Comprehensive Analysis of the Main Factors Influencing Labor Demand in the RA Labor Market

The study conducted a causal relationship study between labor demand and factors influencing it, aiming to identify the macroeconomic and structural factors that most determine the formation and dynamics of labor market demand in the Republic of Armenia. The work conducted a comprehensive study of the labor market, assessing demand trends by educational level, economic sectors, territorial structure, and productivity factors. The results of the study show that the sectoral structure of GDP, labor productivity, migration, technological changes, and regional development disparities have a particularly important impact on labor demand. The analysis shows that there is a qualitative mismatch between labor supply and demand in the Republic of Armenia labor market, due to the uneven spatial distribution of economic growth, the difference in employee skills and employer requirements, as well as the mismatch of the educational system’s output with the current labor market requirements.