The ILO in Georgia

Georgia demonstrates growing economic resilience but remains confronted to major labour market challenges  

Georgia has seen marked economic growth over the past decade.  Gross National Income (GNI) per capita converged toward European Union (EU) levels, increasing from $3,210 in 2010 to $5,600 in 2022 (World Bank, 2024). The poverty rate, measured by the national poverty line, was more than halved over the same period. Georgia has solid economic foundations to continue growing fast, driven by improved labour market opportunities and a functioning market economy. The economy recorded average annual growth of over 10 per cent in 2022 (World Bank, 2024), generated through a rebound in private consumption, a surge in money transfer inflows, and the continued recovery of tourism. Inflation declined sharply in 2023 driven by low commodity prices along with a stronger currency. 

Despite these economic successes, the situation of the labour market in Georgia continues to be characterised by numerous vulnerabilities. The country’s labour force participation rate is low at about 52 per cent in 2022 (ILOSTAT, 2024), with a significant gap between men (64 per cent) and women (41 per cent). The unemployment rate reached almost 17 per cent in 2022 and severely affected youth, as over 38 per cent were unemployed in 2022 (ILOSTAT, 2024). Employment in the informal economy remains at high levels with an estimated of 37 per cent (43 per cent for men and 30 per cent for women). The country also faces some persistent structural challenges including an ageing population, weak productivity growth, limited high-quality employment creation, and poor learning outcomes.    

Social dialogue remains weak in Georgia, despite the presence of a robust regulatory and institutional framework. The national Tripartite Social Partnership Commission does not meet regularly and is not consulted on all policy measures that affect the social partners. More informal consultations take place more regularly in the Working Group of the TSPC. There is also a TSPC in the Autonomous Republic of Adjara, and there have been discussions amongst the constituents to establish a TSPC in the Imereti region. Collective bargaining is limited and takes place mostly at enterprise level.  

The granting of EU candidate status in December 2023 provides opportunities for further income convergence, while requiring significant and sustained economic and labour market reforms. 

Main ILO interventions in Georgia   

ILO’s development cooperation projects have focused mostly on improvement of the regulatory framework, the promotion of social dialogue, and the strengthening of social partners. Following a series of regulatory reforms adopted throughout 2018-2020, which brought labour legislation and the enforcement thereof more in conformity with relevant international labour standards, cooperation expanded to also include collaboration on gender equality, entrepreneurship and social protection. 

In keeping with this new focus, the ILO and Georgia’s constituents are currently working on the development of the country’s first Decent Work Country Programme (DCWP). The conclusion of the DWCP will enable Georgia and the ILO to further strengthen their strategic relationship by taking a structured and thematic approach to the development of the labour market, based on shared long-term priorities. 

Updated May 2024