Page 22 - GEORptNov18

Job creation lags behind economic growth in Georgia
The unemployment rate declines steadily as ages increase though, as Geostat points out, the low level for the 65+ age group is due to the high inactivity rate in this age group.
By region, Geostat reports an increase in the unemployment rate in the capital Tbilisi (by 1.6pp), and in regions Shida Kartli (2.0pp), Kvemo Kartli (3.5pp) and Imereti (1.2pp). The largest declines were in Adjara and Samegrelo-Zemo Svaneti, where unemployment fell by 5.8pp and 3.4pp respectively.
Georgia’s unemployment rate is higher than the rates of most EU countries, though below the rates of crisis-hit Spain and Greece, most of the Western Balkan countries, and neighbouring Armenia.
Geostat made fundamental changes to how it compiles its labour force statistics in 2017, after new data in the population dynamics and the population’s geographic distribution in the country were revealed by the 2014 census. At the same time, new measures were taken with support from the World Bank and other international organisations and partners to improve the labour indicators.
Georgia has achieved sustained economic growth over the past two decades, despite a dip during the crisis of the late 2000s, but while this has increased prosperity and reduced poverty, job creation has failed to keep up with economic growth, a World Bank report said. This has worrying implications for the future, as lack of employment opportunities is a key contributor to emigration.
The report reveals that most Georgian firms are small and struggle to grow. As
22 GEORGIA Country Report November 2018 www.intellinews.com