Employment in Georgia and a Comparative Analysis with Neighboring Countries

The employment structure in Georgia in 2023 presents an interesting picture, with various sectors playing significant roles. At the same time, an international comparison, particularly with the Caucasus countries and Turkey, allows us to better understand regional characteristics and future development prospects.

In 2023, 40.4% of total employment in Georgia was in large businesses (according to Geostat), 19.8% in medium-sized businesses, and 39.8% in small businesses. This distribution indicates the diversity of the country’s economy and the role of various sectors in the economic development process. Georgia’s labor market comprises 771,500 salaried employees, which is 6.2% more than in 2022. This growth represents significant progress in terms of increasing economic activity.

Regarding employment sectors, the business sector had the highest number of employed people in trade (wholesale and retail), at 28.6%. The second-largest sector was vehicle and motorcycle repair, accounting for 11.7%. Significant shares were also found in manufacturing and healthcare (9.6%). The transport and warehousing sector accounted for 8.4% of employment, while the construction sector represented 8.3%.

The role of the information and communication sector is also noteworthy, representing 5.7% of employment. Accommodation and food services accounted for 5.1%, indicating the growing role of tourism and services in the economy.

It is interesting to see how the employment structure looks in other neighboring countries, particularly in the Caucasus region and Turkey. Such comparisons allow us to understand the economic and social development of different countries and which sectors form the main sources of employment.

Azerbaijan

In Azerbaijan in 2023, the primary employment sector was the oil and gas industry, although the country is actively seeking diversification, placing more emphasis on non-industrial sectors such as services and construction. The trade sector also plays a significant role, providing employment opportunities to a large portion of the population. Employment in the services sector is growing, supported by tourism and infrastructure projects.

Armenia

In Armenia, the main employment sectors are services and agriculture. Although agriculture represents a significant part of employment, the country is continuously seeking diversification by strengthening technological and information and communication sectors. A large part of the workforce is also employed in education and healthcare, reflecting the country’s social policies and the importance of education.

Turkey

Turkey’s employment structure is diverse and includes various sectors. The most significant sector remains services, employing about 55% of the workforce. Manufacturing also plays a substantial role, representing a significant part of overall employment. Additionally, tourism and hotel services are crucial, especially in major cities like Istanbul and Antalya. Agriculture, despite its declining trend, still occupies a significant share of employment, particularly in rural areas.

Georgia’s employment structure is quite diverse, which can be considered one of its strengths. The main employment sectors—trade, healthcare, manufacturing, and construction—are closely linked to the country’s economic development and the well-being of its population. Nevertheless, the largest share of employment is in small and medium-sized businesses, indicating the development of entrepreneurship and small enterprises.

Azerbaijan and Armenia are looking for ways to diversify their economies to reduce their dependence on energy and agriculture. Turkey, as the most developed economy in the region, demonstrates the importance of a strong services sector and manufacturing capacity. All these countries strive to develop modern sectors, which is particularly relevant for information and communication fields.

In the future, Georgia needs to place greater emphasis on sectors such as information and communication technologies, green energy, and innovative services within its employment structure. This will provide economic diversification and increase the country’s competitiveness at the international level. Additionally, increasing investment in education and vocational training is crucial to ensure the labor market has a workforce with skills that meet market demands. These approaches will help ensure sustainable economic development and improve employment opportunities for the population.