17.05.2021
REGISTERED UNEMPLOYMENT RETURNED TO PRE-COVID-19 LEVELS
6.1% [1] is the level of registered unemployment in April according to administrative statistics of the Employment Agency. The decline on an annual basis was by 2.8 percentage points - from 8.9% in April 2020, and the decrease compared to the previous month was by 0.4%.
The registered unemployed during the month were 200,417, which is 13,635 fewer than in March and 92,393 fewer than a year earlier. During the month, 21,924 new unemployed persons registered with the labor offices, a decrease of 3,255 persons compared to March this year and 65,139 compared to April 2020. Another 489 people from the groups of jobseekers employed, students and pensioners, also registered with the Employment Agency during the month.
The number of unemployed persons who started working in April was 24,502. The data from the administrative statistics of the Employment Agency show a minimal decrease of 645 in number compared to March, but almost double the increase compared to the same month of the previous year (12,953). Another 399 people from the groups of pensioners, students and employees also found their new jobs through the employment offices.
79.6% of those who started working in April are employed in the real economy, most of them employed in the manufacturing sector - 21.0%, followed by those in trade - 13.7%, hotels and restaurants - 11.3% , agriculture, forestry and fisheries - 6.9%, construction - 6.1%, general government - 5.5%, administrative and support service activities - 3.8%, human health and social work activities - 3.6%, etc.
5,003 unemployed persons from the risk groups were employed in subsidized jobs during the month - 757 under employment programs and measures and 4,246 - under schemes of the Operational Program “Human Resources Development” (OP HRD). The "Employment for you" scheme under the OP HRD, which started in July 2020 as an anti-crisis measure, has provided employment to a total of 20,450 people, and only in April employment contracts were concluded with 1,756 new unemployed.
In order to preserve employment, the anti-crisis measures for short-term employment support continued to work in April - the well-known "60/40" and the project "Short-term employment support in response to the COVID-19 pandemic" under the OP HRD. In April, more than 165,000 employees were supported under these measures. The “Keep Me” measure, funded by the OP HRD and the React-EU financial mechanism, to support employees in forced unpaid leave imposed by the suspension of a number of economic activities in order to control the COVID-19 pandemic, provided funds to nearly 52,000 busy faces.
The requested jobs on the primary labor market in April were 18,130 or 322 (1.7%) less than the previous month and over 7,900 (77.3%) more than in the same month of 2020. The largest share of vacancies Jobs in the real economy are advertised in manufacturing (25.6%), followed by hotels and restaurants (21.6%), trade, repair of motor vehicles and motorcycles (9.4%), general government (7.6%), administrative and support service activities (6.9%) ) and agriculture, forestry and fisheries (6.3%).
The most sought-after professions during the month are: staff employed in the field of personal services; machine operators of stationary machines and equipment; waste collection and related workers; workers in the mining and processing industry, construction and transport; staff caring for people; sellers; drivers of motor vehicles and mobile equipment; agricultural, forestry and fishery workers; skilled workers in the production of food, clothing, wood products and related; metallurgists, machine builders and related craftsmen, etc.
[1] The unemployment rate is defined as the share of the registered unemployed in the economically active population aged 15-64, established in the 2011 Census.
17.05.2021
ENTREPRENEURSHIP: HOW TO REGISTER A COMPANY
Most consumers have difficulty choosing the type of company to register. Each structure has its advantages and disadvantages. The most important thing is to think about the taxes you owe to the state and the responsibility you take on your partners.
Currently, EOOD or OOD is the preferred form for starting a small to medium company in Bulgaria, especially after reducing the requirement for start-up capital during registration, according to the Registry Agency.
The difference between EOOD and OOD is in the number of people owning parts of the capital. In EOOD the ownership of the capital is sole - one person is a contributor of the capital. For registration of a limited liability company - the founders must be at least two, but there is no requirement to have equal capital investments.
According to experts' calculations, the registration costs vary from BGN 110 to BGN 180, depending on whether you have an electronic signature and submit documents electronically.
If you decide to register EOOD you will need the following documents:
Note on paid-in capital, which you can issue from a bank of your choice.
Consent for acceptance of management and sample of the signature (specimen) - it is necessary to be notarized and signed by the manager. There are two options: to have a prepared specimen, which needs only notarization, or to ask the notary office to prepare it.
Founding Act
Constituent minutes - The document must contain the decisions taken by the constituent assembly and the agenda of the meeting.
Decision to appoint the sole owner of the capital as a manager
Application form A4 - the most important document! You can find it on the website of the Commercial Register, download and fill it out. All other documents are attached to it.
Declaration under Art. 13, para. 4 of the Commercial Register Act (CRA). The truth of the stated circumstances is declared. Signed by the applicant.
Declaration under Art. 13, para. 5 of the CRA. Submitted by the bearer. To be filled in only when the applicant does not present the documents in person in the CR.
Declaration under Art. 142 of the Commercial Act (CA). Prohibition of competitive activity. Signed by the manager.
Declaration under Art. 141, para. 8 of the CA. The manager declares that he meets the requirements of the law for a company manager. It is signed.
Application for keeping a company name (D1), which is not obligatory and costs BGN 50.
License or permit, when the activity of the company requires such.
If the whole process is done correctly, the company is ready and automatically receives a UIC (Unified Identification Code, the so-called BULSTAT). This is the unique 9-digit number of the company, which serves for its identification with the state institutions and bodies.
Once the company is ready to register, it is necessary to declare the start of its activities to the NRA and you can now start working.
12.05.2021
WHAT COMPANIES ARE LOOKING FOR WORKERS
The positive trend in job advertisements in all industries is preserved, as their total number already reaches the levels from before the beginning of the Covid crisis in our country, according to the current monthly analysis of the company for complex HR services JobTiger.
If we compare with the data for March 2021, the growth of job offers in April is 21%, and if we take as a starting point the situation from a year ago (April 2020), then job offers in April 2021 are by 155% more. Thus, we already have a leveling of the published job offers in Bulgaria with those from the period before the beginning of the coronavirus pandemic, the authors of the analysis comment.
After the resumption of the activity of the food and entertainment establishments and with the approach of the summer, logically, the leader in the search for new staff is the sector "Hotel and restaurant business". In it, the new job advertisements in April were almost twice as high (growth of 95%) compared to the previous month of March.
We remind you that in March the demand for staff in the industry remained unchanged compared to February, despite the imposed lockdown. The most offered positions in the sector in April were for kitchen staff and service staff (waiters).
Since the beginning of this year, the trend in new job offers in all sectors has remained permanently positive. The March 2021 lockdown did not have the devastating effect of finding new staff, as it did with the first March-April 2020 lockdown.
The reasons for this, according to the analysis, are the adaptation of business to work in the conditions of COVID-19, the restored activities of catering and entertainment facilities, the approaching tourist season and, last but not least, the continuing economic growth in a number of sectors (IT, Outsourcing, Trade and sales, etc.).
There is still an increase in ads in all sectors. After the leading sector "Hotels and restaurants" (where the number of ads has grown, as we said, almost doubled), in second place is "Trade and Sales" with 21% growth, and in third place - "Administrative activities" with 13.4% growth. They are followed by the sectors "Logistics and Transport" (growth 12.8%), "Production" (growth 10%) and "Accounting, Auditing, Finance" (growth 9%).
In terms of share distribution, the Trade and Sales sector is still in first place - with 21% of the total number of proposals published in April. As a result of its large growth, the hotel and restaurant sector moved from fourth to second place - with a 20% share of all ads.
After them, the share distribution remains, as in the previous month of March, with the sector "Production", occupying 14% of the ads, followed by the sectors "IT" (12%), "Logistics and Transport" (9.3%), "Administrative activities" (8.8%), "Construction" (5%), "Accounting, audit, finance" (4%), "Health and pharmacy" (3.2%), "Marketing and advertising" (3%) and Art (1%).
Distribution of new proposals by cities
In each of the leading regional cities the growth of the announcements in April compared to March is double-digit, as follows: Sofia - 15%; Plovdiv - 14%; Varna - 33%; Burgas - 39%; Ruse - 27% and Stara Zagora - 18%.
The number of published job vacancies for these cities is equal to 70% of job offers across the country.
The positive trend in the search for new staff in our country since the beginning of the year draws an optimistic forecast for the coming months. The expectations of the ads are expected to remain within these limits, without risks of sudden declines, the authors of the analysis predict.
11.05.2021
THE EC CONDUCTS PUBLIC CONSULTATIONS ON THE CREATION OF INDIVIDUAL TRAINING ACCOUNTS
The European Commission is holding a public consultation on the so-called individual accounts for trainings, in which services for inclusion in trainings will be accumulated and spent. They will guarantee the right to education of every citizen of the European Union. Through public consultations, the EC is trying to answer the question "Can individual training accounts ensure that adults continue to build the skills they need, regardless of their employment status?"
Until 16 July, any organization or citizen of the European Union can give feedback on the definition of the problem and the need for further action at EU level. Anyone who wants to get involved can fill out the survey on the European Commission's website or send an opinion on the matter.
The topic of individual training accounts is particularly relevant after the outbreak of the COVID-19 pandemic, the digital and green transitions that have caused significant structural changes in the labor market and will radically change the skills requirements for many jobs. This increases the need to build skills throughout life. At the same time, the number of people involved in atypical forms of employment (part-time, temporary employment, self-employed, etc.) who are at risk of insufficient support for training by employers is increasing.
10.05.2021
MEASURES TO SUPPORT EMPLOYMENT AND PAY COMPENSATION CONTINUE
Explanation from the Consultancy Center - Berkovitsa
In the conditions of slow economic recovery and continuing emergency epidemic situation, the measures to support business and to preserve the employment of employees of enterprises that have stopped working, work part-time and have reduced sales revenues have been extended.
Support for the “60 to 40” measure continues. For this purpose, amendments to Decree № 151 of the Council of Ministers of 2020 were adopted to extend the term for payment of funds for maintaining the employment of employees from 01.04. until 31.05.2021 (CMD № 93 of 18.03.2021, promulgated SG, issue 24 of 23.03.2021). The funds will continue to be paid for employees who during the period from 13.03. until 31.12.2020 they worked part-time on the grounds of Art. 138a, para. 2 of the Labor Code (LC) or have used leave on the grounds of Art. 173a of the Labor Code, as well as for workers and employees, whose work has been suspended by an order under Art. 120c of the LC.
For this purpose, the employees should have been in an employment relationship with the employer before 01.10.2020. During the additional period of application of the measure, the employers who received funds for maintaining the employment of the employees from the groups under the decree will pay amount not less than the amount of the insurance income for October 2020, and will pay the due insurance contributions for the respective month.
A favorable change has been made for the business, and employers who have proven a decrease in sales revenues in the month preceding the month of application by at least 20 percent, but compared to the average revenues for 2019 - the year before the pandemic, when they had normal turnovers and revenues, and compared to them in 2021, it is very possible that they will have a decrease, which, in turn, will entitle them to receive funds under the decree. A comparison with the previous 2020 would not be in the interest of business.
Assistance under the “Keep Me” measure was also extended by three months. For this purpose, amendments to the Decree № 325 of the Council of Ministers for determining the conditions and the procedure for payment of compensations to workers and employees insured in economic activities, for which temporary restrictions have been imposed by a state body for their implementation during the period of the declared state of emergency or declared extraordinary epidemic situation.
The main changes provide for individuals to be entitled to compensation for no more than 60 days within 2020 and no more than 90 days within 2021 in which they have used unpaid leave in connection with imposed restrictions on the implementation of the activity, for which they are employed, in an act of a state body. The term of application of the measure is increased - until 30.06.2021. The changes are in force from 01.04.2021.
Persons are allowed to participate under the measure "Keep Me" only if they are employed in sectors that fall within the approved by the Minister of Labor and Social Policy List of codes of economic activities for which temporary restrictions have been introduced for carrying out activities with an act of a state body in the period of a declared state of emergency or a declared state of emergency epidemic, by a decision of the National Assembly or the Council of Ministers. The current order with the list of codes is published on the website of the Employment Agency, at:
https://www.az.government.bg/pages/zapazi-me/.
Employees should be on unpaid leave under Art. 160, para. 1 LC or Art. 173a, para. 2 of the Labor Code due to introduced temporary restrictions for carrying out the activity, specified in an act of a state body.
The Council of Ministers also adopted changes in Decision № 429 of 26.06.2020 on determining the terms and conditions for payment of compensations to self-insured persons and employers in order to maintain the employment of employees in enterprises directly affected by the state of emergency, declared with a decision of the National Assembly of 13.03.2020, amended and ext. with Decision № 982 of the Council of Ministers of 31.12.2020. The changes were adopted by Decision № 233 of the Council of Ministers of 18.03.2021. The aim is to continue the additional support for the most affected sectors and economic activities and to preserve the employment of workers. and the employees falling into them.
In line with the measure "60 to 40" the deadline for payment of funds was extended until 31.05.2021. The changes also provide for the payment of funds to be able to apply to employers who have proven a decrease in sales revenue in the month preceding the month of application, with not less than 20 per cent compared to the average income for 2019 for the established persons before June 1, 2019 and those established for the period from 01.06. until 01.12.2019. For those established during the period 01.12.2019 until 01.03.2020 and those after 01.03.2020 - compared to the average revenues for 2020. This also applies to municipal activities.
For self-employed persons - registered as freelancers and/or craftsmen, as well as persons engaged in employment as sole traders in certain sectors, and who have declared a decrease in sales revenue, the requirements are as follows:
Due to the repeated imposition of temporary restrictive measures for carrying out activities in the sectors falling within the scope of Decision № 429 of the Council of Ministers, it is possible to receive funds for persons employed by the employer or registered as self-employed after 13.03.2020. This approach is also in line with the Council of Ministers № 151/2020, where restrictions on new employees are also not included for employees employed in the transport and hotel and restaurant sectors.
Additional and up-to-date information, answers to frequently asked questions, as well as lists of approved and disapproved employers are published daily on the website of the Employment Agency, at:
https://www.az.government.bg/pages/finansovi-stimuli-za-zapazvane-na-zaetostta/.
07.05.2021
108,600 NEW UNEMPLOYED FROM THE BEGINNING OF THE YEAR TO MAY
Nearly 108,600 are newly registered unemployed across the country from the beginning of the year to May 2, according to the latest data from specialized labor market surveillance carried out by the National Statistical Institute and the Employment Agency over the Covid-19 pandemic.
For the same period, 83,400 people started working through the Labor Offices. The highest number of newly registered unemployed so far was reported between January 4 and 10 - over 15,700 with only 3,300 employed.
In 15 districts, the newly registered unemployed are more than those who started working in the last observed week from April 26 to May 2. This difference is strongly expressed in Montana, Vidin and Plovdiv.
During this period, the total number of people registered in the Labor Offices in the whole country is 3776, and the number of employed is a little over 4,000.
In general, the trend of predominance, albeit with several hundred people across the country, of those who have found a livelihood over those registered in the labor offices, has been going on for exactly one month now.
Social experts attribute this to the ongoing action of measures such as 60 to 40 to maintain employment, alleviate anti-epidemic measures and especially the opening of shops and restaurants, as well as subsidized employment.
27.04.2021
HOW A CRAZY IDEA TURNED A ROMANIAN INTO A BILLIONAIRE
Daniel Dinesh fought a tough battle with the US way of life after leaving his native Romania in 2001 to work for Microsoft. But later the difficulties became the basis for the accumulation of one of the greatest wealth in the world.
The software programmer returned home in 2005 to start the business now known as UiPath Inc. - a process automation platform that made its official stock market debut last week, raising $ 1.3 billion through an initial public offering in the United States, Bloomberg writes.
Dinesh, the company's chief executive, controls a stake in the business worth more than $ 6 billion. "For someone like me who arrives in the United States from Europe at the age of twenty, it was a great challenge to adapt to the United States, even if my professional experience at Microsoft was great," Dinesh, 49, said. during last year's Montgomery Summit. As a result, "I had a crazy idea to go back and start a company," he says.
UiPath, valued at $ 7 billion in 2019, currently has a market capitalization of about $ 30 billion after its shares reached a price of $ 56 per share, which is above market expectations.
This puts Dinesh among the 500 richest people in the world, according to the Bloomberg Billionaires Index. "Starting a company in a small place without a market has its hidden advantages: it makes you think globally from day one," Dinesh said in a letter to the documents accompanying the stock exchange listing.
His company has been preparing to go public since early 2020. UiPath's software can perform a number of low-skilled tasks that businesses have outsourced to low-wage countries such as India and the Philippines in the past.
Known as robotic process automation, the technology uses repetitive input to perform specific tasks. The software is used in hospitals and healthcare projects in the battle with COVID-19, according to the UiPath website.
Dinesh, who studied mathematics and computer science at the University of Bucharest, grew up in Romania under communist dictator Nicolae Ceausescu. Initially, his company was called DeskOver, but in 2015 he changed his name to UiPath. The first steps in the business are managed by an apartment in the Romanian capital, and in 2017 the headquarters moved to New York.
Financing
UiPath is raising $ 750 million in funding in a round led by Alkeon Capital and Coatue, which raises the company's valuation to $ 35 billion, according to a February statement. Altimeter Capital Management, Dragoneer, IVP, Sequoia Capital, Tiger Global Management and funds advised by T. Rowe Price Associates are the other investors.
Dinesh owns all Class B shares, which corresponds to 35 votes to one vote for each Class A share. He continues to manage UiPath after the initial public offering, selling $ 75 million worth of shares.
"You have to become a public company at some point to allow your employees to get more liquidity by giving them options to buy shares," Dinesh said in an interview with Bloomberg last year. "We almost got there."
27.04.2021
FORD IS INVESTING $ 300 MILLION IN ITS PLANT IN ROMANIA
US car giant Ford Motor Company will invest $ 300m (248m euros) in a new light truck project at its plant in Craiova, Romania. Production will start in 2023, and a year later the construction of a fully electric version of the cars will begin, the company said, quoted by seenews.com. This will be Ford's first fully electric car to be produced in Romania.
"Our plan to build this new van in Romania reflects both our fruitful and growing partnership with local suppliers and the community, and the success of the entire Ford Craiova team," said Ford of Europe President Stuart Rowley.
"With the introduction of the fully electric version in 2024, Craiova will become our fourth plant in Europe to produce fully electric vehicles. The investment in Craiova comes against the background of other announced investments in the Ford Electrified Vehicle Center in Cologne (Germany) and at the Kocaeli plant of Ford Otosan in Turkey and sends a clear signal about our promise to offer European consumers zero-emission trucks," says Rowley.
The new van, which will start production in 2023, will be equipped with some of Ford's most advanced petrol and diesel engines manufactured at the Ford Dagenham plant in the UK. The car will be manufactured by Ford Halewood Transmissions Limited, which is also based in the UK.
The exact date from which production will start, as well as other additional details will be revealed before the official start of the activity, Ford added. According to Rowley, the new investment demonstrates the company's hopes that the Romanian government will deliver all the key improvements promised to support the region's competitive manufacturing environment, including transport infrastructure.
In February, Ford said it would offer a full range of electric and hybrid trucks in Europe by 2024. The company expects by 2030 2/3 of all truck sales to be electric or hybrid models.
Ford entered Romania in March 2008, when it completed the acquisition of a 72.4% stake in Automobile Craiova, owner of carmaker and distributor Daewoo Automobile Romania. Since then, Ford has invested more than 2 billion euros in the Craiova plant, creating more than 6,300 jobs.
The company currently produces the Puma and EcoSport models, as well as the EcoBoost 1.0 engine in its Romanian power. In July 2020, Ford announced a $ 30 million investment in a new line at the Craiova plant to produce a wide range of components that are powered by the company's other facilities in Europe.
27.04.2021
NOT ONLY EXCELLENT COMPANIES CAN GET A BANK LOAN
Tourism, transport, trade, the sudden pandemic left its lasting mark on business both around the world and in our country. Over the past year, we have witnessed various measures to help the sectors affected by the crisis - a moratorium on loan payments and various government programs. The fact is, however, that the end of the "credit holiday" has come, and social and economic measures will not last long.
What next?
To answer the question of what follows for the businesses concerned, we must first look at the scale of the damage. According to a study by the Bulgarian Chamber of Commerce, conducted among businesses at the end of last year, production volumes decreased by over 60%, sales and turnover also shrank, but by more than 70%, foreign markets collapsed by nearly 45% and labor places are half less. A drastic decline is also reported in terms of investments and new products.
At the same time, liabilities to financial institutions, counterparties, the budget and staff increased by about a third.
Part of the solution?
The state, represented by the Bulgarian Development Bank, has developed a portfolio guarantee program to support micro, small, medium and large enterprises affected by the COVID-19 pandemic, which can reach businesses through banks. A few days ago UniCredit Bulbank signed an agreement to extend the term of the program.
"The companies with which we most often conclude deals are from the sectors: freight road transport, restaurants and bars, construction, trade in cars and vans, tour operators, retailers and companies for urban and suburban passenger transport," they told Dir. .bg from UniCredit Bulbank. The experts stressed that these are the sectors with which their bank has concluded the most contracts, which does not imply that these sectors are the most common in the entire banking sector.
Who can apply?
Unlike the traditional bank loan, which is granted to companies in good financial condition, this scheme can benefit companies that are experiencing financial difficulties after December 31, 2019, due to the pandemic of COVID-19.
Applicants must meet at least one of the following requirements:
However, it is important that the applicants have regularly serviced their loans without falling into arrears for more than 90 days in 2019.
Who can get how much?
As it has already become clear, micro, small and medium enterprises can benefit from the program - with a staff of up to 249 people, assets of up to BGN 84 million and an annual turnover of up to BGN 97.5 million. Companies that fall into this category and meet the requirements can receive up to BGN 1 million. And recently - from twice the credit to 2 million. BGN can also benefit large enterprises.
As the program is guaranteed by the state, the business can receive a loan from UniCredit Bulbank with relaxed collateral requirements - coverage of no more than 50% of the amount of requested financing. Grace periods are allowed for both interest and principal.
In addition, the repayment period of these loans has an extended period - up to 6 years, but not later than June 30, 2027.
26.04.2021
HOW MUCH IS PAID IF WE WORK ON HOLIDAY
Due to the coincidence of May Day with Holy Saturday, the Easter weekend in 2021 will be one day longer. According to the Labor Code, when an official holiday, such as May 1, coincides with a Saturday or Sunday, the first working day or first working days after them are non-working.
However, when working in non-working May 4, the work is paid with an increase only if it is overtime, as the increase is 75%. This was announced by the press center of the Executive Agency "General Labor Inspectorate".
A minimum double wage is paid to all employees on official holidays, such as the four days for celebrating Easter - from April 30 (Good Friday) to May 3 (Monday). If the work on a holiday is also overtime, then the wage reaches four times the amount, as it is also paid with a 100% increase.
The work on an official holiday, on a day off or in absentia is always extraordinary in case of daytime reporting of working hours and in case of irregular working hours. There is no overtime work on holidays and weekends, laid down on a schedule with the introduction of summary reporting of working hours. The payment of overtime work in this regime of accounting for working time is at the end of the period for which it was introduced, with a 50% increase.
The schedule for summary reporting of working hours must be approved by name for the entire period for which it is introduced. When overtime work is required, it must be assigned by an order issued in advance by the employer.
