- Now is the time to focus on care sector -
Mongolia faces significant economic challenges, with the shortage of human resources emerging as the most pressing issue, according to lecturer at the Department of Economics at the National University of Mongolia Dr. B.Otgontugs. Speaking at the 55th World Economic Forum held in Davos, Switzerland, at the end of January, Dr. B.Otgontugs highlighted that labor shortages persist across all sectors, hindering the nation’s economic growth and development. Ranked second among Mongolia’s economic concerns is the energy crisis, which continues to pose substantial risks to industrial expansion and overall economic stability. Experts and researchers now emphasize that care work should be recognized as a critical economic force, comparable to key industries such as construction and mining. As Mongolia navigates these challenges, addressing workforce shortages and ensuring sustainable energy solutions will be essential to fostering long-term economic resilience.
Development of professional care workforce is needed
Care work is an essential yet often invisible part of the economy. Whether through raising children or caring for aging parents, everyone contributes to the care economy in some way. However, this responsibility falls disproportionately on women. Studies show that women spend twice as much time on unpaid care work as men, creating significant economic and social disparities.
Minister of Family, Labor and Social Protection L.Enkh-Amgalan highlighted this issue, stating, “The care economy is a relatively new concept. Mongolian women spend 3.2 times more time on unpaid care work than men. Studies indicate that this figure is four times higher across Asia and the Pacific. Meanwhile, as of 2023, Mongolian men spend 1.6 times more time on paid work than women. Therefore, it is crucial to support women’s employment and improve their social security.”
These concerns have been growing for some time and have now reached a critical point. Caregivers of the elderly, children with disabilities, and people with special needs often find themselves trapped in a cycle of economic hardship. Many are forced to stay home without formal employment, while others face the difficult choice of either isolating themselves in unpaid caregiving roles or placing their loved ones in care arrangements that may expose them to neglect or exploitation.
The reality is that many caregivers wish to earn a living, increase their income, and build sustainable careers. However, opportunities for them remain limited in Mongolia, where a severe shortage of professional caregivers persists. There is an urgent need for policies that support caregivers, provide financial assistance and create employment opportunities in the care sector.
The country has a working-age population of 2.1 million, yet only 1.2 million are currently employed. This significant gap raises an important question: Why are so many people unable to participate in the workforce? A major factor is the burden of unpaid care work - many individuals, particularly women, are occupied with caring for young children, elderly parents, or family members with disabilities, preventing them from seeking formal employment.
One key solution to this challenge is the development of a professional care workforce. Economists and researchers suggest that investing in caregiver training programs can create a multiplier effect, generating employment both for caregivers and those who would otherwise be excluded from the labor market due to caregiving responsibilities. However, the World Bank has cautioned that Mongolia’s labor supply has been in decline for the past decade, with women’s labor force participation decreasing by six percent.
Kindergartens provide a clear example of how paid care work enables broader workforce participation. When children attend kindergarten, parents are free to work, while teachers and staff receive wages for providing care. Expanding similar care services, such as daycare centers, elderly care facilities, and disability support services, could offer a sustainable path to increasing employment. Unfortunately, the care sector in Mongolia faces a severe labor shortage, with positions often remaining unfilled despite competitive salaries.
‘There is no society that sacrifices its life to care for one another’
E.Sundari, a caregiver who has spent years looking after her grandmother with Alzheimer’s, her bedridden mother, and her son with autism, shared her frustrations about the lack of qualified caregivers in Mongolia. “When you hire someone from outside, they charge 2 million to 2.5 million MNT per month. But finding reliable workers is nearly impossible. Some lack the necessary skills, and others disappear after a short time. I’ve lived like this for years. There simply aren’t enough people in Mongolia willing to take on care work, even for a salary. We need to bring in workers from outside the country,” she wrote on her social media account.
For the past decade, E.Sundari has searched for caregivers who can provide proper assistance. She highlights that elderly and disabled individuals require constant care, namely feeding, medication management and ensuring their safety. However, Mongolia’s society has shifted away from traditional caregiving structures, not out of a lack of compassion, but due to the pressures of modern life. With rising economic demands, families are unable to dedicate themselves entirely to caregiving, creating a high demand for professional care workers.
Currently, many caregivers in Mongolia are retired nurses or individuals with no formal training. The government has taken steps to support childcare and provide employment opportunities for parents with disabled children, but there remains a major gap - there are no trained professionals to fill these caregiving roles. A common misconception is that only wealthy families hire caregivers, but even middle-income households seek quality care, particularly for children with disabilities who require assistance well beyond the age of 18.
Despite the growing demand for care services, there are not enough trained professionals to meet the needs. Instead, people without rehabilitation skills or formal training are stepping into these roles for a salary, often struggling to provide adequate care. In contrast, other nations have successfully developed caregiving into a respected and well-structured profession. Japan, for instance, has built a strong care industry where individuals receive training from a young age and are guaranteed stable jobs. However, in Mongolia, caregiving is often undervalued, with lingering superstitions that caring for a sick person could bring personal misfortune. This cultural perception, combined with a lack of training opportunities, discourages people from entering the care sector.
Adding to the issue, companies that import foreign labor for service industries cite high tax burdens as a barrier to bringing in caregivers. While efforts are made to protect domestic labor markets by prioritizing mining and construction jobs, experts argue that importing caregivers should not be viewed as a threat but as a necessary solution for Mongolia’s welfare sector.
The state provides financial welfare assistance, yet these funds are not enough to purchase essential care services. Without professional caregivers, many families are left to shoulder the burden alone, leading to immense psychological and financial stress. This stress can sometimes manifest in harmful ways. Studies conducted by the National Human Rights Commission have revealed alarming statistics about the treatment of elderly individuals in Mongolia. Nearly 47 percent have experienced physical violence, while 65 percent have suffered psychological abuse. Moreover, 30 percent have been subjected to neglect, highlighting the urgent need for improved care and protection measures.
These findings highlight the urgent need for systemic reform. To improve Mongolia’s care economy, the government must create policies that support professional caregiver training, reduce barriers to hiring foreign care workers, and ensure that care services are accessible and affordable. Without these changes, the country’s most vulnerable populations will continue to face hardship, and families will remain trapped in an unsustainable cycle of unpaid labor and economic struggle.
Bill developed to improve legal environment
One in 10 people in Mongolia is currently an elderly person, and statistics indicate that in 30 years, this ratio will increase to one in five. Addressing the challenges faced by the elderly and people with disabilities today will ultimately benefit society as a whole in the future. Experts emphasize that unpaid labor, where one person works for another without compensation, places a significant burden on both families and the national economy.
Mongolia is home to more than 387,000 elderly individuals and approximately 111,000 people with disabilities. Given the lack of professional care services, a substantial portion of the population is engaged in unpaid caregiving, which negatively impacts workforce participation and economic productivity. Even in emergency situations, the country lacks sufficient support systems that allow caregivers to temporarily leave their responsibilities and return to work. As a result, advertisements seeking caregivers for children and the elderly flood the Internet, yet finding someone who is both compassionate and skilled remains a challenge.
Recognizing this urgent issue, some members of parliament have begun working on a bill to establish a legal framework for care services. Creating a structured and well-regulated care sector is essential to ensuring that both caregivers and care recipients receive the support they need while also strengthening the overall economy.
In addition, the Department of Economics at the National University of Mongolia, led by Dr. B.Otgontugs, has launched a research project aimed at measuring and calculating the economic value of unpaid care work. This initiative is part of an international study supported by the Canadian Academy of Sciences, which selected Mongolia as one of three Asian countries for participation. Addressing the care sector is critical, as failing to do so will hinder the increase in women’s employment rates and may have long-term negative effects on population growth and economic development.
Professor B.Otgontugs emphasized that if an hour of unpaid labor performed by a woman were valued at 20,000 MNT, the economic cost would be substantial. In Canada, where the project is funded, wages for care work vary by province, with childcare workers earning a minimum of 30 CAD per hour. While Canada benefits from a highly developed economy, Mongolia must take proactive measures to assess the well-being of its elderly population and implement effective policies. If such efforts are neglected, providing care for the elderly will become even more challenging in the future. She further stressed that individuals caring for disabled or elderly family members should receive a monthly allowance at the minimum wage level, as this issue affects not only those in need of care but society as a whole.
Globally, many countries have recognized the economic significance of unpaid care work and have taken steps to address it. Nations such as Norway and Denmark allocate substantial government funding for childcare and elder care, ensuring high salaries and favorable working conditions for caregivers. In Germany, nursing homes provide well-structured, high-quality services, while Japan has advanced home care and professional caregiving industries, even integrating robots and technology to enhance care services. These countries have successfully developed their care economies through strategic government policies, effectively preserving and optimizing their workforce.
If Mongolia does not take similar steps to formalize and support the care economy, the strain on families and the labor market will continue to grow, making it increasingly difficult to sustain economic and social development.
