More than 75,000 people will keep their jobs

14.01.2022

MORE THAN 75,000 PEOPLE WILL KEEP THEIR JOBS

More than 75,000 jobs are expected to be maintained in January and February through the 60 to 40 measure. This was announced by the Minister of Labor and Social Policy Georgi Gyokov.

Business support will continue in 2022, and for this purpose the measure "60 to 40" has been extended until the end of February. According to the forecasts for providing support for January - February 2022, about BGN 120 million will be needed "Taking into account the funds of BGN 761, paid per person per month on average for the period August-October 2021, it can be expected that in the first two months of the year the employment of over 75 thousand employees on average per month will be maintained.", informs Gyokov.

After the end of February, taking into account the epidemiological situation and the adoption of the budget for 2022, the measure will be extended in accordance with the temporary framework of the EC for state aid, he added.

The Minister of Social Affairs clarified that the measure was extended only for January and February at the insistence of employers. Otherwise, we could have extended - the funds allow - until the end of June, until the EC's temporary framework for state aid, Gokov said. Employers' organizations are under serious pressure to change the design of the measure, the minister commented, adding that they are in talks with them.

Georgi Gyokov noted that a change in the conditions for receiving these benefits is subject to notification by the EC. I am very worried that even if we agree within the National Council for Tripartite Cooperation on a change in the design of the measure, which will result in a reduction in the rate of decline in turnover, we will not be able to notify the EC to take effect until June, he commented.

The Minister of Social Affairs reported that under the measure "60 out of 40" about 13 thousand employers are supported to keep their staff and continue working, as well as the growth of unemployment is limited. According to the Employment Agency, as of January 10, 2022, the number of registered unemployed in the labor offices is 162,895, and the registered unemployment rate is 4.96 percent, and for comparison, on the same date in 2021 were registered 229 925 unemployed, he said.

The reserved jobs under the measure "60 out of 40" for the period from January 1 to June 30, 2021 are 207,407, and the funds paid are BGN 723,400,000, he said. Gyokov noted that in the middle of last year the requirements under the measure were changed. For the period July 1 - December 31, 2021 the reserved jobs are 150,926 and the funds spent are BGN 324,700,000.

The decrease in disbursements in the second half of 2021 compared to the first is about 55 percent, and the decrease in the number of reserved jobs is 27 percent. In this way, the introduced change improves the effectiveness of the measure, he commented.