Major mechanisms to develop the strategies of the labor market in Georgia

Nino Nino Paresashvili


Purpose. Unemployment is the central problem for the modern Georgian society. As statistical and social inquiries suggest, unemployment is a severe social-economic problem in Georgia and is the most important political issue of the country. Thorough analysis of unemployment is the precondition for permanent monitoring of the unemployment-related processes and realization of the measures rescue the situation.

Methodology. The study gives the analysis and establishes the regularities of various economic processes by using the views of Georgian and foreign scientists. The work is based on the complex and systematic approaches to the study objects. Analysis of concrete situations is done by using mathematical-statistical, quantitative and comparative methods and diagrams. During the study, the information base for the analysis of various economic processes was the data provided by the National Statistics Office of Georgia and materials of the sociological survey.

Results. The study established that in terms of mass chronic unemployment, there is a severe deficit of the professional qualified workforce and level of training and retraining of workers and specialists is low what has a certain impact on the labor market conjuncture. The latter evidences that the modern educational system is not wholly oriented on the labor market demands and the quality of the vocational training is particularly low. Therefore, the priority recognized by the state must be realized through such active measures, as vocational training, employment and rehabilitation program for the unemployed and economically passive citizens using the social state support. Thus, the cycle of dependence of citizens on incomes received through the state support must be abolished with the citizens’ thorough engagement in fruitful activity. This is particularly true with those with a long history of unemployment or those losing their employment potential due to being unemployed for too long. The fact of underdevelopment of a single infrastructure of the labor market and information system was also revealed; regional review revealed a demographic problem, people’s reluctance to live in the regions, population flow from the regions and their concentration in the capital.

The theoretical contribution. When developing the strategy to regulate the labor market, first of all it is necessary to ensure the mutual subordination of the requirements for the consistent development of the society and economics, stimulation of progressive changes and priority of measures leading to the social-political stability of the society.

Practical implications. Thorough study of the above-mentioned issue is very important, as the formation of a sound labor market needs the establishment of specific institutions and macroeconomic regulation, as well as system of offices ensuring the compliance of interests of the labor market counteragents; organization of complex work with low-tier staff of the organization by considering modern requirements.


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