In the second quarter of 2024, Georgia witnessed a significant decrease in its unemployment rate, which fell to 13.7%. This marks a notable improvement from the previous year’s rate of 16.7%. The National Statistics Office of Georgia (Geostat) reported that the number of unemployed individuals decreased by 47.2 thousand, bringing the total to 219.7 thousand. This positive trend reflects the country’s ongoing efforts to boost employment and economic stability.
Factors Contributing to the Decrease
Several factors have contributed to the reduction in Georgia’s unemployment rate. One of the primary reasons is the increase in the number of hired employees, which rose by 19.1 thousand, reaching a total of 935.8 thousand. This growth in employment opportunities has been driven by various sectors, including construction, manufacturing, and services.
Additionally, the number of self-employed individuals saw a significant rise, increasing by 41.3 thousand to a total of 451.5 thousand. This surge in self-employment indicates a growing entrepreneurial spirit among Georgians, as more people are starting their own businesses and ventures. The government’s support for small and medium-sized enterprises (SMEs) has also played a crucial role in fostering this trend.
The labor force participation rate, which measures the proportion of the working-age population that is either employed or actively seeking employment, increased by 1.3 percentage points to 54.5%. This rise suggests that more people are entering the labor market, contributing to the overall decrease in unemployment.
Gender Disparities in Employment
Despite the overall improvement in the unemployment rate, gender disparities in employment persist in Georgia. The unemployment rate for men remains higher than that for women, with men experiencing a rate of 15.9% compared to 10.9% for women. However, both genders have seen a decrease in unemployment rates, with a reduction of 3.6 percentage points for women and 2.6 percentage points for men.
The labor force participation rate is also higher among men, standing at 66.1%, compared to 44.4% for women. This disparity highlights the ongoing challenges women face in accessing employment opportunities. Efforts to promote gender equality in the workplace and support women’s participation in the labor market are essential to address these imbalances.
The employment rate, which measures the proportion of the working-age population that is employed, increased by 2.9 percentage points for women and 2.6 percentage points for men. This positive trend indicates progress in reducing gender gaps in employment, although more work is needed to achieve full parity.
Regional Variations in Unemployment
Unemployment rates in Georgia vary significantly across different regions. Urban areas tend to have higher employment rates compared to rural regions. In the second quarter of 2024, the employment rate in urban areas increased by 3.0 percentage points, reaching 47.9%, while in rural areas, it rose by 2.5 percentage points to 45.8%.
These regional disparities can be attributed to several factors, including differences in economic development, infrastructure, and access to education and training. Urban areas often offer more diverse employment opportunities and better access to resources, contributing to higher employment rates.
Addressing regional inequalities in employment requires targeted policies and investments in rural development. Improving infrastructure, enhancing access to education and training, and promoting economic diversification in rural areas are crucial steps to ensure balanced economic growth and reduce unemployment disparities.
