PMC Research Centre published a report on Transporation and Logistics Sector in Georgia. According to the document, the transportation and storage sector in Georgia underwent a significant decline in employment in 2023, with an 8.5% decrease, indicating a drop in demand for labor. However, despite this reduction, wages within the sector increased notably by 25.5%, surpassing average remuneration nationally. The average remuneration in the sector amounted to GEL 2,130 last year. As of Geostat, the average monthly salary made up GEL 1,858.
PMC reports, that the transportation and storage sector plays a significant role in employment in Georgia. The sector reported an 8.5% YoY decline in employment in 2023, following a surge in the previous year in the number of employees due to economic growth spurred by the onset of Russia’s war on Ukraine.
In 2023, the number of vacancies decreased and so did the number of employed individuals, suggesting a drop in demand for labor within the sector.
Last year, a total of 12,856 vacancies were announced in the sector, which was a 38% year-on-year decrease. In addition, the PMC research center cites the sustainability of the sector as the reason why wages are increasing despite the decrease in demand for personnel in the sector, and also indicates that this trend may be influenced by the shortage of qualified personnel.
The transportation and storage sector grew moderately in 2023. Of note, its GDP contribution increased by 5.1% YoY in 2023. This rise materialized despite a high base effect, after countries had to switch from the 'northern route' to avoid trading through or with Russia after its invasion of Ukraine in 2022.
The transportation and storage sector remains vital to the Georgian economy. In 2023, the sector’s gross output amounted to 6.5% of the national total, though it experienced a slight YoY decline in this regard (-0.8 percentage points).
