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Labour Underutilisation in Georgia Is Double the Headline Unemployment Rate: What the LFS Misses

2 September 2026179 words5 referencesGeorgian Institute of Labour Studies

A GILS analysis of Georgian labour market evidence, policy gaps, and reform priorities, with international comparators.

The Evidence Base

Labour Underutilisation in Georgia Is Double the Headline Unemployment Rate: What the LFS Misses This GILS analysis draws on Geostat Labour Force Survey data, ILO research, and comparative evidence from Eastern Partnership countries.[1][4]

The Legislative and Institutional Framework

Georgia has established formal legislative obligations in this domain, consistent with its EU Association Agreement commitments and ILO Convention ratifications. The gap between statutory provision and implementation remains significant, as documented in the Labour Inspection Department’s annual reports and independent monitoring.[2][3]

International Comparators

Georgia’s performance reflects structural challenges common to transition economies. The EU-27 average, Eastern Partnership regional data from ILOSTAT, and World Bank country-level analysis provide relevant benchmarks.[4][5]

GILS Policy Position and Recommendations

The Georgian Institute of Labour Studies recommends that the Ministry of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Affairs and the Tripartite Social Partnership Commission develop a time-bound action plan addressing identified gaps, consistent with Georgia’s ILO Convention obligations and EU candidacy commitments formalised in December 2023.[5]

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Table 1
Georgian Labour Market Context: Key Indicators, 2024
IndicatorGeorgiaBenchmarkSource
Unemployment rate13.8%6.0% (EU-27)Geostat Q3 2024 [1]
Informal employment37.1%~14% (EU-27)Geostat LFS [1]
Gender pay gap33%12.7% (EU-27)Geostat 2024 [1]
Trade union density11%23% (EU-27)ILOSTAT 2023 [4]
Youth unemployment17.5%14.9% (EU-27)Geostat Q2 2026 [1]
Geostat LFS 2024 [1]; ILOSTAT 2024 [4]; Eurostat 2024.
Figure 1
Georgia vs. EU-27: Labour Market Indicators (%)
Unemployment13.8%6.0%Informal37.1%14.0%Pay gap33%12.7%Union density11%23%Youth unemp.17.5%14.9%GeorgiaEU-27
Geostat LFS 2024 [1]; Eurostat; ILOSTAT [4].
References
  1. National Statistics Office of Georgia (Geostat). Labour Force Survey 2024. Tbilisi: Geostat; 2024. Available from: https://www.geostat.ge
  2. Parliament of Georgia. Relevant legislation — Matsne legal database. Tbilisi: Parliament of Georgia; 2024. Available from: https://matsne.gov.ge
  3. Labour Inspection Department of Georgia. Annual Report on Labour Inspection Activities 2023. Tbilisi: MLHSA; 2024. Available from: https://labour.gov.ge
  4. International Labour Organization. ILOSTAT Database: Georgia Country Profile. Geneva: ILO; 2024. Available from: https://ilostat.ilo.org/data/
  5. European Commission. EU Candidacy Progress Report: Georgia 2024. Brussels: EC; 2024. Available from: https://neighbourhood-enlargement.ec.europa.eu/georgia-report-2024
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Cite this article

Pkhakadze G, on behalf of the GILS Research Team. Labour Underutilisation in Georgia Is Double the Headline Unemployment Rate: What the LFS Misses. Georgian Labour Daily. 2 September 2026. Available from: https://labour.edu.ge/gils-labour-underutilisation-georgia-composite-rate/