BAG Index published a Report On Employment Barometer. According to the document, in Q3 of 2023, the BAG Employment Barometer was positive for all sectors. In Q3 of 2023, compared to Q2 of 2023, the employment barometer indicator improved in the trade (by 3.7 points), manufacturing
(by 4.5 points), and service (by 4.9 points) sectors. However, the employment barometer indicator decreased in the construction sector (by 18.2 points).
In Q3 of 2023, compared to Q2 of 2023, the significant decline of the employment barometer indicator in the construction sector can be associated with optimistic expectations regarding the growth of sales in this sector, which were not fully met in Q3 of 2023 (according to BAG index survey in Q2 of 2023, 73% of surveyed companies in the construction sector expected sales growth in Q3 2023, however only 36% of surveyed companies managed to increase sales).
When examining employment, it is imperative to analyze the employee compensation dynamics in the process. The survey results revealed that 35% of companies raised their employees’ salaries in Q3 of 2023, which is potentially attributable to a lack of specialists and a labor shortage in Georgia. Indeed, many companies recognized these factors as hinderance for their business. Notably, in Q3 of 2023, 64% of surveyed companies identified a lack of specialists in the country as a hindering factor, while 49% pointed to a labor shortage.
Most surveyed companies (91% in Q3 of 2023), who increased the salaries of their employees, increased the salaries of their employees by 0-20%. Meanwhile, in Q3 of 2023, none of the surveyed companies increased the salaries of their employees by more than 60%.
By sector, in Q3 of 2023, the largest share of companies in the trade and construction sectors recorded an increase in the salaries of employees. In Q4 of 2023, the largest share of companies planning to increase the wages of employees was recorded in the construction sector (45%).
