ILO, including Deborah France-Massin, Director of the Bureau for Employers’ Activities, underscoring the importance of formalization as a driver of enterprise development and effective labour market governance. Speakers highlighted that reducing informality is essential for improving productivity, ensuring fair competition, strengthening economic resilience, and expanding access to social protection.
Opening the conference, RUEA Chairman Vahagn Hambardzumyan emphasized the need for balanced policy approaches that combine incentives, simplified administrative procedures, and efficient public administration. He also stressed that social dialogue is critical to ensuring formalization policies are both practical for businesses and responsive to workers’ needs.
The conference reflected RUEA’s active role in promoting a business-friendly environment and strengthening employer engagement in national policy dialogue, alongside continued cooperation with the ILO in advancing decent work and sustainable enterprise development.
Two panel discussions examined key aspects of the formalization agenda. The first focused on enterprise formalization, particularly tax policy and administration, with participants calling for predictable regulatory frameworks and incentives that support business growth and investment. The second addressed employment formalization, including the reduction of informal and disguised employment, stronger labour inspection systems, and the promotion of formal job creation.
Participants also highlighted the importance of aligning formalization efforts with Armenia’s broader development priorities, including national employment strategies and export-oriented growth policies. A more formal economy was identified as essential for improving competitiveness, meeting international standards, and fostering higher-value, productivity-driven sectors.
