Starting from 2005, Georgia saw a rapid decline in tertiary gross enrollment. This project outlines the potential reasons behind decreasing enrollment rates and discusses the role of institutional changes, wages, returns to education, external and international migration, and employment patterns.

Any observer of the Georgian economy would probably agree that the country has too many people employed (or, rather, under-employed) in agriculture. Historically, many countries have experienced a secular decline in the share of employment (and GDP) related to the agricultural sector. Yet, Georgia has seen limited structural change out of agriculture (other than, perhaps, into seasonal or permanent labor migration).

Agriculture makes an important contribution to economic development in Georgia. Value added in agriculture accounted for 9.3% of Georgian GDP in 2013 and 53.4% of employment (World Bank, 2014a). Agriculture also provides an essential basis for the food, beverages and tobacco processing industries, which together accounted for just over one-third of value added in manufacturing in Georgia in 2010.

One of the most puzzling aspects of the Georgian labor market is what is known as the “qualification mismatch”. While unemployment is high, many positions remain vacant due to a lack of qualified applicants.

On November 6, Vice President for Europe and Central Asia (ECA) Laura Tuck, Regional Director for the South Caucasus Henry Kerali, Program Leader for the South Caucasus Rashmi Shankar and other representatives of the World Bank Tbilisi Office visited ISET.