Unemployment in Georgia: Low Numbers, High Questions

According to the National Statistics Office of Georgia (GeoStat), the unemployment rate in 2024 stood at 13.9%. While this marks an improvement compared to previous years, it remains the high rate when viewed in an international context. For example, the average unemployment rate across OECD countries is around 4.8%, with Germany at 3.2% and Norway at 3.8%. But the question remains: is this just a matter of numbers?

The nature of unemployment varies across countries, shaped by different socio-economic structures. In high-income countries, unemployment is often short-term and buffered by strong social safety nets. In Georgia, however, despite a seemingly modest rate, structural challenges persist. For instance, youth unemployment among 15–24-year-olds exceeds 35%, meaning more than one in three young people are out of work.

Another crucial factor is self-employment, which accounted for 31% of the workforce in 2024. This group often overlaps with what economists call “disguised unemployment” — particularly in agriculture, where income is minimal and productivity is low.

Meanwhile, Georgia’s economy has been growing rapidly. In 2023, real GDP growth reached 7.5%, one of the highest rates in the region. But this growth hasn’t been accompanied by a parallel expansion of quality employment. Sectors like tourism and financial services are creating jobs, but often require skills that the local workforce lacks. This highlights a persistent disconnect between the education system and labor market demands.

In contrast, low unemployment in high-income countries is less about growth and more about structure. Flexible labor markets, effective retraining systems, and comprehensive social protections allow these countries to keep unemployment at bay even during economic shocks.

Georgia presents a more complex picture. While the headline numbers suggest progress, a deeper look reveals ongoing mismatches and vulnerabilities. The real questions are not just how many people are unemployed, but where, how, and under what conditions people are working. The gap between growth and inclusive employment remains one of the country’s most pressing economic challenges.