What is the problem?

Public Works Sub-Program of 2022

The 2022 public works sub-program to activate employment in our country is not based on the development of skills of the employees, as it does not offer them a development plan. A large number of people who come to the employment agency refuse to participate in the sub-program, although it is nowhere to be seen and it is not known what is the reason for the refusal. 

What is the case of Georgia? 

Until 2022, only the base of the employment agency - Worknet.gov.ge was functioning in Georgia, where the number of registrations as job seekers has increased in recent years. Despite the fact that the number of job-seekers in most cases significantly exceeded the number of vacancies, the number of employed persons was always particularly lower than the number of available jobs. 

For example: in 2018, the number of job seekers was up to 90,000 (including 75,000 socially vulnerable), the number of vacancies was up to 9,000, and the number of employed persons was up to 2,000. which indicates the shortcomings of the mentioned programs. 

How does the 2022 employment activation sub-program work? 

Even though according to the data of July 2022, there are 664,000 socially vulnerable people in Georgia, a total of 60,000 citizens expressed interest in participating in this year's employment activation sub-program, however, after learning about the conditions, 23,000 participants refused to participate in it. According to the Deputy Minister of Health, Tamar Barkalaia, as per the data of September 2022:  

• 4,200 people transformed their informal economic activities into formal; 
• 22,000 citizens agreed to perform public works. 

For the moment, public works mainly include exterior cleaning and minor rehabilitation works.

One part of the sub-program, which is based on the formalization of the work of socially vulnerable persons involved in informal work, does not take into account the following circumstances: 

• The employee has less leverage to make the employer pay the taxes that should follow the signing of the employment contract. 
• People will be less likely to pay additional taxes by registering as an entrepreneur/small business. 

For more details, see the article: “Welfare-to-Work Policy of 2022 and the Socially Vulnerable” 

What we do not know? 

It should also be noted that in August we applied to the State Employment Agency for public information, where we requested detailed statistics on the number of people participating in the sub-program, but we did not receive an answer from the agency. Therefore, we do not know:

• How many socially vulnerable people applied to the agency with a request to engage in public works;
• How many socially vulnerable persons were employed (grouped by age and gender);
• What types of jobs are they employed to (grouped information by employing agencies);
• For what period are they employed; 
• In 2022, how many vacancies have been created by the sub-program for promotion of employment in public works, and how many socially vulnerable people can be employed by the end of the year;
• From the beginning of the 2022 employment promotion program until today (apart from the employment under public works), how many socially vulnerable people were employed, including how many were employed with the help of the social service agency (through the worknet system); 

Therefore, without this information, it is difficult to talk about the pros and cons of the program. 

How can this problem be solved? 

Welfare-to-work programs in Georgia do not involve a large number of people, despite the fact that, as a result of surveys, unemployment is named as the most major problem in Georgia.

First of all, it is important to identify the factors that prevent people from participating in employment programs. These are: 

• Low salary (300 GEL is slightly higher than the subsistence minimum)
• Mainly offering only one direction of employment 
• The duration, scope, and intensity of the contract are not defined in advance 
• Absence of the employee's job development plan from the agencies 
• Lack of information about the benefits of formal employment 
• Failure to see various challenges of citizens and not having individual plans 

It is essential to develop other employment programs that are focused on the long-term development of the job-seeker and on overcoming individual challenges. 

What is noteworthy and should be taken into account?

• If a socially vulnerable person does not participate in this program, he/she will not have the guaranteed 4 years of benefits, will be reviewed annually (as was the case before), and will be in danger of losing his/her status. 
• Accordingly, the state does not take into account that the beneficiary may not be able to participate in these programs and does not offer them an individual plan to solve their problems.