WB: Georgia ranks 2nd globally in 2024 labor productivity growth – Georgia Today

Report on Global Labor Productivity and Sustainable Development Goals

2024 World Bank Findings

The World Bank’s 2024 data on global labor productivity, measured as Gross Domestic Product (GDP) per person employed at constant prices, reveals significant trends relevant to global economic development. This metric is crucial for assessing progress towards the Sustainable Development Goals (SDGs).

Georgia’s Labor Productivity Performance

• In 2024, Georgia experienced a 10.4% increase in labor productivity, reaching a value of 56,608 international dollars per employed person.
• This double-digit annual growth ranked Georgia second globally, trailing only Guyana.
• Regionally, Georgia secured the top position in both Eurasia and the Eastern Hemisphere for labor productivity growth.

Long-Term Growth Analysis (21st Century)

Over the past 24 years, Georgia has demonstrated remarkable progress, placing it among the top three nations worldwide for cumulative labor productivity growth:

1. Guyana: 786% increase
2. China: 506% increase
3. Georgia: 340% increase

Comparative Regional Performance

In contrast to Georgia’s substantial gains, the European Union exhibited minimal progress.

• Labor productivity growth in the European Union was recorded at less than 1% in 2024.
• Several member states, including Iceland, Ireland, Austria, Italy, and Finland, experienced a decline in labor productivity.

Alignment with Sustainable Development Goal 8

Labor Productivity as a Key Indicator for SDG 8

The World Bank underscores the direct link between labor productivity and the achievement of SDG 8, which aims to “promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.”

Specifically, GDP per person employed is the designated metric for SDG Indicator 8.2.1, used to monitor progress towards this goal. Gains in labor productivity, driven by investment, technology, and improved work organization, are fundamental to advancing key targets within SDG 8.

Contributions to Decent Work and Economic Inclusion

According to the World Bank, enhanced labor productivity directly supports a country’s capacity to:

• Create and sustain decent employment opportunities.
• Ensure fair and adequate remuneration for workers.
• Strengthen social protection systems.
• Reduce poverty, including in-work poverty and vulnerable employment.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article directly addresses one specific Sustainable Development Goal:

• SDG 8: Decent Work and Economic Growth. The article explicitly states that the key metric discussed, “GDP per employed person,” is used to monitor progress towards “the Sustainable Development Goal (SDG) of promoting sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.” The entire focus on labor productivity, economic capacity, and employment opportunities aligns with the core mission of SDG 8.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s focus, the following specific target under SDG 8 can be identified:

• Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labor-intensive sectors. The article’s central theme is the measurement of labor productivity, which is defined as “the level of GDP per employed person.” The discussion of Georgia’s significant increase in labor productivity (10.4% in 2024) and its high global ranking directly relates to the goal of achieving higher economic productivity. The World Bank’s explanation that “Productivity gains from investment, trade, technological progress, or changes in work organization” further reinforces the connection to this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article explicitly mentions a key indicator used to measure progress:

• Indicator 8.2.1: Annual growth rate of real GDP per employed person. The article is built around this specific indicator. It is directly named when the text quotes the World Bank: “GDP per employed person is a key metric to monitor whether a country is progressing toward the Sustainable Development Goal… (SDG Indicator 8.2.1).”

The article provides several data points for this indicator:

1. The annual growth rate for Georgia in 2024 was 10.4%.
2. The absolute value of labor productivity in Georgia surpassed 56,608 international dollars.
3. The long-term growth for Georgia was a 340% increase over the past 24 years.
4. Comparative data is provided, such as the EU’s growth rate of below 1%.

4. Table of SDGs, Targets, and Indicators

Source: georgiatoday.ge