Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698060993216.pdf (Georgia)
Draft Government of Georgia Ordinance N662 On the Approval of the National Strategy 2019-2023 for Labour and Employment Policy of Georgia 30 December 2019 Tbilisi Article 1.
In accordance with Article 5(o) of the Law of Georgia on Structure, Powers and Activities of the Government of Georgia, in order to meet the requirements of international conventions ratified by Georgia in the field of labour and employment, to comply with international commitments, and to facilitate the effective functioning of the employment and labour market, the attached National Strategy 2019-2023 for Labour and Employment Policy (Annex N1) shall be approved.

Article 2.
Article 2.

The ordinance shall enter into force upon promulgation.

Prime Minister Giorgi Gakharia 1 National Strategy 2019-2023 for Labour and Employment Policy of Georgia Annex 1 2.1.

Table of Contents Introduction ................................................................................ Error!

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1. Review of the current situation ......................................... Error!

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2.


Goals and Objectives of the Strategy ............................................................................ 10 Vision ........................................................................................... Error!

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Sector Priority: Employment Promotion .......................................................................... 11 Goal 1: Reducing the discrepancy between demand and supply ...................................... 14 Task1.
Promoting job creation, including in the high productivity sectors .

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Task 2.

Promoting qualified human resources development oriented towards market demands ............................................................................................... Error!

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Task 3.

Promoting innovation and entrepreneurship ...................... Error!

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Goal 2: Strengthening Active Labour Market Policy (ALMP) ....................................... 15 Task 2.1.

Improving employment promotion services and activities .......... Error!

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Task 2.2.

Strengethining the training-retraining programme for jobseekers .. Error!

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Task 2.3.

Strengthening the Labour Market Information System (LMIS) .

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Goal 3: Promoting involvement of women and vulnerable groups in the labour market through targeted social and inclusive employment policies ……………………………Error!

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Task 3.1.

Improving the link between employment and the targeted social assistance programme Error!

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Task 3.2.


Promoting gender equality and women's participation in the labour market and entrepreneurship ................................................................................. Error!

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Task 3.3.

Supporting youth integration in the labour market ........ Error!

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Task 3.4.

Promoting low skilled workforce ...................................... Error!

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Task 3.5.


Supporting persons with disabilities (PD) and persons with special educational needs (PSEN) ……………Error!

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Task 3.6.

Supporting the representatives of ethnic minorities .................................................... 19 Task 3.7.

Promoting access to livelihoods for IDPs.......................... Error!

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Task 3.8.


Supporting the affected population living near the demarcation line and promoting employment ........................................................................................ Error!

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Task 3.9.

Facilitating the integration of internationally protected persons, aliens and stateless persons ……………………………………………………………………………………………..Error!

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Sectoral Priority: Ensuring effective functioning of the labour market Error!

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Improving the system of enforcement of workplace safety and protection of rights ....................................................................................................................................... 30 Task 4.1: Ensuring the protection of labour rights in accordance with internationally recognized standards .......................................................................... Error!

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Task 4.2.


Strengthening labour inspection ...................................... Error!

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Task 4.3.

Enhancing social dialogue and partnership .................... Error!

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Task 4.4.

Institutional strengthening of labour mediation ............. Error!

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Goal 5: Improving labour migration management ................ Error!

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Task 5.1.


Facilitating circular migration .......................................... Error!

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Logical Framework ............................................................................. Error!

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Risks ................................................................................................................................................. 50 4.
Implementation of the Strategy ........................................................................................ 50 4.1.

Institutional Framework ......................................................................................................... 50 2 4.2.

Partners .................................................................................................................................... 50 4.3.
Action Plan 2019-2021 ............................................................................................................. 51 4.4.

Strategy Financing .................................................................................................................. 51 4.5.

Communication on strategy implementation and information measures ........................... 51 5.
Monitor and evaluation of strategy implementation ...................................................... 52 SWOT Analysis ............................................................................................................................... 52 Acronyms GDP – Gross Domestic Product MInistry - Ministry of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Affairs of Georgia Geostat - National Statistics Office of Georgia PSEN - persons with special educational needs ILO - International Labour Organization PD - persons with disabilities ALMP - Active Labour Market Policy DCFTA - Deep and Comprehensive Free Trade Area Agreement with the European Union ETF - European Training Fund GIZ - German Society for International Cooperation ICT - Information and Communication Technologies IOM - International Organization for Migration ISCO – International Standard Classification of Occupations IMF - International Monetary Fund NEET- Not in Education, Employment or Training NQF - National Qualifications Framework SDG - UN Sustainable Development Goals STEM - Science, Technology, Engineering, and Mathematics Introduction The National Strategy 2019-2023 for Labour and Employment (hereinafter referred to as “the Strategy”), represents the vision of the Government of Georgia on systemic and strategic reforms and measures to be implemented over the next 5 years in the field of labour and employment.
Against the background of the economic and geopolitical shocks created in the region in 2014-2016, Georgia maintained stability and its economy was growing by 3.5% on average when countries of the region were in recession or close to recession.
Thanks to the economic reforms carried out in the country, Georgia occupies the 7th place in the world according to the “Ease of Doing Business” ranking.1 The economic growth was largely driven by increasing the overall productivity and capital; As a result, its positive impact on the quantitative growth of employment was limited.
In 2018, the general unemployment rate was 12.7%.2 Moreover, the labour market is characterized by some structural problems, which include a high rate of self-employment, as well as a high level of unemployment among the youth and other vulnerable groups.

Self-employment in rural areas is particularly high.
Although fundamental economic reforms have recently taken place in the country, structural problems in the economy and inadequate development of labour market remain a major challenge, 1 https://www.doingbusiness.org/content/dam/doingBusiness/country/g/georgia/GEO.pdf 2Geostat, 2018 3 which, in its turn, is linked to problems such as unemployment, poverty, inequality, illegal labour migration.
Consequently, the state is determined to promote the effective functioning of the labour market and to continue reforms aimed at improving the labour market.

To this end, the given strategy has been set up with the ultimate aim of identifying measures and actions that stimulate the effective functioning of the labour market and thus promote the economic and social development of the country.
The purpose of this strategy is for the state to play a more active role in ensuring high quality jobs in the labour market and increasing the number of employees.

Employment is one of the main factors contributing to overcoming poverty and promoting social equality of the population, which should contribute to the achievement of the country’s inclusive socio-economic development goal.
This strategy outlines specific goals and objectives in the areas of labour and employment, labour migration, education, gender equality, social security and entrepreneurial-economic policy.

The given strategy includes some specific goals and tasks with regard to labour and employment, labour migration, education, gender equality, social defense and manufacturing-economic policy.
The strategy puts an emphasis on improving active labour market policies and employment services, engaging more beneficiaries, adjusting to their needs, and helping them become more active in the labour market.

One of the priorities of the strategy is to promote effective functioning of the labour market, which includes improving the system of enforcement of employees’ rights, ensuring decent employment and improving working conditions.
Particular attention is paid to equal participation in the labour market.

An important place in the strategy is dedicated to the development of human capital and productivity, lifelong education.

This will help the workforce meet the demands of a rapidly changing labour market and remain competitive in the labour market.
The strategy has been elaborated on the constitution of Georgia, the relevant legal framework, on the one hand, the European Union and the European Atomic Energy Union and their member states, and on the other, in accordance with the Association Agreement between Georgia, the 18th convention and recommendations of International Labour Organization (ILO) and the UN Sustainable Development Goals (SDG), which concern employment promotion and decent working conditions.
Promoting legal labour (including circular migration) is also one of the long-term issues of visa-free travel.

The strategy is based on Georgia’s 2018-2020 government programme“Freedom, Rapid Development, Prosperity”, and on the vision and principles for employment and labour market development.

The relevant authorities, agencies, social partners and experts of the field were involved in the strategy development process.

Meetings were held with members of the Trilateral Commission for consultation.
The strategy was developed with support of the International Labour Organization.

The vision, goals and objectives set out in the strategy will be implemented through the action plan until 2023.

Appropriate legislative and institutional environment and finances will be provided for the implementation of the strategy.

The human resources needed to implement the strategy will be enhanced.
4 The government, different ministries and agencies, social partners and civil society as a whole will all participate in successful implementation of the strategy.

Georgia’s threats and opportunities, as well as the weaknesses and the strengths of the country that were taken into account while developing the strategy are summarized in the SWOT analysis and presented in the appendix.
1. Review of the current situation As a result of business-oriented economic reforms and macroeconomic stability, Georgia has achieved significant economic growth.

Despite economic shocks in the region in recent years, Georgia’s economy has remained sustainable.

The country’s economy is growing with about 5% annually (see Chart #1).

International Monetary Fund forecasts real GDP growth of 4.9%3 in a medium-term perspective in 2019-2023.

Chart#1.
Chart#1.

Georgia, Real GDP growth (%), 2006 – 2018 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% 12.6% 9.4% 6.2% 7.4% 6.4% 2.4% 4.4% 3.6% 3.0% 2.9% 4.8% 4.8% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 -3.7% Source: Geostat This economic growth was mainly determined by the increase in productivity and capital levels and was insufficiently reflected in employment growth, especially for women and vulnerable groups.
As of 2018, the average employment rate is 56.3%, while women employment rate (49.38%) is lower that that of men (63.4%).4 Unemployment steadily declined from 2009 and constituted 12.7% by 2018 (see Chart #2).

The unemployment rate for women was 11.2% and for men -13.9%.

In 2017, the share of long-term unemployment was 41.4% (among women-43.3% and among men – 39.9%)5.
It should be noted that the number of women employed in the business sector increased by 6.4% in 2017 compared to the previous years (Gender Statistics Report).

The main causes of unemployment may be the lack of jobs, under-qualified workforce (lack of working skills and experience), discrepancy between demand and supply of the skills.

3 Economic Growth Forecast (IMF) for 2018-2023 4 Geostat, 2018 5 Geostat 5 Chart #2.
Georgia: Unemployment rate in percents, 2006- Source: Geostat However, it should be noted that 49.2 per cent of employed people are self-employed and the self- employment ratio has not decreased significantly in recent years (see Chart #3).
Also, the informal employment rate is high -33.9% (29.2% among women, 37.9% among men).6 In 2018, the number of hired employees has increased compared to the number of self-employed.
Chart #3: Distribution of the self-employed in percentage 2008- Source: Geostat Besides, the quality of workplace safety and working conditions in existing workplaces fall short of European and international standards, as evidenced by the large number of casualties and injuries in recent years (see Table #1).

Table #1.
Table #1.

Number of workplace injuries and casualties, 2010-2018 Year 2010 Number of injured 102 the Number casualties 42 of the 6 Geostat, 2017 6 2011 2012 2013 2014 2015 2016 2017 2018 137 289 111 72 82 85 106 199 54 48 23 45 42 58 47 59 Source: Ministry of Internal Affairs of Georgia Micro and small enterprises make up 98.4 % of enterprises, while medium and large enterprises make up 1.3% and 0.3% respectively.
As of 2018, small and medium enterprises account for 66.9% of employment, 59.6% of output and 60.5% of value added.

But 50% of them come from the wholesale and retail sectors.

In 2012, more than 50% of the market share of individual entrepreneurs and small businesses was discontinued (as of 2016).7 Large enterprises (with at least 100 employees) constitute less than 1%.
In Georgia, the number of men owning businesses for whom entrepreneurship is a core business is 2.5 times the same rate for women (as of 2018, for 6.5% of men and 2.6% of women entrepreneurship is a core business).8 Most of these entrepreneurs work in rural areas independently – they do not employ any people.

Of the entrepreneurs living in the city, 73.5% of men and 86.2% of women do not employ any people.
9 The share of women entrepreneurs is even lower among beneficiaries of state economic programmes – as of 2019, within the framework of industrial components, the programme “ Produce in Georgia” funded 435 projects in total, out of which only 27% were introduced by women, however, the number of female beneficiaries reaches 40% in the component of micro grants.
The number of women beneficiaries of the Agency for Agriculture and Rural Development is 23% as of 2019, and the share of women in the Agency’s funding is 14.1%.10 One of the main barriers for women to participate in state economic development programmes is limited access to land and assets.

Of the documented owners of agricultural land, 48% are men and 16% - women.

11 Consequently economic development grant programmes for women are less effective.
Although the income from economic activity has had a significant impact on the reduction of poverty rates since 2010 and the role of social transfers has declined, the high rate of poverty remains a problem amid insufficient rates of unemployment reduction.

Absolute poverty declines sharply in 2010-2015, but the process has slowed down since 2015 and in 2017 the share of people living in absolute poverty was 21.9% (see Chart #4).
It is predicted, that relative poverty will be reduced to 18% by 2020,12 although this is still unsatisfactory.

7 World Bank (2018).

Employment in Georgia: Assessing the Landscape of Workplaces 8 Geostat, Asian Development Bank (2018).
Pilot Study in Gathering Gender Specified Data on Asset Ownership and Entrepreneurship, Georgia, p. 69) https://www.geostat.ge/media/13803/EDGE-Report-GEO-Final.pdf 9 There, p. 70 10 Parliamentary Inquiry on the Participation of Women in State Economic Programmes (in the process of publication) 11 The survey also considers other forms of ownership, such as co-ownership by a major couple – 8%, co- ownership with other family members – 10%, etc.

Geostat, Asian Development Bank (2018).
Pilot Study on Collecting Gender Specified Data on Asset Ownership and Entrepreneurship, Georgia, p. 62 12 Social and Economic Development Strategy of Georgia 2020 7 Chart #4: Trends in Poverty (%), 2006-2018 80.00% 60.00% 40.00% 20.00% 0.00% 21.80%21.20%22.60%21.60%22.80%23.00%22.40%21.50%21.40%20.20%21.00%22.30%20.50% 36.90%38.80%34.90%34.90%37.30%34.10%30.00%26.20%23.50%21.60%22.00%21.90%20.10% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 აბსოლუტური სიღარიბე ფარდობითი სიღარიბე Source: Geostat The level of social inequality has also been steadily high in recent years according to the Gini coefficient (see Chart #5).
This figure exceeds that of Georgia’s neighbours in the South Caucasus as well as the average European index.

13 Chart #5: Gini coefficient (by total consumption expenditure) Source: Geostat14 Inequality is also revealed in the fact that the difference among salaries in Georgia is quite big.
One of the determining factors of poverty is that great part of the employees earns about 1/3 of the average salary.

Inequality is also reflected in gender pay and economic activity indicators.

In Georgia, the gender pay gap makes up 37% as of 2018, which means that women earn on average 63% of men’s salaries on a monthly basis (see Chart #7).

Women are still under-represented in such important and growth-oriented fields as: science, technology, engineering, mathematics.
One of the causes of women’s economic inactivity and gender pay gap is unpaid family work.

Due to shortcomings in public social infrastructure (high quality extended public schools, kindergartens and daycare facilities) the burden of unpaid family work is entirely on women.
In Georgia, on average, women spend 3 times more on family work than men (women spend about 45 hours a 13 The Gini coefficient in Armenia is 0.32%, in Azerbaijan – 0.34, and average European index equals 0.31% IMF Fiscal Monitor: Tackling Inequality, 2017 14Geostat, 2018 8 week on unpaid family work, and men spend 15 hours on average.15 Family unpaid labour burden leaves women out of the labour market – According to Geostat 2018, 40.4% of women at the age of 25-34 were inactive, compared to 11.5% for men (see Chart #6).
UN Women organization states that 49% of women who say they do not work, put their unemployment down to their family 16 responsibilities.

Chart #6: The level of economic inactivity in the gender context, 201817 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% -10.00% 67.60% 52.50% 40.40% 27.90% 11.50% 12.10% 33.10% 19.60% 24.80% 14.10% 15-24 წწ.

25-34 წწ.

35-44 წწ.

45-54 წწ.

55-64 წწ.


კაცი ქალი Time spent on housework by employed women (42 hours per week) is not significantly different from the time spent by women on unpaid family work (47 hours per week).18 Gender pay gap analysis based on workforce research19 shows that as of 2017, the gender pay gap has decreased from 35% to 18% when calculation was done with work hours instead of monthly pay.
20 The same study shows that according to 2017, women who are hired, work an average of 39.9 hours per month and men 47.5 hours – that is, women work full time during month, while men work overtime.21 Improving public social infrastructure, promoting a flexible work schedule, improving the regulatory framework for overtime, combining family responsibilities and work, and eliminating gender discrimination are key to reducing both gender and economic disparities.
Thus, supporting business and investment environments promotes poverty reduction as well as formalization 22 of informal businesses, although business-only approaches are not sufficient to 15 UN Women (2018).

Women’s economic inactivity and involvement in the informal sector in Georgia https://georgia.unwomen.org/en/digital-library/publications/2018/12/womens-economic-inactivity-and- engagement-in-the-informal-sector-in-georgia 16 UN Women (2018).
Women’s economic inactivity and involvement in the informal sector in Georgia https://georgia.unwomen.org/en/digital-library/publications/2018/12/womens-economic-inactivity-and- engagement-in-the-informal-sector-in-georgia 17 UN Women calculation based on Geostat workforce survey database (2018) 18 UN Women (2018).
Women’s economic inactivity and involvement in the informal sector in Georgia https://georgia.unwomen.org/en/digital-library/publications/2018/12/womens-economic-inactivity-and- engagement-in-the-informal-sector-in-georgia 19 The exact source of gender pay gap is a survey of enterprises and organizations.

The workforce research database will be used to calculate adjusted gender payroll differences.
The hourly gender pay difference is approximate, and for accurate data it is necessary to improve the research of enterprises and organizations 20 UN Women (2018).

Women’s economic inactivity and involvement in the informal sector in Georgia 21 UN Women (in the process of publication).

Gender pay gap in Georgia 22 https://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_ILO_CODE:R204 9 overcome deep structural challenges and poverty and to improve the well-being of the population.
This is why the strategy aims to promote stable employment, advance employment services, improve working conditions and implement complex and multilateral measures to reduce poverty within the framework of labor and employment policies.

2.

Strategy goals and objectives This chapter discusses the sectional strategy priorities, goals and more concrete objectives to be set in order to achieve each of them.
Specifically, the strategy identifies two interrelated sectoral priorities and several and several objectives in each.

2.1.

Sectoral Priorities: Employment promotion Objectives:  Reducing the discrepancy between demand and supply  Strengtheninh Active Labour Market Policy (ALMP)  Promoting involvement of women and vulnerable groups in the labour market through targeted social and inclusive employment policies.

2.2.
Sectoral Priority: Promoting the Effective Functioning of the Labour Market Objectives:   Improving the system of enforcement of labour safety and rights protection at workplace Improving labour migration management Target outcome indicators (see Table #2 ) for the ultimate success of the strategy are set out in line with the indicators of Georgia’s Socio-Economic Development Strategy 202023 and the new EU programme “Skills Development and Matching for Labour Market Needs” (ENI/2017/040- 319).24 Table #2: Key objectives for 2023 Indicator 2014 2015 2016 2017 2018 Objectives Unemployment level (%) Employment rate in women (%) Labour market participation rate in women (%) Indicator of NEET youth (aged 15-24) (%) coefficient Absolute poverty indicator (%) Gini expenditure) Gender pay gap (By total consumption 14.6 49.0 14.1 50.7 14.0 50.6 13.9 50.8 12.7 49.3 for 2023 <12 >53 55.9 57.9 56.7 58.2 55.6 >63.2 27.9 23.5 0.39 26.6 21.6 0.38 25.9 22.0 0.39 37% 36% 35% 24.8 21.9 0.40 36% 26.9 20.1 0.37 <22.8 <18 <0.35 36% <30% The main target groups of the strategy are as follows:  Inactive and unemployed population: young and adult women and men; 23 Unemployment rate, Gini coefficient, relative poverty indicator 24 Workforce participation rate, Employment level of women in relation to population, indicator of NEET youth 10  Employees;  Different social groups: young people (15-29), underqualified personnel, Persons with Disabilities (PD) and persons with special educational needs, affected populations living near
 the demarcation line and internally displaced persons, immigrants, returnees to Georgia, ethnic minorities, internationally protected persons, foreigners legally residing in Georgia and stateless persons in Georgia, women;  Population living in poverty.
Vision the and access inclusive economy The vision of the strategy is to establish a labour and employment system in Georgia that will play an important role in promoting new jobs, labour market development, structural and institutional improvement, and social integration and equality in the labour market, which will ultimately have a positive impact on the country’s socio-economic development, poverty reduction and inclusive growth.
The state’s economic policy is primarily focused on promoting inclusive economic growth, with ongoing and planned reforms in the country focused on productivity growth, structural improvement of economic opportunities.

Georgia’s economic growth is mainly driven by the private sector.
Consequently, the main vision of the state for employment promotion is to maintain an improved business and investment environment, to attract investments and to ensure macroeconomic stability amid adequate fiscal and monetary policy.

25 Fiscal policies focused on low taxes and investment growth will help strengthen the private sector and accelerate economic growth.
At the same time, the state will continue to improve employment with related programmes through increasing private sector competitiveness, developing micro, small and medium-sized enterprises, improving their access to finances, encouraging employment and innovation and entrepreneurship activity.

Special attention will be paid to women’s involvement in these programmes.
In addition, to facilitate the employment process, the state will take effective steps to help reduce the labour market demand and supply discrepancy.

This requires both stimulating the growth of demand for labour through private sector and state-supported economic projects, as well as the provision of qualified workforce with relevant skills by the education system.

Particular attention will be paid to the needs of women and vulnerable groups to facilitate their involvement in the labour market.

to 2.1.
to 2.1.

Sector priority: employment promotion Based on the overview of current situation, main directions of state policy of Georgia, that has been in operation more than a decade, proved its effectiveness in terms of macroeconomic stability and economic growth, reduced poverty, unemployment and social inequality, but an important challenge still remains.
Accordingly, the state strategy means implementation of more active and effective politics for employment promotion, which aims at reducing the influence of reasons, causing the current situation.

In spite of sustainable increase in economics, 38.9% of population is still employed in the sphere of agriculture while the sector of agriculture makes only 8.2% 26 of GDP.
That can be explained by low productivity as well as by dominance of self-employment, which is connected to the high level of poverty in employed population.

The income of self-employee equals to only 20%27 25 Socio-Economic Development Strategy of Georgia “Georgia 2020”, 2014 26 National Statistics Office of Georgia, 2018 27 Annual publication of National Statistics Office of Georgia, 2017 11 of the income of employees.
The process of transformation of low productive workplace existing in villages into urban high productive workplace28 is going at a slow rate.

Qualified workforce plays a decisive role in employment and economic growth, but the skills and quality of education of modern workforce in Georgia hinders making the business29 and the possibility of turning the investment opportunities into working places.

Employers need not only technical skills, but social, cognitive skills, which young people don’t possess30.
Almost 40% of population aged 25-34 has received high education (a Bachelor’s, Master’s, or PhD degree).

Full general education stage has been completed by 42.2% of men and 31.1% of women ( according to the same survey, 28.9% of women and 25.1% of men have a bachelor’s degree or a degree equaled to it, whereas 14.1% of women and 10.7% of men have Master’s degree or a degree equaled to it)31.
In spite of quite high number of population owning high education and general education, Georgia still has the shortage of necessary skills in the labour market.

The reason for this is that high education system doesn’t provide with adequate skills required for workforce in the labour market.

According to data of 2017, 15.5% of people32 with high education are either unemployed or employed improperly.

60% of graduates of vocational education in 2017 are employed.
Women and those employed in informal sector are “overqualified” for their workplaces, which represents 29% of employed people (according to the data of National Statistics Office of Georgia -33.9%)33.

„Overqualification“ is very high in the graduates34 of Business, Technologies, engineering, mathematics, informational field, communications and technologies and architecture.
Women with high education and low-skilled workers are mostly represented in those types of workplaces, where the low level of education is required.

According to the GCI of World Economic Forum, Georgia holds 67th position among 140 countries (according to the innovative possibilities35), whereas according to GII Georgia holds 48th place among 129 countries.

Second reason for employing “overqualified” women in workplaces irrelevant for their qualification, is housework.
Special attention goes to the fact that the time spent on housework by employed women (42 hours in a week) doesn’t differ too much from the time, which is spent on unpaid work by women who don’t work (47 hours in a week36).

Unpaid housework has a double effect on women’s qualification and employment: 1) unpaid work causes driving out of women from labour market during their reproductive period.
Long economic inactivity causes irrelevance of womens’ qualification to current requirements, which is particularly of great current interest in STEM fields; 2) women who work, due to double load of paid and unpaid work, don’t have enough time for upgrading their qualification, or/and working at formal workplace, which in most of the occasions is connected to inflexible working hours and overtime work.
Research on gender-based difference in salary revealed that according to data of 2017, based on workforce survey of National Statistics Office of Georgia, gender pay gap in monthly earnings, which according to this survey 28 World Bank (2018).

Employment in Georgia: evaluation of workplace landscapes 29 Government of Georgia (2018) Memorandum of economic and financial policies.

30 Rutkowski, J (2013).


Workforce skills in the eyes of the employers, The World Bank, Also see World Bank (2013) Georgia: skills mismatch and unemployment.

31 Hakert, Sumbadze (2017).


Analysis of the results of general Georgian census of 2014 based on gender , National Statistics Office of Georgia(Geostat) United Nations Population Fund 32 ETF calculation based on the data of National Statistics Office of Georgia, www.etf.europa.eu/en/publications- and-resources/publications/youth-transition-work-georgia, 2017 33 Handel, M. (2017a) Predictors and Consequences of Mismatch in Developing Countries: Results from the World Bank STEP Survey.

ILO: Geneva.
ILO: Geneva.

34 World Bank (2018).

Georgia at Work: Assessing the Jobs Landscape; also Badurashvili, Vetter (2018).

Skils mismatch measurement in the Partner Countries: National Report on Georgia, ETF 35 http://www3.weforum.org/docs/GCR2017-2018/05FullReport/TheGlobalCompetitivenessReport2017– 2018.pdf 36 UN women (2018).
Women's economic inactivity and involvement in informal sector in Georgia https://georgia.unwomen.org/en/digital-library/publications/2018/12/womens-economic-inactivity-and- engagement-in-the-informal-sector-in-georgia 12 comprised 35%, had been reduced to 18%, when calculating hours worked instead of monthly earning37.

According to the survey of UN Women, marrying and giving birth rises the probability of economic inactivity and employment of women with high education38 in informal sector.
While promoting women’s employment and developing their qualification, it is important to take into consideration the development of social infrastructure and unpaid housework, in order to prevent the loss of human capital.

Discrepancy between demand and supply of labour market in short term perspective causes the unemployment of young people, whereas in long term perspective - the loss of human capital and inefficient use of resources.
Limited possibility of complete participation in labour market, is challenging for vulnerable groups which is followed by lack of social protection during unemployment/ passive economic period.

Social protection system of Georgia comprises of targeted programmes (unemployment benefits and others) as well as universal elements (universal healthcare, old-age pension).

In the country targeted social protection programme is active for socially vulnerable families.
Targeted social financial help is distributed through a differentiating system and the amount of monthly benefit ranges from 30 to 60 Gel.

12% of population is covered with this system.

Apart from the above mentioned, different types of benefits considered for targeted groups are active.

10% out of existing 37% of the poorest families, receive this type of targeted help, which monthly equals to 79.9 Gel 39.
The most universal element of social protection system is an old-age pension, which comprises the biggest part of social expenses.

According to the data of 2017, 59% of families have at least one pensioner.

The pension is 200 Gel for one month.

On the whole, expenses made for social benefits comprises 25% of budget expenses and 6.7% of GPD 40.

Georgian labour market for vulnerable groups is less inclusive.
Young people (aged 15-29), low qualified staff, disabilities and people with special educational needs, representatives of ethnic and religious minority have less participation in labour market.

Apart from vulnerable groups, women’s economic activity is also low.

According to the data of Geostat in 2018 55.3% of women in Georgia were economically active, unlike men which comprises 73.6% - the gender difference in economic activity in Georgia comprises 18.3% paragraph.
In spite of reducing the difference between women’s and men’s salaries from year to year, ther is still a big difference.

In 2006 women used to earn 49%41 of men’s income, according to data of 2018 employed women’s average nominal salary in a month comprised 62.9% 42of men’s salary (see Chart #7).

Chart #7.
Average monthly nominal salaries of hired in GEL by gender 37 there 38 there 39 UNICEF (2017).research of population's welfare 40 UNICEF (2017).research of population's welfare 41 Calculation is based on National Statistics Office of Georgia 42 National Statistics Office of Georgia Source: Geostat კაცი ქალი One of the contributing factors in labour market for gender difference in salaries is horizontal or sectoral segregation (women’s concentration in relatively low paying sectors of economic activity) and vertical segregation.
78.6% of employed in central offices of ministries and offices of state ministers are men.

In law enforcement structures majority of employees are men.

Except for law enforcement structures, 56.4% of employed in central offices of ministries and state offices of ministers are women.

Only 34% of employed in large factories are women43.
Women’s unequal participation in labour market, compared to men, causes insufficient use of human capital and according to the evaluation of the World Bank, 11.3% loss of GDP.44 Apart from gender inequality, different marginalized and vulnerable groups also have problems in terms of equal participation in labour market, e.g.

Employment of PD is problematic, out of 46,708 employed in public sector only 55 were PDs 45.
The number of young people aged 15- 24 who neither are employed nor receiving education and training (so called NEET) is very high.

It can be related to youth’s unemployment, inactivity, household obligations, disabilities or lack of motivation.

NEET indicator is quite high and in 2017 it comprised 24.8% (28.7%- in women; 21.2% in men) despite the fact that above mentioned indicator in 2013 was 29.4%, it is still high compared to EU’s indicator (15%).
Unemployment of low-qualified group is conditioned by external as well as internal factors such as low skills, a level of education, lack of working habits and insufficient social competence.

Possibility of employment of low qualified workforce is even more reduced by a technological progress.

Language barrier interferes with employment of representatives of ethnic minorities.

Only 17.2% of Azeri women and 26.4% of Azeri men know Georgian Language.
In the case of ethnic Armenians relevant indices in the case of women are 46.4% whereas in the case of men - 47.4%46.

Goal 1: Reducing the discrepancy between demand and supply In as much as one of the reasons for unemployment is a lack of working places, Georgian government will continue to promote economic and infrastructural projects, as well as private sector incentives in different spheres, which will promote the increase of demand for workforce.
In 2018 industry, agriculture, trade, financial activities, hotels and restaurants are growing sectors in terms of additional cost, export and growing of employment, while the Chart #8 shows the sectors, which have the highest share of GDP.

Accordingly, they have a great potential for decreasing economic growth and unemployment.

43 Women's economic abilities and challanges, Georgian youth economic association, 2014 44 World Bank (2016).
The state of gender equality in Georgia 45 Account of public Defender (Ombudsman) of Georgia monitoring of promoting programme of disabled person's state employment programme 46 Hakert, Sumbadze (2017) Analysis of the results of general Georgian census of 2014 based on gender.National Statistics Office of Georgia(Geostat) United Nations Population Fund 14 Chart #8.The structure of GDP, 2018.
(%) GDP by sectors 2018 Other s… Industry 14.6% Trade 13.9% Health and social service 4.2% Education 4.5% Hotels and restaurants 4.6% Financial sector 6.1% Storage and transport 6.3% Agriculture 7.8% Operations related to real estate 11.4% Construction 8.3% Source: Geostat (adjusted data will be available after 15 November 2019) Reduction of discrepancy between demand and supply of workforce in labour market is one of the main objectives for presented strategy.
In this respect the state’s task is to increase conformity of quality of education with the demands of labour market, which is especially important for youth’s employment.

Government’s priority is to provide with education for forming economics based on knowledge and for overcoming the poverty in the country.
Special attention will be given to the improvement of quality of education at every level, strengthening the connection between educational system and labour market, turning educational system which is based on existing supply into system based on demand, which will satisfy the needs of labour market for qualified workforce.
Presented strategy47 is based on the objectives of whole strategy of education and science of Georgia according to which a lifelong accessible and high-grade education based on the principle of learning will be provided for every citizen in the country.

This will encourage Georgia to develop as a regional centre of research and education.

This reform covers all levels of education.


The reform of education is multilateral and refers to those issues: preparing educational programmes according to demands of labour market, preparing qualified teachers, providing high- quality teaching-evaluation process and etc.

For implementing the reform of education relevant financial and human resourses are provided.
For improving competence of workforce, educational programmes (both vocational and high education programmes and training-retraining programmes) will be developed according to requirements of labour market.
47 About the assertion “United Strategy of Education and Science of Georgia 2017-202” Ordinance N533 of the Government of Georgia of 7 December 2017 15 Task1.Promoting job creation, including in the high productivity sectors Carrying out investment projects in processing industry and in the sphere of energy in the following years, will encourage the requirement for workforce with relevant qualification and increase of employment in these sectors.
Due to growing foreign direct investments and a high-level productivity in the construction sector, it is expected that the need for high-qualified staff as well as relatively low-qualified workforce will grow in the construction sector48.

In recent years the sector of tourism has significantly developed and the income from tourism has increased by 19.1% in 201849, whereas an average increase in 2015-2018 comprised 16.9%.

At the same time this sector has more potential in creating more workplace.
Income from international tourism before 2025 will increase from 1.9 billion to 6.6 billion dollars, whereas the number of people employed in tourism - will increase approximately by 90% from existing 158,515 to 301,284.50 38.9% of employed people are accumulated in the sector of agriculture who make 8.2% of whole GDP, which reveals the low level of productivity51.
Along with the sector of agriculture, low level of productivity is also found in the sectors of education and trade, while these sectors maintain more than 60% of the whole employment.

The growth of labour mobility is important for decreasing unequal distribution of employment according to sectors and for equalizing the productivity from less effective sectors to high productive sectors with the help of transferring the workforce.
All these will be promoted by developement of tourism in countryside, while in the case of industry, by development of supply chain related to agriculture.

Restructuration of the sphere of agriculture, growth of the formation of technologies and capital will promote the movement of people employed in the sphere of agriculture to higher productive sectors.
For the development of greenhouse agriculture and farms, considering planned investments it is expected that the need for high qualified staff will grow, e.g.

agronomists or vets52.

In a short period of time, active retraining will help the movement of workforce into light industry, food industry, as well as furniture manufacturing and construction sectors.
In a short and long period of time development of human capital will help to attract investments in capital-intensive fields and moving large industrial units to Georgia, which in its turn will increase employment in high tech manufacturing and customer’s service based on knowledge: manufacturing of the pieces of electronic and electric devices, manufacturing of the pieces of air and land vehicles, information and communication and vocational, scientific and technical service sectors.
In its turn free trade agreements and development of export market represents important possibility for above mentioned objectives.
48 Analysis of Georgia labour market 2017, Ministry of Economy and Sustainable Development 49 Current economic tendencies, Ministry of Finance of Georgia, 2018 50 Tourism strategy of Georgia 2025.https://gnta.ge/wp- content/uploads/2015/01/%E1%83%A1%E1%83%90%E1%83%A5%E1%83%90%E1%83%A0%E1%83%97 %E1%83%95%E1%83%94%E1%83%9A%E1%83%9D%E1%83%A1- %E1%83%A2%E1%83%A3%E1%83%A0%E1%83%98%E1%83%96%E1%83%9B%E1%83%98%E1%83% A1- %E1%83%A1%E1%83%A2%E1%83%A0%E1%83%90%E1%83%A2%E1%83%94%E1%83%92%E1%83% 98%E1%83%90.pdf 51 National Statistics Office of Georgia 52 Analysis of Georgian labour market 2017, Ministry of Economy and Sustainable Development, 2017 16 For the purposes of creating workplaces by small and medium-sized enterprises, development of services/products oriented on the requirements of business companies will be encouraged.
For the purposes of development the accessibility to finances, stimulation of crediting will take place in those sectors, which have the potential of creating the workplaces.

In recent times economic activity and competitiveness of small and medium-sized business has considerably increased, however the access to the finances still remains as an important problem for small and middle sized business.
Accordingly, the development of new tools for accessing finance for SMEs, including the launch of a credit-guarantee scheme, will increase the credit supply for viable firms, improve their liquidity management and lending to new sectors.

While promoting the creation of workplaces, apart from economic priorities the potential of different fields need to be taken into consideration in terms of deepening or on the contrary, reducing gender inequality.
Investing in social infrastructure and public care services (kindergarten, after schools, day care services for seniors) has a positive impact on both directly creating jobs for women and alleviating unpaid family work for women, which enables them to become economically active.

Task 2.

Promoting qualified human resources development oriented towards market demands NQF will be effectively implemented, as one of the main instruments, which connects the system of education to labour market.
The fifth level of NQF is especially important, which serves as a bridge between vocational and high education and promotes the employment of graduates as well as the progress of their career and the implementation of the continuing education principle.

Therefore, the process of developing and implementing Level 5 qualifications will be completed.

Also the attention will be given to the fourth level of NQF.
Vocational programmes of the fourth level of NQF enables the possibility of providing with full general education (people with basic education) which on the one hand, will increase the competitiveness and readiness for labour market and on the other hand, if so desired, opens the possibility for continuing their study at the higher education level.
Taken into consideration those high demands on the labour market, the greatest importance is given to the teaching of science, technologies, engineering and mathematical fields.

Those spheres are increasing in the whole world and they’re helping to create innovations.

Great attention will be given to women’s participation in STEM kinds of educational programmes.
In the context of increasing competitiveness of workforce, great importance will be given to the reform of vocational programmes, which aims to satisfy long term and short term requirements of labour market.

Access to the vocational education will increase.

Within the framework of vocational education, entrepreneurship and work-based teaching, widening the network of vocational education, development its accessibility and quality, encouraging public-private partnership will be promoted.
Collecting the information about workforce and skills, sectoral and regional requirements will be improved, which requires existence of an effective trilateral dialogue, especially on the 17 sectoral level.

Within the framework of social dialogue, initiation of proposal which is important for educational reform will be promoted.
In terms of human capital development in the country, along with the youth’s long-term investment, it is important to include existing workforce or unemployed adults in continuing education.

Apart from vocational educational programmes, variety of training-retraining programmes will be accessible.

Main focus will be on preparation of existing workforce with the help of training- retraining, upgrading qualification and retraining.
During the training-retraining process whole life teaching principles will be taken into consideration.

The potential of new law will be used for formalizing vocational training-retraining programmes, guaranteeing the quality and distribution of certificates recognized by state.

Any juridical person (educational institution, company, association and etc.)

in the case of gaining relevant right, will be included in the vocational training- retraining formal educational courses recognized by state.
The state will reinforce the work-based teaching programmes, and enterprises will be included in the process.

Additionally, new technologies will be used in the process of teaching.
Establishment of Centers of Excellence in the direction of construction and logistics will be considered as the instruments of the state in this sphere, which will guarantee the improvement of the compliance of the quality of education with labour market, high qualified trainings for employed and self-employed people, and various programmes for training-retraining.
The activities such as recognition of informal education, promotion of getting vocational education at schools - development of vocational/working skills for schoolchildren; establishment-development of colleges within the framework of public-private partnership, etc.
With the aim of funding the high educational programmes oriented towards the requirements of labour market, since 2019 in LEPLs and high educational institutions, in the first level of education operates the Interagency Committee created for identification of funding programmed problems and rationally determining funding specialties.

Programmed funding will be focused on the development and support of those fields, where there is a special demand, but there is no appropriate supply, e.g.
the sector of exact and natural sciences.

In the programmed funding the support of regional high educational institutions will be taken into consideration with the help of regional specialization, which means that mission imposed on high educational institution in a particular region will be considered, resulting from the needs of regional necessities.
In addition, higher education institutions shall take into account the labour market requirements in determining priority programmes and provide justification for their compliance with and respond to the programme’s criteria and objectives.

Task 3.

Promoting innovation and entrepreneurship 18 Development of innovations and technologies has an impact on the development of economics, creating working places and accordingly, employment.
Innovative companies are more successful in terms of employment, because they create more productive working places53.

Government will elaborate new instruments and widen existing instruments for the purpose of supporting innovations and industry.

Particular emphasis will fall on the development of entrepreneurial skills for pupils, youth and adults, as well as the promotion of starting entrepreneurial activities, including regions which will promote entrepreneurial culture in Georgia.
Priority will be given to vulnerable groups in the development of industry including young people.

Development of industrial skills will be supported by means of formal and informal education.

In the national study plan accent will fall on the development of innovative thinking and competence.

Industrial education will be integrated in every level of general education, in the vocational educational programmes.
During whole lifetime along with the development of industrial skills it is also important the development of other success through skills including ICT skills.

With the aim of development the innovations and information technologies, there will be access to the high speed internet in the whole country, especially in the regions.

Cooperation between industry and research will be supported in the so-called format of Research and Development (R&D).
Starting and development of such kind of partnership will be promoted, including the instruments, such as funding and grants.

Organizations based on technologies will support the transfer of the knowledge accumulated in research institutions to small and middle-sized enterprises.
Raising awareness will take place for the benefits of entrepreneurship, including the actual matters such as perspectives and requirements of the Association Agreement and DCFTA, RBC, “Green Practice”, resource efficient, clean production, international standards, etc.54 Goal 2: Strengthening Active Labour Market Policy (ALMP) Active Labour Market Policy (ALMP) is an approved way for employment promotion throughout the world and provides several services for job seekers.
The main instrument in this direction is the legal entity of public law - LEPL State Employment Promotion Agency (hereinafter Agency) under state control of the Ministry, the service centers of which provide employment promotion services for job seekers registered in the job seekers base.
The notion of Active Labour Market Policy shall be represented in regulatory legal acts of labour market and employment; Legal framework related to ALMP shall be established and shall regulate terms and conditions of delivery of ALMP.

It shall contribute to establish consistent and systematic approach to ALMP.

The law of Georgia on Employment shall play essential role in it.

The draft law has already been developed and will be initiated until the end of 2019.
Conditions, target groups of ALMP and selection criteria, 53 Dachs, E., Hud, M., Koehler, Ch ., & Peters, B.

(2014)Employment Effects of Innovation over the Business Cycle: Firm-Level Evidence from European Countries 54 Strategy of small and middle-seized manufacturing of Georgia 2016-2020 19 etc.

shall be defined by the draft law.


All the components55 of Active Labour Market Policy in Georgia shall be expanded: intermediary services for job seekers, individual and group consultations, including professional counselling and career planning services, promotion employment of vulnerable, law competitive groups, organizing employment forums, state programmes of vocational training-retraining and qualification upgrading (internship) of job seekers.

Task 2.1.
Task 2.1.

Improving employment promotion services and activities Active Labour Market Policy shall be expanded and systematized.

Services and access to them shall be improved for jobseekers.

As a result of restructurisation, a state body implementing an employment promotion programme shall be established and its possibilities shall be strengthened; Services of employment mediation (career planning, professional counseling, profiling and etc.)

shall be developed as well.


Abovementioned services are provided through labour market management information system (www.worknet.gov.ge)56.

A state body implementing an employment promotion programme shall implement the projects to provide job seekers of different target groups (unemployed persons, new job seekers, “hard-to-employ” persons and others) with ALMP services tailored to their needs.
Qualified professional orientation and career counselling must be accessible in both education and employment processes for each person living in Georgia.

The main component of ALMP shall be employment counselling, evaluation of employment opportunities for jobseekers; defining employment service according to the needs of job seekers and available resources; informing and counselling job seeking; developing individual action plan; supervising job seekers’ progress.
According to a new service model, both individual and group career counselling shall be provided and involvement of job seekers in ALMP services as well as increasing their number shall be promoted.

In accordance with the Law of Georgia on Vocational Education the system of professional orientation, counselling and career planning shall be implemented.
It shall provide help for young people to define their abilities, competence and interests at any stage of formal education to make decision regarding education and profession choice and managing their career.

Professional counselling and career planning service shall be offered at municipal level, which shall increase the accessibility of career counselling service.

Job seekers shall have the opportunity to make informed career decisions related to employment or career development.
Appropriate methodological materials, instruments shall be prepared to provide quality career counselling; Information about employment and labour market shall be collected and systematized.

Universities and non-government organizations (NGOs) shall be involved in the process as they have the experience of career material preparation.
55 A comprehensive historical overview of Georgia's ALPMs is given in the record of the ETF (2011) Labour markets and employability: trends and challenges in Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine 56 http://www.worknet.gov.ge/ 20 Strengthening the possibilities of career consultants involves all the stages of career planning process: providing information, counselling, evaluation of competency of beneficiaries, mentorship, advocacy, development of decision making and career guidance skills.
Instruments of self-service shall be developed and better use of information sources related to educational needs or employment of different groups shall be provided.

Depending on new service model, group career counselling shall also be held after the process of profiling.

Communication between employment service consultants shall be improved and contribute to sharing experiences with each other, revealing the best practice and sharing it.
Co- operation between career consultants and schools, which have professional orientation services as well as with colleges, youth centers, universities shall be planned.

Editing of following components: employment promotion (so called startups), public works, promotion of mobility, employment promotion shall be considered.

The mechanism of registration of employed people with the help of ALMP shall be improved.
Possibilities of labour market management information system (www.worknet.gov.ge) shall be developed and thus the fast processing of existing data can be possible.

The function of evaluation of results (number of employed) shall be added to the system.

It encourages state employment promotion body to evaluate the correspondence of results i.e.

services.

Mechanism of registration of employed by means of ALMP shall become flexible.
Cooperation between state employment promotion body and private employment agencies in Georgia shall be strengthened.

The data base of services provided by the private employment agencies of Georgia shall be created.

The internship service shall be integrated with the employment promotion services and their availability improved.

Task 2.2.
Task 2.2.

Strengthening the training-retraining programme for job-seekers Training-retraining programme for job-seekers shall meet the needs of labour market, including in regions.

The state body implementing an employment promotion programmes shall put the emphasis on regional approach rather than central one and mobilize the maximum number of participants.

The quality assurance mechanisms shall be strengthened to increase the employers’ trust in the competencies of job seekers.
Efficiency of training-retraining programme for job- seekers shall be systematically evaluated.
Targeted envolvement of job seekers into the state employment promotion programmes shall be improved with so called profiling approach; the information about labour market, especially at the regional level, shall be improved and updated; while planning training-retraining programmes, job requirements at regional level shall be taken into account; Employers shall be more involved in the process of programme development, training-retraining and certification.

Task 2.3.
Task 2.3.

Strengthening of labour market information system (LMIS) 21 Effective functioning of labour market information system (LMIS) is critically important for planning, implementation and evaluation of labour and employment policy.
Labour market information system is planned to be strengthened in several directions: modern approaches to information updating and software shall be established; studies shall be made to complete the labour market information; in order to study the tendencies of labour market, the information shall be analyzed and reports prepared; Human capital of the department responsible for labour market information system shall be developed.
The information of labour market shall be analyzed in different possible aspects and annual report of labour market analysis shall be published on the website of labour market information system.
Task 3: Promoting involvement of women and vulnerable groups in the labour market through targeted social and inclusive employment policies The existing social protection system shall be improved in the contest of medium-term fiscal consolidation, which in its turn, shall contribute to the establishment of effective and integrated social protection system.

The system shall include all sectors, contribute to employment and won’t make people become dependent on social assistance.
Aim of inclusive participation in labour market is to provide personal services for vulnerable groups to contribute to employment and economic activity.

Special attention shall be paid to the interaction between social protection system and employment policy both at country and municipal level.

For implementing the purpose internationally recognized method “case management’” shall be established.

The principle of the method is, first of all, social activation of job seekers and then employment promotion.
For socially vulnerable persons not only employment but their maintenance on labour market shall also be provided.

Thus the measures, which promote job searching as well as long- term employment shall be taken.

Internationally approved method is to use the individual approach, gain experience through the work based learning, improve linkage between social protection and employment.

Employment promotion services shall be developed by taking the needs of different groups into consideration.
Various awareness raising and advocacy activities shall be implemented with the participation of vulnerable groups to reduce stereotypes and discrimination.

Cooperation between employment services, NGOs and local self-government shall be improved to promote employment of vulnerable groups.

Economic feasibility of unemployment allowance, wage subsidy for minimum wage and low-paid employees shall be discussed within the social dialogue.
In case of necessity, relevant activities shall be planned on the basis of the regulatory impact assessment.
The introduction of social protection minimum norms on the bases of counseling shall also be discussed within the social dialogue, as well as developing assessment Matrix related to health protection, children and working-age, or record and organise of existing social protection minimum norms in accordance with the international labour organization standards and preparation of recommendations about priorities.
Preparation of recommendations for predicting costs of social 22 protection minimum norms, reform of the existing social protection system, implementation of new social protection programmes and preparation of a step-by-step action plan for the proposed recommendations shall also be considered.

Task 3.1.
Task 3.1.

Improving the link between employment and the targeted social assistance programme The state will continue its targeted social assistance programme with the methodology has been implemented since 2015 to assess the socio-economic status of vulnerable families.

The abovementioned methodology is based on worldwide practice called indirect method and statistic model of family welfare assessment.

According the methodology family ranking through welfare index is possible.
This index is determined by the ratio of Household Consumer Index and the Consumer Need Index.

On the one hand, it covers agricultural households (land), incomes, utility costs, demographic indicators, education and employment of family members, territory, basic housing conditions and other variables, on the other hand – needs of different categories of family members (sex, age, special status, DPs, single pensioner, single mother, confined to bed and others).
Accordingly, this model is maximally tailored to individual needs and real welfare quality of socially vulnerable families and their members.

Long-term objectives of the Government of Georgia is to gradually introduce worldwide approaches of “social assistance for employment” (welfare to work).

It provides establishment of mechanisms to promote transition from social assistance into employment.
A targeted social assistance system shall consider the introduction of the rules Rules that do not cause “a dependence on assistance’’.

Another step that has been made in this direction is the decision of the Government of Georgia, according to which families with less than 100,000 rating scores in the unified database of socially vulnerable families, shall be provided with subsistence allowance even if the member(s) of the family is/are employed.
Such family shall receive subsistence allowance for a year, while for the next the family will received only non-monetary child allowances and other benefits based on the scores.

The next step of the process is to activate the members of socially vulnerable families and promote employment through the Active Labour Market Policy.
By the decision of the Government of Georgia one of the main components to be involved in targeted social assistance programme is the obligation to register a jobseeker family member at the Labour Market Management Information Portal (www.worknet.gov.ge).
Accordingly, in order to strengthen the relation between targeted social assistance and employment programmes this platform shall be used; Accessibility of information about the professional training-retraining, employment forums, active vacancies shall be provided along with proactive services tailored to the qualification and skills of the job seekers registered in the database.

23 Task 3.2.
23 Task 3.2.

Promoting gender equality and women's participation in the labour market and entrepreneurship Increasing women's participation in the labour market shall be promoted by legislative initiatives as well as gender mainstreaming in political documents and strategies and by special programmes.
Prohibition of discrimination and gender equality legislation shall be improved (directives defined by Georgia – European Union Association Agreement, Annex XXX), which shall promote safeguard of equality principle, improvement of women labour right protection in general, also taking measures to ensure a better level of safety and health protection of pregnant women and nursing mothers as well as their social guarantees; Ensuring the principle of equal payment for equal work shall be provided both at legislative and practical level.
In particular:  Methodology of gender impact assessment shall be introduced in the policy making process; studies and the trainings shall be provided in this directions;  Regulatory legislative framework of overtime work shall be improved, and a flexible working hour rate shall be encouraged;  According to recommendation of Labour International Organization, discrimination and its direct and indirect types shall be defined at all stages of employment and professional activity, including recruitment and selection;  The competence and mandate of labour inspectors shall be increased in terms of conducting procedures for investigating sexual harassment cases and applying appropriate legal protection;  Principle of equal remuneration for men and women workers for work of equal value shall be ensured by the international labour organization convention N100;  Raising awareness and understanding of the principle of equal remuneration for men and women workers for work of equal value and its enforcement;  Methodology of labour evaluation and remuneration under this evaluation shall be developed;  Evaluation of future ratification of the international labour organization convention N183 (Maternity Protection), convention N156 (Workers with Family Responsibilities) and convention N189 ( Domestic Workers ) shall be planned;  To start a policy dialogue on the measures of motherhood protection and the reconciliation of work and family responsibilities as an intersection point of social protection, labor market and demographic policy.
After maternity leave the access to training-retraining programmes for women shall also be ensured.

It’s essential to develop high quality child care services and improve their access.

Emphasis shall be put on development of pre-school education of children, which shall promote women's quick return to labour market.
Promotion of entrepreneurial skills development for women shall also be taken into consideration as well as supporting entrepreneurship and innovation, intense work with women beneficiaries and increase of possibilities in order to learn more about banking financial system and develop financial management skills; financial institutions shall use specific 24 approaches for women entrepreneurs to increase the number of women consumers57.
Emphasis shall be put on increasing access to business consultations, finance and startups for women.

Task 3.3.

Supporting youth integration in the labour market The high rate of youth unemployment, including NEET, confirms that active interventions have to be implemented to get young people active and thus promote their employment.

One of the goals of the strategy is to decrease the rate of NEET youth to 22.8% by 2023.
Strategy involves the work in the following directions: Developing labor market relevant knowledge and skills for young people, providing information to make informed career decisions, providing work experience, helping young people’s transition from education to labour market and promoting long- term employment in labour market.
Attention shall be paid to the prevention of formal education leaving by young people as well as to the improvement of access to vocational education, higher education and continuing education.

The right professional orientation and identification of the students, under the risk of leaving education, at early stages shall play a great role in this regard.

The initial element of the process shall be informing and raising awareness.
Young people shall be provided by the information about educational and employment opportunities in specific regions.

Emphasis shall be put on developing the competencies for employment both through the formal and informal education.

Recommendation of European Union (updated in 2018)58, according to which development of key/core competencies is the main element of workforce flexibility.

It helps young people to adapt changing labour market quickly.
Development of above mentioned competencies impact on innovation and productivity growth59.

In order to get the work experience, work-based learning and dual education, different types of internships for young people, practical training, promoting of seasonal, student summer job offers shall be promoted; Volunteer employment, which is internationally well approved approach shall also be implemented.

This practice is beneficial to both parties.


Young people gain experience, and the public sector - a new workforce with innovative ideas.

Career counselling shall be provided at schools and vocational and higher education institutions both at regional and local levels.

A variety of active labor market activities shall be available to young people.

Task 3.4.
Task 3.4.

Promoting low skilled workforce employment The implementation of activities for developing the competencies of low skilled workforce and promoting employment shall be provided, including low skilled workforce access to education, active labour market activities and social protection.

Most of employees in poverty are low skilled and developing their competencies shall also contribute to poverty reduction.
573Women's Economic Opportunities and Challenges, Association of Young Economists of Georgia, 2014 58 Council of the European Union, Recommendation 2006/962/EC of 18 December 2006 on key competences for lifelong learning, Official Journal, L 394, 30.12.2006, Council of the European Union, Council Recommendation of 22 May 2018 on Key Competences for Lifelong Learning, 9009/18, 23.05.2018.

59 European Union Official Bulletin, I, 394, December 30, 2006.

25 Task 3.5.
25 Task 3.5.

Supporting persons with disabilities (PD) and persons with special educational needs Promotion of PDs and persons with special education needs employment is essential with regard to social and professional rehabilitation.

Accordingly, labour and employment regulatory law shall be revised to ensure their harmonization with the UN Convention on the Rights of Persons with Disabilities.
Persons with disabilities shall be involved in the development of unified concept for DPs employment promotion and in preparation of other normative documents60.

Employment subsidy service of PDs and persons with special educational needs shall be improved.

To improve the effectiveness of supported employment, the number of supported employment consultants shall be increased, especially in regions.

Their competencies shall be improved and the profession shall be developed in the long run.
The programmes shall be expanded to include people with mental retardation and mental health problems.

Co-operation with various institutions, vocational colleges, day centers, local self-governments, as well as informing society and families about these services has been considered.
Involvement of DPs and persons with special educational needs in training-retraining programmes shall be ensured, as well as participation in dual education programmes, which shall contribute to relationship with employer, learning process and realization of the paradigm - “Employ, teach and maintain in the labor market.''

Access to education shall contribute to their competitiveness.
Professional orientation work with DPs shall be carried out using different methods (professional orientation tests, open interviews with DPs and their parents/guardian, ensure the compliance with professional standards).

During the implementation of state employment promotion programmes, it is essential to use alternative forms of communication (sign language, Braille, etc.)
to communicate with PDs, including information about programmes in Braille, as well as involving sign language interpreter in supported employment component.

PDs shall be provided with social and living allowances even if they are employed.

It shall promote the activating of PDs in the labour market.

Task 3.6.
Task 3.6.

Supporting the representatives of ethnic minorities Access to workplaces will be increased and socioeconomic conditions and opportunities will be improved for the representatives of ethnic minorities.

Besides, special attention will be paid to young people, women and those living in the villages.

The given strategy is in full compliance with the state strategy of civil equality and integration and action plan for 2015-2020.
Developing equal socioeconomic conditions and opportunities, provision of access to high-quality education, increasing the level of the state language that will promote employment and social inclusion, in general, are one of those things that the above-mentioned action plan aims at.

Special attention will be paid to raising awareness of the representatives of ethnic minorities about the socioeconomic programmes and services.
Internship programmes in state offices will 60 Monitoring Report on State Employment Programs for PWDs.

Public Defender (Ombudsman) of Georgia, 2017 26 continue for the representatives of ethnic minorities and beneficiaries of the educational programmes for teaching Georgian (Programme named as ‘1+4’).

This will promote improving their knowledge and skills, boosting their competitiveness for employment and increasing their involvement.
Together with improving the skills for employment, special attention will be paid to the following: Learning Georgian language; Expanding vocational education network, offering state- funded vocational educational programmes that will contribute to the employment of the representatives of ethnic minorities and their civil integration in general.

Task 3.7.

Promoting access to livelihoods for IDPs The IDPs constitute a vulnerable group.
The level of unemployment among them is twice as high as compared to non-IDPs.61 More than half of the IDPs lived in village settlement before displacement and 77% of them now reside in cities.

For those willing to live in a village, the state will provide help to find a residence.

They have an opportunity to find the desirable house in the village together with the land and the state will assist them in building the house.
Thus, IDPs will also be able to have access to livelihoods and involve in agricultural activities.

Moreover, promoting self-employment for IDPs with professional education will continue through implementation of agricultural tools programme; Travel costs will be reimbursed for the IDPs studying at the vocation education institution, and grant programmes for different types of livelihoods will be implemented in order to help them.

Task 3.8.
Task 3.8.

Supporting the affected population living near the demarcation line and promoting employment Since the conditions for the affected population living in the villages near the demarcation line still remains critical, the improvement of their socioeconomic conditions constitutes one of the main priorities for the state.
The activities of the temporary state commission responding the needs of the affected population living near the demarcation line will continue to provide help for the locals, namely to restore the houses damaged after the war, to promote the development of agriculture and micro-entrepreneurship with the aim to ensure self-employment.

In addition, the involvement of people living near the demarcation line in the professional training-retraining will be ensured.

Task 3.9.
Task 3.9.

Facilitating the integration on internationally protected persons, aliens and stateless persons The state will implement the programmes in order to facilitate the integration of internationally protected persons, aliens having legal grounds to reside on the territory of Georgia and stateless persons living and having status in Georgia.
According to the amendments to the law of Georgia on International Protection made on December 14, 2018, the Ministry of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Affairs of Georgia has been determined as the state office responsible for facilitating integration of internationally protected persons living in Georgia.
As per the above- mentioned amendments, the ministry is obliged to elaborate, implement the integration programmes for internationally protected persons residing in Georgia and to promote their involvement in those programmes.

Accordingly, the Ministry will plan and implement the respective services, within its competence (Georgian language courses, Civil and legal courses, professional training-retraining, promoting employment etc.)
with the aim of integrating internationally protected persons living 61 According to the results of the annual population census in 2014 conducted by GeoStat 27 in Georgia and stateless persons having status in Georgia in cooperation with other state offices (Ministry of Education, Ministry of Internal Affairs, Ministry of Justice).

1.1.

Sectoral Priority: Ensuring effective functioning of the labour market Apart from job growth, employment and protection of labour rights are of high importance.
In recent years, non-effective functioning of the labour market had a negative influence on labour safety and rights and the state of the migrants etc.

Accordingly, the state strategy envisages ensuring effective functioning of the labour market that implies coping with the existing challenges.

Over the decades, through the process of economic deregulation, law of Georgia on labour safety could not correspond to the existing challenges and was of a rather liberal character.
Considering the above-mentioned, Georgia was separated from the international law on labour and institutional opportunities of state policy planning and management were weakened in the field of labour.

With the aim of improving the labour safety, labour inspection department has been created incorporating 50 labour inspectors.

The inspection examines working conditions at a workplace.

It is equipped with the respective administrative rights and is gradually establishing ILO standards.
As of today, labour inspection department, as a supervisor unit, examines the working condition of any entity implementing dangerous, hard, harmful works within the framework of selective control once a year and uses administrative penalty (warning, fine, suspension of the construction) as a sanction.

It also implements unplanned control with the allowance of the court, in case of complaint or during an accident without the allowance of the court.
Following the fulfillment of international obligations, there will be a need of creating more effective labour inspections system.

So far, Georgia is behind the amount of labour inspectors as determined by the ILO methodology62 – one inspector per 10,000, 15,000, 20,000 or 40,000 workers depending on the country of industrial market economies, industrializing economies, transition economies or less developed countries.
The institutional mechanism of social partnership and social dialogue has been operating since 2013 in the form of a trilateral commission of social partnership.

It has the function of improving the social partnership between the employees, employers and the government of Georgia, as well as of working out the recommendations on labour issues.
The involvement of the representatives of employees and employers at regional and sectoral levels, including the systems of education and labour market is quite law.

Deficiency of social dialogue and poor social partnership mechanisms has been witnessed.

The mechanism of collective discussions and mediation of labour arguments between an employer and employee is operated in the form of the independent mediators selected from the respective registry.
Subsidizing of which is carried out by the state and their systemic training-by ILO.

In 2014-2018, 38 mediation requirement cases were recorded, out of which 52% ended in agreement.

Demographic and migration factors, such as negative dynamic of the increase of population, life expectancy and immigration-emigration have a negative effect on the labour market of Georgia.

In that regard, negative indicators will result in reducing the workforce, population ageing and fiscal pressure on the pension system.
According to the census conducted in 2014, there has been a tendency for population decline (see figure #9).

In 2018, the population of Georgia amounted to 3.7 million.

Looking at the medium term, moderate speed of population decline will be retained.63 Population ageing process has been witnessed.

In 1994-2018, the share of people aged 65 and above was raised from 10.5% to 62 International Labour Organization website: www.ilo.org 63 United Nations (2013b).
World Population Ageing 28 14.6%.64 Population decline has had the biggest impact on the employable part (15-60 years old people).

By 2050, its share will decrease from 63% (according to the data of 2015) to 51%.65 The average life expectancy is 73.5 (For women 77.8, for men – 69.2)66, that falls behind the average European rate (accordingly, 82 and 75)67.
Figure #9: Population of Georgia (million) 2008-2018 3847.6 3829 3799.8 3773.6 3900 3850 3800 3750 3700 3650 3739.3 3718.4 3716.9 3721.9 3728.6 3716.4 3719.6 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: Geostat Apart from the negative natural increase (the difference between the numbers of births and deaths)68, the key reason for the decrease in population is the high rate of migration.
Over the last 10 years, in 2008-2018, Georgia’s external net migration rate (the number of persons entering and leaving a country) was negative.

(See figure #10).

Figure #10: External net migration (per 1000 persons) in 2008-2018 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 0 -5 -10 -15 -20 -25 -30 -35 -40 Source: Geostat Labour emigration from Georgia represents a significant challenge.

This process mainly takes place in uninformed, disorganized and highly risky conditions for migrants.
The mentioned problem is frequently caused by the dishonest mediators (private employment agents, individual persons etc.)

Despite the fact that money transfers from migrants play an important role in Georgia’s economy69, illegal labour migration of the Georgians often results in a big loss, stress and deterioration of health conditions, discrimination at a workplace, risks of trafficking and employments at low-qualification, poorly paid jobs for migrants.
This contributes to the reduction 64 Geostat, 2018 65 United Nations (2013b).

World Population Ageing 66 Geostat 67 https://www.statista.com/statistics/274514/life-expectancy-in-europe/ 68 According to the data of 2018 provided by the Geostat, natural increase rate was decreased from 2014 by 1.9 (from 3.1 to 1.2).

69 The share of the money transfers in GDP in 2018 amounted to 9.7%.
Migration profile of Georgia in 2019, page 29 http://migration.commission.ge/files/mp19_web3.pdf 29 of their personal capital and country’s economic benefits.

According to the data of 2017 by IOM, 70% of the retuning migrants often end up with the serious health issues and are in need of emergency and expensive medical service that increases the healthcare costs of the country.

In case of disorganized labour migration, the economic benefits of migrants’ money transfers are quite law.
The lack of opportunities for emigrants’ legal employment poses high risks including in the context of visa-free travel to the EU that may contribute to the activation of its suspending mechanisms.

The situation becomes far more complicated due to the labour emigration statistics that relies only upon the information gathered from the mediatory natural and legal persons and employment agencies registered in Georgia that is radically off the realistic number of people employed abroad.
In non-regulated migration, the risks of increasing the existing misbalance between the demands and supply of the workforce are quite high (due to the chaotic outward flow of the necessary qualified personnel and/or excessive incoming of the poorly qualified foreign workforce).

Information gathering on immigrant employment in Georgia isn’t in fact feasible.

Thus, regulating labour migration (emigration/immigration) constitutes one of the major challenges of the strategy.
The importance of the mentioned issues is stressed in the migration strategy document of Georgia, 2016-202070.

Goal 4.

Improving the system of enforcement of workplace safety and protection of rights Health and life rights of employees as one of the fundamental rights are guaranteed by the Georgian constitution and several other international documents.
Labour right implies in itself the right of employees - to be ensured with a safe and healthy environment and the rights assigned by the labour law to be protected.

Task 4.1: Ensuring the protection of labour rights in accordance with internationally recognized standards For state policy planning and management purposes in the labour field, law on employment, labour safety, labour rights and migration will come closer to EU law and directives as determined by the association agreement.
International instruments and standards will be established.

Conventions of the international organization of labour N81, N102, N129, N131, N155, N156, N176, N183, N189 will be assessed and the issue of the propriety of their ratification will be discussed.

Task 4.2.
Task 4.2.

Strenghtening labour inspection The strategy envisages strengthening the legal and institutional framework of labour inspection as an internationally recognized mechanism for protecting employees’ rights and improving their working conditions.

In Georgia, as in the country of a transitional economy with 1,763,300 workers, the minimal amount of labour inspectors has been determined as not less than 80 inspectors in line with the ILO methodology implying one inspector per 20,000 workers.
Besides, the inspection selection process will be improved.

They will possess better opportunities and will be properly equipped.

Within the process of training, special emphasis will be laid on sharing international experience.

Safety of labour inspector will be protected while working.

Strengthening the legal and institutional framework for labour inspection will facilitate the better quality of independence of inspectors.
As a result of labour inspection institutionalization and 70 Migration strategy of Georgia in 2016-2020.

Available: http://migration.commission.ge/files/ms_matsne_geo_06.08.18.pdf 30 structuring, inspectors will be divided into the following two directions: labour rights and labour safety.

Labour safety in its turn will be divided according to the sectorial groups of inspectors.
The mandate will be expanded that involves expanding the organic law of Georgia on labour safety over all the sectors of economic activities and public offices.

With the aim of inspection, unconditional access to the companies and effective execution of the law will be made possible.

In terms of labour rights, inspection supervision will incorporate eliminating discrimination at the workplace, illegal labour migration, forced labour and exploitation and other requirements of labour law.
Inspection mandate of labour conditions is being expanded in terms of labour rights and law execution.

Attention will be paid to expanding the labour inspection mandate in the direction of eliminating sexual harassment and gender discrimination at a workplace.

In addition, labour safety for pregnant and nursing women will be provided.

Georgia will continue further completion and conformation of the organic law of Georgian on labour safety with ILO standards and euro directives.
Special importance will be given to programmes similar to EU funded project – Twinning Instrument which aims at facilitating high standards of labour relations and labour conditions.

Department for inspecting labour conditions in active cooperation with the states offices and social partners will create legal, administrative and institutional mechanisms for boosting labour safety culture.
In line with the best European practice and association agreement, national execution institute’s capabilities will also be strengthened.

The government of Georgia aims at strengthening the existing mechanism and institutionalizing labour inspection that implies forming the existing institute into an independent unit.

The legal entity of public law will be established that will be responsible for the supervision of protecting the rights under the law of Georgia on labour.

Task 4.3.
Task 4.3.

Enhancing social dialogue and partnership Institutionalization of social dialogue will be facilitated for social partners to have opportunities of systematic engagement in social dialogues.

Trilateral commission for social partnership will be enhanced at national, as well as at regional level and the quality of social dialogue will be improved.

This will result in decisions made by the trilateral commission on important issues or/and effective completion of those decisions.
Systemic communication on employment issues as such between social partners will also be promoted.

Apart from this, conferences, roundtable meetings, seminars will take place regularly.

Regional social dialogue will be elaborated ensuing peculiarities of the labour market in the region.

Social partnership at the local level is of special importance for reducing the inadequacies between the supply and demand.
This partnership will facilitate work-based learning implementation at the enterprise, improvement of educational programmes, infrastructure and methodology in accordance with the requirements of the labour market.

In these terms, development of public- private partnership mechanism, facilitating regular communication and cooperation between the employer and education sector is of great significance.
To facilitate social dialogue at enterprise level, emphasis will be laid on protecting the collective agreements from the employer’s side and the interests of the employee and initiate respective legal amendments if needed.

Events for raising public awareness will be organized and the population will be informed about the labour rights.

Task 4.4.

Institutional strengthening of labour mediation Establishing effective mechanisms of labour mediation will be emphasized.
This implies creation of prevention mechanisms for collective labour disputes, increasing the awareness index on labour 31 mediation process and benefits and working on creation of mechanisms for executing the achieved agreement.

Goal 5: Improving labour migration management The strategy aims at improving labour migration management in order to better employ the labour potential of migrants, as well as of emigrants.
According to the migration strategy of Georgia for 2016-2020, legal and institutional environment will be established in Georgia with the aim of improving migration environment.
The tasks of the given strategy responds precisely to the priorities of the mentioned strategy: facilitating legal migration; fighting against illegal migration; facilitating reintegration of the returning migrants; facilitating reintegration of internationally protected persons, aliens having legal grounds to reside on the territory of Georgian and stateless persons living and having a status in Georgia; improving migration management and raising public awareness.
The state will continue regulating international labour migration and developing the legal base for interstate cooperation.

Implementation of state policy in this field will be ensured by the specialized state office equipped with the respective competence and resources.
The strategy envisages reliable and constantly renewable information about the structure of state’s labour power, including developing the database on labour migrants (emigrant/immigrants) (about professional qualification, age, gender, employer country, field etc.

); establishing information- analytical system for assessing and forecasting ongoing and possible tendencies on the internal and international labour market; identification and regular renovation of deficient and sought-after specialties.
Creating information base and organizing statistical researches on labour migration (emigration, immigration) has been envisaged for elaborating/realization of state policy on employment.

The information on migration flows, directions, volumes and characters will be gathered for efficient management of labour migration.

Labour migration accounting system for immigrants’ employment will be elaborated in terms of carrying out the obligation of informing state properly by the local employer.
Population will still be informed on illegal migration hazards to prevent illegal emigration.

Support and monitoring of private agencies’ (legal and natural person) activities in the field of labour migration will be ensured in order to protect the rights of labour migrants.

In order to promote reintegration and legal migration, migrants, as well as the retuning migrants will have an opportunity to get the informal education and competence received either in Georgia or abroad recognized and certified.
Career consulting and information on labour market will be accessible to them.

Task 5.1.

Facilitating circular migration The state will continue and carry out more intensive works on legal labour immigration and on developing bilateral contractual basis of emigration and temporary employment abroad (circular migration).

On the base of which, circular migration schemes will be implemented.

Establishing and proper implementing of legal framework for migration processes is still topical.
Active cooperation with the international organizations (UIM, GIZ) will continue in order to form and pilot the temporary and circular labour migration schemes.

The results of the piloting and sharing the experience in that field will benefit creation of coherent labour migration system in Georgia.

Informing and consulting people willing to get an employment abroad, forming/developing a system for registration and selection will be prioritized.
Capability of the state office responsible for implementing employment facilitating programmes and employment facilitation centres will 32 be enhanced in this direction.

Moreover, efficient mechanisms for recognizing informal education will be introduced.

Together with population decline, special attention will be paid to exploitation labour power of immigrants.
Labour migration of experience and highly qualified foreigners is considered as having positive potential on country’s economy, especially in entrepreneurship and construction fields with respect to developing skills and sharing knowledge about labour market.71 The state will work out the mechanisms to attract qualified staff from foreign countries.
71 http://www.lmis.gov.ge/Lmis/Lmis.Portal.Web/Handlers/GetFile.ashx?Type=Survey&ID=f7fe927d-6684- 47f9-9da2-da850754aad3 33 Logical framework The results of the planned tasks and performance indicators for achieving the final goals of the strategy - promoting employment and functioning of the labour market - are summarized in Table N3.
Sectoral Priority 1: Employment promotion Goal 1 Impact indicator Baseline data Unemployment rate of persons with higher and vocational education Reducing the discrepancy between demand and supply Unemployment among persons with higher education in 2017 - 15.5% Unemployment rate of vocational education graduates in 2017 -12.2% Target result/result to be achieved 13% Implementation period Source of confirmation Compliance with the UN Sustainable Development Goals 2023 8; 9 Geostat; Workforce survey 10% 2023 Geostat; Workforce survey 34 Goal 1 Task Outcome indicator Baseline data Reducing the discrepancy between demand and supply 1.1 Promoting job creation, including in the high productivity sectors Number of new jobs in sector the business (including high productivity sectors); Number of employees in the business sector May 2018 - 660 875 Target result/result to be achieved The number of employees in the business sector increased by 10% Implementation period Source of confirmation Risks 2023 Geostat - business statistics 1.2 Promoting the development of qualified human resources oriented towards a market demand.
2017 – 1.6% 1.9% 2023 2017 - 4.5% 8% 2023 2018 - 0 50% 2023 Share of adult population (aged 25- 64) involved in continuing education Share of young people aged 15-24 involved in vocational education Percentage of vocational education institutions conducting short- term LLL courses 1.3 Promoting innovation and entrepreneurship Number of applicants in the programmes of the Innovation and 2018 - Number of applicants 620 The total number of applicants increased by 5% 2023 Geostat - Workforce Survey Ministry of Education, Science, Culture and Sport of Georgia Ministry of Education, Science, Culture and Sport of Georgia Ministry of Economy and Sustainable 35 Development of Georgia Ministry of Education, Science, Culture and Sport of Georgia Technology Agency of Georgia Action plan for the introduction of lifelong entrepreneurial learning at all levels of the education system 2018 An Action Plan for implementation of lifelong entrepreneurial learning (LLEL) at all levels of education system has been drafted 2023 2021 An Action Plan for the introduction of lifelong entrepreneurial learning has been implemented at all levels of the education system that will help improve entrepreneurial learning at all levels of education.
Goal 2 Strengthening of Active Labour Market Policy (ALMP) Impact indicator Baseline data State programmes budget 2018 - 2 950 000 Improvement of programmes improvement, budgeting of programmes, and institutional Target result/result to be achieved Budget increase by 50% for employment support services Implementation period Source of confirmation Compliance with the UN Sustainable Development Goals 2023 Ministry 8 36 development of its implementing body Unemployment rate Law of Georgia on Employment 2018 - 12.7% 2018 - Draft law 2023 2023 Geostat Ministry <12% An ALMP- related legislative framework has been developed to provide a systematic and consistent approach to employment policy implementation.
Goal 2 Task Outcome indicator Baseline data Target result/result to be achieved Implementation period Source of confirmation Risks 2.1.
Improvement of employment promotion services and measures Strengtheni ng of Active Labour Market Policy (ALMP) Number of people involved in ALMP services by different characteristics: region, age, gender, level of education, and profession Total number of participants for 2018 - 25 171 persons, including females - 14 611, young people under 29 - 739 50% increase of persons involved in ALMP services 2023 LEPL State Employment Promotion Agency 37 Share of job seekers involved in ALMP services in relation to the total number Percentage of employment of persons registered in the database of job seekers Percentage of employed graduates of training-retraining programmes for jobseekers Percentage of persons involved in training- retraining programmes for jobseekers in relation to the total number of jobseekers The visual / software / content part of the Labour Market 2.2.
Strengthening a training-retraining programme for jobseekers 2.3.
Updating and developing the Labour Market Share of job seekers involved in ALMP services in relation to the total number of registered: 12.9% Share of jobseekers in relation to the total number of registered: 1% 2017 – 14% 2023 Share of job seekers involved in ALMP services increased to 17% in relation to the total number Share of employees is increased by 15% 2023 30% 2023 2018 - 1.5% The share has increased to 10% 2023 2018 -The Labour Market Information 2023 Data has been updated and opportunities have increased LEPL State Employment Promotion Agency LEPL State Employment Promotion Agency LEPL State Employment Promotion Agency LEPL State Employment Promotion Agency Ministry of Economy and Sustainable 38 Information System (LMIS) Information System has been updated System is operational Development of Georgia Compliance with the UN Sustainable Development Goals 8; 10.7 Goal 3 Impact indicator Baseline Data Target result/result to be achieved Implementation period Source of confirmation Promoting inclusion of women and vulnerable groups in the labour market through targeted social and inclusive employment policies Rate of women’s participation in the labour market (%) NEET Youth (aged 15- 24) Engagement Rate (%) Gini coefficient (by total consumer expenditure) A feasibility study of the subsidies of unemployment allowance, minimum wages and law wages paid to employees 2018 - 55.6% >63.2% 2023 Geostat 2017 - 24.8% <22.8% 2017 - 0.37% <0.35 2023 2023 Geostat Geostat - (Consumer expenditure data) 2018 –
 determined by the Action Plan of the Trilateral Commission on Social Partnership Economic feasibility of issues within social dialogue is considered and appropriate activities are planned based on the impact assessment of the regulation, if necessary 2023 Ministry Trilateral Commission on Social Partnership 39 Goal 3 Task Outcome indicator Baseline data 2018 - 349 Employment rate of employable persons with the status of social vulnerability through employment services Employment rate for women Promoting inclusion of
 women and vulnerable groups in the labour market through targeted social and inclusive employme nt policies 3.1 Improving the link between employment and targeted social assistance programmes 3.2 Promoting gender equality and women’s participation in the labour market and entrepreneurship Target result/result to be achieved Grouth by 50% Implementati on period 2023 Source of confirmation Risks LEPL State Employment Promotion Agency 2018 - 49.3% 55% 2023 Geostat 40 2018 - 765 1000 2023 LEPL State Employment Promotion Agency 2017 - 51.3% 56.4% 2023 Geostat – Workeforce Survey 2017 - 1.6% 1.9 % 2023 Geostat - Workforce Survey 2018 - 99 120 2023 LEPL State Employment Promotion Agency 3.3 Supporting youth integration in the labour market 3.4 Promotion of low skilled workforce 3.5 Support for people with disabilities (PwD) and people with special educational needs (PSEN) Annual employment rate of young people (up to 29 years) involved in state employment services Employment rate for persons with vocational education aged 15- 29 years Share of participation of adults (25-64) in continuing education Annual employment rate of people with disabilities (PwD) and people with special educational needs (PSEN) engaged in public services 41 Target groups: youth, students, mobile groups, etc.
Population of municipalities densely populated by ethnic minorities 2023 Continuity of service; Adding at least 2 new target groups 3.6 Support for the representatives of ethnic minorities Providing access to Georgian language instruction for ethnic minority representatives in densely populated areas to facilitate inclusion in state services; Expanding target groups to develop professional skills and promote competitiveness in the labour market; Increasing awareness of state socio-economic programmes and services LEPL State Employment Promotion Agency Ministry of Education, Science, Culture and Sport of Georgia LEPL Zurab Zhvania School of Public Administration Office of the State Minister of Georgia for Reconciliation and Civic Equality of Georgia 42 3.7 Promoting access to livelihoods for IDPs Beneficiaries’ access to livelihood programmes 2018 - 442 IDPs benefited from livelihood programmes Availability increased by at least 5% 2023 Ministry 3.8.
Involvement of affected populations living in the villages adjacent to the demarcation line in training- retraining programmes, as well as promotion of small entrepreneurship Participation of persons living in the vicinity of the dividing line in training-retraining programmes Increasing the number of small entrepreneurial projects 2018 - 200 beneficiaries of training-retraining programmes 205 Small Business Projects 2023 Increase in the number of programme beneficiaries Temporary Governmental Commission on Response to the Needs of Affected communities living in the villages near the Dividing Line 43 Continuity of public services 2023 3.9 Supporting the integration of internationally protected persons, aliens legally residing in Georgia and stateless persons in Georgia Access to the state programmes defined by the legislation of Georgia for internationally protected persons, aliens legally residing in Georgia and stateless persons in Georgia 2017 - Persons with International Protection have access to Integration Promotion Programmes (a total of 110 beneficiaries participated in the Programme for Support of Integration of Persons with International Protection in Georgia, of which 23 are female and 87 are male).
Ministry as Coordinator of the Working Group on Integration within Governmental the on Commission Migration, which includes the Ministry of Science, Education, Culture Sport, and Ministry of Finance, Ministry of Economy and Sustainable Development, Ministry of Justice, Ministry of Internal Affairs, State Security Service, as well as the invited agencies: Ministry of Foreign Affairs, Ministry of Environment and Agriculture of Georgia, international organizations (UNHCR, IOM, and ICMPD) NGOs 44 Goal 4 Impact indicator Baseline Data Target result/result to be achieved Implementation period Source of confirmation Number of industrial cases in the workplace In 2018, 30 people were killed and 29 WERE injured as a result of an industrial accident.
72 The number of people killed and injured by industrial accidents is reduced by 30% 2023 Ministry Improvement of the system of enforcement of labour safety in the workplace and protection of rights Compliance with the UN Sustainable Development Goals 8 Goal 4 Task Outcome indicator Baseline data Target result/result to be achieved Implementati on period Source of confirmation Risks 72 The statistical data are processed according to the materials obtained by the Department of Labour Inspection.
From 2019, the Ministry shall have an obligation to register industrial accidents.
45 Improvement of the system of enforcement of labour safety in the workplace and protection of rights 4.1 Ensuring the protection of labour rights in accordance with internationally recognized standards 2023 Ministry The number of positive remarks by the Committee of Experts of the International Labour Organization has increased 2023 Ministry The 14 directives specified in the Annex XXX are fully reflected in the legislation Improving the implementation of labour rights in the country (freedom of association and signing collective bargaining contracts) based on ILO documents and national legislation The legislation reflects the labour standards provided for in the Association Agreement Remarks / Conclusions of the Committee of Experts of the International Labour Organization on the Conformity of the legislation of Georgia with the Protection of Labour Rights - 2015 - Collective Agreement - 8 (Articles 1, 2, 3, 4); Freedom of association - (Articles 2, 3) 19.02.2019 - The labour legislation of Georgia has been amended in accordance with the 3 directives provided for in the Annex XXX 46 Number of inspections a year - 1000 2023 Ministry 1 inspector for 20,000 employees 2023 Ministry At least two meetings a year 2023 Ministry 4.2 Strengthening labour inspection Number of inspections 4.3 Enhancing social dialogue and partnership Number of inspectors in relation to employees Important decisions made and / or enforced (2000/43/EC ; 2000/78/EC; 2004/113/EC) 2018 - 224 objects within the programme; 90 companies within
 the law 2018 - 1 inspector for 44,584 employees In 2018, two meetings of the Trilateral Commission on Social Partnership took place and two decisions were taken A Trilateral Commission on Social Partnership of the Autonomous Republic of Adjara has been 47 4.4 Institutional strengthening of labour mediation Number of mediators of labour disputes and raising their qualification set up, one meeting has been held 2018 - 11 mediators.
One training has been conducted Number of mediators 15; Two trainings a year 2023 Ministry Goal 5 Impact indicator Baseline data Target result/result to be achieved Implementation period Source of confirmation Labour migration legislation is in line with international standards 2023 Research commissioned by the Ministry Improving labour migration management Implementing effective labour migration management and labour market / economic needs changes in labor migration legislation in Georgia Regulatory legal acts: Law of Georgia on Labour Migration; Ordinance N417 of the Government of Georgia on the Approval of the Procedure for Employment of Migrant Workers (aliens without a permanent residence permit in Georgia) by Local Employers and for Engaging in Paid Labour Activities Compliance with the UN Sustainable Development Goals 8; 10.7 48 Goal 5 Task Outcome indicator Baseline data Improving labour migration manageme nt 5.1 Facilitating circular migration Tere is a comprehensive, reliable and constantly up-to- date database on migrants.
Number of people applying for temporary legal employment abroad registered in the relevant database Target result/result to be achieved There is at least one circular migration scheme Implementatio n period Source of confirmation Risks 2023 Ministry Number of agreements concluded by Georgia with different countries for the purpose of legal employment abroad An agreement between the Government of Georgia and the Government of the Republic of France on the Accommodation and Circular Migration of Qualified Specialists is in force.
At least 3 agreements 2023 Ministry Number of persons employed abroad by circular migration schemes 2018 - 29 beneficiaries are employed abroad At least 50 employees each year 2023 Ministry 49 Risks The strategy takes into consideration potential risks, the probability of their realisation, the degree of impact and measurements to mitigate them.
Aforesaid information is presented in table: Potential Risks Lack of financial resources due to changing economic development trends or reduced international assistance in the country.

Probability Low Impact High Risk Mitigation Measurements Resource allocation in the public sector by improving public spending efficiency and mobilising donor assistance.

Lack of capacity for institutions involved in reform and coordination.

Medium High Lack of coordination in the process of strategy implementation.
Low High Implement capacity-building measures and mobilise relevant resources, including human resources.

Implement capacity-building measures 4.

Implementation of the strategy 4.1.

Institutional Framework Implementation of strategy objectives requires effective coordination and coherence with different sector strategies and action plans.
The Strategy Implementation Coordination Committee will be formed to coordinate the strategy, which will include representatives of the following organisations: Ministry of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Affairs of Georgia, Ministry of Economy and Sustainable Development of Georgia, Ministry of Education, Science, Culture and Sport of Georgia, professional organisations, and social partners.
If needed, the representatives of other public institutions and agencies will be involved.

The Committee will meet twice a year.

Ministry of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Affairs of Georgia will perform the functions of a coordinator and a secretariat that will prepare, collect and hand over the documents required for the meeting to the board, including minutes of meeting, meeting agendas, reports etc.
For the implementation of the strategy, capacity building is envisaged for the Ministry of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Affairs of Georgia, Ltd. State Employment Agency, Ministry of Economy and Sustainable Development of Georgia, Division of Labour Marker Analysis of Economic Policy Department and state Employment Promotion Agency, especially in strategy implementation, monitoring and evaluation.
4.2 Partners 50 In the process of strategy planning and implementation the partners are: 1.

Ministry of Education, Science, Culture and Sport of Georgia; 2.

Ministry of Economy and Sustainable Development; 3.

Ministry of Regional Development and Infrastructure of Georgia; 4.

Ministry of Foreign Affairs of Georgia; 5.

Ministry of Internal Affairs of Georgia; 6.

Ministry of Defence of Georgia; 7.

Ministry of Justice of Georgia; 8.

Ministry of Agriculture of Georgia; 9.


State Ministry for Reconciliation and Civic Equality of Georgia; 10.

National Statistics Office of Georgia (Geostat); 11.

Local Self-Government Units 12.

Social partners at national and regional levels 13. International and local donor organisations 14.

Non-Governmental organisations 4.3 Action Plan 2019-2021 The national strategy on labour and employment policy will be implemented on the basis of an action plan.
The action plan defines in detail the activities within the strategy and the agencies responsible for their implementation in accordance with the goals and objectives.

The 2022-2023 Strategy Implementation Action Plan will be developed in 2021.

The action plan is presented as an appendix to this strategy 4.4 Strategy Financing The strategy and action plan will be implemented on the basis of the state budget of Georgia, taking into account the Main Data and Directions of the Country (BBD).
The financial resources for implementing the strategy are outlined in the action plan.

Responsible bodies described in the action plan will include the necessary funding for implementing the action plan in their annual budget report.

The Government of Georgia will ensure that the state funding is complemented by international donor organisations; therefore, close and active cooperation will be established with international organisations for the effective mobilisation of resources.
4.5 Communication on strategy implementation and information measures The purpose of formation and communication is to increase the transparency of the reforms, to inform the public and stakeholders about the goals, objectives, and means of implementation and results of the strategy.

Communication activities will be carried out in the following directions: 1.
Organising information campaigns aimed at informing target groups about the strategy and its outcomes, and about the ongoing reforms in labour market and the field of employment.

Activities will be tailored to the needs of the target group.

2.

Organising supporting campaigns aimed at enhancing the effectiveness of the information campaign, maintaining interest in the modernisation and development of the labour market.

3.
3.

Systematic gathering of information to assess the attitudes, beliefs, behaviours, and changes in stakeholders and target beneficiaries.

Develop a monitoring and evaluation system for raising awareness in the labour market reform process.

4.

Strengthening the capacity of human resources involved in awareness-raising activities, and monitoring.

51 5.
51 5.

Monitor and Evaluation of Strategy Implementation Ministry's Political Department will be responsible for coordinating monitoring and evaluation, which includes: a) Annual monitoring and account, b) 6-month monitoring and account, c) Final evaluation of the strategy implementation and report preparation.

A flexible monitoring mechanism and evaluation system is required for the successful implementation of the strategy.
Monitoring will evaluate the progress made in activities and in achieving tasks, and identify gaps and problems.

The evaluation system will evaluate the achievement of strategic goals and outcomes.

Implementation deadlines and performance indicators are outlined for each goal and activity and they are set out in a logical framework.

The final stage of the monitoring and evaluation process is the evaluation of results, effectiveness, efficiency, impact, etc.
The final assessment of the implementation of the strategy is carried out by the Government of Georgia, the Trilateral Commission on Social Partnerships and donor organisations involved in its financing and implementation.
SWOT Analysis Strengths Weaknesses  Political Will  Continuous process of economic reforms  Macroeconomic stability  Low level of corruption  Ease of doing business  Economic sustainability  Simplified administrative procedures and developed public services  Geographical location of Georgia  High level of economic openness  Young workforce / human capital  Low level of Research and Development (so called R&D)  Weak social partnership  Structural problems of the labour market  High share of self-employed persons  High level of mismatch between demand and supply of skills  Low productivity of the workforce in certain sectors of the economy  Less inclusiveness of economic growth as a result of structural problems Opportunities Threats  Association Agreement with the European  Slowing economic growth of main trading  Union Deep and Comprehensive Free Trade Area Agreement with the European Union  Diversification of the country's economic functions  Development of small and medium-sized partner countries  Possible political instability, including in the occupied territories (20% of the country is occupied)  Deepening political instability in the region  Decline in population and workforce enterprises  Strengthening the potential for innovation and technology  Increased access to finances  Development of human capital  Changes in global tourism (directions, anticipation)  Qualitative improvement of foreign direct investment  Support from the EU and other international organizations Increasing the efficiency of the labour market  52 Explanatory Note On the Approval of the National Strategy for Labour and Employment Policy 2019-2023 On the draft resolution of the Government of Georgia: Project information The elaboration of the draft resolution on the strategy is driven by Georgia's commitment to systematic and strategic reforms in the labour and employment spheres.
In addition, one of the preconditions of the EU budget assistance project is the elaboration and adoption of a new labour and employment strategy by the Georgian government.

The purpose of the draft resolution is to support the requirements of international conventions ratified by Georgia in the field of labour and employment, to fulfil international obligations, to facilitate the effective functioning of the employment and labour market.
The National Strategy 2019-2023 for Labour and Employment Policy is a vision of the Government of Georgia on systemic and strategic reforms and measures to be implemented over the next 5 years in labour and employment spheres.
The aim of the strategy is to promote employment (stimulating demand for labour to reduce labour market competitiveness by reducing labour market demand and supply; to strengthen Active Labour Market Policies (ALMP); to promote inclusion of vulnerable groups in the labour market through targeted social and inclusive employment policies; to promote effective functioning of the labour market (improving the labour safety and rights protection system; improving labour migration management).
The implementation of the strategy includes the following activities:  Establishment of the body providing employment promotion services LEPL - State Employment Promotion Agency;  A new employment promotion service will be introduced nationwide; Active labour market policy measures will be implemented, such as employment counselling, which will include: Assessment of the job opportunities of a job seeker; identifying employment services according to the needs of the job seeker and available resources; informing and advising on the job search; developing an individual action plan; keeping track of job seeker's progress.
The new service model will include group career counselling in addition to the individual;  Training and retraining programmes of the job seekers will be strengthened;  A system of vocational guidance, counselling and career planning will be introduced in accordance with the Law of Georgia on Vocational Education;  The visual / software / content part of the labour market information system will be updated;  Labour legislation will be improved according to EU and ILO standards;  The legal entity under Public Law - Labour Inspection will be established and strengthened.
The mandate will be broadened accordingly and the supervision of the protection of labour rights will be carried out by LEPL - Labour Inspection.

In order to facilitate circular migration and legal employment abroad, Georgia will sign agreements etc.
with various countries  Information on the EU legal act The project is not derived from the “Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and 53 Georgia, of the other part” or other bilateral and multilateral agreements, concluded with the European Union.
Calculation of the financial and economic outcomes of the project The project will be implemented within the framework of appropriations allocated to the Ministry of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Affairs of Georgia Expected Results of a Project The purpose of this strategy is to support and promote the Government of Georgia in poverty reduction and socio-economic development of the country.
If the strategy is successfully implemented, the labour market will be developed and improved structurally and institutionally, productivity will increase.

Fiscal policies focused on low taxes and investment growth will contribute to strengthening the private sector and accelerating economic growth.
In addition, through relevant programs, the state will continue to enhance private sector competitiveness, develop micro, small and medium-sized entrepreneurship, improve their access to finance, encourage innovation and technology.

The gap between the demand and supply of labour in the labour market will be reduced, in addition, the scale of irregular labour migration will be reduced, and private-sector and state- supported economic projects will be implemented.
Appropriate institutional development will protect the labour rights of the workers, improve working conditions and ensure decent work.

Project Implementation Period The National Strategy for Labour and Employment Policy of Georgia will be implemented during 2019-2023.

Project author(s) and submitter The project is authored and presented by the Ministry of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Affairs of Georgia.

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