[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-108561-en":3,"doc-seo-108561-105":31,"detail-sidebar-cat-0-en-105":93},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":21,"is_downloadable":21,"audit_status":21,"page_count":22,"language":23,"language_code":24,"site_id":25,"html_lang":24,"table_of_contents":26,"faqs":27,"seo_title":28,"seo_description":14,"update_tm":29,"read_time":30},108561,8796095461564,"Liam","https://ap-avatar.wpscdn.com/davatar_155a257f0dc6eb9ab79c44ca47cae57d",8,"Research & Report","Georgia Country Economic Memorandum Chapter 5 - Labor Market and Skills","The chapter explains how jobs, skills, and labor-market efficiency jointly shape economic and social development in Georgia. It highlights the rising skills requirements driven by technology adoption and automation, shifting demand toward higher-level cognitive, technical, and socio-behavioral competencies. It also evaluates Georgia’s labor-market performance, noting mixed outcomes from reforms alongside persistent unemployment, low productivity sectors, and skills mismatches. Finally, it describes education-system gaps and labor-market information weaknesses that reduce mobility and participation.","Public Disclosure Authorized Public Disclosure Authorized  \nGeorgia Country Economic Memorandum Chapter 5: Labor Market and Skills  \nLabor Market and Skills  \nKey Messages  \n1. Jobs are the cornerstone of economic and social development. People work their way out of poverty through jobs. Economies grow as people get better at what they do, as they move from farms to firms, and as more productive jobs are created and less productive ones disappear (World Bank, 2013) . While a dynamic private sector is needed to create jobs, workers should have the skills, a key component of human capital, to take on these opportunities. Better human capital has been linked to growth; in fact, (Hsieh & Klenow, 2010) analyze cross-country differences in incomes and show that human capital accounts for around 10-30 percent of the differences in income across countries. This is probably an underestimate, as human capital also helps the operation and adoption of technologies (Acemoglu, 2005), thus supporting TFP, which accounts for around 50 percent of income differences. In addition to skills, an efficient labor market is needed to facilitate labor force participation and efficiently match workers with the most suitable jobs for their skillset.  \n2. Technology changes are raising the skills bar, even for basic occupations. In high-income countries, the reduced intensity of routine tasks is associated with the increased use of computers and other digital technologies. In developing countries, on average, two-thirds of all jobs are susceptible to automation (World Bank, 2016b) . While low wages and slower technology adoption may have slowed the transition in developing countries, routine manual and cognitive skills are facing declining demand (World Bank, 2019b) . Instead, high-level cognitive skills such as problemsolving and verbal ability acquired through strong foundational education are seeing increasing demand, and so are technical skills. Future workers will need to, more than ever before, rely on strong social and behavioral skills to work in interdisciplinary teams.1 The Georgian labor market is already going through this transition, and developing high-level cognitive and digital skills will be essential to help Georgians carry out higher productivity jobs.  \n3. Georgia’s labor market performance has been mixed. Economic reforms have proved effective for increased growth and poverty reduction. However, even as TFP experienced robust growth at the macro-level with the transition away from agriculture (see Chapter 1 on Understanding Georgia’s Growth), firm-level performance shows a somewhat different story of nonimproving efficiency (see Chapter 3 on Firm Performance), which limited the creation of good jobs. Also, net job creation barely kept pace with economic growth (Posadas, Makovec, Jaef, Gruen, & Ajwad, 2018), as robust job creation in manufacturing and industry was offset by shrinking agriculture employment. Consequently, Georgia’s unemployment rate, while declining, is high, while most jobs are in traditional, low-productivity sectors, keeping wages low.  \n4. And when jobs are created, employers complain about skills availability. Most jobs that are created are basic positions that require basic skills; however, most Georgian workers have secondary education and above. In addition to creating difficulties for employers to fill these basic positions, a significant share of well-educated workers also end up in jobs requiring low skills, which keeps returns to education low and, furthermore, pushes out workers with lower education. The  \n1 Technical skills include those related to manual dexterity and the use of methods, materials, tools, and instruments. Socio-emotional skills include openness to experience, conscientiousness, self-regulation, grit, mind-set, decision-making, interpersonal skills, extraversion, agreeability and emotional stability. For more details see Pierre, Sanchez Puerta, and Valerio (2014); Winkler (2020) .  \nend r","cbCaiiLzHtECq609","https://ap.wps.com/l/cbCaiiLzHtECq609","pdf",767759,5,1,42,"English","en",105,"# Key Messages\n## Jobs, skills, and human capital\n## Technology-driven skill upgrading\n## Georgia’s labor market performance\n## Skills shortages and education-skill mismatch\n## Education system challenges for skills formation\n## Population shrinkage and labor inactivity","[{\"question\":\"Why are jobs considered the cornerstone of development in this chapter?\",\"answer\":\"Jobs drive economic and social development by lifting people out of poverty and increasing productivity. Growth depends on moving workers toward better jobs and eliminating less productive ones.\"},{\"question\":\"How is technology changing skill needs, according to the chapter?\",\"answer\":\"Technology is raising skill requirements even for basic occupations. Routine cognitive and manual skills face declining demand, while higher-level cognitive, technical, and socio-behavioral skills are increasingly needed.\"},{\"question\":\"What explains the chapter’s emphasis on skills shortages and unemployment despite education attainment?\",\"answer\":\"Employers report difficulty filling basic positions even though many workers have secondary education or above. Education does not consistently translate into job-relevant skills, leaving good jobs unfilled and contributing to unemployment across education levels.\"}]","Georgia Country Economic Memorandum Chapter 5 - Labor Market and Skills | PDF",1784472278,106,{"code":4,"msg":32,"data":33},"ok",{"site_id":25,"language":24,"slug":34,"title":13,"keywords":35,"description":14,"schema_data":36,"social_meta":88,"head_meta":90,"extra_data":92,"updated_unix":29},"georgia-country-economic-memorandum-chapter-5-labor-market-and-skills","",{"@graph":37,"@context":87},[38,55,70],{"@type":39,"itemListElement":40},"BreadcrumbList",[41,45,49,52],{"item":42,"name":43,"@type":44,"position":21},"https://docshare.wps.com","Home","ListItem",{"item":46,"name":47,"@type":44,"position":48},"https://docshare.wps.com/document/","Document",2,{"item":50,"name":12,"@type":44,"position":51},"https://docshare.wps.com/document/research-report/",3,{"item":53,"name":13,"@type":44,"position":54},"https://docshare.wps.com/document/georgia-country-economic-memorandum-chapter-5-labor-market-and-skills/108561/",4,{"url":53,"name":13,"@type":56,"author":57,"headline":13,"publisher":59,"fileFormat":62,"inLanguage":24,"description":14,"dateModified":63,"datePublished":64,"encodingFormat":62,"isAccessibleForFree":65,"interactionStatistic":66},"DigitalDocument",{"name":9,"@type":58},"Person",{"url":42,"name":60,"@type":61},"DocShare","Organization","application/pdf","2026-07-30","2026-07-19",true,{"@type":67,"interactionType":68,"userInteractionCount":20},"InteractionCounter",{"@type":69},"ViewAction",{"@type":71,"mainEntity":72},"FAQPage",[73,79,83],{"name":74,"@type":75,"acceptedAnswer":76},"Why are jobs considered the cornerstone of development in this chapter?","Question",{"text":77,"@type":78},"Jobs drive economic and social development by lifting people out of poverty and increasing productivity. Growth depends on moving workers toward better jobs and eliminating less productive ones.","Answer",{"name":80,"@type":75,"acceptedAnswer":81},"How is technology changing skill needs, according to the chapter?",{"text":82,"@type":78},"Technology is raising skill requirements even for basic occupations. Routine cognitive and manual skills face declining demand, while higher-level cognitive, technical, and socio-behavioral skills are increasingly needed.",{"name":84,"@type":75,"acceptedAnswer":85},"What explains the chapter’s emphasis on skills shortages and unemployment despite education attainment?",{"text":86,"@type":78},"Employers report difficulty filling basic positions even though many workers have secondary education or above. Education does not consistently translate into job-relevant skills, leaving good jobs unfilled and contributing to unemployment across education levels.","https://schema.org",{"og:url":53,"og:type":89,"og:title":13,"og:site_name":60,"og:description":14},"article",{"robots":91,"canonical":53},"index,follow",{"doc_id":7,"site_id":25},{"code":4,"msg":5,"data":94},[95,99,103,107,111,116,121,124,129,132,136],{"id":21,"doc_module":4,"doc_module_name":47,"category_name":96,"show_sort_weight":97,"slug":98},"Story & Novel",90,"story-novel",{"id":48,"doc_module":4,"doc_module_name":47,"category_name":100,"show_sort_weight":101,"slug":102},"Literature",80,"literature",{"id":54,"doc_module":4,"doc_module_name":47,"category_name":104,"show_sort_weight":105,"slug":106},"Exam",70,"exam",{"id":20,"doc_module":4,"doc_module_name":47,"category_name":108,"show_sort_weight":109,"slug":110},"Comic",60,"comic",{"id":112,"doc_module":4,"doc_module_name":47,"category_name":113,"show_sort_weight":114,"slug":115},6,"Technology",50,"technology",{"id":117,"doc_module":4,"doc_module_name":47,"category_name":118,"show_sort_weight":119,"slug":120},7,"Healthcare",40,"healthcare",{"id":11,"doc_module":4,"doc_module_name":47,"category_name":12,"show_sort_weight":122,"slug":123},30,"research-report",{"id":125,"doc_module":4,"doc_module_name":47,"category_name":126,"show_sort_weight":127,"slug":128},9,"Religion & Spirituality",20,"religion-spirituality",{"id":127,"doc_module":4,"doc_module_name":47,"category_name":130,"show_sort_weight":127,"slug":131},"World Cup","world-cup",{"id":133,"doc_module":4,"doc_module_name":47,"category_name":134,"show_sort_weight":133,"slug":135},10,"Lifestyle","lifestyle",{"id":137,"doc_module":4,"doc_module_name":47,"category_name":138,"show_sort_weight":20,"slug":139},19,"General","general"]