Women creating Armenia's largest 'invisible' sector of economy: Why unpaid labor requires a review of public policy
YEREVAN, July 27. /ARKA/. The National Time Transfer Accounts (NTTA) study in Armenia quantifies the scale of unpaid work for the first time and reveals that domestic work, childcare, and elder care represent one of the largest "invisible" sectors of the country's economy. In response to questions from ARKA news agency, the study's authors urge considering this issue not only as a matter of gender equality but also as a factor in economic growth, the labor market, and demography.
The main conclusion of the study
Tigran Jrbashyan, Head of Management Consulting at Ameria, stated that this study is a continuation of work conducted back in 2021–2022, when Armenia first developed a national transfer accounts model and prepared a corresponding report.
"National accounts reflect the volume of goods created in the country and how they are used. Within this model, data is distributed by age and gender. This is crucial for understanding which age and gender groups primarily create economic goods and which groups primarily consume them. Such information is essential for the development and implementation of social, medical, educational, economic, and other public policies and strategies," Jrbashyan said.
He noted that the study presented today complements this model with the so-called non-monetized product. This refers to work and value created, which are measured not in money, but in time expended. "If we limit ourselves to traditional national accounts, we only see the portion of activity that is monetized: that for which money is paid or that is expressed in monetary expenditure. However, another portion remains: invisible work, which national accounts do not account for. Our study measures it over time. When we look at time allocation, it becomes clear that there is a pronounced gender imbalance in Armenia," said Jrbashyan.
He noted that, if we take women's entire life cycle into account, they spend, on average, 15.3 hours per week on housework and another 8.6 hours per week on various types of care. For men, these figures are significantly lower. Over the course of their lives—from birth to old age—men spend, on average, 3.6 hours per week on housework and 2.2 hours per week on care.
"Therefore, we see a very significant burden on women. There are certain age periods when this gap becomes especially wide. The peak burden of unpaid work for women occurs between the ages of 30 and 35. During this period, housework, childcare, and caring for elderly family members together take up to 47–49 hours a week,” said Jrbashyan.
He reported that for men, the rate also peaks at the same age, but only 8-11 hours per week. This means that during working age, women perform approximately four to five times more unpaid work than men. The largest gap is observed between the ages of 23 and 27: women spend approximately ten times more time on care than men. Children are the primary recipients of unpaid care, while women are the primary providers.
"We also attempted to estimate the monetary value of this work using two methods. The first method is the substitution method. It involves valuing unpaid work based on the market price of similar services," said Jrbashyan.
According to him, this method suggests that unpaid work accounts for approximately 78% of all work performed by women. In other words, women are paid for only 22% of all work they perform, leaving 78% unpaid. For men, the picture is virtually the opposite: unpaid work accounts for about 11%, while paid work accounts for approximately 89%.
"There is another method of assessment. It shows how much women could earn if the time spent on unpaid work were used for paid employment commensurate with their age and skills. With this approach, the gap is even more significant," said Jrbashyan.
He reported that, according to the study, the value of women's unpaid work per capita is approximately 2.1 times higher than the value of their paid labor. For men, this figure is only about 32%.
"Thus, we are dealing with a very large sphere, essentially a separate sector of the economy. When we try to estimate its scale, it turns out that unpaid work is the largest sector of our economy. Neither industry, nor the service sector, nor agriculture are comparable in scale. Depending on the assessment method—substitution or lost opportunity—the size of this sector ranges from 16% to 30% of the economy. "In other words, there's a huge area of added value creation right next to us that we've been largely ignoring," said Jrbashyan.
He stated that the time has come to pay attention to it and acknowledge that a significant portion of the added value created in Armenia is generated by unpaid labor, primarily performed by women, although men also make a certain contribution.
It's not just an economic issue, but also a human rights one.
Lusine Sargsyan, head of the United Nations Population Fund (UNFPA) office in Armenia, emphasized that the study demonstrates the need to create conditions where women don't have to choose between career and family. According to her, the state should not impose a single family model, but rather provide a choice: develop a caregiving system, create family-oriented employment, and recognize the social value of unpaid work.
She also noted that the problem has a human rights dimension: women are often forced to choose between their right to professional fulfillment and their right to start a family.
The Economy is Losing Human Capital
According to Jrbashyan, women in Armenia possess high educational potential, but a significant portion of this human capital is utilized outside the formal economy. When the value of unpaid labor is taken into account, women's contribution to total added value is comparable to or even greater than that of men.
The business analyst noted that the current model is becoming too expensive for Armenia's aging society. Postponing the birth of the first child, necessitated by the need to balance career and family responsibilities, reduces the likelihood of having a second and subsequent child, exacerbating demographic challenges.
What solutions do the authors propose?
Sargsyan and Jrbashyan agree that a comprehensive approach is needed. Among their priorities, they cite the development of accessible childcare and elderly care services, flexible employment options, family-friendly corporate policies, improved parental leave systems, tax incentives, and the gradual recognition of unpaid care as a socially significant activity.
The Role of Employers
The study's authors believe that family-friendly policies benefit not only employees but also businesses. Companies achieve higher employee loyalty, reduce turnover, and reduce recruitment costs. With the youth population declining, employers are becoming directly involved in addressing demographic challenges.
Conclusion
The study moves the discussion about domestic work from the social sphere to the realm of economic policy. According to Sargsyan, the state's task is to provide families with choice, not to impose a single model. Jrbashyan, in turn, emphasizes that recognizing unpaid labor will allow for a more accurate assessment of the country's human capital and more effective decision-making in the areas of employment, social protection, and demography. The authors hope that the study's findings will be used to improve public policy and will serve as a tool for regularly monitoring changes.
