Skills for Change : Preparing the Armenian and Georgian Workforce for the Future

Overview & Synopsis

Labor markets worldwide are being reshaped by three megatrends: digitalization, the green transition, and demographic changes. While these trends affect different occupations, sectors, and skill sets, they are collectively transforming how economies grow and how people work. They create new opportunities for productivity and inclusion by generating jobs in emerging sectors and changing the task content of jobs, even as computerization and decarbonization put pressure on existing occupations. While worker displacement risks exist, most jobs are not disappearing but evolving, requiring workers to adapt as technologies, processes, and regulations change the skills and tasks in demand. Without targeted interventions, these shifts could restructure the labor force and exacerbate unemployment and inequality, particularly among workers in declining occupations. The ultimate impact will depend on how effectively workers acquire new skills to meet evolving demands and how decisively policies support upskilling and reskilling for smooth occupational transitions for displaced workers. This report analyzes how digitalization, the green transition, and population aging are reshaping jobs and skills in Armenia and Georgia and identifies policy priorities to manage risks and seize new opportunities. It uses established classification methodologies to estimate the proportion of the workforce that will be most affected by these megatrends, as well as which skills are most demanded in each of the three transitions. On one side, digital, green, and healthcare occupations are expected to expand; on the other, computerization-vulnerable and AI exposed, and brown occupations face higher risks of task change or declining demand (see Figure ES3). The report analyzes recent labor market trends and the profile of workers in these occupation groups and identifies the core digital, green, and care skills that distinguish jobs in these growing sectors. It then assesses skills gaps in core areas among other workers to evaluate their potential for transition into emerging fields. Finally, it proposes policy actions to strengthen skills systems, foster adaptability, and promote worker mobility toward occupations with rising labor demand.