Problems of Utilization of Human Resources and Ways for Improvement Medea Gotsiridze Prof. expert UNDP- “Gender and Politics in South Caucasus” programme 17 July 2009

Transformation of the labor into the labor with “knowledge”. . Employment programs directed to decrease unemployment and poverty, need the institutional environment to be changed  Effective instruments of retraining to be introduced in order to create a qualified and competitive working force.  Age, gender and education are significant determinants of labour mobility  A gender misbalance is noticeable in the Georgian population: women predominate in the labour force/currently 52%/and exceed 60%of the older group.

Paradigms of Education  Despite of high level of women education they are not competitive in the labour market  Vocational/professional education in Georgia has fragmented, temporary.  level of effectiveness of labor market in the country is extremely low.  Unbalance between supply and demand for the human resources is the reason of high level of unemployment and migration of the labor resources.

Distribution of Unemployment by Education (Share in the Total Number of Unemployed) Woman and Man 2008, Women Men   Basic general education Basic general education1,83,1 Secondary general education Secondary general education11,320,5 Preliminary professional training Preliminary professional training1,82,1 Secondary professional training 10,06,9 High education 20,022,4 Total44,955,1

Education system in Georgia is not market oriented.  Limited employment opportunities  Limited action area  Low level of elasticity  Low labor mobility  Low remuneration  High percentage of the long-term unemployed  High unemployment among the labor resources with higher education  High percentage of informal employment  Domination of the “secondary labor market”  Underdevelopment of the employment infrastructure

Unbalance between demand and supply of qualified labour forces Unbalance between demand and supply of qualified labour forces  Lack of human resources management  No legislative base for state regulation of employment exists (in 2006 the law on employment was abrogated)  No state employment service exists  Absence of gender evaluation and monitoring of state interventions in the labour market

What should be done  Difficulties at labor market are basically related to training of the labor forces and this is within the sphere of state regulation.  In opinion of 40% of the entrepreneurs, reason of difficulty of personnel recruiting is the fact that professionals demanded at he labor market are not trained in Georgia and 9% are not aware to whom they could apply  Professional market stimulates the qualified workers to change their jobs, have successful carriers, do not restrict themselves to one employer and gain guarantees of employment.  Training and re-training is organic component of the education system of a country and it should be a strategic direction