The number of formally employed Georgians decreased by 12.2% y/y in Q1 to 782,000, implying that around 108,000 jobs were wiped out by the coronavirus-driven crisis that mostly hit the “HoReCa” food service and hotel industries sector of a country that is reliant on tourism.
Georgia’s unemployment rate hit 21.9% in Q1, up by 3.7pp y/y. And the increase would have been steeper if some 80,000 Georgians had simply given up seeking a job. The population outside the labour force, the active population, exceeded for the first time in recent years half of the working-age population as labour force participation rate dropped to 48.3% of the active population, down from 51.3% last year.
The number of unemployed people in Georgia increased by nearly 35,000 to 317,500 in Q1, accounting for 10.6% of the working age population (or 21.9% of the active population).
While this was not the highest unemployment in recent years (the jobless rate was higher in Q1 of 2018), the low number of jobs is a more significant concern for social impact and economic growth. Compared to the first quarter of 2018 (when the number of people seeking a job was 9% bigger than in Q1 this year), the jobs count in Georgia’s economy dropped by 9.3%, or by 80,000. As compared to the pre-crisis period, the jobless rate should be adjusted to reflect discouraged workers who have given up hope of finding a job, at least for a good while.
Georgia: Labour Force [thous] | Q1 18 | Q1 19 | Q1 20 | Q2 20 | Q3 20 | Q4 20 | Q1 21 | % y/y | 000s y/y |
Total 15 + population | 3038.3 | 3029.2 | 3013.1 | 3012.9 | 3036.8 | 3011.3 | 2994.8 | -0.6% | -18.3 |
Labour force (Active population), total | 1592.0 | 1593.2 | 1545.2 | 1515.0 | 1528.9 | 1505.7 | 1447.2 | -6.3% | -98.0 |
Employed | 1246.4 | 1279.8 | 1262.7 | 1237.6 | 1269.1 | 1197.9 | 1129.7 | -10.5% | -132.9 |
Hired | 863.3 | 896.7 | 891.2 | 839.5 | 845.3 | 805.1 | 782.8 | -12.2% | -108.3 |
Self-employed | 382.6 | 382.6 | 370.8 | 397.6 | 423.1 | 391.9 | 345.7 | -6.8% | -25.2 |
Not-identified worker | 0.5 | 0.4 | 0.7 | 0.5 | 0.7 | 0.9 | 1.2 | 81.0% | 0.5 |
Unemployed | 345.6 | 313.5 | 282.6 | 277.4 | 259.8 | 307.8 | 317.5 | 12.4% | 34.9 |
Population outside the labour force | 1446.2 | 1435.9 | 1467.8 | 1497.9 | 1507.9 | 1505.6 | 1547.6 | 5.4% | 79.7 |
Unemployment rate, percentage | 21.7 | 19.7 | 18.3 | 18.3 | 17.0 | 20.4 | 21.9 | 20.0% | 3.7 |
Labour force participation rate (Economic activity rate), percentage | 52.4 | 52.6 | 51.3 | 50.3 | 50.3 | 50.0 | 48.3 | -3.0 | -3.0 |
Employment rate, percentage | 41.0 | 42.2 | 41.9 | 41.1 | 41.8 | 39.8 | 37.7 | -10.0% | -4.2 |
Source: GeoStat |