MACROECONOMIC EFFECTS OF LABOR MARKET REGULATION IN GEORGIA

Abstract

Nazira Kakulia E-mail: nazira.kakulia@tsu.ge Doctor of Economics, Associate Professor Ivane Javakhishvili Tbilisi State University Tbilisi, Georgia https://orcid.org/0009-0002-8879-1339   Irma Tkemaladze E-mail: irma.tkemaladze@tsu.ge  Doctor of Economics Ivane Javakhishvili Tbilisi State University Tbilisi, Georgia https://orcid.org/0000-0001-7880-2562   Abstract: The article discusses the impact of the changes on labor market resulting from the formation of the post-industrial economy and caused by the pandemic crisis, in particular the process of employment forms’ transformation, response measures to the transf ormation of employment forms are analyzed, the stages of the employment policy for the study period are separated, the need to implement the employment policy necessary for the symbiotic development of standard and non-standard forms of employment is substantiated. We conclude that labor market policies are more "sensitive" in nature than other policies. Therefore, choosing the distortionist model emphasized by the World Bank or the interventionist model prioritized by the International Labor Organization will not lead us to the results that may have been achieved in other countries. In our opinion, it is recommended to use a more intermediate approach, which considers the labor market policy in the framework of the general economic policy, and the final goal of economic reforms is not only a high rate of economic growth, but also an increase in the well-being of the population. By studying the employment policy, it became clear that the course of the last period is actually aimed at providing effective employment, at the same time, complex measures are being taken to improve the current situation in the labor market. However, as determined by the conducted expert research, only the perfection of the legal framework is not enough for the effectiveness of the policy. It is necessary to strengthen the enforcement mechanism and control the results.