Georgia

The State of Hiring and Recruitment in Georgia, Europe: A 2025 Expert Report

August 26, 2025

Key Takeaways

Georgia’s 2025 labor market is evolving with rising demand for skilled professionals across technology, finance, and logistics.
Recruitment agencies and digital hiring platforms are playing a vital role in connecting employers with top talent.
Workforce development, upskilling, and policy reforms are shaping long-term recruitment and employment strategies in Georgia.

The landscape of hiring and recruitment in Georgia, Europe is undergoing a profound transformation in 2025, shaped by a combination of economic growth, demographic shifts, technological advancements, and evolving labor market demands. Positioned at the crossroads of Europe and Asia, Georgia has steadily become an attractive destination for both foreign investment and regional talent mobility. This shift has placed its workforce and employment market under increasing global scrutiny, as businesses seek to understand how the country’s economic policies, labor regulations, and workforce capabilities align with the needs of a rapidly evolving global economy.

Over the past decade, Georgia has made notable strides in improving its business environment, with reforms focused on transparency, labor mobility, and competitiveness. By 2025, these efforts have created a foundation for a more dynamic labor market, but they have also introduced new challenges. Employers across industries face the dual task of navigating a tightening labor supply while addressing rising expectations from job seekers, particularly younger generations who prioritize flexibility, digital literacy, and opportunities for professional growth. Meanwhile, sectors such as technology, finance, construction, and logistics are actively competing for top talent, leading to an increased reliance on both domestic recruitment strategies and international hiring networks.

Another defining trend in Georgia’s recruitment landscape is the acceleration of digital transformation. With the adoption of advanced recruitment technologies, AI-powered job-matching platforms, and remote hiring tools, companies in Georgia are reshaping the way they attract and retain employees. This shift not only widens the talent pool but also allows employers to tap into the growing population of highly skilled remote professionals both within and outside the country. However, the digitalization of hiring also brings challenges, such as ensuring equal access for candidates in rural areas and maintaining transparency in recruitment processes.

The year 2025 has also highlighted significant demographic and social considerations in Georgia’s labor market. A combination of migration trends, an aging workforce, and shifting educational priorities is influencing the supply of qualified professionals. Many employers are increasingly partnering with universities, training institutions, and international development organizations to bridge skill gaps and align talent pipelines with industry needs. Furthermore, policies promoting gender equality and workforce inclusivity are gaining momentum, reflecting both domestic priorities and international labor standards.

At the same time, Georgia’s strategic position as a gateway between Europe and Asia means that international hiring and cross-border employment opportunities are expanding. Recruitment agencies and global staffing firms are playing an increasingly important role in connecting Georgian professionals with overseas markets, while also facilitating foreign workers’ entry into Georgia’s growing industries. This interconnected labor environment underscores the need for businesses to adopt agile and forward-looking recruitment strategies in order to remain competitive.

This expert report on the state of hiring and recruitment in Georgia in 2025 provides an in-depth exploration of the country’s labor market trends, employer challenges, and workforce opportunities. It examines the macroeconomic context, analyzes the influence of technological innovation, and highlights the strategies companies are adopting to secure talent in a competitive environment. For business leaders, HR professionals, policymakers, and job seekers, this report offers valuable insights into how Georgia’s recruitment ecosystem is evolving and what the future may hold for the country’s workforce in an increasingly interconnected world.

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The State of Hiring and Recruitment in Georgia, Europe: A 2025 Expert Report

Macroeconomic and Political Foundations
Labor Market Dynamics: Supply, Demand, and Demographics
Compensation and Wage Trends
The State of Hiring and Recruitment
The Role of Skilled Migration and Evolving Policies
- The Contribution of the Foreign Workforce to Key Sectors
- New Immigration Rules and the IT Residence Permit
Strategic Outlook and Recommendations
- Navigating the 2025 Labor Market: A Guide for Employers
Actionable Recommendations for Talent Attraction and Retention

1. Macroeconomic and Political Foundations

A. Economic Growth and Inflation in 2025: A Landscape of Divergent Forecasts

Economic Growth and Forecast Outlook for 2025

Georgia’s economy, situated at the crossroads of Europe and Asia, is expected to continue its expansionary path in 2025, though at a more moderated pace compared to the remarkable 9.4% surge recorded in 2024.
Leading international financial institutions have presented diverging outlooks, reflecting the uncertainties tied to both regional and global economic conditions.
The Asian Development Bank (ADB) projects GDP growth at 6.0% for 2025, aligning per capita GDP expansion at the same rate. This suggests a steady trajectory, albeit lower than the previous year, signaling the economy’s adjustment from a post-recovery boom to a more sustainable pace.
The World Bank has revised its forecast slightly downward to 5.5%, citing reduced domestic demand and declining re-export activity as key drivers of moderation.
In contrast, the International Monetary Fund (IMF) has revised its forecast upward to 7.2%, attributing this optimism to the strong performance during the early months of 2025, with growth likely to normalize gradually towards a long-term potential of 5.0%.

Key Insight on Divergence in Forecasts

The variance among these institutions underscores the complexity of Georgia’s economic environment.
The IMF’s upward adjustment suggests resilience and adaptability within the Georgian economy, particularly in sectors that continue to attract investment and maintain momentum despite regional uncertainties.
The ADB and World Bank’s more cautious stance highlights structural vulnerabilities, such as reliance on re-exports and shifts in domestic consumption patterns.

Inflation Dynamics in 2025

After falling to a historic low of 1.1% in 2024, driven by tight monetary policy and subdued external price pressures, inflation is expected to edge higher in 2025.
Forecasts show inflation rates at:
• ADB: 4.0%
• World Bank: 4.5%
• IMF: 3.6%
This upward trend is attributed to wage pressures, currency depreciation, and base effects from the prior year’s exceptionally low inflationary levels.
For businesses and employers, higher inflation may exert pressure on wage negotiations, recruitment costs, and talent retention strategies, making human capital management a critical area of focus.

Comparative Forecast Table for 2025

Institution	GDP Growth Forecast	Inflation Forecast	Key Rationale
Asian Development Bank	6.0%	4.0%	Transition to sustainable growth, wage pressures
World Bank	5.5%	4.5%	Weak domestic demand, decline in re-exports
International Monetary Fund	7.2%	3.6%	Strong early-year momentum, resilient economy

Implications for the Labour Market and Recruitment Trends

Higher growth expectations, particularly from the IMF, signal potential job creation in sectors such as technology, logistics, tourism, and financial services.
However, rising inflation may increase the cost of employment and create challenges for businesses in maintaining competitive compensation packages.
Recruitment agencies and employers in Georgia will need to balance optimism in growth with caution in wage-setting and workforce planning.

B. Key Economic Drivers and Foreign Investment Trends

Domestic Demand and Labour Market Impact

Georgia’s economic growth trajectory in 2025 is being driven strongly by rising domestic consumption.
Sustained real wage increases and notable improvements in employment levels continue to stimulate household spending, reinforcing consumer-driven growth.
Recruitment and hiring trends are directly influenced by this consumption-led expansion, as businesses expand their workforce to meet growing demand in retail, services, and technology sectors.

Sectoral Growth and Opportunities for Employment

Services dominate as the principal growth engine, particularly:
• Information and Communications Technology (ICT), where digital transformation is creating high-value job opportunities.
• Transport and logistics, boosted by Georgia’s expanding role in regional trade.
• Tourism, which has now rebounded to pre-pandemic levels, significantly contributing to service exports and creating large-scale seasonal and permanent employment opportunities.
These sectors collectively highlight the diversification of Georgia’s growth model, reducing dependence on traditional industries and opening up more dynamic career paths.

Strategic Geographic Position and Transit Role

Georgia’s geographic location continues to strengthen its role as a pivotal transit hub within the Eurasian corridor.
Its Black Sea ports and integrated railway connection with Türkiye reinforce its importance as part of the Middle Corridor, a multimodal trade route linking China and the European Union.
Increased transit volumes not only enhance government revenues but also stimulate employment within logistics, customs, freight handling, and supply chain management.

Infrastructure Development and Recruitment Outlook

The government is investing extensively in large-scale infrastructure projects aimed at modernizing transportation and energy networks.
Notable initiatives include:
• Anaklia Deep-Sea Port – expected to transform Georgia into a major maritime hub, boosting long-term job creation in port management, logistics, and related services.
• Baku–Tbilisi–Kars Railway – strengthening Georgia’s role in regional freight transport and generating employment opportunities in railway operations and maintenance.
Such projects will create a multiplier effect across the labour market, not only in construction but also in associated industries such as engineering, IT systems management, and professional services.

Foreign Direct Investment (FDI) Landscape

Net FDI inflows are forecast at 2.6% of GDP in 2025, a modest decline compared to 2024.
Despite this short-term dip, infrastructure-driven development is anticipated to attract long-term investment flows, particularly from global logistics companies, energy investors, and technology firms.
This evolving FDI profile signals promising prospects for highly skilled recruitment, especially in engineering, ICT, and financial services.

Comparative Sector Contribution to Growth (2025 Forecast)

Sector	Growth Contribution	Hiring Impact
ICT	High	Skilled jobs in software, data, and AI
Transport & Logistics	High	Employment in freight, customs, supply chain
Tourism	Moderate-High	Seasonal and service-related roles
Construction	Moderate	Infrastructure-related workforce demand
Retail & Services	Moderate	Domestic consumption-driven hiring

Projected FDI and Job Creation Outlook

Indicator	2024	2025 (Forecast)	Recruitment Impact
Net FDI (% of GDP)	2.9%	2.6%	Increased demand for high-skill roles
Major Infrastructure Investment	Ongoing	Expanding	Jobs in construction, logistics, IT
Foreign Investor Confidence	Rising	Stabilising	More competitive labour market dynamics

Implications for Hiring and Recruitment in 2025

Recruitment agencies in Georgia are expected to see growing demand in high-skill placement, especially in ICT, logistics, and engineering.
Wage competition may intensify in sectors tied to infrastructure and transit, requiring employers to develop attractive compensation strategies.
Long-term FDI-driven projects will ensure a steady pipeline of job creation, making Georgia an increasingly attractive destination for both local talent and expatriates.

C. Impact of Domestic Political Tensions and Geopolitical Shifts on Business Confidence

Political Climate and Investor Sentiment

Despite promising macroeconomic fundamentals, Georgia’s business environment in early 2025 is overshadowed by heightened uncertainty.
Domestic political tensions, including disputes between ruling and opposition groups, have stalled crucial reforms and delayed the resumption of EU accession talks.
These developments have directly weakened investor confidence, with many businesses adopting a more conservative stance toward expansion and recruitment.
According to the Policy and Management Consulting Group (PMCG) survey conducted in December 2024, political instability and exchange rate volatility were ranked as the most significant risks to growth in 2025.
This assessment was described as the most pessimistic outlook on Georgia’s economy since the post-pandemic recovery phase, highlighting how political turbulence can outweigh strong macroeconomic momentum.

Labour Market Implications of Political Instability

The slowdown in business sentiment is reflected in the hiring market, with a visible reduction in job postings during the first half of 2025.
Investor research indicates that several factors have contributed to this contraction:
• Fewer newly registered businesses in 2024, creating a weaker foundation for job growth in the following year.
• Lower levels of foreign direct investment in the first quarter of 2025, reducing opportunities for employment in high-skill sectors such as ICT, logistics, and financial services.
• A cautious approach by existing businesses, many of which have delayed recruitment campaigns, salary increases, and workforce expansion.
Employers are increasingly adopting a wait-and-see approach, pausing long-term hiring decisions until political clarity emerges.

Comparative Analysis: Economic Potential vs. Political Uncertainty

Factor	Economic Potential (2025)	Political and Geopolitical Risks (2025)
GDP Growth Forecast	5.5% – 7.2% (moderate to strong)	EU accession suspension reduces investor optimism
Labour Market Dynamics	Rising demand in ICT, logistics, tourism	Decline in job postings due to cautious hiring
FDI Inflows	2.6% of GDP (stable but modest)	Lower investor appetite amid instability
Infrastructure Projects	Anaklia Port, Baku–Tbilisi–Kars railway	Delayed timelines due to uncertain political will

Recruitment Trends Under Uncertainty

Recruitment agencies in Georgia are witnessing a shift in demand:
• Higher emphasis on temporary staffing and contract-based employment rather than permanent hires.
• Increased demand for specialized advisory roles in compliance, legal, and risk management as companies attempt to navigate uncertainty.
• Slower recruitment momentum in traditional growth sectors such as retail and tourism, as businesses prefer conservative workforce expansion.
Companies that are hiring are placing greater weight on risk mitigation, preferring candidates with multi-disciplinary skills and the flexibility to adapt to a volatile environment.

Geopolitical Dynamics and Hiring Outlook

Georgia’s strategic importance in the Middle Corridor trade route is being tested by wider geopolitical shifts, particularly tensions in Eastern Europe and disruptions in global supply chains.
While the country remains an attractive logistics hub, regional instability is affecting the flow of foreign capital, delaying projects that could otherwise generate significant employment.
The interplay between strong economic fundamentals and fragile political stability demonstrates the dual reality of Georgia’s labour market: an economy poised for growth but constrained by cautious investor and employer sentiment.

Chart: Business Confidence vs. Job Vacancies (2024–2025 Projection)

Confidence Index: Declining sharply from late 2024 into early 2025.
Job Vacancies: Mirroring the decline, showing fewer postings across ICT, logistics, and services.
Projection: A slow rebound in the second half of 2025 if political conditions stabilize.

2. Labor Market Dynamics: Supply, Demand, and Demographics

A. Core Labor Force Indicators: Employment, Unemployment, and Participation Rates

Core Indicators of Georgia’s Labour Force in 2025

Georgia’s labour market has undergone considerable transformation over the past six years, demonstrating notable long-term gains in employment and participation.
Between the first quarter of 2019 and the first quarter of 2025:
• Employment rate increased by 4.6 percentage points, reflecting a stronger absorption of the working-age population.
• Labour force participation rose by 2.2 percentage points, suggesting greater engagement of previously inactive segments of the population.
• Unemployment rate fell by 5.0 percentage points, indicating stronger job creation and improved matching between demand and supply in the labour market.
In total, the number of employed individuals reached 1.39 million in Q1 2025, an increase of 8.9% compared to Q1 2019. This expansion underscores a positive structural shift, particularly in formal employment sectors.

Emerging Challenges in 2025

Despite earlier gains, the second quarter of 2025 reveals a more complex picture, with unemployment rising again.
The unemployment rate increased by 0.6 percentage points year-on-year, reaching 14.3%.
According to Geostat, this reversal is largely attributed to a decline in self-employment, which fell by 29,300 individuals (6.5%) compared to the previous year.
The contraction in self-employment highlights a structural transition:
• Movement away from informal, small-scale, and agricultural self-employment.
• Gradual shift toward more formal, contract-based employment arrangements.
While the number of formally employed individuals under contract grew by 4,700 (0.5%), the pace was insufficient to fully absorb those exiting self-employment.
This mismatch has temporarily raised unemployment, reflecting the lag between economic restructuring and job market adjustment.

Labour Market Transition: Informal to Formal Employment

Indicator (Q2 2025)	Change vs. 2024	Implication for Hiring and Recruitment
Self-Employed Population	-29,300 (-6.5%)	Declining reliance on informal employment
Employees under Formal Contract	+4,700 (+0.5%)	Expanding formal workforce, but insufficient
Overall Unemployment Rate	+0.6 pp (14.3%)	Rising unemployment due to transition friction

Implications for Recruitment Agencies and Employers

Recruitment agencies are increasingly tasked with bridging the gap between the decline in informal work and the demand for skilled labour in the formal sector.
Employers face several challenges:
• The need to provide competitive contracts and benefits to attract workers shifting from informal employment.
• Greater demand for workforce upskilling and retraining to align skills with the needs of ICT, logistics, and infrastructure-driven industries.
• Pressure on businesses to adapt hiring strategies that accommodate displaced workers, especially those transitioning from agriculture and small-scale entrepreneurship.
For job seekers, the shift signals both challenges and opportunities: while traditional self-employment declines, new avenues are opening in technology, services, and logistics, albeit requiring higher skill levels.

Chart: Labour Force Dynamics in Georgia (2019–2025)

Employment rate: steady upward trend from 2019 to Q1 2025.
Unemployment rate: declining until 2024, followed by a mild rebound in Q2 2025.
Labour force participation: gradual rise, indicating stronger economic engagement.

B. Demographics and Workforce Composition

Population Structure and Ageing Dynamics

Georgia’s demographic outlook poses a significant long-term challenge for the labour supply in 2025 and beyond.
The population is ageing rapidly, with the share of individuals aged 60 and above projected to rise substantially in the coming decade.
This demographic shift exerts pressure on both the workforce availability and the pension system, narrowing the pool of active working-age individuals available to employers.
For businesses, this translates into increased difficulty in sustaining expansion plans, especially in labour-intensive sectors such as manufacturing, construction, and services.

Impact of Emigration on Labour Supply

Persistent emigration has emerged as one of the most critical factors shaping Georgia’s workforce dynamics.
The IMF highlights that outward migration, particularly among younger adults and highly skilled professionals, continues to erode the labour pool.
By 2024, approximately 1.3 million citizens—equivalent to 30% of the national population—had emigrated.
A 2024 EU Business Climate Survey revealed:
• Two-thirds of surveyed businesses identified high emigration rates as the most important factor constraining their ability to hire and grow.
• The exodus of young workers not only depletes the current workforce but also undermines future labour market potential by shrinking the base of employable youth.
This structural labour shortage cannot be mitigated solely through domestic policies, making inward migration, workforce reskilling, and digitalisation critical to bridging the gap.

Gender Gaps in Workforce Participation

Gender disparities continue to define Georgia’s labour market.
Current participation rates show:
• Men: 72.6%
• Women: 55.0%
This persistent gap reflects long-standing barriers such as unequal access to childcare, cultural norms limiting women’s labour market activity, and concentration of women in lower-paid or informal sectors.
Women’s labour force participation has declined since the 1990s, indicating that progress has been slow despite structural changes in the economy.
Narrowing this gap could play a transformative role in offsetting the impact of emigration and ageing, as greater female participation could significantly expand the effective labour force.

Comparative Labour Force Participation by Gender (2025)

Category	Participation Rate	Key Observations
Men	72.6%	Higher overall engagement in formal sectors
Women	55.0%	Lower participation, concentrated in informal work

Matrix: Key Demographic Challenges vs. Labour Market Impact

Challenge	Current Situation (2025)	Implication for Hiring and Recruitment
Ageing Population	Growing share of workers 60+	Shrinking working-age pool, increased demand for younger workers
Emigration	1.3 million emigrants (30% of population)	Shortage of skilled labour, businesses face hiring constraints
Gender Participation	Male: 72.6% vs Female: 55.0%	Untapped female labour supply, risk of inequality in workforce

Implications for Employers and Recruitment Agencies

Employers face mounting challenges in filling vacancies due to demographic constraints and persistent outward migration.
Recruitment agencies are increasingly called upon to:
• Attract Georgian expatriates back into the domestic workforce through targeted campaigns.
• Explore regional and international talent pipelines to mitigate shortages.
• Support employers with diversity-focused hiring strategies aimed at boosting female participation.
Without policy reforms and innovative workforce strategies, demographic pressures will continue to constrain Georgia’s long-term hiring and recruitment landscape.

C. The Challenge of Labor Underutilization and Informal Employment

Structural Inefficiencies in the Labor Market

Georgia’s labor market continues to grapple with structural issues that hinder sustainable economic growth and recruitment efficiency.
A large share of the workforce remains tied to low-productivity agriculture, where nearly one-third of workers are still employed.
Despite a 9.1% decline in agricultural employment since 2019, the sector still absorbs a disproportionate number of workers, reflecting a mismatch between labor supply and the demands of modern, high-growth industries such as technology, finance, and advanced services.
This imbalance suggests that human capital is underutilized, preventing Georgia from unlocking its full economic potential.

The Prevalence of Informal Employment

Informal employment remains a major challenge in Georgia, undermining the formal labor market.
In 2020, informal employment accounted for 39.7% of total employment, highlighting the scale of shadow economic activities.
Workers engaged in informal sectors often lack social protection, legal safeguards, and opportunities for professional growth, creating long-term vulnerabilities in workforce stability.
The reliance on informal labor weakens recruitment pipelines for companies seeking skilled, formally trained, and contract-bound professionals.

Labor Underutilization and Skills Mismatch

Beyond unemployment, the issue of labor underutilization is critical in Georgia. This includes discouraged workers, underemployed individuals, and those engaged in roles far below their qualifications.
Official unemployment statistics often underestimate the real challenge, as they fail to capture the latent labor pool of skilled but disengaged workers.
For employers, this creates a paradox: despite high unemployment, it is still difficult to source candidates with specialized expertise in areas such as information technology, data science, and engineering.
This mismatch forces companies to either invest heavily in training or rely on expatriate talent to bridge the gap.

Duality of the Georgian Labor Market

The labor market has become bifurcated:
- On one side, strong demand exists for high-value skills in industries experiencing rapid expansion, such as digital transformation, renewable energy, and logistics.
- On the other side, a surplus of workers persists in outdated or low-productivity sectors, unable to transition effectively into the modern economy.
This dual structure presents one of the most pressing challenges for recruitment agencies and employers in Georgia as they strive to align workforce availability with evolving business needs.

Table: Employment Distribution and Labor Market Challenges in Georgia

Labor Market Aspect	Key Statistics (2020–2025)	Implications for Recruitment
Employment in Agriculture	~33% of total workforce	Skills misalignment with modern industries
Decline in Agricultural Employment	-9.1% since 2019	Slow structural shift to other sectors
Informal Employment	39.7% of workforce	Weak labor protections, unstable hiring base
Labor Underutilization	Significantly higher than official unemployment	Untapped labor pool remains underemployed
Demand for High-Skill Roles	Rising in tech, finance, logistics	Talent shortage in specialized fields

Implications for Hiring and Recruitment in Georgia, 2025

Employers face increasing difficulty in filling specialized roles, even with a relatively high unemployment rate.
Recruitment agencies must adapt by:
- Designing training programs to upskill underutilized workers.
- Bridging the gap between educational institutions and high-growth industries.
- Encouraging formalization of businesses to expand the accessible skilled labor pool.
For foreign investors and multinational companies, Georgia presents both opportunities and challenges: a young labor force with untapped potential, but also structural inefficiencies that complicate the hiring process.

3. Compensation and Wage Trends

A. Analysis of Average and Median Monthly Wages in 2025

Average and Median Wage Analysis in 2025

The wage structure in Georgia during 2025 reflects a complex labor market shaped by rapid nominal growth yet uneven distribution of earnings.
The official statistics highlight a nearly twofold rise in the average nominal monthly salary, increasing from 1,093 GEL in Q1 2019 to 2,170 GEL in Q1 2025.
Despite this upward trajectory, the median monthly wage remains substantially lower at approximately 1,040 GEL. This stark difference reveals that the average figure is heavily influenced by a limited group of high-income earners, while the typical Georgian worker earns far less.

Implications of Wage Disparities

The gap between average and median wages signals a polarized market:
- A select portion of professionals in specialized sectors enjoys disproportionately high salaries.
- The majority of employees, particularly in traditional industries, continue to experience stagnation in wage growth.
Employers relying solely on average wage figures may develop unrealistic perceptions of candidate expectations, potentially complicating recruitment strategies.
The wage disparity also emphasizes the need for sector-specific benchmarking to maintain competitiveness in attracting and retaining talent.

Sectoral Differentiation in Earnings

Information Technology (IT) and finance remain among the most lucrative career paths in Georgia.
Salary benchmarks by sector:
- IT professionals: 2,500–4,000 GEL per month.
- Senior finance and technology roles: starting salaries from 3,000 GEL upwards.
- Traditional industries such as manufacturing, agriculture, and retail continue to offer significantly lower wage levels, often below the median threshold.
This wage stratification reflects Georgia’s ongoing transition from a traditional labor market to a more knowledge-driven economy.

Table: Wage Comparisons in Georgia (2019 vs. 2025)

Metric	Q1 2019 (GEL)	Q1 2025 (GEL)	Growth Rate (%)
Average Nominal Monthly Salary	1,093	2,170	~98.6%
Median Monthly Salary	~850	~1,040	~22.3%
IT Professional Salary Range	1,500–2,200	2,500–4,000	~80–90%
Senior Finance/Tech Roles	2,000+	3,000+	~50%+

Key Insights from Compensation Trends

Wage growth is concentrated in emerging, high-demand sectors rather than across the broader workforce.
Median growth lags far behind average salary growth, suggesting that income inequality is widening.
Employers competing for specialized talent must develop targeted compensation strategies aligned with sector-specific realities.
Policymakers and workforce planners must address the structural imbalance to ensure sustainable and inclusive labor market development.

B. Wage Distribution and Real Salary Growth

The wage landscape in Georgia has undergone profound changes in recent years, reflecting both structural economic shifts and evolving labor market dynamics. The patterns of wage distribution and real salary growth provide valuable insight into the country’s recruitment environment, workforce competitiveness, and overall economic resilience.

Shifts in Wage Distribution

A notable contraction has been recorded in the lower-income bracket:
- The share of employees earning up to 600 GEL per month has decreased by 40.3% between Q1 2021 and Q1 2025.
- This decline signifies a reduction in vulnerable, low-paying roles, suggesting a positive movement toward wage improvement and formalization.
Parallel to this trend, high-income categories have expanded significantly:
- The proportion of salaried workers earning 2,400 GEL or more has more than doubled within the same timeframe.
- As of May 2025, this category represents 31.8% of all employees, reflecting the rising prevalence of professionalized, contract-based, and higher-skilled positions.
The evolving wage distribution underscores:
- Increased demand for skilled professionals.
- Shifts from informal to formal employment structures.
- Enhanced opportunities for career growth, particularly in industries with international investment and modernized practices.

Real Salary Growth and Inflation Impact

While nominal wage increases paint an optimistic picture, inflation-adjusted salaries reveal a more nuanced reality:
- Average real wages rose from approximately 900 GEL in Q1 2019 to 1,300 GEL in Q1 2025.
- This reflects tangible improvement in purchasing power, though moderated by inflationary pressures.
The trend indicates:
- Consistent wage progression over six years despite economic disruptions.
- Higher salaries partially offsetting the increasing cost of living.
- Employers facing mounting pressure to align compensation packages with inflation to retain and attract talent.

Wage Distribution Matrix (Q1 2021 vs Q1 2025)

Income Bracket (GEL)	Q1 2021 Share of Employees	Q1 2025 Share of Employees	Change (2021–2025)
Up to 600 GEL	High	Significantly Reduced	-40.3%
601–1,200 GEL	Moderate	Moderate Decline	Slight Decrease
1,201–2,399 GEL	Stable	Stable to Slight Increase	Marginal Growth
2,400 GEL and above	Low	High (31.8% in 2025)	More than Doubled

Wage Growth vs Inflation (2019–2025)

Average real wage growth:
- 2019: 900 GEL
- 2025: 1,300 GEL
Inflation-adjusted increase:
- Represents a gain of nearly 44% in real purchasing power.
- Demonstrates resilience in Georgia’s wage market despite global economic uncertainty.

Key Insights for Recruitment and Hiring

Employers are increasingly compelled to offer competitive compensation to secure talent, especially in industries like technology, finance, and professional services.
The decline in low-income roles signals improved job quality, which enhances Georgia’s attractiveness as a regional hub for investment.
Recruitment agencies and HR leaders must adapt strategies to:
- Highlight wage competitiveness.
- Align salary structures with inflationary realities.
- Attract both local talent and expatriate professionals seeking stability and growth.

C. Minimum Wage and its Disconnect from the Living Wage

The wage landscape in Georgia presents a striking imbalance between the statutory minimum wage and the actual cost of living. This gap continues to be one of the defining challenges shaping labor market dynamics and employer strategies in 2025.

Outdated Minimum Wage Framework

The official minimum wage remains largely symbolic and disconnected from present-day realities.
Since 1999, the minimum wage has remained unchanged at:
- 20 GEL per month for employees in the private sector.
- 115 GEL per month for employees in the public sector.
These stagnant figures reveal a lack of government intervention in adjusting wage floors to match economic changes.

Living Wage and Market Discrepancy

The estimated living wage in Georgia ranges between 1,500 and 2,375 GEL per month, depending on location and family size.
This stark disparity highlights that minimum wage policies no longer serve as a relevant benchmark for worker welfare.
Over the past six years, average nominal salaries have nearly doubled, yet the statutory minimum wage has stayed static, widening the wage inequality gap.

Implications for Employers

For employers, compliance with the statutory minimum wage offers no advantage in attracting or retaining skilled professionals.
To remain competitive, companies must:
- Benchmark salaries against current market averages rather than statutory thresholds.
- Provide comprehensive compensation packages that blend financial and non-financial incentives.
- Introduce perks such as health coverage, remote or hybrid work options, and skill development programs to enhance retention.

Comparative Wage Analysis (2025)

Category	Monthly Wage (GEL)	Notes
Statutory Minimum (Private)	20	Unchanged since 1999
Statutory Minimum (Public)	115	Unchanged since 1999
Estimated Living Wage (Low End)	1,500	Reflects minimal cost of living
Estimated Living Wage (High End)	2,375	Reflects family and urban expenses
Average Nominal Salary (2025)	~2x 2019 figures	Driven by labor market dynamics

Key Takeaways

The disconnect between minimum wage and living wage in Georgia underscores a structural issue in wage regulation.
Employers must acknowledge that government policy is not the key driver of compensation trends—market forces dictate salary growth.
Businesses that adapt to this reality by offering competitive and holistic benefits will stand out in Georgia’s increasingly demanding labor market.

4. The State of Hiring and Recruitment

A. Job Vacancy Trends and the Beveridge Curve

Job Vacancy Trends and the Beveridge Curve

The hiring and recruitment climate in Georgia during 2025 reflects a complex yet evolving landscape, shaped by both domestic reforms and global workforce mobility.
Job vacancy statistics provide one of the clearest insights into these dynamics, with shifts that extend beyond surface-level numbers.

Key Observations in Vacancy Trends:

Data from March 2025 indicates that vacancies listed on the country’s leading job platform declined by 18% compared to the previous year.
This downward trajectory persisted throughout the spring, with a 13.1% year-on-year reduction in job postings recorded between March and May 2025.
While at first glance this might be interpreted as a signal of reduced hiring demand, deeper analysis reveals that this is not indicative of an economic downturn.
Instead, it underscores structural adjustments in recruitment behavior, where employers are increasingly able to fill positions without resorting to mass job postings.

Why the Decline in Job Postings Does Not Signal Weakness:

Enhanced labor market matching efficiency has played a central role in reducing the reliance on repeated vacancy advertisements.
Skilled migrants entering Georgia’s workforce have contributed to alleviating skill shortages, enabling employers to hire faster and with less friction.
A gradual shift of informal sector workers into regulated, formal employment has also expanded the pool of readily available candidates.
These developments suggest a more refined and balanced labor market, rather than a contraction in economic activity.

Insights from the Beveridge Curve:

The Beveridge Curve, which maps the correlation between job vacancies and unemployment, highlights a modest improvement in efficiency during the first quarter of 2025.
Employers are now requiring fewer posted vacancies to secure suitable candidates, an indication of a better-functioning matching mechanism within the market.
This improvement reflects the impact of policy-driven reforms aimed at strengthening labor mobility, upskilling initiatives, and fostering foreign talent integration.

Comparative Matrix: Vacancy Dynamics vs. Labor Market Interpretation

Indicator	2024 Level	2025 Level	Interpretation
Job Vacancy Decline (YoY)	Stable	-18%	Reflects reduced dependency on job postings
March–May Postings (YoY)	Stable	-13.1%	Indicates employers’ growing ability to hire fast
Beveridge Curve Efficiency	Moderate	Improved	Suggests enhanced market matching efficiency
Role of Migrant Workers	Limited	Significant	Expanded skill availability for employers

Broader Implications for Employers and Policymakers:

For employers, the environment demands a shift in recruitment strategy, with less emphasis on sheer volume of job advertising and more focus on candidate relationship management.
For policymakers, the trends highlight the need to sustain momentum by continuing workforce development initiatives and ensuring the smooth integration of both domestic and international talent.
For job seekers, these dynamics imply that while job advertisements may appear fewer, the opportunities remain robust for those with in-demand skills.

B. In-Demand Sectors and Occupations

Technology and IT Sector

The technology and IT sector continues to be the most dynamic and rapidly expanding industry within Georgia.
Government-backed initiatives aimed at digital transformation are significantly accelerating the country’s technological growth, creating an environment that fosters innovation.
A thriving startup ecosystem is drawing both local and international investors, which further stimulates job creation.
High-demand positions include:
- Software Developers – required across startups, multinational companies, and public digital initiatives.
- IT Consultants – supporting businesses in adopting cloud computing, automation, and advanced IT infrastructure.
- Cybersecurity Experts – a critical area of focus as digital adoption increases, leading to greater demand for specialists in risk management and data protection.

Financial and Statistics Sector

The financial and statistics sector is showing resilience despite broader recruitment challenges.
In the first quarter of 2025, job postings in this sector registered a year-on-year increase of 1.7% for the March–May period.
This growth demonstrates the industry’s strong foundation, underpinned by stable financial services and increased reliance on data-driven decision-making.
Core job roles include:
- Financial Analysts – offering insights for strategic investment and capital allocation.
- Statisticians and Data Scientists – supporting businesses, government bodies, and international organizations with analytics and reporting.

Tourism and Hospitality Sector

Tourism and hospitality have made a strong recovery, reaching pre-pandemic levels and re-establishing themselves as one of the cornerstones of Georgia’s economy.
Increased international tourism inflows are fueling demand for skilled professionals.
High-demand positions include:
- Hotel and Resort Managers – ensuring international-standard service delivery.
- Tour Guides and Travel Coordinators – required to manage rising tourist numbers across Georgia’s cultural and heritage sites.
- Culinary and Hospitality Specialists – driven by the country’s expanding food and wine tourism sector.

Construction and Real Estate Sector

The construction and real estate industries are witnessing an accelerated boom due to substantial foreign direct investment and rising expatriate populations.
Infrastructure projects, residential developments, and commercial real estate ventures are all expanding, creating a surge in recruitment needs.
Common roles include:
- Civil Engineers and Project Managers – crucial for infrastructure and real estate development.
- Architects and Urban Planners – designing modern urban environments while preserving Georgia’s cultural heritage.
- Skilled Laborers – reflecting the high concentration of foreign workers engaged in these sectors.

Comparative Growth Matrix of Key Sectors in Georgia, 2025

Sector	Growth Status	Key Drivers	High-Demand Roles
Technology & IT	Fastest Growing	Digital transformation, startup ecosystem	Developers, IT Consultants, Cybersecurity Experts
Financial & Statistics	Stable Growth	Data-driven strategies, resilient services	Analysts, Statisticians, Data Scientists
Tourism & Hospitality	Strong Recovery	Rebound to pre-pandemic levels, global inflows	Hotel Managers, Tour Guides, Culinary Experts
Construction & Real Estate	Rapid Expansion	Foreign investment, expatriate demand	Engineers, Architects, Skilled Laborers

C. Key Channels for Recruitment

Recruitment dynamics in Georgia have been undergoing a noticeable transformation in 2025. As businesses adapt to evolving labor demands and rising competition for skilled professionals, employers are strategically leveraging multiple channels to identify, attract, and retain talent. A comprehensive overview reveals that both traditional and digital platforms, as well as specialist recruitment agencies, play a pivotal role in shaping the hiring landscape.

Online Job Portals and Digital Platforms

The dominance of online job boards continues to expand, with platforms such as Jobs.ge, Hr.ge, and CV.ge serving as leading hubs for job seekers and employers alike.
Internationally recognized portals such as the 9cv9 Job Portal have gained traction among both multinational corporations and local businesses due to their advanced AI-driven job-matching features and broad candidate reach across Europe and Asia.
Many employers adopt a strategy of mass-posting vacancies across multiple platforms, aiming to maximize visibility. However, this often results in a surplus of applications, creating challenges in screening and filtering suitable candidates efficiently.
LinkedIn remains a powerful professional networking channel in Georgia, enabling companies to connect with both active and passive candidates, particularly in high-demand sectors such as IT, engineering, and finance.

Recruitment Agencies as Strategic Partners

The complexities of Georgia’s labor market, including varying skill availability and evolving legal frameworks, have made recruitment agencies indispensable.
Local and international agencies such as GrowMore Recruitment and Oman Agencies provide sector-specific expertise, particularly in industries like construction, IT, and hospitality.
9cv9 Recruitment Agency has established itself as one of the key players in Georgia’s hiring ecosystem, renowned for offering end-to-end recruitment solutions that range from executive search to large-scale talent acquisition.
Agencies play a vital role in bridging gaps between employers and candidates, ensuring compliance with labor laws while also saving employers significant time and operational costs.

Comparative Matrix of Key Recruitment Channels in Georgia

Recruitment Channel	Strengths	Challenges	Popular Industries
Local Job Boards (Jobs.ge, Hr.ge, CV.ge)	High visibility within Georgia; well-known to local job seekers	Oversaturation of applicants; manual screening effort required	General workforce, admin, sales
9cv9 Job Portal	International reach; AI-driven matching; cross-border candidate pool	Still emerging compared to long-established Georgian platforms	IT, finance, remote professionals
LinkedIn	Professional networking; access to passive candidates; global credibility	Requires active engagement; high competition for top talent	IT, engineering, management
Recruitment Agencies (GrowMore, Oman, 9cv9)	Expert screening; compliance support; tailored candidate sourcing	Service fees can be high for SMEs	IT, construction, hospitality, executive roles

The Growing Importance of Technology in Recruitment

AI-powered platforms like the 9cv9 Job Portal are redefining how employers approach hiring, using algorithms to ensure more accurate matches between job descriptions and candidate profiles.
Automation tools are gradually reducing the manual burden of screening mass applications, helping HR teams focus on engaging with the most promising talent.
Data analytics integrated into recruitment solutions are providing companies with insights into candidate behavior, market salary trends, and skill availability, enabling more strategic hiring decisions.

Conclusion on Recruitment Channels in Georgia

The recruitment ecosystem in Georgia is diverse and multifaceted, combining the strengths of local job boards, global networking platforms, and specialized agencies.
Companies seeking to remain competitive in 2025 must embrace a hybrid approach—leveraging platforms such as Jobs.ge and CV.ge for local visibility, the 9cv9 Job Portal for international reach, and agencies like 9cv9 Recruitment Agency for professional expertise.
Ultimately, success in Georgia’s evolving labor market depends on striking the right balance between technology-driven innovation and personalized recruitment strategies.

D. Critical Recruitment Challenges and Candidate Red Flags

Key Recruitment Channels in Georgia

Employers in Georgia, Europe, are increasingly adopting diverse recruitment channels to attract both local and international talent. The evolution of hiring practices reflects the country’s ambition to modernize its labor market while addressing persistent talent shortages.

Digital Job Portals
- Platforms dedicated to employment listings remain one of the most widely used channels.
- Employers rely heavily on these portals for reaching younger job seekers who prefer online applications.
- Increased integration with AI-driven screening tools helps organizations streamline candidate evaluation.
Recruitment Agencies
- Specialized agencies play a pivotal role in filling highly skilled roles, particularly in IT, engineering, and finance.
- Agencies are increasingly relied upon for executive search services and expatriate hiring solutions.
Social Media and Networking Platforms
- LinkedIn and regional networking groups are gaining traction as direct sourcing platforms.
- Employers leverage these tools not only for talent outreach but also for employer branding campaigns.
University and Vocational Partnerships
- Partnerships with academic institutions are strengthening, particularly to attract graduates in STEM fields.
- Internships and apprenticeship programs serve as pipelines for entry-level recruitment.

Critical Recruitment Challenges in Georgia

Despite modernization efforts, Georgia continues to face structural barriers in talent acquisition. Employers must navigate several pressing challenges:

Labor Shortages in Manual and Low-Wage Roles
- Persistent shortages in construction, agriculture, and hospitality remain a concern.
- Contributing factors include outward migration of the younger workforce and a demographic shift toward an aging population.
High Turnover Rates
- Entry-level and physically demanding roles suffer from elevated turnover.
- The absence of clear career progression pathways discourages retention.
- Limited benefits packages amplify dissatisfaction, especially among younger workers.
Skills Gaps in Emerging Sectors
- Rapid growth in IT, digital services, and renewable energy highlights a gap in specialized expertise.
- Employers increasingly face challenges in sourcing talent trained in advanced digital tools and technologies.
Employer Branding Deficiencies
- Many Georgian companies lack structured branding strategies to appeal to modern candidates.
- Global firms entering the market pose strong competition with superior branding and benefits.

Candidate Red Flags from the Job Seeker’s Perspective

Job seekers in Georgia are becoming more selective, driven by higher expectations for transparency and professionalism. Employers that overlook these considerations risk losing valuable candidates.

Lack of Salary Transparency
- Surveys indicate that undisclosed salary ranges remain the number-one red flag for applicants.
- Candidates interpret this as a signal of unfair compensation or poor workplace practices.
Inefficient Recruitment Processes
- Lengthy interview stages and poor communication are among the top reasons applicants decline offers.
- Job seekers increasingly expect streamlined, tech-enabled recruitment experiences.
Limited Employer Communication
- A lack of updates post-interview is a major deterrent.
- Candidates value prompt and professional correspondence as a marker of organizational culture.
Absence of Development Opportunities
- Modern applicants seek career growth and professional training.
- Offers lacking advancement pathways are often rejected, even if compensation is competitive.

Comparative Matrix: Employer Challenges vs. Candidate Red Flags in Georgia’s Hiring Market

Employer Challenge	Candidate Red Flag	Impact on Hiring Outcomes
Labor shortages in manual roles	Lack of salary transparency	Candidates opt for opportunities abroad or with global firms
High turnover in entry-level jobs	Long, inefficient interview processes	Increases rejection rates and prolongs vacancy cycles
Skills gaps in IT and digital sectors	Limited career development opportunities	Harder to attract top graduates and skilled professionals
Weak employer branding	Poor communication from hiring teams	Damages company reputation and reduces offer acceptance rate

5. The Role of Skilled Migration and Evolving Policies

A. The Contribution of the Foreign Workforce to Key Sectors

The Strategic Importance of Foreign Workforce in Georgia’s Economy

Skilled migration has emerged as a defining factor in Georgia’s evolving labor market, particularly as the country positions itself as a rising hub for innovation and cross-border investment.
The influx of foreign professionals, especially from neighboring regions such as Russia, has provided Georgia with a unique advantage in bridging persistent talent shortages across multiple industries.
This trend is not only reshaping the dynamics of the workforce but also accelerating the modernization of sectors that are vital for long-term economic sustainability.

Key Contributions of Migrant Talent to High-Demand Sectors

As of September 2024, foreign nationals made up 2% of Georgia’s total workforce, translating to 18,935 individuals actively employed across industries.
Migrant workers have become particularly concentrated in sectors where local skills are scarce but demand is rising rapidly:
- Information and Communication Technologies (ICT): 38% of foreign workers, driving digital transformation and innovation.
- Construction: 14% of foreign workforce, addressing infrastructure expansion and urban development needs.
- Accommodation and Food Services: 7% of foreign labor, enhancing service standards within Georgia’s growing tourism economy.
These distributions illustrate that migrant professionals are not only supplementing but actively strengthening Georgia’s competitiveness in the regional market.

Broader Economic and Policy Implications

Foreign labor has been pivotal in filling skill gaps that would otherwise hinder Georgia’s growth trajectory.
Skilled migration has helped reduce the mismatch between labor supply and demand, ensuring that high-growth sectors maintain their momentum.
Policymakers are increasingly viewing migration not as a short-term response but as a long-term strategy to attract expertise, enhance knowledge transfer, and support sectoral diversification.
The government has been aligning labor policies with broader economic goals, encouraging a regulatory framework that facilitates the inflow of high-skilled professionals while balancing domestic employment concerns.

Workforce Distribution Matrix of Foreign Nationals in Georgia (2024)

Sector	Share of Foreign Workforce	Impact on Industry Development
Information & Communication	38%	Strengthened digital infrastructure, boosted ICT exports, and accelerated tech-driven growth
Construction	14%	Supported infrastructure projects, urban expansion, and modernization of public facilities
Accommodation & Food Services	7%	Elevated service quality, enhanced tourism competitiveness, and improved hospitality standards
Other Sectors	41%	Contributed to manufacturing, logistics, healthcare, and knowledge-based industries

B. New Immigration Rules and the IT Residence Permit

Strategic Policy Shifts to Strengthen Georgia’s Talent Ecosystem

In June 2025, the Georgian government enacted a comprehensive reform of immigration legislation aimed at attracting and regulating the influx of high-skilled foreign professionals.
The amendments, which took effect in September 2025 and are scheduled for further implementation in March 2026, mark a turning point in the country’s approach to workforce internationalization.
The new legal framework introduces clearer guidelines for residence and work authorization while reinforcing compliance through structured processes and financial penalties for non-adherence.
This policy evolution underscores Georgia’s intent to balance domestic labor market needs with international competitiveness.

Introduction of the IT Residence Permit: A Game-Changer for Georgia’s Digital Economy

The most impactful policy measure within the reform package is the creation of a specialized Information Technology (IT) Residence Permit.
Key attributes of this new permit include:
- Eligibility: Open to IT professionals, small-business entrepreneurs in the digital sector, and executives of global IT enterprises.
- Validity: Initially granted for three years, with renewable extensions up to 12 years.
- Objective: To secure long-term commitment from international digital experts while addressing Georgia’s domestic IT talent shortage.
By aligning immigration policies with economic development strategies, Georgia positions itself as a rising digital hub within Europe.

Synergy with Tax Incentives for Attracting Global Talent

The IT Residence Permit is reinforced by existing fiscal incentives designed to appeal to international talent and enterprises.
Two prominent schemes, International Company Status and Small Business Status, reduce income tax rates significantly, in some cases as low as 1%.
This combined offering—residence stability plus favorable tax treatment—elevates Georgia as one of the most attractive markets for relocating IT experts and startups.
For companies, the transparent framework lowers administrative barriers and simplifies international hiring, enhancing predictability in workforce planning.

Matrix: Benefits of the IT Residence Permit in Georgia (2025–2026)

Dimension	Benefit for Professionals	Benefit for Employers	National Economic Impact
Permit Duration	3 years, extendable up to 12 years	Long-term retention of global IT talent	Ensures sustained knowledge transfer and expertise growth
Eligibility Criteria	IT specialists, entrepreneurs, and executives	Wider access to niche skills and leadership	Bridges skills gap in high-demand industries
Compliance & Governance	Clear framework with penalties for non-compliance	Predictable legal environment for hiring	Builds structured, transparent labor market institutions
Tax Incentives	Income tax reductions to as low as 1%	Cost-efficient recruitment and retention strategy	Attracts foreign investment and accelerates IT sector growth

6. Strategic Outlook and Recommendations

A. Navigating the 2025 Labor Market: A Guide for Employers

Future Pathways for Employers in Georgia’s 2025 Labor Market

The Georgian labor market in 2025 is evolving into a highly intricate ecosystem shaped not only by the conventional forces of supply and demand but also by deeper socio-political and economic dynamics.
Employers are confronted with a paradoxical environment: despite strong economic growth indicators, the labor market reflects contraction due to structural inefficiencies, demographic imbalances, and cautious policymaking.
The shift from informal to formal employment is reshaping workforce availability, bringing both opportunities and constraints for hiring organizations.

Key Challenges for Employers

Political Sentiment: Recruitment strategies must consider the broader political climate, where policy reforms and regulatory frameworks influence business confidence and hiring patterns.
Demographic Shifts: An aging workforce, urban-rural migration disparities, and skill mismatches between graduates and market needs create challenges in securing sustainable talent pipelines.
Structural Inefficiencies: Bureaucratic hurdles, rigid employment regulations, and limited vocational training systems restrict the pace of labor market modernization.

Strategic Priorities for Organizations

Talent Acquisition Beyond Job Postings: Merely increasing job advertisements is insufficient. Companies must cultivate proactive sourcing strategies, leveraging recruitment agencies, academic partnerships, and digital hiring platforms.
Retention and Employee Engagement: With a limited pool of skilled professionals, retaining existing talent through competitive compensation, career development pathways, and workplace flexibility is becoming a critical differentiator.
Upskilling and Workforce Development: Employers are advised to invest in continuous learning initiatives, ensuring employees adapt to emerging technologies, digital tools, and international business practices.
Employer Branding: Building a strong employer brand, emphasizing stability, inclusivity, and innovation, enhances an organization’s appeal in a competitive hiring environment.

Comparative Labor Market Snapshot (2025 Outlook)

Factor	Georgia Labor Market 2025	Broader European Context	Strategic Implication for Employers
Economic Growth	Strong but cautious	Moderate recovery	Leverage growth to attract investors but prepare for cautious hiring
Workforce Availability	Constrained, transitional	More stabilized	Focus on targeted hiring and retention strategies
Political Influence	High	Variable	Align hiring strategies with policy outlooks
Informal to Formal Transition	Accelerating	Less pronounced	Opportunity to secure reliable, long-term talent

Expert Recommendations for 2025

Employers in Georgia must pursue a dual strategy that balances immediate hiring needs with long-term workforce planning.
Strategic recruitment should be complemented by policy advocacy, ensuring businesses participate in shaping labor reforms that facilitate growth.
Those who succeed will be organizations that not only adapt to market realities but also anticipate structural transitions, positioning themselves as forward-looking employers in a transforming European labor market.

7. Actionable Recommendations for Talent Attraction and Retention

Employer Strategies for Competitive Advantage

The 2025 labor market in Georgia demands employers adopt a forward-looking approach that goes beyond transactional hiring.
Success depends on a multi-dimensional strategy that balances compensation, candidate experience, compliance with evolving immigration rules, and employer branding.

Competing on Value Beyond Compensation

Benchmarking salaries against market standards is essential, as symbolic minimum wage levels do not reflect real labor dynamics.
Employers must adopt a holistic compensation strategy that combines:
- Competitive salaries aligned with sector-specific expectations.
- Non-financial incentives such as:
  - Professional development and training programs.
  - Defined career progression pathways.
  - Recognition programs and employee engagement initiatives.
  - A positive organizational culture emphasizing inclusivity, flexibility, and innovation.

Enhancing the Candidate Experience

A poor recruitment journey is one of the main reasons candidates reject offers in Georgia. To mitigate this:
- Ensure salary transparency from the earliest stages of the hiring process.
- Streamline recruitment processes by minimizing excessive interview rounds.
- Maintain consistent, clear, and timely communication with applicants.
- Invest in digital hiring tools to create seamless and candidate-friendly application experiences.

Shifting Towards Targeted Recruitment and Employer of Record (EOR) Solutions

Mass job postings have shown diminishing returns as vacancy numbers decline and talent becomes more specialized.
Employers should pivot towards precision recruitment by:
- Partnering with specialized recruitment agencies that possess deep industry knowledge and talent pipelines.
- Engaging Employer of Record (EOR) services to simplify the complexities of hiring foreign talent, particularly under evolving compliance and immigration frameworks.
- Leveraging technology-driven platforms such as applicant tracking systems and data-driven sourcing tools to identify high-quality candidates efficiently.

Leveraging Immigration and Tax Incentives for Talent Acquisition

Georgia’s newly introduced IT Residence Permit (2025) represents a pivotal tool for attracting and retaining global IT professionals, entrepreneurs, and executives.
Employers can capitalize on this by:
- Promoting the long-term stability offered by residence permits (three years extendable up to twelve).
- Highlighting Georgia’s tax advantages, such as International Company and Small Business statuses, which reduce tax burdens significantly.
- Positioning Georgia as a competitive regional hub for technology and digital innovation, rivaling other European destinations.

Comparative Benefits Framework for Employers

Employer Action	Direct Benefits	Long-Term Impact
Competitive salary + non-financial perks	Attraction of top-tier local professionals	Stronger employer reputation and retention
Candidate-centric hiring process	Higher offer acceptance rates	Enhanced employer brand perception
Targeted recruitment + EOR services	Efficient sourcing of specialized talent	Reduced compliance risks and faster hiring
Use of immigration + tax incentives	Attraction of skilled foreign professionals	Development of sustainable talent pipelines

Strategic Outlook for 2025 and Beyond

Employers that integrate competitive compensation with non-financial benefits, strengthen their recruitment processes, and align with evolving immigration policies will establish a long-term advantage in Georgia’s competitive labor market.
Those who adapt quickly to these shifts will not only fill immediate vacancies but also build a sustainable workforce capable of driving economic growth in one of Europe’s emerging business hubs.

Conclusion

As 2025 unfolds, Georgia’s hiring and recruitment landscape presents both challenges and opportunities for employers, policymakers, and job seekers. The nation’s labor market reflects the delicate balance between economic resilience and evolving workforce demands. On one hand, Georgia benefits from its strategic geographical position, growing ties with European and global markets, and a resilient economy that continues to show steady progress. On the other hand, the recruitment ecosystem faces hurdles such as demographic imbalances, ongoing transitions from informal to formal employment, and political and regulatory uncertainties that shape employer confidence.

Employers who seek to thrive in this evolving environment must adapt quickly to shifting dynamics. Traditional recruitment methods are no longer sufficient in a labor market where talent expectations, technological innovation, and policy reforms are reshaping how work is defined. Instead, organizations are encouraged to adopt forward-looking strategies focused on three critical pillars: agility, inclusivity, and digital transformation. By creating adaptable hiring models, ensuring workforce diversity, and leveraging technology-driven recruitment platforms, companies can position themselves to attract and retain top-tier talent even amid market volatility.

Equally, job seekers in Georgia must acknowledge the changing nature of employment opportunities. As industries modernize, sectors such as information technology, finance, renewable energy, and logistics are experiencing rising demand for specialized skill sets. Professionals who invest in continuous learning, digital literacy, and cross-border experience will be better equipped to secure competitive roles in this increasingly globalized job market. The shift toward formalized employment structures also presents long-term benefits for the workforce, including stronger protections, better compensation, and enhanced career development pathways.

From a policy perspective, the Georgian government and regulatory bodies play a decisive role in sustaining labor market growth. Investments in education, vocational training, and digital infrastructure will be essential to reduce skill mismatches and bridge employment gaps. Moreover, efforts to foster business confidence through political stability, streamlined regulations, and supportive labor policies will directly impact how both local and international companies engage in recruitment within the country.

Ultimately, the state of hiring and recruitment in Georgia in 2025 can be described as a transformative moment. Rather than being defined by obstacles, this period highlights the potential for strategic reform, collaboration, and innovation. Employers who align their talent strategies with market realities, job seekers who invest in skill enhancement, and policymakers who create a sustainable framework for growth will collectively shape Georgia’s workforce future.

In conclusion, Georgia stands at a crossroads where the interplay of economic ambition, political decision-making, and social transformation will determine its labor market trajectory. The companies that succeed will be those that view recruitment not merely as a transactional process but as a strategic investment in long-term competitiveness. For job seekers, adaptability, upskilling, and resilience will remain key differentiators in securing opportunities. Together, these factors reinforce Georgia’s potential to build a strong, inclusive, and future-ready workforce that can thrive within the broader European and global economic ecosystem.

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Sources

The World Bank

BM.GE

NewsHub Georgia

Asian Development Bank

PMC Research

Trading Economics

Investor.ge

PMCG

NH Consulting Services

International Monetary Fund (IMF)

Civil Georgia

TheGlobalEconomy

Population Trends Asia Pacific

IMF eLibrary

World Bank Gender Data Portal

GBPI (Georgia Budget & Policy Institute)

Ulandssekretariatet

Playroll

York Towers

INC.GE

ExpatHub Georgia

Oman Agencies

GrowMore Recruitment

EB3.Work

Valdosta Today

Davies Talent Solutions

KPMG International

ALLSTARSIT

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Key Takeaways

About 9cv9

The State of Hiring and Recruitment in Georgia, Europe: A 2025 Expert Report

1. Macroeconomic and Political Foundations

A. Economic Growth and Inflation in 2025: A Landscape of Divergent Forecasts

B. Key Economic Drivers and Foreign Investment Trends

C. Impact of Domestic Political Tensions and Geopolitical Shifts on Business Confidence

2. Labor Market Dynamics: Supply, Demand, and Demographics

A. Core Labor Force Indicators: Employment, Unemployment, and Participation Rates

B. Demographics and Workforce Composition

C. The Challenge of Labor Underutilization and Informal Employment

Structural Inefficiencies in the Labor Market

The Prevalence of Informal Employment

Labor Underutilization and Skills Mismatch

Duality of the Georgian Labor Market

Table: Employment Distribution and Labor Market Challenges in Georgia

Implications for Hiring and Recruitment in Georgia, 2025

3. Compensation and Wage Trends

A. Analysis of Average and Median Monthly Wages in 2025

B. Wage Distribution and Real Salary Growth

Shifts in Wage Distribution

Real Salary Growth and Inflation Impact

Wage Distribution Matrix (Q1 2021 vs Q1 2025)

Wage Growth vs Inflation (2019–2025)

Key Insights for Recruitment and Hiring

C. Minimum Wage and its Disconnect from the Living Wage

Outdated Minimum Wage Framework

Living Wage and Market Discrepancy

Implications for Employers

Comparative Wage Analysis (2025)

Key Takeaways

4. The State of Hiring and Recruitment

A. Job Vacancy Trends and the Beveridge Curve

B. In-Demand Sectors and Occupations

C. Key Channels for Recruitment

Online Job Portals and Digital Platforms

Recruitment Agencies as Strategic Partners

Comparative Matrix of Key Recruitment Channels in Georgia

The Growing Importance of Technology in Recruitment

Conclusion on Recruitment Channels in Georgia

D. Critical Recruitment Challenges and Candidate Red Flags

Key Recruitment Channels in Georgia

Critical Recruitment Challenges in Georgia

Candidate Red Flags from the Job Seeker’s Perspective

Comparative Matrix: Employer Challenges vs. Candidate Red Flags in Georgia’s Hiring Market

5. The Role of Skilled Migration and Evolving Policies

A. The Contribution of the Foreign Workforce to Key Sectors

The Strategic Importance of Foreign Workforce in Georgia’s Economy

Key Contributions of Migrant Talent to High-Demand Sectors

Broader Economic and Policy Implications

Workforce Distribution Matrix of Foreign Nationals in Georgia (2024)

B. New Immigration Rules and the IT Residence Permit

Strategic Policy Shifts to Strengthen Georgia’s Talent Ecosystem

Introduction of the IT Residence Permit: A Game-Changer for Georgia’s Digital Economy

Synergy with Tax Incentives for Attracting Global Talent

Matrix: Benefits of the IT Residence Permit in Georgia (2025–2026)

6. Strategic Outlook and Recommendations

A. Navigating the 2025 Labor Market: A Guide for Employers

7. Actionable Recommendations for Talent Attraction and Retention

Conclusion

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