Dynamics of Georgia’s Labor Market and Parallels with Economic Growth: Current Trends

Abstract

The labor market in Georgia has undergone significant transformation over the past decade, influenced by national economic development, regional dynamics, and global trends. This study examines current labor market trends, including employment levels, unemployment rates, gender and regional disparities, and the relationship between labor market dynamics and economic growth. Using statistical data, policy reports, international and national reviews, and scientific literature, the research employs comparative-statistical analysis, time-series data, econometric models, and gender- and region-based disaggregation to assess the impact of labor market changes on employment quality and national economic performance.

Findings indicate that employment has steadily increased between 2010 and 2025, while unemployment has declined; however, growth remains uneven across gender and regional categories. Women’s participation continues to lag behind men’s, and regional disparities between urban and rural areas persist. Flexible employment, temporary and seasonal contracts, and the alignment of workforce skills with market demands are identified as key factors affecting labor market efficiency. The study also shows that labor market development is closely linked to real GDP growth, investment activity, infrastructure projects, and digitalization, contributing to sustainable economic growth and enhanced national competitiveness.

The research concludes that sustainable labor market development requires strategic approaches, including gender equality, regional development, investment in human capital, legislative improvements, and enhanced social protection systems. The study provides a foundation for future policy and strategic planning aimed at structural improvement, social inclusion, and economic growth, while emphasizing the need for higher-quality data, refined econometric models, and adaptation to global trends.