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Economic growth does not equal increased employment

By Messenger Staff
Thursday, January 6
Official figures indicate that the Georgian economy has grown up by 6%. However, the level of unemployment in the country is still rather high. Economic analyst Joseph Achuadze stated that economic growth in Georgia comes from sectors where there are not many people employed. Economic growth in particular has not touched the agricultural sector and where there is a high number of people unemployed. In EU countries around 65% of GDP is created by small and medium sized businesses and the rest comes from large businesses. In Georgia, things are upside down. Today small and medium size businesses constitute around 15% of the GDP, whereas big businesses produce 85%. The increase of employment depends on progress within medium and small sized businesses. Investments in the agricultural sector for the last four years have been very low. Today, unemployment is the number one problem for the Georgian population. It is very difficult to get job and very risky to lose one. Beginning from 2000, the level of unemployment according to official information continually increases. According to social service agencies 40% of population currently lives below the poverty line and the figure keeps increasing. The number of vulnerable people in the country is also increasing, which in reality is just fewer than 2 million people.