15.11.2021

UNEMPLOYMENT IS FORECAST TO DECLINE BY 2024

Unemployment will continue to decline until 2024, according to the Ministry of Finance.

The assessment is recorded in the updated version of the autumn economic forecast.

It states that from 5.5 percent this year the ratio will reach 4.5 percent at the end of the forecast period.

The Ministry of Finance points out as the main factors for reducing unemployment the expectations for reducing the negative effect of the pandemic on the economy from next year to 2024, as well as the positives of the National Recovery and Sustainability Plan. Nevertheless, the employment estimate for next year has been revised minimally - by 0.02 percentage points downwards, as a possible optimization of the state administration is envisaged.

For the years 2023 and 2024, the demographic effect of the aging population on the labor market will be felt.

Demand for labor will support household incomes, although purchasing power may be limited next year due to inflation. It is expected to be 4.2 percent annually.

Economic growth next year will be 4.6 percent, and the ministry sees the pandemic and external factors as the main risks to its forecast. The forecast was made with the assumption that from next year there will be projects under the recovery plan.