“Insource” Managing Partner Medea Tabatadze says the labor market is undergoing major transformation due to technological progress and AI. She explains that both globally and in Georgia, job content and compensation are changing rapidly, driven by automation and the replacement of routine tasks with technology.
According to Insource’s Tabatadze, new graduates are the most vulnerable group. Employers increasingly prefer to invest in technology rather than train inexperienced workers, unless a young candidate shows highly distinctive skills. She notes a growing trend: companies informally admit they often choose technology over hiring an entry-level employee. Meanwhile, Insource sees rising demand for qualified professionals, especially in roles requiring communication, service, and complex human skills that AI still cannot replace.
Insource’s analysis of the Georgian labor market shows structural shifts. Citing PMC research, Tabatadze says positions with salaries up to 600 GEL are disappearing, as the market has effectively “absorbed” low-paid jobs. At the same time, the share of employees earning more than 2,400 GEL is increasing, and the country’s average salary has reached 2,400 GEL, according to Insource-referenced data.
Tabatadze concludes that this shift is partly driven by stronger worker bargaining power during labor shortages, which pushed wages upward. As Insource observes, low-paid positions are expected to continue declining, while average salaries rise—reflecting a broader move toward higher skills, higher productivity, and more specialized employment.
