How Much Does a 4-Member Family Need to Survive in Georgia?

As of January 2020, the minimum monthly wage in Georgia is 174.4 GEL ($61.59), while the minimum wage for a four-member family is GEL 348.9 ($123) if two people are employed.

Official data of the Georgian National Statistics Office (Geostat) reads that the average monthly consumer spending in Georgia was GEL 208.7 ($73.63) per person last year. According to Geostat, consumer spending includes food, beverages, tobacco, clothing, education, footwear, health care, transportation, heating, electricity and household goods.

As for the average spending by one person per month, according to Geostat, one person spends GEL 78.1 on food, beverages and tobacco, on clothing and footwear GEL 9.2, on household consumption GEL 8.5, on healthcare GEL 26, on electricity and heating 27.1 GEL, on transport 22.3 GEL, on education 7.2 GEL and on other consumer expenses 30.3 GEL.

Based on the above data, it turns out that keeping a family of four in Georgia will cost at least GEL 834.8 ($295.50) per month, including food, beverages, transportation, healthcare, and other basic expenses.

Geostat data also reads that the average monthly income per person last year was GEL 264.3 ($93.56). To note, monetary income includes hired labor, self-employment, and money received from the sale of agricultural produce, pensions, remittances, etc. Accordingly, if the median income of a four-member household (pension, remittance, self-employment, etc.) is GEL 264.3 per person, a family of four needs GEL 834.8 ($295.50) to cover consumer spending. Therefore, even if three middle-income people are working in the family, the income would be less than the monthly consumer expenses.

Last year, the average monthly earnings in Georgia increased by 91.6 GEL ($32.42) and amounted to GEL 1,217 ($430.80).

The best-paid jobs in Georgia, according to Geostat, are:

• Construction - GEL 2,008 ($710.80) per month;

• Information and communication – GEL 1,958 ($693.10);

• Professional, scientific and technical activities – GEL 1,936 ($685.31);

• Financial and insurance activities – GEL 1,898 ($671.86).

The national statistics also read that in QIV 2019, the unemployment rate in Georgia decreased by 1.4 percentage points compared to the corresponding period of the previous year, and equaled 10.9%.

Moreover, in 2019, the economically active population constituted 61.7% of the working age population aged 15 and older. In comparison to 2018, both the economic activity rate and the employment rate decreased by 1.9 and 0.8 percentage point, respectively.

The unemployment rate is much lower in rural than in urban settlements. In QIV 2019, the unemployment rate in urban settlements was reduced by 2.5 percentage points compared to the corresponding period of the previous year, while in rural settlements - by 0.1 percentage point.

Traditionally, in Georgia the unemployment rate is higher for men than for women. In QIV 2019, the indicator was 2.4 percentage points higher for men compared to the corresponding indicator for women. In addition, in comparison to the same quarter of the previous year, the unemployment rate decreased for both women and men by 1.4 and 1.6 percentage points, respectively. However, the QIV 2019 activity rate for women was 53.0%, and for men 71.5%. The employment rate for women decreased by 1.6 percentage points, while it remained the same for men, compared to QIV 2018.

By Tea Mariamidze

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