01.12.2023
SLIGHT INCREASE IN UNEMPLOYMENT ON AN ANNUAL BASIS
The unemployment rate was 4.0%, or 0.4 percentage points higher than in the third quarter of 2022.
The employment rate for the population aged 15 - 64 years decreased by 0.6 percentage points compared to the same quarter of 2022 and reached 71.5%.
The coefficient of economic activity for the population aged 15 - 64 years is 74.6%, and compared to the third quarter of 2022, it decreases by 0.2 percentage points.
Discouraged persons aged 15 - 64 are 36.0 thousand, or 3.6% of the economically inactive persons in the same age group.
Unemployment
Unemployed persons in the third quarter of 2023 are 125.0 thousand, of which 69.9 thousand (55.9%) are men and 55.1 thousand (44.1%) - women. Compared to the third quarter of 2022, the number of unemployed persons increased by 14.0 thousand, or by 12.6%. For the same period, the unemployment rate increased by 0.4 percentage points and reached 4.0%, respectively 4.3% for men and 3.8% for women.
Of all unemployed persons, 17.1% have a higher education, 49.6% - a secondary education, and 33.3% - a primary or lower education. Unemployment rates by education level are 2.1% for higher education, 3.6% for secondary education and 12.0% for primary and lower education, respectively.
Long-term unemployed (unemployed for one year or more) are 66.3 thousand persons, or 53.1% of all unemployed. The rate of long-term unemployment is 2.1%, respectively 2.2% for men and 2.1% for women.
Of the total number of unemployed persons, 17.7 thousand, or 14.1%, are looking for their first job.
The unemployment rate for the age group 15 - 29 years of age in the third quarter of 2023 was 8.3% (9.0% for men and 7.4% for women). Compared to the same quarter of 2022, this ratio is higher by 0.3 percentage points, which is entirely due to an increase in women.
30.11.2023
A DRASTIC DIFFERENCE IN SALARIES IN OUR COUNTRY
In 18 regions in our country, the average gross salary is below BGN 1,600, and only in Sofia it exceeds BGN 2,000 at the end of the third quarter of this year, according to the latest data of the National Statistical Institute.
In the capital, the average salary is now BGN 2,722. After her, the best paid are those working in the Sofia region - with an average gross remuneration of BGN 1,864, and a large part of these people also work in the capital. Varna follows - 1,861 BGN and Stara Zagora - 1,851 BGN. In Vratsa and Plovdiv, the average gross salary is BGN 1,764 and BGN 1,736, respectively.
In six districts, however, workers receive an average of less than BGN 1,400. The lowest wages are in Blagoevgrad - BGN 1,337 gross. Kyustendil - 1368 BGN and Vidin - 1369 BGN are also in the queue.
In the third quarter of 2023, the average gross monthly salary increased by 2.2% compared to the second quarter of 2023 and reached BGN 2,000. The economic activities in which the largest increase was registered were "Government" - by 13.4%, "Education" - by 12.2%, and "Agriculture, forestry and fisheries" - by 7.5%.
In addition to areas, there is also a serious difference in salaries for different professions.
For example, those employed in the "Creation and dissemination of information and creative products, telecommunications" sector, which also includes the IT sector, earn an average of BGN 4,670. those working in "Production and distribution of electric and thermal energy and gaseous fuels" receive an average gross salary of BGN 3,055.
At the same time, the average salary in "Hotel and restaurant industry" is only 1,265 BGN, and in "Agriculture, forestry and fisheries" - 1,511 BGN. In the "Culture, sport and entertainment" sector, the average remuneration is BGN 1,699, in "Administrative and auxiliary activities" - BGN 1,634.
29.11.2023
IN WHICH SECTORS ARE NEW JOBS BEING CREATED?
EU commitments to achieve a 55% reduction in greenhouse gas emissions compared to 1990 levels by 2030 will be positive for employment in the EU, leading to the creation of 204,000 jobs, Eurofound predicts.
This is in addition to expected employment growth of 6.7 million net new jobs between 2019 and 2030. However, the agency warns that some industries and regions will be particularly negatively affected.
One of the EU's main strategic goals is to ensure that Europe becomes the first climate-neutral continent with net zero greenhouse gas emissions by 2050. To achieve this goal, EU politicians adopted the Fit for 55 policy package in 2021, which contains interim decarbonisation targets aimed at reducing emissions by 55% by 2030 based on 1990 levels.
According to a Eurofound report on employment impacts in the EU to 2030, negative employment effects are more likely in some central and eastern EU countries, notably Poland and Romania, and regions with a relatively high proportion of workers still working in extractive industries industries.
Positive effects on employment are predicted in southern European countries, especially Spain and Italy, and regions with natural endowments (wind and solar), developed energy efficiency infrastructure and capacity to produce renewable energy equipment.
With jobs in both improving energy efficiency and developing renewable energy capacity, the sector likely to benefit the most in terms of employment is construction. There will also be increased employment in market services as relative prices favor a shift in the structure of the economy towards "cleaner" sectors, reinforcing the shift of employment to the service sector.
While overall employment is projected to improve toward 2030, the small increase in employment forecast for the Fit for 55 package generally occurs in low- and middle-wage jobs that do not require a college degree.
Speaking about the report, John Hurley, Eurofound's senior research manager, noted the need for a broad policy focus to reap the benefits of decarbonisation while protecting those who could lose out. "Policies aimed at reducing greenhouse gas emissions will have different effects on employment across sectors and occupations, increasing demand for some jobs and reducing demand for others." They must work hand-in-hand with education, training and employment policies to prepare workers with the necessary skills and competencies to contribute to the collective decarbonisation effort," he adds.
29.11.2023
GUARANTEEING PAYMENT OF SALARY
The payment of labor remuneration is the main obligation of every employer.
The frequency of payment of labor remuneration is agreed between the worker and the employer in the employment contract and can be twice a month, once a month, once every two or three months, etc.
Labor remuneration is paid personally to the worker or employee. Exceptionally, the remuneration can be paid to other persons, for which the employee submits a written request to the employer. The persons who can receive the labor remuneration are only those close to the employee.
Guaranteeing the payment of labor remuneration:
In the case of conscientious performance of labor duties, the worker or employee is guaranteed the payment of labor remuneration in the amount of 60 percent of his gross labor remuneration, but not less than the minimum wage for the country.
The difference up to the full amount of the remuneration remains due and is payable additionally together with the statutory interest.
22.11.2023
WHAT IS A "ORGANIZATION OF THE SALARY"?
The work done by the employee is remunerated. Labor remuneration is a monetary payment from the employer to the employee for the labor provided.
What is the organization of the salary and does the employee have the right to be informed about the methods of planning, the order of its determination and amendment?
In Bulgaria, issues regarding labor remuneration (salary) are extremely important for two main reasons - the low incomes of people, who are extremely sensitive to the fact that, for the same work, their colleagues in companies outside our country often receive many times more high reward. The second reason is that workers are often not aware of how their salary is determined because no one informs them about these and other details.
As a matter of fact, workers should be aware of and have the right to access one of the internal acts of each company, namely the internal rules for the salary, in which all the details are clarified. Another question is whether what is described there is fair, based on the specific numbers set in relation to the economic needs of individual workers and employees in different positions.
We will make some preliminary clarifications on the subject.
All professions and positions in Bulgaria are described and categorized in the National Classification of Professions and Positions, which divides the positions into 9 classes depending on the education and qualification required to occupy a certain position, with class 1 positions requiring the highest educational qualification and should be the highest paid, and for class 9 – the lowest educational qualification and therefore should be the lowest paid.
Payment of wages is the primary obligation of an employer and is paid in cash. The periodicity of salary payment is agreed between the employee and the employer in the employment contract. Unless otherwise agreed, the remuneration is paid twice every month (advance and final payment). It is also important to note that the salary is paid personally to the worker or employee.
Exceptionally, it can also be paid to other persons, but for this to happen, the employee must make a written request to the employer. The persons who can receive the labor remuneration are only those close to the employee, and the purpose of this restriction is to avoid abuse by ill-intentioned persons.
The salary is the basic remuneration for the worker, and to it can be added other, additional incentives for the worker such as bonuses in the form of vouchers for food and other purchases, private health insurance, in addition to the mandatory health insurance paid by the employer, and others.
The organization of the salary in enterprises is regulated in internal rules for the salary, which are an internal act of the enterprise. These internal rules for the salary are approved by the employer and cannot contradict the legal acts and the conditions agreed in the collective labor agreement.
Internal rules for the salary must include:
- general conditions for the organization of the salary in the enterprise;
- determination and distribution of salary funds;
- determination of minimum values or ranges of basic salaries by job level;
- the procedure and method for determining and amending the additional remuneration.
Internal rules for the salary may also include:
- systems and methods for evaluating jobs and positions;
- grouping of positions by job levels and qualification and educational requirements;
- rules and procedures for determining and amending basic wages;
- rules and procedures for evaluating work performance;
- labor payment systems;
- rules and procedures for determining individual wages;
- the procedure for collecting, processing, storing and using information and documents necessary for the calculation of the due gross and net labor remuneration;
- the order and method of payment of the salary.
Reference:
Art. 22 of the Ordinance on the structure and organization of the salary
15.11.2023
WHAT GOODS CAN WE BUY WITH FOOD VOUCHERS?
Through food vouchers, employers provide employees and management contracts with food, separately from their remuneration.
The provided food vouchers are a means of exchange through which users receive food and food items against the face value of the vouchers at restaurants, fast food outlets, as well as food outlets including grocery stores, supermarkets, hypermarkets, etc., operating in accordance with the requirements of the Food Law.
Food vouchers cannot be used as a means of payment for the purchase of wine, spirits, beer, tobacco products (cigarettes, cigars, cigarillos, pipe tobacco, chewing tobacco, snuff, etc.), as well as being exchanged for money.
As it becomes clear, the law places restrictions not only in terms of in what establishments the food vouchers can be used, but also for what goods and services.
It has certainly happened to most people to enter a store and when they try to pay with a voucher, the cashier politely or not so kindly explains that the relevant goods cannot be purchased in this way and must be paid for separately in cash. Why are these examples so common and what exactly are the limits on the goods we can buy with food vouchers?
Surprisingly or not, the law has regulated what is included in the concepts of "food" and "food products", which are different in nature. "Food" means any substance or product intended or capable of being used for human consumption, whether processed, partially processed or unprocessed within the meaning of the Food Act. "Food products" are all food raw materials, semi-finished products, finished products and meals, beverages, spices, flavoring substances, additives, auxiliary materials, etc., consumed by man to meet his energy and nutritional needs for life and growth.
The law in Bulgaria also regulates the conditions under which the respective food vouchers are provided and used. They are provided under conditions agreed between the employer and the representatives of the workers and employees and/or the representatives of the nationally representative trade union organizations in the enterprise.
Users who have received meal vouchers printed by one operator may only use these vouchers at a vendor outlet with which the relevant operator has a service contract.
When the amount of food or groceries purchased is lower than the nominal value of the voucher, the user is not entitled to receive the balance up to the nominal value of the voucher provided.
Any user who has received meal vouchers is required to return unused meal vouchers to the employer upon termination of employment or management contract.
Reference:
Art. 2, Art. 3, Art. 14 of Ordinance No. 7 of July 9, 2003 on the terms and conditions for issuing and revoking a permit to operate as a food voucher operator and to operate as an operator
Art. 2 of the Food Act.
14.11.2023
ROMANIAN PENSIONS WILL INCREASE BY AN AVERAGE OF 40% FROM NEXT YEAR
Romanian state pensions will rise by an average of 40% from September 2024 after recalculations based on an upcoming bill, increasing pension costs to 13.8 billion lei (about $2.97 billion) a month, Labor Minister Bucura said Fresh, reports Reuters.
The pension reform is a condition for Romania to continue using EU recovery funds, with the country committed to eliminating inequalities and removing pre-election political decisions from the process of pension increases.
Under the upcoming pensions bill, which the government will seek parliamentary approval this month, five million pensions will be indexed by 13.8% as early as January as a first step.
The recalculation, planned for September 2024, will eliminate inequality by ensuring that people who have worked the same job for the same number of years will receive the same pension.
The bill, which was supposed to be approved in the first half of this year, has been repeatedly delayed and will take effect from 2024, when Romania holds local, parliamentary, presidential and European elections.
Overall, government spending on pensions will rise to an estimated 146 billion lei ($31.45 billion) in 2024 from an estimated 115 billion lei this year.
Just under 2 million Romanians, or 10% of the population born during the communist-era abortion ban, will reach retirement age after 2030, representing a destabilizing increase in costs to the state pension system.
13.11.2023
WAGES FOR NIGHT WORK ARE BEING RAISED
The rate for night work to be increased from next year provides for a Draft Order amending Order No. 8121 to determine the amounts of additional remuneration for a scientific degree, for night work from 10:00 p.m. to 6:00 a.m., for working on public holidays.
The reason is the decree adopted by the Council of Ministers, with which from 01.01.2024 the minimum wage for the country becomes BGN 933 for a full working month, with a normal working time of 8 hours and a 5-day working week. The amount of the minimum hourly wage from BGN 5.58 is also being increased.
Currently, the ordinance provides that for each night hour worked or part thereof between 10:00 p.m. and 6:00 a.m., workers shall be paid an additional night work remuneration of not less than 0.15 percent of the minimum wage established for the country, but not less than one lev.
Therefore, the order proposes that the amount of the additional remuneration for each night hour worked be changed from BGN 1.17 to BGN 1.40.
The change will also take effect from January 1 next year.
With another change in the Ordinance on the basic monthly remuneration of civil servants from the Ministry of the Interior, the amount of the starting salary for some of the positions should increase from BGN 780 to BGN 933.
10.11.2023
ECONOMIST: UNEMPLOYMENT WILL INCREASE AND THIS WILL HAVE A NEGATIVE IMPACT ON CREDIT
A situation is emerging in which we will observe serious processes in the labor market. I believe that unemployment will increase, which to some extent will have a negative impact on credit as well. This is predicted in Burgas by Kuzman Iliev, economist and financial analyst, founder of the organization "Bulgaria can do it alone".
The reason for this, it became known from his words, lies in the increasingly distinct processes in the world economy, in which revenues are shrinking and expenses are increasing. In our country, this will lead to two things - a reduction in wage costs or layoffs, Iliev pointed out during the ninth National Conference of the National Real Estate Association.
"If a person gets depressed and begins to think that no one is thinking about him, no one is calling him for his birthday, let him try not paying his mortgage payment, for example. Then he will suddenly realize that someone is very interested in him . That's where we are going - to a slightly more complicated time. The situation we are observing in the United States of America is extremely unnatural and abnormal. There, the interest rate on the mortgage loan is 7.5 percent - a record historical peak for interest rates, and in Bulgaria they are below 3 per hundred. This is very characteristic of a country that is on the periphery of some circle. In our case, it is the Eurozone. The center always exploits the periphery - this can be called, if you like, currency imperialism, but I use my own term "blood donation economy," Iliev said.
When you are on the periphery, inflation is always higher, the processes always come more slowly, but they hit harder, he commented, giving an example of the interest rates that the European Central Bank raises, but this is not felt in our country .
"Strange - the transmission is not working. But all economists are aware that this transmission is not working, because we, being on the board, do not closely follow the Eurosystem yet. We have our huge deposit base, and this money can now be placed by the banks. But that will change the moment security is felt very strongly in our partners. We see the Germans right now - they've been in recession practically for several months. They can't turn things around to positive growth there, and those are our main trading partners . We export our huge part to them," said Kuzman Iliev.
He added that these processes will also affect Bulgaria - interest rates will rise against the background of decreasing disposable income.
"This will be felt by those who today have some other lease, mortgage loan, earn 5,000-6,000 BGN salary, work a lot, but at some point it will turn out that the monthly installment on the loan has increased by 150-200 BGN and the bill won't come out. This is happening in the US and it gives the impression that savings are being used and credit cards are "booming", that is, the buffers are being eaten up. I think the Bulgarians also currently have some buffers and keep their money on deposits, because there is nothing to invest them in," Iliev added.
09.11.2023
WHERE ARE THE MOST WANTED WORKERS?
Over 190,000. That's how many vacancies are expected to be this year. Although a large part of them are not due to new positions, but to replacement demand, finding qualified labor is becoming increasingly difficult for employers, according to the Employment Agency, an analysis of "Numbers of the Week" shows.
"No people!". We are already hearing this phrase from the mouths of more and more employers, and the difficulties they face in finding qualified labor are confirmed by a recent study by the Employment Agency. Forecasts, unfortunately, are that this will continue for at least the next few years. But why? According to employers, on the one hand, due to the lack of professional skills, but on the other hand, due to the lack of personal qualities. A good education and qualification, knowledge of a foreign language and digital competences are of course important, but no less important for them are motivation, discipline and teamwork skills, for example.
And here's what's expected to happen in four years. Due to the shortage of employees with secondary education, who are the most sought after - over 1.6 million people, people with primary education will also be hired in positions intended for them. Although the share of persons with a higher degree of education will grow, the need for them will also grow.
In 2027, the jobs occupied by employees with primary education will be 13,000 fewer, and those occupied by people with secondary and higher education - between 30 and 50,000 more.
Both now and in 4 years' time, nearly half of all employed persons, which is about one and a half million people between the ages of 15 and 64, are expected to be employed in manufacturing, trade and auto repair and in the field of construction. These are also the activities in which the most employees with relatively lower qualifications are sought. In the last two places in the ranking, are the mining industry and real estate operations. At least labor will be needed there. However, in 2027, there will be more vacancies in all the listed activities than they are now.
The most common after 4 years, as they are today, will be salespeople in stores - nearly 180,000. Followed by administrative specialists - 118,000 and teachers, whose number will chase 100,000. Of the 20 most common professions, the most few people will work as professional car drivers and machine operators in the garment industry - about 45,000 each.
Difficulties in finding personnel will increasingly prompt employers to make decisions such as opening training centers to the enterprises themselves or financing training and retraining of already employed employees. However, not a few individuals are unmotivated to learn or upgrade their skills, the study further states. Many of them are aware that there is a serious shortage of machine mechanics, for example, but say that they do not want occupations with a low reputation in society, sometimes even despite the good pay.
Regarding the distribution of employment by region, significant inequalities are observed, which do not seem to be overcome soon. The first three places are expectedly occupied by the districts in which the three largest cities in the country are located. Almost a quarter of the employed persons are expected to work in Sofia-city. The second most important area for the labor market is Plovdiv - it covers nearly 10% of the employed, and the third - Varna, with just over 7%. The last two places are for Silistra and Vidin, with a forecast of 35 and 26,000 workers respectively after 4 years.
The greatest need for employees with basic and even lower education is expected to be in the Kardzhali region - there it will be needed for 12% of the jobs. The districts of Targovishte and Sliven are next. The need for employees with a secondary education is expected to be the highest in the Pernik district - nearly 73% and a half, and the most employees with a higher education will be sought after in Sofia - nearly half of the jobs in the district will require a university diploma. According to the research, the discrepancy between the required and offered skills is one of the most serious problems in the labor market in our country, the solution of which could be precisely additional training.
It is indicated that there is currently a surplus of persons with primary or lower education in the labor market. They are approximately 120,000. At the same time, however, there is a deficit of persons with higher education - about 53,000, but even more of persons with secondary education - 67,000.
