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Georgia’s unemployment rate inched down in 2018
in the past couple of years have generally increased at rates below GDP growth.
The average wage in manufacturing was GEL 1,066 in Q2, up by a real 7.7% y/y. In contrast, the average wage in education was only GEL636, after moving up by a real 3.0% y/y. The highest wages are in financial services (GEL2,394), professional services (GEL1,900), IT (GEL1,806) and mining (GEL1,542). The lowest wages, beside education, are in agriculture (GEL683) and utilities (GEL790).
Real wages over the past 12 months in Georgia increased by 2.2% y/y compared to a GDP growth of over 4%. The trend growth in wages is rather volatile, with the indicator accelerating from 1.5% y/y in Q1. Over the past two years, the trend growth of wages, supposed to smooth out the volatility of monthly or quarterly dynamics, ranged from --0.7% y/y to +3.5% y/y. The cross-sector section of the growth rates database indicates that, in Q2, the trend growth ranged from +15.8% y/y (administrative services) to -9.6% y/y (agriculture).
Georgia’s unemployment rate dropped by 1.2 of a percentage point (pp) to 12.7% in 2018, continuing the downtrend of the last nine years, data from the state statistics office Geostat shows. Unemployment remained highest among young people, reaching over 25% for 20-24 year olds, even though it declined for this age group compared to 2017.
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.
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
19 GEORGIA Country Report March 2020 www.intellinews.com
