Overview of Mongolia

Mongolia is a landlocked country bordering Russia and China. Traditionally prevalent in the nomadic culture and with a richly diverse history of the Mongolian empire, Mongolia is shifting to adopt new democratic measures to emerge as a developed and self-reliant nation. Over 30 years, Mongolia has managed to triple its GDP growth. Mongolia's social protection plans have provided a favorable economic climate in rural areas, which has contributed to reducing rural poverty from 34.9% in 2016 to 30.8% in 2018.

Total Population: 3,493,629

GDP: the US $57.38 billion (2024 est.)

Economic Overview

Since the pandemic, the Mongolian economy has seen drifting changes. It fell to the worst contraction hit of 5.3% in 2020. As the Mongolian economy is largely industry export-based, the decrease in demand for industry-based materials led to the downfall. The service sector also saw a big hit because of covid restrictions and protocols. However, as the economy recovers worldwide, a steady upward recovery is also expected. In 2021, the economy is expected to recover due to continued efforts to control the pandemic. Econometric models project growth of 7.50% in 2022 from 6.50% at present in 2021.

Market Size

Mongolia has trade ties and relief ties with IMF and other FDI enterprises that check finances and good productions. Russia and China dominate the market of Mongolia. As Mongolia is landlocked, almost 90% of Mongolian export goods are shipped through China. Russia supplies Mongolia with 90% of petroleum and 20% of electrical power.

The mining industry makes about 30% of all industries. Mongolia is also the largest producer of Cashmere. In the economic freedom score, Mongolia ranks 86th. Since 1997, Mongolia has been a member of the WTO. The effects have changed the Mongolian economy to a market-oriented economy.

A brief glimpse of the industries

• Agriculture, mining, services, and construction are the main economic drivers in Mongolia. Mongolian construction companies have employed over 100,000 people, and they have indirectly created about 130,000 jobs as well.
• More than 60% of the construction materials manufactured in the country are domestic. About 57% of Mongolia's population lives in cities, which requires a lot of housing and related facilities.
• The mining sector in Mongolia contributes about 21% to the GDP largely comprises copper and gold mines. Coal projects are also gaining significance in recent years of development.
• The agriculture sector represents about 20% of GDP and 14% of foreign revenues. The service sector is emerging and is an indirect component of developing agriculture, mining, and construction services.
• Engineers, physicians, designers, and developers are emerging daily to keep up with the modern technological industries and foreign companies.

Cost of living in Mongolia

The cost of living in Mongolia on average for a single person is estimated to be (1,326,008.81 T) US $465.17 for a family of four the overall cost of living might shoot up to (4,755,611.58 T) US $1668.30. Overall, consumer prices are 52.17% less than in the US.

Cost of Renting

The cost of monthly rent varies on the type of apartment and lifestyle you choose. On average, a monthly 1-bedroom apartment at the city centre would cost around $ 3,799,156 T (US $1333), while an apartment outside the city would cost 3,080,315 T (1,083 $). A three-bedroom apartment costs around 6,176,520 T (2,168 $) in the city center while the same costs around 4,995,953 T (US $1,754) outside the city.

Cost of living depending on location

Mongolia has many desired spots and cities workable for living. Among the most sought-after cities is the capital city of Ulaanbaatar, along with Erdenet, Darkhan, as other major spots.

• Ulaanbaatar was designed in the soviet communist era and had a population of over 140,000. It has an accommodation capacity of 6,00,000 people by design. 
• Erdenet is the second-largest city in Mongolia and houses around 97,814 people.
• Darkhan is the third-largest city in Mongolia, with a population of 83,883.

Top Sectors Expected to Hire

The Mongolian service sector is rapidly expanding because of foreign investments, foreign aid, and companies' government and private establishments, generating jobs in the democratic and liberal setup. Services such as banking, finances, software engineering, tourism, marketing etc. have an ever-increasing demand for ardent professionals.

Hiring Costs

The cost per hire is calculated by dividing the total amount invested by the number of hires. Advertisement, software, relocation expenses, and more are all considered in the Cost per Hire metric.

• Training and onboarding expenses.
• Cost of conducting an interview
• Time required for interview

Top Skills

These sectors require a wide variety of professionals, which include: -

• Product specialist 
• Software developer 
• Risk Analyst 
• Marketing manager 
• Administrative associate 
• Graphic designers

Salary Structure for various professionals

The Mongolian average monthly salary ranges from 494,000 MNT to 8,710,000 MNT. The income and bonuses in career fields such as Sales, IT, Business Development, Marketing and Architecture are quite high.

Employment Laws

This law describes the rights and duties of those engaged in a labor relationship governed by a labor contract. Collective contracts or collective agreements and single or collective labor disputes fall into this category. A description of the working conditions, management, monitoring, and supervision measures to ensure that the law is followed and liability for violations is imposed and ensure mutual equality between the parties is ensured and outlined by the employment laws of Mongolia. The various sections highlighted are: -

• Rights and Obligations of an Employer and Employee
• Regulations about discrimination, limitations and privileges
• Contacts and Agreements
• Working hours and working conditions

How Can Skuad Help You with Hiring in Mongolia?

Conducting a hiring process in Mongolia can be challenging in the wake of various rules and regulations. Rather than investing your time and resources in this complicated process, enjoy hassle-free recruitments with experienced consultants from Skuad. Connect with Skuad Experts to know more.