The ruling Georgian Dream party is moving to tighten legislation on the employment of foreign citizens, introducing new restrictions under amendments to the Law on Labor Migration. The changes aim to prioritize domestic labor by limiting the hiring of foreign workers in sectors where there is deemed to be a surplus of local labor.
According to the draft law, a new special work permit mechanism will be introduced, and foreign workers will only be allowed in sectors where there is a clear shortage of Georgian labor.
However, economist Giorgi Khishtovani views the move as a political decision rather than an economic one, calling it part of a broader “policy of denial” regarding Georgia's current economic difficulties.
“These regulatory decisions are part of a policy of denial, where instead of responding to economic challenges with inclusive policy, the government expands bureaucracy through artificial interventions,” Khishtovani said.
He questioned the capacity of the Ministry of Health, which oversees labor issues, to accurately assess the needs of the labor market and determine which sectors should be open to foreign workers.
“I don’t believe the ministry understands which sectors genuinely require foreign labor and which do not,” he said.
Khishtovani suggested that the changes are also a form of political signaling and pressure on businesses, designed to appease growing public frustration amid non-inclusive and uneven economic growth.
“It’s a way for the government to respond to deteriorating conditions for businesses and employees while trying to maintain control. Despite headline economic growth, the benefits are not reaching the broader population,” he explained.
He added that resentment toward foreign workers is increasing, fueled by stagnating or declining wages among Georgian workers.
“There’s virtual economic growth, but in reality, many Georgians are struggling. Salaries are no longer rising, and when changing jobs, people are often forced to accept the same or lower pay. This creates the perception that foreign workers are displacing locals, something businesses may exploit for pragmatic reasons,” Khishtovani said.
The economist warned that these legislative changes could harm the business environment, particularly during a period of economic uncertainty and slowed private investment.
