Comparison of Median and Average Wages in Georgia: What You Need to Know

In 2023, interesting trends emerged regarding the wages of salaried employees in Georgia. According to the National Statistics Office of Georgia, the median wage increased by 19% to reach GEL 1,238. However, this figure is nearly 30% lower than the average monthly wage, which was GEL 1,766.8 in 2023. Why is there such a large gap, and what does this mean for the average citizen? Let’s break it down in simple terms.

The average wage is an arithmetic mean, calculated by dividing the sum of all wages by the number of employees. This method can produce data that does not reflect the real situation, as higher wages tend to inflate the average. For example, if five people work in a company, four of them earn GEL 500 each, while the manager earns GEL 3,000, the average wage is GEL 1,000. This number does not represent reality, as the majority of employees earn much less.

The median wage is the middle value when all wages are arranged in ascending order. This method better represents the real picture because it is not affected by extremely high or low wages. In the example above, the median wage is GEL 500, which accurately reflects the income of most employees.

In 2023, the median wage in Georgia was GEL 1,238, which is 29.9% lower than the average wage. This suggests a significant disparity between the incomes of high earners and those earning relatively lower wages. The large difference between the average and median wages indicates that a small group of high earners significantly increases the average, while the majority of the population earns much less.

There are also differences across various sectors. Relatively high median wages were observed in fields such as information and communication (GEL 1,960), public administration and defense (GEL 1,878), construction (GEL 1,810), mining and quarrying (GEL 1,705), and financial activities (GEL 1,696). Although these sectors have comparatively high median wages, the average wages in these fields are still higher, further emphasizing the impact of high earners on the overall picture.

A similar situation exists in other countries, where significant differences between average and median wages are also evident. For example, in the United States in 2023, the average wage was approximately $5,500, while the median wage was around $4,000. This means that many people have relatively low incomes, which are not reflected in the average figure, creating uneven income distribution.

In Germany in 2023, the average wage was about €4,100, while the median wage was €3,300. This shows that income distribution in Germany is relatively more balanced, although some disparity still exists. The German government is actively working to improve income distribution by promoting education and professional training initiatives to help citizens achieve higher earnings.

The example of the United Kingdom is also interesting. In 2023, the average monthly wage in the UK was £3,500, while the median wage was £2,800. This gap also indicates differing income distributions, with a portion of the population earning significantly more, thus raising the average figure. In the UK, particular attention is given to increasing the minimum wage and supporting low-income individuals to help achieve more equitable income distribution.

Comparing average and median wages is an important tool for understanding the economic situation in a country and how income is distributed among the population. The average wage figure often does not reflect reality, as a small group of high earners can significantly increase this indicator. Consequently, the median wage is more relevant for understanding the income of an average citizen.

The fact that the median wage is almost 30% lower than the average wage indicates unequal income distribution within the country. Many people earn relatively low wages, meaning that the average figure does not reflect the income of the average citizen. In such a situation, it is important to develop policies that will promote a more equal distribution of wages and increase the income of the average citizen.

In the future, more attention must be paid to ensuring that wage growth is more equitable and benefits a broader segment of the population. The increase in the median wage is a positive sign, but the problem of income distribution needs to be addressed. For Georgia’s economic development, it is essential to implement policies that ensure fairer income distribution and raise the living standards of average citizens. This can be achieved through the promotion of education, professional training, and innovation, allowing more people to earn higher wages and thereby narrowing the gap between average and median wages.

Ultimately, comparing median and average wages helps us better understand how income is distributed in Georgia and what steps are necessary to make this distribution fairer and more equitable.