TBILISI, September 8 – Georgia’s government has revived talks on introducing unemployment insurance, a social safety net that is standard across much of the West but has never been implemented in the country.
The idea has circulated for years without concrete steps, but parliament is now working on a draft law and consulting with business groups, according to Goga Dondua, head of the Employers’ Association.
The proposal would likely place new obligations on businesses, which has already triggered pushback, Rezonansi reported. Some business leaders argue that the private sector is overburdened with taxes and regulations and cannot absorb additional costs. Mikheil Chelidze, head of the Small and Medium Business Association, said, “Business cannot handle such pressure. If a law makes unemployment insurance mandatory, the problem will be that neither employees nor employers will remain.” He added that the state, not business, should cover such social programs.
Economists, however, see things differently. Merab Janiashvili argued that unemployment insurance is a normal part of the social package in developed countries and could provide real security for Georgian workers. He dismissed fears of economic collapse, saying it could even strengthen the insurance sector. Dondua suggested the scheme might be designed with “minimal amounts” to ease the burden on companies, especially smaller ones.
