Following the recent elections in Mongolia, significant attention has been directed toward the state of the country's labor market. The outcome of these elections has sparked discussions on various platforms, reflecting both concerns and optimism about the future of employment, economic policies, and labor conditions in Mongolia. Here, we explore the key perspectives shaping the post-election view on the Mongolian labor market.
Stability and Economic Growth
The ruling party has secured majority seats in the parliament, signaling a period of stability in terms of foreign direct investment and expatriate labor. This stability is expected to foster a favorable environment for economic growth, attracting more investments and creating job opportunities. Mongolians are hopeful for labor law revisions and improvements that will support these developments. Economic stability directly impacts job creation, and the ruling party's majority is a promising sign for the future.
Employment of youth
Youth unemployment remains a critical issue in Mongolia. The younger population, a significant portion of the labor force, faces challenges in finding stable and well-paying jobs. According to a recent World Bank survey and analysis, the following has been stated by the country manager:
“Mongolia’s current challenge is that the labor market is not strong enough to create sufficient quality jobs for a growing labor force and reduce unemployment. There is a continuous supply of a young and increasingly educated labor force, but more and better jobs need to be created to meet their aspirations. This calls for more conducive policies for the business environment to encourage quality job creation in the private sector” .
https://www.worldbank.org/en/news/press-release/2022/12/12/stronger-more-inclusive-labor-market-can-boost-mongolia-s-economic-recovery-and-diversification
The post-election period has seen a call for targeted policies to address this issue, including vocational training programs, entrepreneurship support, and initiatives to bridge the skills gap between education and market demands. These measures aim to equip young Mongolians with the necessary skills and opportunities to thrive in the labor market.
Technological Advancements
The impact of technological advancements and digital transformation on the labor market is another topic of interest. The government’s plans to promote digital literacy and innovation are viewed as essential for modernizing the workforce. One clear example is the E-Mongolia app, which simplifies the process of obtaining personal documents. Additionally, several private investments in platform businesses such as Worki, Zangia, and other recruitment-related platforms are indicative of this trend.
Embracing technology can enhance productivity, create new job categories, and provide more flexible working conditions. However, there is also a need to manage the transition for workers whose jobs may be at risk of automation, through reskilling and upskilling programs.
Labor Rights and Inclusivity
Post-election discussions have highlighted the importance of labor rights and improving working conditions. Ensuring fair wages, safe working environments, and social security benefits are key issues that need addressing. The government’s commitment to enforcing labor laws and protecting workers' rights is crucial for maintaining a balanced and fair labor market. This also includes efforts to combat informal employment and provide legal protection for all workers. Gender equality in the Mongolian workplace is another significant aspect of the labor market debate. Efforts to close the gender pay gap, increase female participation in various sectors, and support women in leadership roles are gaining traction. The post-election period provides an opportunity for implementing policies that promote gender equality, ensuring that women have equal access to job opportunities and career advancement.
In summary, while there are hurdles to overcome, the outlook for the Mongolian labor market in the next four years is one of cautious optimism. The focus on stability, technology, and inclusive policies can pave the way for sustainable economic growth and improved labor conditions for all Mongolians.