LABOR MARKET CHALLENGES AND ITS IMPACT ON THE «NEW POOR»

Abstract

At the current stage of the country’s socio-economic development, overcoming unemployment, poverty and ensuring effective employment in Georgia remains the main task of macroeconomic policy. Despite the recent reforms and certain positive shifts in economic development, there are still a number of difficulties in the labor market, which, on the one hand, are related to the shortage of jobs across the country, and on the other hand, to the shortage of highly qualified labor. In addition, there is a noticeable lack of personnel with the necessary knowledge, skills and experience in certain professions or specialties. This largely determines the imbalance between the demand and supply of labor in the Georgian labor market. The problem is made even more visible by modern global trends related to demographic, organizational, structural changes, large-scale labor emigration, technological innovations and other innovations.

Given the above situation, great importance is attached to systematic research of the labor market, especially in the direction of studying the real demand for labor, so that the existing higher and vocational education system in the country is correctly oriented towards training personnel with the appropriate profession and qualifications, which will fully meet the requirements of employers for the labor force and minimize the imbalance in the labor market. Eliminating the existing problem can have a positive impact on overcoming poverty, especially in relation to the “new poor”.

Poverty research is complex in nature and takes into account all the achievements that have taken place in economic, political, sociological and psychological scientific directions, which reveals the interdisciplinary nature of poverty research. This paper presents an analysis of the practical and theoretical approaches related to the study of the problem of poverty in socio-economic science.

At the current stage of the country’s socio-economic development, overcoming unemployment, poverty and ensuring effective employment remain the main tasks of macroeconomic policy in Georgia. Despite the recent reforms and certain positive shifts in the direction of economic development, there are still a number of difficulties in the economy, which, on the one hand, are related to the shortage of jobs across the country, and on the other hand, to the shortage of highly qualified labor. In addition, there is a noticeable lack of personnel with the necessary knowledge, skills and experience in certain professions or specialties. This largely determines the imbalance between the demand and supply of labor in the Georgian labor market. The problem is made even more visible by modern global trends related to demographic, organizational, structural changes, large-scale labor emigration, technological innovations and other innovations.

In modern economic relations, the impact of the functioning of the labor market on the “new poor” is relevant, which is explained primarily by the fact that in many cases employment cannot provide adequate living conditions for an individual. Poverty in its essence is a global challenge. At the same time, poverty is characterized by a subjective nature, which means that it is perceived differently by everyone. There may be different answers to the question of what poverty means: for someone it is associated with a lack of food, for someone with the absence of shelter, and for someone it may be associated with the possibility of receiving quality education. For some, it may be associated only with health.