Executive summary
In the first quarter of 2026, the average number of people employed in Georgia’s business sector increased to 799.4 thousand, which was 3.7% higher than in the same period of the previous year. The number of hired employees reached 743.7 thousand, while personnel costs amounted to GEL 5.319 billion, an annual increase of 11.4%. The average monthly wage in the business sector reached GEL 2,335.9.
At first glance, this is a positive picture: more people are working, the business sector is expanding and wages are increasing. But to understand the labor market properly, the number of jobs is not enough. The key question is: what kind of jobs are being created? Which sectors are creating employment? How productive is this growth? Does new employment increase wages, skills, stability and the economy’s future competitiveness?
BTU researchers assess that the first-quarter 2026 data shows growing employment, but the quality question remains open. The largest share of jobs is still in trade – 29.3%. Manufacturing accounts for 11.4%, healthcare and social services for 9.4%, transportation and storage for 8.1%, construction for 7.5%, information and communication for 6.3%, and accommodation and food services for 5.5%.
This means that Georgia’s business sector is creating jobs, but the employment structure still depends heavily on trade and services. For long-term economic development, the country needs more jobs in high-productivity sectors – manufacturing, technology, logistics, professional services, advanced healthcare and the digital economy.
Georgian context: more jobs do not always mean better jobs
When employment increases, it is naturally good news for society. More people receive income, families have a better chance of financial stability, businesses become more active and economic growth is reflected in the labor market.
But job growth can be of different quality.
One type of growth is quantitative: more people work, but jobs are low-productivity, wages are low, career growth is limited and technological skills do not develop.
Another type is qualitative: jobs are created in sectors where productivity, knowledge, technology, wages and career opportunities increase.
For Georgia, the main task is to see this difference. The country needs not only more employed people, but a labor market that gives people better income, better skills and a more sustainable future.
What happened in the first quarter of 2026
In the first quarter of 2026, the average number of people employed in the business sector was 799.4 thousand. This was 3.7% higher than in the same period of the previous year. The total number of hired employees was 743.7 thousand, up 3.5% year-on-year.
During the same period, personnel costs reached GEL 5.319 billion, 11.4% higher than in the same period of the previous year. The average monthly wage in the business sector was GEL 2,335.9 and increased by GEL 166.3 year-on-year. The average monthly wage for women was GEL 1,837.6.
Wages also differ by enterprise size: the average monthly wage in medium-sized businesses was GEL 2,786.5, in large businesses GEL 2,513.5, and in small businesses GEL 1,787.2.
These figures show that employment and labor costs are increasing. But they also show that the labor market contains qualitative differences – by sector, enterprise size and gender.
Which sectors concentrate jobs?
The largest share of employment in the business sector is in trade. In the first quarter of 2026, trade accounted for 29.3% of business sector employment. This is almost one in three employed people.
Manufacturing ranked second with 11.4%. Healthcare and social services ranked third with 9.4%. They were followed by transportation and storage at 8.1%, construction at 7.5%, information and communication at 6.3%, and accommodation and food services at 5.5%.
This structure shows that a large part of employment in Georgia’s business sector depends on services, trade and relatively labor-intensive sectors.
Trade is important because it connects everyday economic activity, consumers, imports, distribution and small businesses. But if a very large share of employment is in trade, the country becomes more dependent on consumption, retail markets and low- or medium-productivity jobs.
For long-term competitiveness, job growth must move more strongly into sectors that create more value per employee: manufacturing, ICT, logistics, professional services, healthcare technologies, education, creative economy and export-oriented services.
Employment and productivity – the key question
If employment increases but output grows faster, this may be an early signal of productivity improvement. In the first quarter of 2026, business sector output increased by 12.4%, while employment increased by 3.7%.
This means that output per employed person increased in nominal terms. However, caution is needed: because the indicators are expressed in lari, price effects also influence them. To assess real productivity, inflation and sectoral price effects must be considered.
Still, the direction matters. If Georgia can combine job growth with technology, skills and organizational efficiency, jobs will become higher quality.
But if new jobs are created mainly in low-productivity sectors, quantitative employment growth may not turn into a substantial improvement in living standards.
Wages: growth exists, but gaps remain
The average monthly wage in the business sector increased to GEL 2,335.9. This is a positive signal because income is rising alongside employment. But to understand labor market quality, we need to look at differences.
The first difference is gender. The average monthly wage for women was GEL 1,837.6, significantly below the overall average. This shows that the gender wage gap remains an important labor market issue.
The second difference is enterprise size. In small businesses, the average wage was GEL 1,787.2, significantly lower than in medium-sized and large businesses. This means that small businesses are an important source of employment, but often cannot create the same level of pay as larger firms.
The third difference is sectoral. High-productivity sectors often create better wages, while labor-intensive and low-margin sectors have greater difficulty increasing pay.
This is why employment policy in Georgia should not be only about “more jobs,” but about “better jobs.”
Small, medium-sized and large businesses – where do people work?
Large businesses accounted for 43.6% of total employment, medium-sized businesses for 19.4%, and small businesses for 37.0%.
This means that small businesses are extremely important for the labor market. Almost every third employee is connected to a small business. But the average wage in small businesses is relatively low, which points to problems of productivity and resources.
Large businesses have capital, scale, technology and administrative capacity. Small businesses have flexibility, local market knowledge and the potential to distribute employment widely. Georgia’s main task is to strengthen small and medium-sized businesses so that they become not only a quantitative source of employment, but also a source of better wages, technological renewal and local value creation.
What this means for the labor market
The first-quarter 2026 data shows several things about Georgia’s labor market.
First, employment is growing, which is a positive result of economic activity.
Second, a large share of jobs still depends on trade and service sectors, showing structural dependence.
Third, manufacturing, ICT and professional services should become key sources of higher-quality employment.
Fourth, women’s wages remain below the overall average, pointing to a continuing equality challenge.
Fifth, the strong role of small businesses in employment requires productivity support if jobs are to become better paid.
Where the opportunity is
Georgia can turn job growth into qualitative development if it works in several directions.
The first is technological skills. The future of work will increasingly be linked to data, digital platforms, AI, automation, cybersecurity and digital management.
The second is stronger manufacturing. Manufacturing is an important source of employment and local value. If it becomes technologically upgraded, it can create better jobs.
The third is regional employment. If quality jobs remain concentrated only in Tbilisi, internal migration will continue. Regions need manufacturing, tourism, agricultural processing, digital services and vocational education.
The fourth is stronger economic participation by women. Reducing wage gaps, improving career opportunities and supporting flexible work models will make the labor market more efficient.
The fifth is SME productivity. Small businesses need digital tools, access to finance, management knowledge and market access.
Where the risks are
The main risk is that job growth remains concentrated in low-productivity work. In that case, the country will have more jobs, but not sufficiently strong incomes, skills or competitiveness.
The second risk is sectoral dependence. If employment remains highly concentrated in trade and services, the economy becomes more vulnerable to consumption cycles, demand declines and low margins.
The third risk is weak small businesses. If small businesses lack technology, capital and knowledge, they will not be able to create high-productivity jobs.
The fourth risk is skills mismatch. If the education system and labor market do not align, new jobs may not be filled with the right talent.
Why this matters for Georgia
For Georgia, job quality is one of the main indicators of the country’s economic future. The economy may grow, but if jobs are low-paid, do not develop skills and do not spread to the regions, the social effect of growth remains limited.
The country needs jobs that give people not only wages, but professional growth, technological skills, stability and a better future.
This is especially important in the age of AI and digital transformation. In the coming years, many jobs will be changed by automation, digital tools and artificial intelligence. Georgia therefore needs not only more existing jobs, but also preparation for new types of work.
BTUAI assessment
BTUAI assesses that the first-quarter 2026 data creates a positive but insufficient picture for the labor market. Employment is increasing, wages are rising and the business sector is employing more people. This is an important positive signal.
But challenges remain in terms of job quality. A large share of jobs depends on trade and services; wages in small businesses are relatively low; women’s average wages remain below the overall average; and high-productivity sectors are not yet creating employment at a sufficiently large scale.
BTU researchers assess that Georgia’s next task is not only quantitative job growth, but qualitative improvement. This means more technological skills, higher productivity, stronger regional employment, greater economic participation by women and stronger small and medium-sized businesses.
The main conclusion is this: jobs are growing, but for Georgia, growth will be sufficient only if it turns into better wages, better skills, more productive businesses and a more resilient labor market.
Key findings
- In the first quarter of 2026, the average number of people employed in the business sector increased to 799.4 thousand.
- Annual employment growth was 3.7%, showing that business activity is being transmitted to the labor market.
- The number of hired employees was 743.7 thousand.
- Personnel costs increased to GEL 5.319 billion, up 11.4% year-on-year.
- The average monthly wage in the business sector was GEL 2,335.9.
- The average monthly wage for women was GEL 1,837.6, pointing to the importance of gender differences.
- Trade accounted for the largest share of employment – 29.3%.
- Small businesses accounted for 37.0% of employment, but wages in small businesses were relatively lower.
- Georgia’s main task is to turn employment growth into productive, better-paid and technologically prepared jobs.
Data snapshot
Average number of people employed in the business sector – 799.4 thousand.
Annual employment growth – 3.7%.
Number of employees hired – 743.7 thousand.
Annual growth of hired employees – 3.5%.
Personnel costs – GEL 5.319 billion.
Annual growth of personnel costs – 11.4%.
Average monthly wage in the business sector – GEL 2,335.9.
Average monthly wage for women – GEL 1,837.6.
Average wage in large businesses – GEL 2,513.5.
Average wage in medium-sized businesses – GEL 2,786.5.
Average wage in small businesses – GEL 1,787.2.
Large businesses accounted for 43.6% of employment.
Medium-sized businesses accounted for 19.4% of employment.
Small businesses accounted for 37.0% of employment.
Trade’s share in employment – 29.3%.
Manufacturing’s share – 11.4%.
Healthcare and social services – 9.4%.
Transportation and storage – 8.1%.
Construction – 7.5%.
Information and communication – 6.3%.
Accommodation and food services – 5.5%.
Methodology
This report was prepared as part of BTUAI Research. The analysis is based on demographic, regional, economic and behavioral data, as well as general trends observed in publicly available sources. The materials are processed using analytical methods applied by BTU researchers, with the support of BTUAI.
The purpose of the research is not to provide personal assessments, but to identify broader trends and practical directions for business, education and society.
In this specific material, data on enterprise activity in the first quarter of 2026 is analyzed in the context of employment growth, job quality, sectoral structure, wages, productivity and the future transformation of Georgia’s labor market.
Limitations
This material is analytical and educational in nature. It does not constitute financial, investment, legal, tax or individual employment-related advice. Before making specific decisions, consultation with a relevant specialist is required.
The data reflects a quarterly picture of the business sector and is not sufficient to determine a long-term trend. Sustainable conclusions require multi-year, sectoral and real productivity analysis.
Productivity is discussed in the text using nominal indicators and requires additional exclusion of price effects.
Sources
National Statistics Office of Georgia – “Results of Enterprise Activity, First Quarter of 2026.”
BTUAI analytical processing for the context of Georgia’s labor market, job quality, productivity, sectoral structure and digital transformation.
Frequently asked questions
Does 3.7% employment growth mean that the labor market problem is decreasing?
Partly, yes. Employment growth is a positive signal, but labor market quality requires understanding what kind of jobs are being created, with what wages, skills and in which sectors.
Why does job quality matter?
Quantity shows how many people work. Quality shows how stable the work is, what wages it creates, whether it develops skills and whether it increases productivity.
Which sector is the largest employer?
Trade accounts for the largest share of employment in the business sector – 29.3%.
Why are small businesses important?
Small businesses account for 37.0% of employment. This means they are one of the main pillars of the labor market, although they need support in wages and productivity.
What is the main challenge?
The main challenge is to turn employment growth into better wages, technological skills, regional opportunities and high-productivity jobs.
Keywords
employment in Georgia; business sector; jobs; labor market; job quality; wages; productivity; trade; small and medium-sized businesses; women’s wages; digital skills; AI and labor market; Georgian economy; BTUAI; Business and Technology University; SME employment; future of work.
Citation format
BTUAI Research Team. “Jobs Are Growing in Georgia – But Is That Enough?” Business and Technology University, BTUAI.ge, 2026.
Prepared by the academic team of Business and Technology University and the BTUAI Research Team.
Tbilisi, Georgia
BTUAI is an analytical platform of Business and Technology University that studies the impact of artificial intelligence, digital transformation, innovation, startup ecosystems, data analytics and emerging technologies on business, the economy, education and society. BTUAI materials are designed to explain complex technological and economic changes in a clear, reliable and Georgia-focused way.