Boosting Productivity to Increase Real Wages

According to Mongolia’s 2024 Medium-Term Labour Market Supply and Demand Outlook, the country’s average labour productivity per capita stands at USD 11,300—3.6 times lower than the global average.

Enhancing productivity through stable economic growth, improving competitiveness, adopting advanced foreign technologies and best practices, and upgrading workers’ skills is considered a key driver for increasing real wages.

The Ministry of Family Labour and Social Protection, in cooperation with the Asian Productivity Organization and the Mongolian Productivity Organization, presented the National Productivity Master Plan to stakeholders. The session opened with remarks by Minister of Family, Labour and Social Protection T. Aubakir.

The Master Plan outlines five strategic priorities aimed at promoting productivity growth at the national level, detailing the mechanisms for implementation in partnership with government agencies, the private sector, and professional associations. These include:

·         Expanding market access

·         Introducing new technologies

·         Enhancing workforce skills

·         Supporting an enabling business environment

·         Promoting equitable and inclusive development

Participants actively discussed how these five strategies can be integrated into sectoral policies and planning going forward.

The Government of Mongolia’s 2024–2028 Action Plan includes the nationwide “Productivity Revolution” initiative aimed at consistently reducing unemployment and ensuring annual increases in labour productivity and wages. In addition, the draft National Development Priorities for 2026–2030 submitted to Parliament sets a goal of maintaining stable economic growth of above 6 percent through improved sectoral development, increased productivity, and diversification.