analytics

Why the Trade Sector Is Georgia’s Largest Employer?

June 19, 2026

In the first quarter of 2026, trade accounted for the largest share of employment in Georgia’s business sector – 29.3%. This means that almost every third person employed in the business sector works in trade. Manufacturing followed with 11.4%, healthcare and social services with 9.4%, transportation and storage with 8.1%, construction with 7.5%, information and communication with 6.3%, and accommodation and food services with 5.5%.

On the one hand, trade’s leading role is not surprising. Trade is the broadest network of everyday economic activity: it includes retail and wholesale sales, distribution, imports, small shops, supermarkets, online sales, logistics, direct customer service and a large share of small business. In such an economy, trade naturally creates many jobs.

But the main question is not only why trade employs so many people. The deeper question is how sustainable an economy is when a large share of employment depends on trade. Trade is necessary, but it is often more closely linked to consumption, imports, domestic market size and low- or medium-productivity jobs than to long-term technological or industrial development.

BTU researchers assess that Georgia’s task is not to reduce the role of trade. The task is to move labor market growth more strongly into high-productivity sectors – manufacturing, technology, logistics, professional services, advanced healthcare, the digital economy and export-oriented activities.

Georgian context: trade as the everyday face of the economy

Trade in Georgia is not only a sector. It is everyday economic life. A small shop, a market, a supermarket, a distributor, a warehouse, an online store, an importer, a retail chain, a courier, a sales manager, a cashier, a consultant – all are part of a large labor system that creates the country’s largest employment segment.

The strength of trade is its scale. It does not always require large capital or high technological barriers. Many people can enter this field relatively quickly, businesses can start small, demand is daily, and customer contact is direct.

This is why trade is especially important for countries where the economy still relies heavily on consumption, imports, services and small business. At the same time, a high share of trade in the labor market may also show that the economy has not yet moved sufficiently toward high-productivity jobs.

What happened in the first quarter of 2026

In the first quarter of 2026, the average number of people employed in Georgia’s business sector increased to 799.4 thousand. In the employment structure, the largest share was trade – 29.3%.

Manufacturing followed with 11.4%, healthcare and social services with 9.4%, transportation and storage with 8.1%, construction with 7.5%, information and communication with 6.3%, and accommodation and food services with 5.5%.

This picture shows that Georgia’s business-sector labor market remains strongly oriented toward services, sales, distribution and everyday consumers. Manufacturing and the technology sector are important, but by employment scale they still lag far behind trade.

Why trade employs so many people

Trade’s high share can be explained by several factors.

The first factor is a consumption-oriented economy. In Georgia, many businesses are connected to buying, reselling, distributing and directly serving customers. When the domestic market is active, trade quickly creates jobs.

The second factor is a low entry barrier. Employment in trade or starting a small trading business is often easier than entering manufacturing, technology or highly qualified professional services. The sector offers relatively quick entry into the labor market.

The third factor is the role of small and medium-sized businesses. Many small businesses operate in trade. These companies often employ many people, though under conditions of small scale, low margins and limited productivity.

The fourth factor is the economic importance of imports and distribution. Georgia is an open economy where the movement of imported goods, retail sales and distribution helps create a large labor network.

The fifth factor is urban market concentration. In cities, especially Tbilisi, high consumer concentration creates strong demand for retail outlets, services and sales jobs.

Trade is necessary, but not enough

Trade is essential for the economy. It connects producers and consumers, imports and the local market, small businesses and daily needs. A strong trade network means that goods move through the economy, consumers receive choice, businesses generate revenue and thousands of people work.

But a labor market heavily dependent on trade is limited in the long term.

Trade often creates less value added per employee than technology, manufacturing, professional services or export-oriented sectors. Many trade jobs are labor-intensive, relatively low-margin and less protected from economic shocks.

If consumption falls, prices rise, imports become more expensive or household income weakens, the trade sector quickly comes under pressure. This is why a more balanced employment structure is necessary for economic resilience.

What this means for productivity

Productivity means how much value one employee creates. If a large share of jobs is in sectors where value created per employee is relatively low, rapid and sustainable wage growth becomes more difficult.

Some parts of trade can be highly efficient and technological – for example, modern distribution, e-commerce, data-driven retail chains, automated warehouses and digital logistics. But a large part of trade remains labor-intensive and relatively low in productivity.

Georgia’s challenge is to move trade toward a more productive model. This means digital sales, data analytics, inventory management, e-commerce, consumer behavior analysis, better logistics and stronger links with local production.

Trade and import dependence

A high share of trade is often connected to dependence on imports. If trade networks mainly sell imported goods, jobs are created in sales, distribution and logistics, but less value is created at the production stage.

This does not mean that imports are bad. For a small open economy, imports are necessary. But if the economy mainly relies on reselling imported goods, local production, technological skills and export potential develop more weakly.

For Georgia, it is desirable that trade become more closely connected to local production. If trade networks strengthen Georgian products, local brands, agricultural processing, small producers and e-commerce, trade will become not only a channel of consumption, but also a channel for distributing local economic value.

Manufacturing – second place, but with larger potential

Manufacturing ranks second in the employment structure, with 11.4%. This sector is especially important because it creates not only jobs, but also products, export potential, technical skills, regional economic activity and supplier networks.

If Georgia wants to improve the quality of its labor market, the role of manufacturing should grow. Manufacturing can become one of the main sources of better wages, regional employment and local value creation.

But this requires investment in technology, workforce skills, quality standards, energy efficiency, export knowledge and modern management.

Healthcare and social services – an important employment pillar

Healthcare and social services rank third in employment structure, with 9.4%. This sector is especially important in the context of demographic change, population ageing, service quality and social wellbeing.

Healthcare is not only a social service. It can also become a field of high skills, technological equipment, data analytics, digital diagnostics and professional development.

For Georgia, employment growth in healthcare will be high quality if it is based on professional standards, digital systems, workforce development and improved services in the regions.

ICT’s 6.3% – small share, large importance

The information and communication sector accounts for 6.3% of employment. By number of jobs, this is small compared with trade, but in economic importance it is much more strategic.

ICT often creates higher productivity, better wages, access to global markets and digital transformation in other sectors. A technology job can have a much larger economic effect than its quantitative share suggests.

In the age of AI, ICT’s role will grow even more. Data analytics, software, cybersecurity, digital services, automation and Georgian-language AI can become the foundation for a new quality of the labor market.

What this means for the labor market

Georgia’s labor market shows that the country still relies heavily on services and trade. This is natural for a small and developing economy, but in the long run the country needs to move toward a more productive structure.

Labor market resilience will depend on whether employment grows in:

manufacturing;

technology;

logistics;

professional services;

advanced healthcare;

education and skills development;

digital services and export-oriented activities.

The main task is not to reduce trade. The main task is to make trade more productive while increasing the share of other sectors.

Where the opportunity is

The first opportunity is the digital transformation of trade. If the trade sector uses e-commerce, data analytics, inventory automation and consumer behavior analysis more widely, it can increase productivity.

The second opportunity is linking trade with local production. Trade networks can become a growth channel for Georgian products, small producers and regional businesses.

The third opportunity is strengthening manufacturing. Manufacturing’s 11.4% share of employment can grow if the country works on industrial policy, exports and workforce development.

The fourth opportunity is ICT and digital services. Although ICT accounts for 6.3% of employment, its growth can become a source of high productivity and higher wages.

The fifth opportunity is regional employment. Beyond trade, regions need manufacturing, tourism, agricultural processing, logistics and digital work.

Where the risks are

The main risk is that employment growth remains concentrated mainly in low- or medium-productivity jobs. In this case, the country will have more employment, but not sufficiently high wages or competitiveness.

The second risk is dependence on consumption. If employment depends heavily on trade, the labor market becomes more sensitive to household income, prices, imports and domestic demand.

The third risk is skill stagnation. Many trade jobs do not develop the technological and professional skills that will be needed in the future economy.

The fourth risk is regional limitation. If jobs in the regions remain mostly limited to small trade, local economies will not deepen.

Why this matters for Georgia

For Georgia, the employment structure directly shows the country’s economic model. If a large share of jobs depends on trade, the country is more tied to consumption and less to production, technology and exports.

This does not mean trade is a problem. The problem is excessive dependence on one sector. A strong economy requires a balanced labor market, where manufacturing, technology, logistics, healthcare, education and professional services grow alongside trade.

Georgia’s next task is to turn quantitative job growth into qualitative growth – with better wages, higher productivity, stronger technological skills and a more diversified sectoral structure.

BTUAI assessment

BTUAI assesses that trade’s 29.3% share of employment in Georgia’s business sector shows one of the main characteristics of the labor market: the economy creates many jobs in everyday consumption, sales and distribution. This is important for employment, but insufficient for long-term sustainability.

Trade should remain an essential part of the economy, but the country’s development requires new employment growth to move more strongly into high-productivity sectors. Manufacturing, ICT, logistics, professional services and modern healthcare are especially important.

BTU researchers assess that the qualitative improvement of Georgia’s labor market will depend on whether the country can digitally transform trade, increase SME productivity, strengthen local production and expand technology jobs.

The main conclusion is this: trade is Georgia’s largest employer, but a sustainable economic future requires stronger job growth in more productive, technological and diversified sectors.

Key findings

Trade leads business sector employment with a 29.3% share.
This means that almost every third person employed in the business sector is connected to trade.
Manufacturing ranks second with 11.4%.
Healthcare and social services rank third with 9.4%.
The high share of trade points to a labor market based on consumption, distribution and services.
Trade is necessary, but excessive dependence on one sector makes the labor market less resilient.
Georgia needs more jobs in high-productivity sectors – manufacturing, ICT, logistics, professional services and the digital economy.
The future quality of trade depends on digital transformation, data, e-commerce and stronger links with local production.

Data snapshot

Average number of people employed in the business sector – 799.4 thousand.

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%.

Other sectors combined – 22.5%.

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, first-quarter 2026 enterprise activity data is analyzed in the context of sectoral employment structure, the role of trade, productivity, labor market sustainability and Georgia’s economic diversification.

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, regional and productivity analysis.

A high share of trade employment is not negative by itself. Assessment requires additional analysis of job quality, wages, productivity and the technological development of the sector.

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, employment structure, the role of trade, productivity and economic diversification.