The note presents the results of theSTEP employer skills survey. The survey was implemented inearly 2013 using a stratified sample of 354 firms. The firmswere stratified by activity and firm size, with a boostersample of large firms. Post-stratification weights were usedto make the results representative of firm size. Thestructure of the sample by activity, size and some othercharacteristics is presented in annex one. The small samplesize implies that the estimates are subject to a wide marginof error. This problem is mitigated by the fact it isqualitative rather than quantitative results that are ofprimary interest. One should bear in mind that the survey’sresults represent subjective perceptions, and as such shouldbe taken with a grain of salt (for example, the employersmay express exaggerated views). There are some additionallimitations resulting from the survey’s design. It uses apre-determined list of skills, which may or may notcorrespond with the skills that employers themselves areconcerned about. Moreover, the skills are generic in nature,and not occupation specific. Skills are divided into groups(see below), and it is not possible to compare theimportance of specific skills between groups (only withingroups). Finally, the survey looks at skills of only twotypes of workers, highly skilled college graduates, and lessskilled high school graduates (see below). These two groupsare very heterogeneous, with a substantial variation in theskill set demanded from workers within a group. The upshotis that the survey’s results are very general in nature andas such are meant to highlight the importance of the skillsgap problem, rather than to examine skill gaps specific todifferent types of workers and occupations. Put differently,the results are intended to inform the public debate onskills and education policy, rather than to identifyspecific skills-related problems. The note is structured asfollows. Section one provides background information on theskill structure of employment, and presents evidence on askills shortage in Armenia. Section two is central. Itexamines the demand for skills and the skills gap. Itidentifies skills that determine the employers hiringdecisions, and skills that young job applicant mostfrequently lack. Section three focuses on firm organizedtraining as a way of coping with a skills shortage. Sectionfour concludes and discusses policy implications of the analysis.
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