Abesadze Nino аssociate professor Ivane Javakhishvili Tbilisi State University, Ceorgia STATISTICS OF UNEMPLOYMENT IN GEORGIA

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1 Abesadze Nino аssociate professor Ivane Javakhishvili Tbilisi State University, Ceorgia STATISTICS OF UNEMPLOYMENT IN GEORGIA Абесадзе Нино доцент Тбилисский государственный университет им. Ивана Джавахишвили СТАТИСТИКА БЕЗРАБОТИЦЫ В ГРУЗИИ The thesis presents a brief theoretical overview of the level of unemployment and a statistical analysis for Georgia in 21th century. Here is discussed the types of unemployment, unemployment indicators system, levels and causes, as well as statistical analysis of the unemployment rate by region, age and sex. Also, here are given ways to reduce unemployment. Keywords: unemployment, Statistics, indicators, methods В статье представлен краткий теоретический обзор безработицы и статистического анализа для 21-го века. В статье обсуждаются системы показателей безработицы, уровня и причин, а также сделан статистический анализ уровня безработицы по регионам, возрастным и половым группам. Приведены пути способов по сокращению безработицы. Ключевые слова: безработица статистика, индикаторы, методы Introduction The problem of unemployment is one of the acutest problems in Georgia and as the results of different statistical, conjunctive or social surveys evidence, often ranks first among the most important social-economic or political problems the country and Georgian people face. In an economic respect, as a result of unemployment, we gain the costs of so-called unused production opportunities lost because of unused labor, i.e. production possible to gain provided the unemployed were employed. In terms of unemployment, factors of economic instability, such as reduced total demand, savings and investment demand, reduced total supply, production fall, etc. show up. Thus, in terms of unemployment, the economic potential of the country is impossible to use in full and the national wealth is impossible to increase to the maximum possible level. Social aspects of unemployment are no less important. In the developed countries, the state is the first to undertake providing the labor-bodied population of the country with the subsistence minimum. Unemployment leads to an increased number of crimes, suicides and divorces. The studies evidence that 1% increase in unemployment leads to a 7-8% increase in the number of crimes. Generally, unemployment amplifies the social stress and political instability in the country. Consequently, unemployment is one of the most important and urgent problems affecting not only the unemployed population of the country, but also general state interests. This, on its turn, puts the priority and necessity for realizing some active policy by the state on the agenda. [1, с.85-87]. Thorough statistical analysis of unemployment is the basis for accomplishing permanent monitoring of unemployment and undertaking relevant correction 15

2 measures. In addition, the study of unemployment in respect of the country in general, as well as in regional, gender, age and urban and rural respects, has a great practical importance to develop the right policy of employment, as one of the major factors to overcome poverty. The goal of the study is to analyze the modern picture of unemployment in Georgia based on the calculation of the statistical data. Method In development of the article, generally accepted qualitative and quantitative data analysis methods of the economic science were employed, among them, statistical data processing, data grouping, inductive-deductive data analysis methods. The scientific study employs surveying, observation, as well as comparative, analytical, and graphical methods, which are used by the author to compare and analyse facts and assess solutions to specific issues. Main results In perspective, the solution to the problem of unemployment much depends on the rates of the economic development of the country. Solution to the problem of unemployment itself improves the social-economic state in the country and reduces poverty and associated problems. The major factor causing poverty is unemployment. Without the analysis based on the traditional statistical methods, identification of the trends of the changing number of the unemployed and calculation of relevant indicators, the central problem of the country, which is the reduction of unemployment and development and realization of the right employment policy, is impossible to solve. Consequently, the following objectives are to be accomplished, if one wishes to solve the above-listed issues: Identification of the social and economic indicators of unemployment and poverty. Study of the structure of the indicators of unemployment. Description of the dynamics of the unemployment indicators. Study of the real state of unemployment and statistical analysis; identification of the ways to overcome them. Providing the international comparability of the indicators. If the supply of the labor force is more than the demand for it there is an excess supply, i.e. unemployment. This is the economic essence of unemployment. Naturally, such a misbalance causes both, social and economic problems, and can be solved by studying, analyzing, quantifying and finding the ways of solution of the problems. The most common indicator of unemployment is the unemployment rate. If considering the retrospective picture of unemployment, it becomes clear that the unemployment rate reached its maximum in caused by the August war in 2008 and world crisis. In 2013, as compared to 2008, the unemployment rate fell by 1,9 per cent and made 14,5% meaning newly employed 24 thousand people. Unemployment rate much differs for different age categories and in different regions. The unemployment rate is much lower among the rural population as compared to the 16

3 urban population. In 2013, as compared to 2012, the unemployment rate decreased equally both, in rural and urban areas, making 25,6 and 6,5%, respectively. Diagram 1. Unemployment rate 1 Let us consider these data in retrospective of the XXI-century Georgia: Diagram 2. Unemployment rate in rural and urban areas 2 Despite the fact that the unemployment rate in rural areas is much lower than in urban areas, one cannot assume that the rural people are richer than people in the towns. On the contrary, the problem of poverty is very acute in the regions of Georgia what can be explained by little priority of agriculture. The same analysis suggests that the unemployment rate in urban areas decreased by 28,9% as compared to 2008 and made 25,6%. The unemployment rate also decreased insignificantly (by 0,6%) in rural areas and made 65%. Let us consider the unemployment rates in the regions of Georgia. The diagram shows that maximum unemployment rate (29,1%) is fixed in Tbilisi. As for the regions, Ajara (18,1%) and Samegrelo-Zemo Svaneti (15,8%) are distinguished for the highest unemployment rate

4 Diagram 3. Unemployment rate in different regions 3 Considering the unemployment rate for different genders is very important. Diagram 4. Unemployment rate for different genders 4 The unemployment rate among males is higher than that among females. In 2013, the unemployment rate among females was 12,3%, while the same index among males was 16,5%. If considering the employment in an economic respect, the reality seems to be different, in particular, the number of the unemployed women is almost 50% higher than that of the unemployed men, and this ratio has almost remained the same in recent years. In respect of global employment, which besides the economic employment, includes family farming, bringing up children, caring of children and elderly, the women employed in these fields are considered employed. In addition, the level of inactivity among women is twice as higher as among the men. The unemployment rate is different in different age groups. The problem of unemployment is very acute among the young people of the country

5 Diagram 5 As one can see, the unemployment rate among the able-bodied population is very high and it decreases as the age increases. However, it should be considered that the low unemployment rate among the older people is caused by their becoming economically inactive. In addition, the pension age starts over 60 years, and consequently, many unemployed people do not look for jobs and thus, are inactive. People aged enjoy the most unfavorable prospects of employment. One of the most important levers to regulate the labor market is the size of wages. The more the number of people with higher and secondary education is among the economically active population, the more the demand is for the high-paid jobs on the market. In terms of low salaries, less high-qualified specialists apply to the labor exchange (employment services), what naturally, increases the number of the unemployed in an artificial manner. The problem of unemployment is acuter than it can be perceived from the official statistics or the real life. It is not disputable that the number of the factually unemployed much exceeds the number of the unemployed registered officially. This is true about the able-bodied active permanent residents in Georgia. However, there is another large part of the labor force (almost one million people, as per the expert s conclusion), working in foreign countries as citizens of Georgia because of their unsuccessful attempts to find jobs in their native country. If considering theoretically, if such an immigrated labor force returns to Georgia, the problem of unemployment will naturally be made acuter [5, с.54-70]. In order to identify the ways to solve the problem of unemployment, first of all, we have to consider the reasons for unemployment. After the reasons are identified, the right strategy to tackle the said problem will be possible to select. The peculiarities of the labor market have a negative impact on the operation of the labor market of Georgia and are seen in the major reasons causing unemployment. These reasons are as follows: Limited demand for the labor force. Difficulty in finding the job by specialty. Discriminative labor terms. Low wages. Low quality of training. Low professional mobility of the labor force. Lack of job-finding and self-presentation skills. 19

6 Inactivity of job-seekers (the so called frustrated ). Underdevelopment/unavailability of the mediatory services in the field of employment [4, с. 7-13]. Some of the reasons for unemployment are objective, while others are subjective; however, the outcome of both of them is the same: finding a job and getting employed in Georgia is very difficult, while the incomes received from employment are often not sufficient to support oneself or one s family. As a conclusion, we may say that the underdeveloped labor market in Georgia hampers the development of the country and leads to many social-economic problems, such as unemployment, poverty, illegal migration and associated difficulties. Therefore, in addition to the improvement of the business environment in the country (being the natural and major factors for job generation), it is necessary to ensure efficient operation of the labor market by the state by supporting the development of its elements. For this purpose, the state strategy of the market formation and development and application of the relevant legislative, organizational and financial levers are necessary. If these reasons are tackled, the unemployment rate will be put down and the level of well-being in the country will be improved. Tackling unemployment needs the state intervention and regulation, but not only. The society, employers, jobseekers and inactive population must realize the urgency of the above-described issue. References: 1. Antadze c. (2006) Typical characteristics of the labor market of Georgia. Journal Of The Social Economics, 1, pp Paresashvili n. (2007) Unemployment and its socio - economic results in Georgia. Journal Of The Economist, 12-3, pp Paresashvili n. (2010). The main directions of improving the functioning of the labor market in Georgia. Tbilisi; 4. Trends in employment and unemployment in Georgia (2011). Economic Policy Research center. pp Kinkladze R. Unemployment Trends in Georgia. (2011). Journal Of The Social Economics, 12, pp ; 6. Grishina E.N. Ph.D., Associate Professor, Trusova L.N. Ph.D., Associate Professor, Vyatka State Agricultural Academy, Kirov, Russia A STATISTICAL EVALUATION OF THE INCOME DIFFERENTIATION OF THE VOLGA FEDERAL DISTRICT POPULATION Гришина Е.Н. к.э.н., доцент, Трусова Л.Н. к.э.н., доцент, Вятская государственная сельскохозяйственная академия, г. Киров, Россия СТАТИСТИЧЕСКАЯ ОЦЕНКА ДИФФЕРЕНЦИАЦИИ ДОХОДОВ НАСЕЛЕНИЯ ПРИВОЛЖСКОГО ФЕДЕРАЛЬНОГО ОКРУГА 20