Geostat’s second-quarter 2026 Labour Force Survey shows unemployment down to 13.8%. But participation fell faster, and the employment rate dropped to 46.0%. For the second quarter running, the headline improvement in unemployment came with fewer people in the labour force — not more people in work.
Key Points
- Unemployment was 13.8% in Q2 2026, down 0.5 points year-on-year (Geostat, 19 August 2026).
- Labour force participation fell 0.8 points to 53.3%; the employment rate fell 0.4 points to 46.0%.
- Participation was 66.3% for men and 42.2% for women — a gap of more than 24 points.
- Unemployment fell 0.9 points for women and 0.2 points for men.
- In Q1 2026, the same pattern appeared: unemployment fell to 14.4% while participation dropped 1.4 points to 53.4% and employment 1.0 point to 45.7% (Geostat, via 1TV).
1. What the Data Show
| Quarter | Unemployment | Participation | Employment rate |
|---|---|---|---|
| Q1 2025 | 14.7% | 54.8% | 46.8% |
| Q2 2025 | 14.3% | 54.1% | 46.4% |
| Q4 2025 | 13.3% | 54.4% | 47.1% |
| Q1 2026 | 14.4% | 53.4% | 45.7% |
| Q2 2026 | 13.8% | 53.3% | 46.0% |
Sources: Geostat quarterly releases via GBC (2025), 1TV (2026) and Georgia Today (2026). Q2 2025 values derived from Geostat’s reported year-on-year changes (GILS calculation).
2. Analysis
Falling unemployment, falling participation
When unemployment falls because people find jobs, the employment rate rises. In the first half of 2026, the opposite happened: the employment rate fell year-on-year in both quarters. The lower unemployment rate therefore reflects mainly people leaving the labour force — through emigration, discouragement, study or care — rather than stronger job creation. This is consistent with GILS’s finding that Georgia’s labour underutilisation is concentrated in the potential labour force rather than among the measured unemployed.
The gender gap persists
Women’s participation, at 42.2%, is below its 2024 annual level of 44.9% and its 2025 level of 44.2%. The fall in women’s unemployment is welcome, but with participation also falling it does not indicate a stronger position for women in the labour market.
Counter-argument: quarterly data are volatile
Quarterly changes of a few tenths of a point are subject to sampling variation and seasonal patterns, and year-on-year comparisons can be affected by population estimates. A clearer picture will come with the annual 2026 data. Still, the direction is consistent across 2025 and the first half of 2026: participation and employment rates are not rising.
3. Conclusion
The Q2 2026 data confirm a pattern that headline reporting misses: Georgia’s unemployment rate is falling while its labour force shrinks. Policy should target participation and employment — particularly for women and young people — rather than celebrating unemployment figures alone.
GILS Recommendations
- Report employment and participation rates alongside unemployment in official communications.
- Publish quarterly labour underutilisation (LU1–LU4) indicators with the regular release.
- Analyse who is leaving the labour force, by age, sex and reason, using LFS microdata.
- Prioritise women’s participation through childcare and flexible formal work.
GILS Position
An unemployment rate that falls because people stop looking for work is not good news. GILS will continue to track participation and employment alongside unemployment each quarter.
References
- Geostat (2026). Indicators of the Labour Force (Employment and Unemployment), II Quarter 2026. 19 August 2026. geostat.ge
- Georgia Today (2026). Geostat – Georgia’s unemployment rate falls to 13.8% in the second quarter of 2026. georgiatoday.ge
- 1TV (2026). GeoStat: Unemployment rate in Georgia falls to 14.4% in Q1 2026. 1tv.ge
- 1TV (2026). GeoStat: In Quarter 4 of 2025, unemployment rate decreased to 13.3 percent. 1tv.ge
- GBC (2025). Unemployment rate up in 1Q25. gbc.ge
Suggested citation: GILS Research Team (2026). Q2 2026 Labour Force Survey: Lower Unemployment, Fewer in Work. GILS Brief. Editor: G. Pkhakadze. Georgian Institute of Labour Studies, Tbilisi. labour.edu.ge
GILS analyses are prepared with AI-assisted drafting. All figures and claims are verified against the cited primary sources and reviewed under the responsibility of the Editor.