2013年-世界发展银行全球_Georgia___Skills_Mismatch_and_Unemployment_Labor_Market_Challenges_54页_2mb

Summary of Georgia Skills Mismatch and Unemployment Labor Market Challenges

Core Content

This report, published by the World Bank in March 2013, analyzes the labor market challenges in Georgia, focusing on three main issues: underutilization of labor resources, high earnings inequality, and skills mismatch. These issues significantly impact poverty levels in the country. The report highlights the need for policy interventions to improve labor market outcomes and reduce poverty by creating more and better jobs, enhancing education quality, and aligning the workforce with modern economic demands.

Main Labor Market Issues

1. Underutilization of Labor Resources

• High Unemployment: Georgia's unemployment rate is over 15%, which is high by European standards. When discouraged workers are included, the rate increases to 28% in urban areas, three times that of rural areas.
• Low Productivity Employment: Despite economic growth, employment rates remain low. The majority of jobs are in traditional, low-productivity sectors like agriculture (46% of total employment), which contributes only 10% to GDP.
• Impact on Poverty: The employed are the largest group among the poor, with low labor earnings being the primary cause of poverty, not unemployment. Many low-paid workers are not poor due to being secondary earners in well-off families.
• Long-Term Unemployment: Two-thirds of the unemployed have been jobless for over a year, indicating limited opportunities for re-employment.

2. High Earnings Inequality

• Wage Inequality: The decile ratio in Georgia is 7.1, indicating significant wage disparities compared to the EU (around 4).
• Low-Paid Jobs: About 40% of Georgian wage workers earn less than two-thirds of the median wage, which is much higher than in most EU countries.
• Impact on Poverty: High wage inequality and low pay are strongly linked to increased poverty rates.

3. Skills Mismatch

• Overeducation: Many highly educated workers are unemployed, with over 50% of the unemployed having secondary education and 40% having higher education.
• Skills Gap: Employers report difficulty in finding workers with the required skills, especially in innovative and growing firms.
• Misalignment of Education and Job Market: The education system produces a surplus of highly educated workers, while there is a shortage of vocational-trained workers.
• Consequences: Highly educated workers often take low-skilled jobs, leading to overqualification and lower wages. This mismatch hinders economic modernization and growth.

Key Findings

• Employment Structure: The majority of jobs in Georgia are in traditional, low-productivity sectors such as agriculture and trade, with only a small share in modern, high-productivity sectors.
• Youth Unemployment: Youth unemployment is significantly higher (36%) than that of prime-age workers (17%). Youth account for 40% of the unemployed, and close to one-third are NEETs (Neither in Education, Employment, or Training).
• Labor Market Performance: Despite strong GDP growth (5.1% annually from 2005-2010), employment growth was negative (-1.4%), showing limited responsiveness of employment to economic growth.
• Real Wage vs. Productivity: Real wages have increased significantly (133.7% since 2007), but labor productivity growth has been much slower (109.5%), leading to higher unit labor costs and potentially affecting competitiveness.

Policy Implications

• Job Creation: Georgia needs to create more and better jobs, particularly in the modern sector, to absorb the unemployed and increase earnings.
• Industrial Restructuring: The economy should shift from traditional low-productivity sectors to modern, high-value-added industries to improve job quality and productivity.
• Education Reform: The education system must be reformed to align with labor market needs, providing not only degrees but also the skills and competencies required by modern firms.
• Labor Market Information: Developing labor market information systems to guide career choices and improve job matching.
• Skill Development: Increasing training and skill development opportunities to address the skills gap and enhance employability.
• Institutional Development: Strengthening institutions that improve access to jobs, reduce income inequality, and protect workers' rights.

Conclusion

The labor market in Georgia is characterized by high unemployment, low productivity, and significant skills mismatch. These issues are closely linked to poverty, particularly in urban areas and among young workers. Addressing these challenges requires a multifaceted approach, including job creation, education reform, and industrial restructuring, to ensure sustainable economic growth and improved labor market outcomes.