“This was not a permanent job; it was limited to a specific term, and everyone knew that after this period, the job would no longer exist,” stated Giorgi Kakauridze, Deputy Minister of Finance, in response to a question regarding the suspension of the state employment program for socially vulnerable people from 2026.

Kakauridze explained that both at the program’s inception and today, the situation is completely different in terms of labor market demand and overall economic trends.

“The employment program for socially vulnerable people was a decision made in 2021, which started in 2022. The program had a four-year cycle. If we look at the economic situation - what it was in 2021 compared to today - it is completely different, both in terms of labor market demand and overall economic trends. Back then, in the post-COVID period, unemployment was quite high. Today, we see that there is a labor shortage in multiple sectors, which poses a challenge for the private sector. Accordingly, the decision was made to terminate this program and to assist those who want to work in the private sector through retraining under different programs, facilitating their employment in private-sector jobs,” Kakauridze said.

Regarding the fate of people currently employed under the program, Kakauridze clarified that they will remain employed until their respective terms expire.

“This was not a permanent job; it was limited to a specific term, and everyone knew that after this period, the job would no longer exist,” he emphasized.

When asked about the extent of the labor shortage in the country, Kakauridze explained that as the economy grows, the demand for jobs increases, and the available workforce cannot meet this demand.

Kakauridze also noted that emigration is a problem, as people who have moved abroad are no longer part of Georgia’s labor market.

“There is also a serious labor shortage in the tourism sector… When the economy grows, the demand for jobs increases, and the available workforce cannot meet this demand. Unfortunately, qualified labor is a serious problem. Emigration is part of this issue, because those who have gone abroad are not present in Georgia’s labor market today,” Kakauridze said.

For reference, the state employment program was launched in March 2022. Socially vulnerable people were offered employment in public institutions, with salaries of 300 GEL, alongside continued social benefits for up to four years.