GoG says up to 100 000 citizens lost their jobs
By Natalia Kochiashvili
Tuesday, October 13
The National Statistics Office (Geostat) released data, according to which in 2019, the average monthly nominal salary of employees in Georgia increased by 5.7% or GEL61.2 compared to last year and amounted to GEL1 129.5.
According to Geostat, in 2019, wage growth compared to the previous year was observed in almost all sectors. Relatively high salaries were observed in the following fields according to the types of activities: Financial and insurance activities - GEL2,030.2 (decreased by 9.2 % compared to the previous year); Professional, scientific and technical activities - GEL1 896.0 (increased by 10.7%); Construction - GEL1 631.1 (increased by 5.1%).
Meanwhile, according to the agency, the average monthly salary of women in 2019 was set at GEL869.1, and for men - at GEL1 361.8. Annual wage growth, respectively, was 5.7% for women and 6.3% for men.
In 2019, the average monthly salary of employees in the public sector was GEL237.4 less than in the non-state sector. Compared to 2018, salaries in the public sector increased by 9.1%, and in the non-governmental sector by 4.1%, amounting to GEL973.7 and GEL1 211.1, respectively.
According to Geostat, in 2019, the average monthly salary of employees in the business sector increased by 5.5% and amounted to GEL1,161.7. According to the types of activities, the highest salaries are recorded in the field of professional, scientific and technical activities (GEL2,104.5.5, increased by 10.2% compared to the previous year), as well as in the field of construction (GEL1,641.8, increased by 5.2% compared to the previous year).
In 2019, the average monthly salary in the non-profit and financial sectors increased by 6% compared to the previous year and amounted to GEL1,068.5.
Due to the economic crisis caused by the pandemic, the respective number in 2020 may not be much higher. According to the Deputy Minister of Finance, Giorgi Kakauridze up to 100 000 citizens have lost their jobs because of coronavirus. The statement was made at a hearing in parliament, where the 2021 initial state budget is being discussed.
“The number of employees will increase in 2021 at the expense of investment and economic activity. At least 20 thousand must restore income. These are not lost jobs this year, these are lost because there is a pandemic in the country and the economic downturn always affects that,” Kakauridze underlined.
Note that the program of unemployment compensation has been running for the last 6 months and provided monthly assistance to those who had salaries up to and including the first quarter of 2020, but then lost their income. This assistance was issued for 6 months, however, it was terminated immediately for the citizens if other income in the amount of more than GEL10 was recorded in their account. According to official statistics, 161,905 people have benefited from this assistance at least once in the last 5 months.
Kakauridze also announced that the initial version of the budget will be significantly revised in the next period.
The document includes the following economic parameters. In 2020, the economic growth rate will be -4.9 %, although in 2021 we will already return to the 5% growth rate.
As for the inflation rate, it’s assumed that the inflation rate will be less than 4%by the end of the year, and next year will be close to the 3%inflation target.
“As for the budget deficit, which is one of the important indicators, in 2021, we will have a budget deficit of 5.1 percent,” said the Deputy Minister.
The draft budget for 2021 does not envisage an increase in salaries in the public sector. As he pointed out, the amount invested in wages in 2021 is a resource needed to fund a full year of increased wages for police and the army this year. Thus, the first version of the budget reflects the obligations undertaken by the state.
"The budget envisages a legislative initiative regarding the indexation of pensions, envisages an increase of teachers' salaries by GEL100. Also, in kindergartens, where salaries have been increased this year, it will be fully funded by 2021. In 2021, the increased salaries of police officers and soldiers will also be fully funded this year,” said Kakauridze.
According to him, the first version of the budget does not yet reflect the costs of the pandemic, as there’s still a lot of uncertainty and the costs associated with purchasing the vaccine or re-testing and treating it is unknown so far.
Kakauridze noted that a lot depends on what the economic expectations will be worldwide. In October, the ministry will participate in the annual meeting of the World Bank and the International Monetary Fund, where updated forecasts for the world economy will be published, thus there will be a basis for more accurate analysis and planning available.
