Inclusive Labour Market for Job Creation

Introduction

Despite positive trends in the economy, Georgia is struggling with poverty, unemployment, gaps in social protection and poor employment and entrepreneurial prospects for youth. In Georgia youth unemployment stands at (30.8%), which is considerably higher than the general unemployment rate. The rate for youth (15-24 years) not in education, employment or training in Georgia is 30.2%, and 36% and 24.5% for women and men respectively. In this context, entrepreneurship training and support for setting up a business emerges as an intervention to support youth access to the labour market and to train themselves on skills helpful for their productive inclusion; this promises to have a higher impact on women.


Informality, and what it implies (low levels of productivity, low wages, low working conditions, and poor access to social protected) counts for a big share of the Georgian labour market. Productive linkages of micro, small and medium enterprises with large and productive enterprises remain one of the main challenges to increase productivity, create knowledge and spread know-how. In this context, responsible business conduct is a key tool.

Fundamental principles and rights at work, as well as other conditions that determine the quality of jobs, are important factors in ensuring that jobs are attractive to job seekers, and play a key role in driving productivity. In 2006, the then-Government of Georgia adopted a new labour code that was based on the assumption that deregulation of labour would attract investment and create jobs. The current Government, elected in 2012, re-elected in 2016, has been working towards the gradual restoration of labour market institutions. It has undertaken a number of encouraging steps in this regard, including the adoption of a new labour code and the re-establishment of the Tripartite Social Partnership Commission, which provide for a better balance between the interest of workers and employers.

Against this backdrop, the ILO will be working to strengthen labour market institutions by providing support along two thematic outcomes, as summarized in the Project overview below.

The project is  funded by the Government of Denmark (DANIDA).

Project overview

Project title	Inclusive labour market for job creation
Duration	2017 - 2021
Project objective	Improved labour market institutions that encapsulate and/or have the capacity to develop legislative and policy frameworks, as well as deliver services, which will lead to a well-functioning labour market that generates decent work opportunities.
Outcome 1	Regulatory labour market institutions ensure improved enforcement and respect for labour laws and international labour standards.
	Areas of work	·         Labour law reform. ·         Establishment of a fully-fledged labour inspection service. ·         The use of international labour standards within the judicial system. ·         Mediation of collective labour disputes. ·         Functioning of the Tripartite Social Partnership Commission.
Outcome 2	Youth entrepreneurship in Georgia promoted and strengthened through capacity building and institutional strengthening of the GEA and relevant government institutions, with the aim of creating new businesses, strengthening and formalizing existing ones, and involving the private sector through the implementation of responsible business practices.
	Areas of work	·         Institutional capacity-building to promote entrepreneurship among youth. ·         Responsible Business Conduct. ·         ILO’s Tripartite declaration of principles concerning multinational enterprises and social policy (MNE Declaration). ·         Business enabling environment for sustainable enterprises development.