Labor market and the existing problems

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The problem of employment in Georgia is still acute in current days. Though there is no shortage of labor in the labor market, labor market integration  remains a crucial challenge. What is the labor market and labor force, what are the peculiarities of this standpoint, and where do the main problems manifest themselves? 

 The labor market is a complex and at the same time important part of the economy. Based on the demand-supply law it ensures reproduction, distribution, and use of the labor force.  Employees and employers meet face to face within the framework of labor relations, when a labor representative offers the employer labor services for a fee. Therefore, a person who has acquired certain knowledge, qualifications, and skills, in order to earn  income, now is selling them on the labor market. So, the object of buying and selling in the labor market is determined skills,  abilitiesw and labor force.

Broadly defined, the labor market is a complex system, which is determined by the constituent entities, including: an Employer, which may be the public or private sector, Joint Stock Company, Cooperative, etc. Employees – the people for whom salary is a stable and main source of income, unemployed – people who do not have a job for some time, however, they are actively involved in the job searching process. State – which is involved in the process of job creation, increasing productive employment, and increasing revenue-generating capabilities. It is also responsible and authorized to protect the labor rights and interests of the population.

Thus, the labor market is a complex structural system that needs the right policies. The government, therefore, developed a national strategy for labor and employment policy (2019-2023 year). Systemic and strategic reforms/measures are described in the document. One of the key problems is to eliminate the mismatch between labor demand and supply in the labor market. Non-compliance, which implies a lack of staff in demanding professions, and also a lack of required qualifications.  

 For this purpose,   the promotion of vocational colleges and training centers is a priority of the government. Promoting vocational colleges and training centers is a priority, which itself is a supportive step to increase business skills and transform inbound investments into jobs.

It’s unfortunate, but the fact is, that there are many problems in the labor market, which need  a unified and reasonable vision to resolve. The fact is that almost 1/3 of the Unemployed in Georgia have higher education. This indicates that the higher education system fails to meet the requirements of the modern labor market. The main problem is also the structural and qualitative imbalance between labor supply and demand. There is an excessive demand for a number of specialties, some specialties are completely neglected,  which further leads to staff shortages in the labor market.

Used Source:https://forbes.ge/blogs/, file:///C:/Users/User/Downloads/matsne-4761408-0%20(1).pdf

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