In the first quarter of 2026, Georgia’s employment rate fell by 1 percentage point to 45.7%, despite strong economic growth. According to the National Statistics Office (GeoStat), the main drivers behind the decline are threefold: a drop in employment in the non-profit/NGO sector, reduced activity in construction, and the termination of the social assistance employment program.
GeoStat notes that the cancellation of the state program alone reduced the number of employed people by around 29,000, significantly affecting the overall employment figures. Additional pressure came from lower employment in non-commercial organizations, which also contributed to the overall decline.
Despite robust economic growth, employment has been gradually weakening in recent years as well: the employment rate stood at 46.9% in 2025 and 47.1% in 2024. At the same time, the unemployment rate has remained stable at 13.9%.
Speaking to BM.GE, GeoStat management representative Gogita Todradze explained that employment and unemployment statistics are based on the International Labour Organization (ILO) methodology. Under this standard, an unemployed person is defined as someone who did not work at least one hour in the past week, actively searched for a job in the past month, and was available to start working within the next two weeks.
He noted that individuals who are not employed but are also not actively seeking work are not classified as unemployed; instead, they are considered economically inactive. This group totals around 1.4 million people and includes pensioners, students, homemakers, and others.
Todradze emphasized that one of the main factors behind the decline in employment is indeed the termination of the social employment program, which involved approximately 29,000 participants. He also pointed to reduced employment in the NGO sector and a slowdown in construction activity as additional contributing factors.
According to him, changes in employment levels do not always directly reflect economic growth, as productivity varies significantly across sectors. He noted that ICT has been one of the fastest-growing sectors in recent years, characterized by higher productivity and wages, while other sectors have seen weaker dynamics.
Todradze also highlighted that average wages have increased substantially in recent years - from about 1,200 GEL to around 2,300 GEL - suggesting a correlation with productivity growth and structural changes in the economy.
Overall, he concluded that employment statistics should be interpreted in a broader context, taking into account sectoral dynamics and labor market participation rather than economic growth alone.
