Armenian employers promote formalization for business growth

YEREVAN (ILO News) – The Republican Union of Employers of Armenia (RUEA), with the support of the International Labour Organization (ILO), convened a high-level conference on “Formalization of the Economy as a Precondition for Business Growth”. The event brought together representatives of government institutions, employers’ and workers’ organizations and international partners to discuss practical approaches to advancing formalization in Armenia.

© The Republican Union of Employers of Armenia

© The Republican Union of Employers of Armenia

The conference featured high-level participation from the ILO, including Deborah France-Massin, Director of the Bureau for Employers’ Activities (ACT/EMP), reflecting the importance of the formalization agenda for enterprise development and labour market governance.

Participants emphasized that reducing informality is essential for improving productivity, ensuring fair competition and strengthening economic resilience. Formalization was highlighted as a key factor for supporting enterprise growth, attracting investment and expanding access to social protection.

© The Republican Union of Employers of Armenia

© The Republican Union of Employers of Armenia

Opening the conference, Chairman of RUEA Vahagn Hambardzumyan stressed the importance of balanced policy approaches combining incentives, simplified administrative procedures and effective public administration. Social dialogue was underscored as critical to ensuring that formalization policies are practical for enterprises and responsive to workers’ needs.

Organized by RUEA, the conference reflected the organization’s active role in promoting a business-enabling environment and strengthening the contribution of employers to national policy dialogue. The event also demonstrated continued cooperation between RUEA and the ILO in advancing policies that support sustainable enterprises and decent work.

Two panel discussions addressed key dimensions of the formalization agenda. The first focused on enterprise formalization, with particular attention to tax policy and administration, highlighting the need for predictable frameworks and incentives that support business scaling and investment. The second examined employment formalization, with discussions on addressing informal and disguised employment, strengthening labour inspection systems and promoting formal job creation.

Participants also highlighted the importance of aligning formalization efforts with Armenia’s broader development strategies, including employment policies and measures to support export-oriented growth. A more formal economy was recognized as essential for meeting international standards and fostering higher-productivity sectors.

© The Republican Union of Employers of Armenia

© The Republican Union of Employers of Armenia

The conference was held within the framework of the ILO RBSA-funded intervention Building the capacity of constituents of pre-empting informalisation of work and promote transition to formality in the context of a refugee crisis in Armenia.