10.36172/EKONOMISTI.2021.XVII.02.Tsartsidze.Latsabidze.Gabadadze

Expanded Summary

Analyzed in the work peculiarities of functioning the unemployment insurance system in economically developed countries. In this field has been studied the international practice of administration, rated the amount of allowance issued under the unemployment insurance mechanism, appointment prerequisites, period of issuance and duration, sources of funding formation, legislative bases of regulation. The focus is about, context of the global financial and economic crisis caused by the pandemic, about changes in the unemployment insurance mechanism, in a separate country.  Substantiated the necessity of forming an unemployment insurance system in Georgia and expediency of sharing best practices tested abroad – considering of the country socio-economic development and the peculiarities of the functioning labour market.

Key words: Labour market, active and passive politic, insurance of unemployment, allowance, social help, employment policy.

In developed countries, the state is actively implementing targeted macroeconomic policy for social protection of the population, to regulate unemployment and social-labour relations in general, within which it stands out as a general macroeconomic, also specifically perfection measures of labour market. However, for problems of unemployment and regulatory purposes the state pursues a passive and/or active employment policy through relevant institutions and instruments of the labour market. The goal of active policy is planning and realization of unemployed stable and effective employment support measures, improving the efficiency of the functioning of labour market. Passive policy is aimed to maintain the welfare of the unemployed, to reduction a minimum results negative social of unemployment, economic and psychological for citizens left without a job. That's why the main instruments of passive policy is unemployment insurance and ensuring early retirement. Accordingly, in developed countries for the effective realization of this policy created public employment services and flexible and improved unemployment insurance systems, which are somewhat different in terms of individual countries. The differences are conditioned with the current situation in the labour market and managing of social-labour relations. Management and administration of unemployment insurance system is carried out within labour market and passive policy (PLMP). Amount to be paid under the unemployment insurance program, appointment rule, term of issue and other conditions are strictly defined by the relevant legislation of an individual country. In particular, in many countries, its duration is mainly related to a reasonable time to find a job, duration of frictional unemployment, with a period of unemployment training.

In order to maintain employment motivation, amount issued within the framework of unemployment insurance is less than the average salary received by a person during the period of work and it is differentiated at a certain percentage level.

Unemployment benefits can be issued from the state budget, or from special targeted funds. This formed from various taxes, which are often paid by both employees and employers. Proven systems in European countries show, that unemployment insurance for a citizen being unemployed and consequently, in the absence period of remuneration (salary), is an effective mechanism for its financial needs, which significantly compensates for unearned income in the form of salary.

By the authors, according to the experience of many countries, start working on the introduction of the unemployment insurance system in Georgia is considered an urgently needed case. Based on the practical analysis experience of different countries, substantiated that it is essential in the insurance system, that the amount of allowance to be paid during the period of unemployment should be related to the average wage and the volume of insurance premiums, but the issuance period - deadline for finding a new job, the duration of the transition from one job to another and time required for retraining of an unemployed person. It is emphasized that, for the existence of a full-fledged legal basis for the unemployment insurance system ratification of convention N102 ,,Minimum Norms of Social Security" (approved by ILO in Geneva on 04 June 1952) [C102, 1952 (No. 102). (ilo.org)] International Labour Organization is advisable.