DOI kodi: 10.52340/ekonomisti.2026.02.06

Expanded Summary

Article investigates existing challenges in the realization of right of employment and social protection of unemployed persons   in Georgia in relation of the norms about possibility of getting means of living by the performing voluntarily selected works, determination of the status of unemployed, promote access to employment, provision with the subsistence minimum during the period of unemployment.   

Analysis drawbacks and failures of active and passive labor market policies realized on the initial stages of the labor market reform in Georgia. Characterizes main deficiencies of labor market policy programs, integrated with the program of the social protection of vulnerable groups of population, which covers only part of the unemployed persons by avoiding the principle Alness (Ubiquity) of the Covenant on Economic, Social and Cultural Rights, revised version of the Social Chart of Europe and constitutional norms of social protection of citizens. In the conditions of an economy devastated by civil wars and ethnic conflicts, at the initial stage of reforms, Georgia’s economy proved unprepared to implement an active labor market policy. Problems related to mobilizing contributions from employers and employees, along with the deficit of the employment fund, led not only to difficulties in implementing active labor market policies but also to the failure of passive labor market policies. Although, at the early stage of reforms, social protection for the unemployed and thus the implementation of passive labor market policies was carried out through the provision of unemployment benefits and assistance, under conditions of economic stagnation the government was forced to abandon even passive labor market policies. Only later, amid high economic growth rates and financial stability, was it able to transition to active labor market policies through measures such as supporting entrepreneurship, subsidizing jobs, and activating training and retraining programs for the unemployed.

New approaches to state policy in the field of employment were defined by the Law of Georgia on the “Promotion of Employment” (2020). According to this law, the state ensures equal access across the entire territory of Georgia to state employment promotion programs for Georgian citizens, encourages job seekers to gain employment or pursue self-employment, and promotes labor market participation. The law introduces the concept of individualized employment promotion, which means tailoring employment support measures to the individual skills, abilities, and personal and professional development needs of job seekers. At the same time, the state provides special approaches for vulnerable groups and residents of high-mountainous regions who face difficulties in accessing employment. The law also introduces four forms of employment: subsidized employment, employment, internships, and labor migration (Article 13).

New approaches to the social protection of the unemployed and their employment are also established through government measures introduced under Resolution No. 81 of February 17, 2022, of the Government of Georgia on the Approval of the 2022 State Program for Employment Promotion. According to this resolution, the program includes the development and provision of free intermediary services between job seekers and employers in the labor market; the design and implementation of mechanisms to support employment for vulnerable and low-competitive groups; the organization of employment forums; and the monitoring of vacancies and implementation of qualitative research. The aforementioned resolution envisions a transition to active labor market policies and the development of employment promotion measures, which can be considered a positive development. However, social protection measures for the unemployed within the framework of passive labor market policy have been neglected in the country and have not been implemented since their abolition. Moreover, beneficiaries of the 2022 employment promotion program have been only those unemployed individuals whose family members were classified as socially vulnerable according to the rating scores determined by the methodology for assessing beneficiaries of social assistance.

As a result, by bypassing the guarantees established by constitutional norms of social protection, the International Covenant on Economic, Social and Cultural Rights, and the Revised European Social Charter and by disregarding the principles of a market economy the state budget of Georgia has been burdened with financing various areas integrated with poverty reduction programs (including unemployment benefits, social assistance, and pensions for the elderly), making it costly for the state budget as well. Funding for active labor market policies has instead been entrusted to programs such as “Produce in Georgia,” as well as initiatives implemented and planned under the Partnership Fund and small business support programs. Despite the government’s correct orientation toward implementing active labor market policies, this process is characterized by challenges in the context of existing social and economic problems and is difficult to resolve due to its high cost. To address this issue, the state should create market-based mechanisms for the social protection of the unemployed that would, on the one hand, facilitate the implementation of active labor market policies and, on the other hand, increase motivation to work.

According to the current version of the Constitution of Georgia and the Law of Georgia on the Promotion of Employment, the main directions of social protection for the unemployed include support in employment, ensuring conditions for subsistence minimum standards, defining the status of the unemployed, and protecting citizens’ labor rights abroad. The main goal of social protection measures for the unemployed is to promote their employment. This requires not only the creation of new jobs but also the establishment of a system for training and retraining the unemployed, which is encompassed within the system of active labor market policy measures. At the same time, it should be emphasized that market mechanisms for protecting the population against unemployment risk have not been implemented in the country. Such mechanisms would allow the costs of unemployment risk insurance to be distributed among the unemployed themselves, employers, and the state. A decisive role in this system would be played by ensuring the possibility of paying unemployment benefits during periods of unemployment, financed through contributions made during periods of employment, based on international experience and practice. In this regard, it is essential to introduce into the country the experience of various unemployment insurance practices existing worldwide and to ensure strict state regulation of this field.

The necessity of the establishment of the unemployment risk insurance system and introduction of market mechanisms through the redistribution of the income between the employment and unemployment periods on the basis of contributions made during the employment period are recommended taking into the account the relevant experiences used in the worldwide.