Core area “Sustainable economic development, training and employment” Addressing the shortage of skilled labour through vocational education

Notwithstanding the stable economic growth which Georgia had experienced prior to the COVID-19 pandemic, and notwithstanding the fact that growth rates have soared again (10.6 per cent in 2021), the country is faced with a high level of unemployment, especially among young people.

An employee of a wine testing lab in Tbilisi is testing the quality of Georgian wines.

An employee of a wine testing lab in Tbilisi is testing the quality of Georgian wines.

An employee of a wine testing lab in Tbilisi is testing the quality of Georgian wines.

This is partly due to the fact that Georgia's education system does not adequately prepare pupils for the challenges and needs of the labour market and has not been aligned with employers' actual skills needs. However, in order to enhance competitiveness it is indispensable to have well-trained skilled workers.

Germany is therefore assisting Georgia in modernising its vocational education system. Based on close cooperation with the private sector, Georgia is developing practice-oriented training courses and introducing them step by step. Since 2015, Technical Cooperation programmes operated by GIZ have already helped to introduce 16 dual (industry-based and school-based) vocational training courses and more than 40 certification courses, with the involvement of 13 vocational schools and more than 80 enterprises. Through KfW Development Bank, three vocational centres of excellence are being built for industries with high growth potential, including construction and logistics, tourism, and wine.

Support for small and medium-sized enterprises

The second area of intervention for Georgian-German cooperation in this core area is private sector and financial sector development. Relevant activities are geared toward making economic development in Georgia sustainable and environmentally and socially sound, in line with the 2030 Agenda. Germany's activities focus on small and medium-sized enterprises. Most enterprises in Georgia belong to that sector, and these enterprises offer the greatest potential for generating employment and income.

The BMZ is helping them to become more competitive so as to enter new markets. Quality assurance activities, efforts to achieve compliance with international standards, and marketing activities are being undertaken to help enterprises to export Georgian goods to the European Union.

Together with the EU, Germany has so far supported, in particular, the garment and fashion sector, the construction materials industry, and tourism.

As at: 08/06/2022