13.04.2023
MORE TRANSPARENCY AND LESS RED TAPE FOR COMPANIES TO IMPROVE THE BUSINESS ENVIRONMENT IN THE EU
The European Commission has adopted a proposal for a directive that will make it easier for companies to expand their use of digital tools and processes in EU company law. The aim of the proposal is to facilitate the cross-border activities of companies and to improve the transparency and trust of businesses by providing public access at EU level to more information about companies. It will also lead to a reduction in red tape for businesses operating cross-border, saving around €437 million in administrative burden annually, thanks to an EU company certificate or the application of the one-time principle. The proposal will contribute to the further digitalisation of the single market and help companies, in particular small and medium-sized enterprises, to do business in the EU.
Reduction of bureaucracy and administrative burden
To reduce red tape and administrative burdens for cross-border businesses, the proposed rules include:
application of the one-time principle, so that companies do not have to re-submit information when establishing a branch or a company in another Member State. Relevant information can be exchanged through the Business Registers Interconnection System (BRIS); an EU company certificate containing a core set of company information that will be available free of charge in all EU languages; a multilingual EU standard form of digital power of attorney, with which a person will be authorized to represent the company in another Member State; eliminating formalities such as the need for an apostille or certified translations of company documents.
Improving transparency and trust in cross-border business activities
The proposal updates the existing EU company rules (Directive (EU) 2017/1132) to further adapt them to digital developments and new challenges, and to boost growth and competitiveness in the single market.
To ensure greater transparency and trust in companies, the proposed rules aim to:
ensuring that, through BRIS, important information about companies (e.g. on partnerships and groups of companies) is publicly available, especially at EU level; facilitating the search for EU company information by enabling searches through BRIS and simultaneously through two other EU systems linking national beneficial ownership and insolvency registers; ensuring that company data in business registers is accurate, reliable and up-to-date, for example by ensuring that company information is checked before it is entered in business registers in all Member States.
Next steps
The proposal will now be discussed by the European Parliament and the Council. Once the directive is adopted, member states are proposed to have two years to transpose it into national laws.
Context
Companies are at the heart of the single market. Thanks to their economic activities and investments, including in a cross-border context, they play a leading role in contributing to the EU's economic prosperity and competitiveness and in realizing the Union's twin transition to a sustainable and digital economy. To this end, companies need a predictable legal framework that favors growth and is adapted to deal with new economic and social challenges in an increasingly digitized world. The proposed measures will apply to around 16 million limited liability companies and 2 million partnerships in the EU.
The proposal envisages the second step of the digitization of EU company law. The 2019 Digitization Directive (EU) 2019/1151 ensures that company law procedures can be carried out online, and in particular that companies can be incorporated online. The proposal complements this directive and aims to increase the availability of information on companies, in particular at EU level, and to remove administrative obstacles when companies and authorities use this information in cross-border situations. Overall, the proposal encourages digital-by-default solutions when accessing or using company information in interactions between companies and business registers or authorities. The proposal will also rely on the use of certificate services and ensure that solutions such as the EU company certificate are compatible with the upcoming European digital identity wallet.
It will contribute to the digitalisation objectives set out in the communications Digital Compass 2030: The European Path to the Digital Decade and Digitizing Justice in the EU - Toolkit of Opportunities, and will facilitate the cross-border growth of SMEs in line with the Update the new industrial strategy for 2020 and Strategy for the place of SMEs in a sustainable and digital Europe.
As announced in the Commission's 2023 work programme, the proposal is one of the main actions under the policy priority Europe fit for the digital age.
For more information
Q&A: Commission proposal for a directive to extend the use of digital tools and processes in EU company law
Website - Company Law and Corporate Governance
Proposal for a directive to further expand and update the use of digital tools and processes in the field of company law
Annex - Proposal for a directive to further expand and update the use of digital tools and processes in the field of company law
12.04.2023
BAN ON WORKING ELSEWHERE AFTER WE LEAVE
One of the most common cases that workers face recently is that they find clauses in their employment contracts that commit them not to work elsewhere for a while or to pay benefits if they start working for a competitor.
For example, a clause according to which the worker or employee undertakes, upon termination of the employment relationship with the employer, regardless of the legal basis for this, not to work in employment or civil relationships in a competing company for a period of one year.
Should we be worried about starting work in another place in the presence of a similar agreement in our previous contract, and is a clause in an employment contract with the subject of an obligation of the employee upon termination of the employment relationship with the employer not to enter work on labor and civil matters void at all relationship in a competing firm?
It should be clearly and categorically stated that a clause in the employment contract, by virtue of which the performance of competitive activity by workers or employees is restricted for a certain period after the termination of their employment contract, is concluded in violation of the constitutionally recognized right to work (in particular the norm in the Constitution of the Republic of Bulgaria, which declares the freedom of choice of profession and place of work of every citizen), as well as being contrary to the law and it is null and void.
Likewise, a clause that imposes civil liability on a worker or employee in the event that, after termination of employment, does not comply with the requirement not to enter into employment or civil relations with a competing company, is null and void due to conflict with the law.
Such clauses contradict both the Constitution of the Republic of Bulgaria and the provisions of the Labor Code, according to which the waiver of labor rights is invalid.
The clause according to which the worker or employee owes compensation in the event that he starts working for a competing employer within a certain agreed period after the termination of the employment contract is also null and void.
The right to work is regulated by a number of international, European and national laws.
The Universal Declaration of Human Rights states that everyone has the right to work, to free choice of employment, to just and favorable working conditions, and to protection against unemployment.
According to the Charter of Fundamental Rights of the European Union, every worker has the right to working conditions that protect his health and safety and respect his dignity. Citizens have the right to work, and the state takes care of creating conditions for the realization of this right. The state also creates conditions for the realization of the right to work for persons with physical and mental disabilities, and every citizen freely chooses his profession and place of work.
According to the Constitution of the Republic of Bulgaria, citizens have the right to work, and the state takes care of creating conditions for the realization of this right and creates conditions for the realization of the right to work for persons with physical and mental disabilities.
Every citizen freely chooses his profession and place of work, and employees have the right to healthy and safe working conditions, to a minimum wage and to pay corresponding to the work performed, as well as to rest and leave under conditions and in the order determined by law.
Reference:
Art. 23 of the Universal Declaration of Human Rights
Art. 15 and Art. 31 of the Charter of Fundamental Rights of the European Union
Art. 48 of the Constitution of the Republic of Bulgaria
Art. 8, para. 4 of the Labor Code
12.04.2023
THE AGENCY FOR PEOPLE WITH DISABILITIES FINANCES UP TO BGN 20,000 PROJECTS OF EMPLOYERS FOR THE EMPLOYMENT OF PEOPLE WITH DISABILITIES
Employers can receive up to BGN 20,000 for financing projects to ensure access to existing or new jobs for persons with permanent disabilities of working age. The same amount will finance proposals for adapting existing workplaces and for equipping new workplaces for people with permanent disabilities of working age.
The funds are allocated by the Agency for People with Disabilities under the National Program for Employment of People with Disabilities. Employers can receive BGN 2,000 for vocational training of one employee with disabilities. We draw the attention of all potential beneficiaries to the fact that the National Program for Employment of People with Disabilities has been updated as of March 29, 2023.
Project proposals can be submitted until September 30, 2023 to the Agency for People with Disabilities, through a licensed postal operator or electronically to ahu_zaetost@mlsp.government.bg.
You can see more details on the website of the Agency for People with Disabilities, under the heading: Projects/programs, here.
11.04.2023
THE BNB RAISED THE INTEREST RATE FROM APRIL 1
The BNB announced another increase in the main interest rate. From today, the simple annual interest will be 2.47 percent. This is the seventh consecutive increase in the main interest rate since October.
From March 1, the interest rate was also raised, becoming 2.17 percent, and from February 1 to 1.82 percent. From January 1, the main interest rate was increased to 1.42%, and from December 1 - to 1.30%. In October it was set at 0.49% and in November it rose to 0.59%.
The main interest rate was last different from 0.00 on January 1, 2016, when it was 0.01%.
The value of the main interest rate matters, but only in some limited cases. Most of all, main interest rate is used to calculate the penalty or statutory interest on late payment. The calculation is done by adding 10% to the base interest rate.
Due to the growth of the main interest rate, from January 1, the legal interest for overdue monetary obligations of citizens, companies became 11.42 percent per year.
In our country, interest for overdue payment is regulated by the Law on Obligations and Contracts and Resolution of the Council of Ministers No. 426 of December 18, 2014.
It is written in them that the so-called penal interest, which is applied to all public obligations (taxes, insurance, fees, etc.), is formed twice a year - on January 1 and July 1, as to the base rate, which is 10 percent, the amount of the main interest rate determined by the Bulgarian National Bank is added. Since it was 1.42 percent in January, the legal interest for overdue monetary obligations, which is also often applied in contracts between citizens and businesses, reaches 11.42 percent per year.
10.04.2023
HOW DISABILITY PENSIONS ARE PAID
Disability pensions and supplements for foreign aid are payments made by the National Social Insurance Institution to people with disabilities, for whom the territorial expert medical commissions - TEMC and the National Expert Medical Commission - NEMC have established the type and degree of disability/percentage of permanently reduced working capacity 50 and over 50 percent and/or are in need of foreign aid.
The Social Security Code and the Ordinance on Pensions and Insurance Longevity clearly regulate the conditions for awarding and paying the various types of disability pensions, respectively - the supplement for foreign aid, and the same are awarded for the period of disability determined by TEMC/NEMC in the examination of the permanently reduced working capacity/type and degree of disability. Only for persons with permanent disabilities who have reached the basic retirement age under Art. 68, para. 1 of the Social Security Code, the disability pension and the foreign aid supplement are granted for life, specified by the National Social Security Institute.
In cases in which the disability pension and/or the supplement for foreign aid are granted until the term of the disability defined in the expert decision, it is necessary for the disabled to be re-certified by the medical examination authorities, who issue a new expert decision.
Based on it, the National Social Security Institute continues the payment of the disability pension/foreign aid allowance until the new term of disability.
The issuance of a new expert decision by the medical examination authorities and its entry into legal force requires a certain period of time, during which persons with permanent disabilities may remain without payments from the National Social Security Institute, due to the fact that the pensions and/or supplements they receive foreign aid is suspended or terminated.
In order not to be terminated until the new expert decision is issued, when there is a delay in the medical examination, as well as for them to continue receiving their payments from the National Social Security Institute and from the other competent authorities in the country, changes were adopted to the Law on People with Disabilities and in the Health Act.
It is the first time that a period has been introduced in which the Regional Health Inspectorate is obliged to officially notify persons of the need for regular re-certification, and this period is no later than four months before the expiry of the period in their previous decision.
At the same time, people with disabilities must submit their applications-declarations for re-certification no later than three months before the expiration of the term of their expert decisions. Apart from that, the deadline for carrying out the expertise is three months from the submission of the application-declaration in the regional card file or three months from the receipt of the complaint at NEMC.
The term "delay in medical expertise" has already been introduced into the law. It is available when, within a three-month period from the submission by the person of the necessary application-declaration for re-certification, the medical examination body has not established the type and degree of disability of children up to the age of 16 and of persons who have acquired the right to a pension for social security service and age according to Art. 68 of the Social Security Code, respectively - the degree of permanently reduced working capacity of persons of working age, as well as the confirmation of an occupational disease.
In the event of such a delay, the validity of the last issued expert decision is extended until a new one is issued and the rights of the disabled are preserved. However, this extension is not unconditional, the National Social Security Institute specifies. On the one hand, there is a requirement that the person submitted an application-declaration for re-certification no later than three months before the expiry of the last one, and on the other hand, TEMC has not made a decision within three months of submitting this application-declaration.
Only for the persons for whom these two requirements are present, the obligation of the Regional Health Inspectorate to send information by the 20th of the month to the interested bodies - National Social Security Institute, the National Health Insurance Fund, the Agency for Social Assistance, the Agency for People with Disabilities has been introduced, the National Revenue Agency and the municipality at the person's current address, indicating the scheduled date for re-certification. At the request of recertified persons, it is possible to send this information to insurers or other bodies and organizations for the purpose of exercising rights by the person within the extended period of disability of the issued expert decisions. In order to protect people's rights to the maximum extent and in order to speed up the process of paying the amounts owed to the entitled persons by the interested authorities, it was decided that the necessary information in a summarized form for the country will be sent by the Ministry of Health, in whose structure they are the Regional health inspectorates, to the interested bodies, including the National Social Security Institute.
However, the exchange of data will actually start after 28.05.2023, and until that date information will be received about the persons who are included in the personal scope of § 5 of the Transitional and Final Provisions of the Law on Amendments and Supplements to the Law on People with Disabilities. The law regulates the cases found with two transitional provisions, this being the first of them. The cited special norm covers the persons for whom there is a delay in the medical examination, and it is important to note that for these persons it does not matter in what period the application-declaration for re-examination was submitted, i. e. the requirement is not met that the same was submitted no later than three months before the expiration of the term defined in their expert decision.
The scope includes persons with:
As it was already noted, in the established proceedings for re-certification, the moment of submission of the application-declaration for re-certification is irrelevant, and the same can be submitted the day before the expiry of the term of the expert decision. This provision will apply until 28/05/2023 and only then will the requirements of the main rule begin to be observed.
For the persons under item 1 and item 2, information is received monthly from the Ministry of Health, on the basis of which the validity of the last issued expert decision of the persons is ex officio extended until their scheduled date for re-certification.
The second provision regulates the found cases. It stipulates that if for disabled people with suspended pensions due to the expiration of their expert decisions, they submit an application-declaration for re-certification before the changes come into force, there is a delay in the medical expertise, the same will be included in the relevant lists sent to the concerned authorities by the regional health inspectorates and their rights are resumed, with pensions and/or foreign assistance supplements paid to them by the scheduled re-examination date.
In addition to lists of entitled persons, to whom the validity of the last expert decision issued to them is extended until a new one is issued, it is regulated that the interested authorities receive information about persons who submitted an application-declaration for re-certification, who, after their regular summons, did not appear for an examination in TEMC. These are the persons who (despite being notified) did not appear on their scheduled re-examination date.
The law provides that after their failure to appear for re-examination, their medical documentation will be returned to the Regional Medical Expertise Registers, and the extension of the term of their expert decisions shall be deemed terminated from the date of failure to appear. The information with the persons who did not appear for an examination at TEMC is sent to the interested persons and authorities (including the National Social Security Institute) within 14 days from the date of non-appearance.
Based on the data received for the persons who did not appear on the scheduled date for re-examination, the pension insurance officials in the National Social Security Institute terminate the payment of disability pensions and/or foreign aid supplements, due to the fact that the legal basis for their receipt has ceased to exist.
07.04.2023
GREETING FROM THE CONSULTANCY CENTER - BERKOVITSA ON THE OCCASION OF THE INTERNATIONAL DAY OF THE ROMA, APRIL 8
On April 8, we go back in history with the thought of the hundreds of thousands of Roma who died in the Nazi camps - a sad reality that we have no right to forget.
The integration of the Roma community continues to be one of the highlights of the policy of the Municipality of Berkovitsa and the consultancy center.
Education and inclusion are the most effective bridges to overcome discrimination. May all Roma realize their dreams by opening their souls to knowledge, be hardworking, self-confident and inspired by the good around us!
07.04.2023
WHAT IS THE PENALTY FOR THE EMPLOYER IF AN EMPLOYEE DOES NOT HAVE A CONTRACT
Executive agency "General Labor Inspectorate" reminds that with the movement of the labor market and the increased demand for labor for seasonal employment, the risk of abuse of labor rights increases. The conclusion of a written employment contract registered with the National Revenue Agency guarantees to the fullest extent the rights of both employees and employers.
Workers must know that the employment contract is concluded before starting work. The employer is obliged to provide the worker or employee with a copy of the concluded employment contract, signed by both parties, a copy of the notification with which he was registered with the National Revenue Agency, as well as a job description. The employer has no right to admit a worker to the workplace before he has registered his employment contract with the National Revenue Agency.
For those hired for short-term employment to cultivate and harvest fruit, vegetables, rose, lavender and tobacco, farmers can also use so-called one-day contracts. These contracts are drawn up again in two copies, one of which must be given to the worker before starting work. Samples of this type of contract can be obtained online at any time of the day through special software upgraded under the project "Optimization and Innovation in the Executive Agency "General Labor Inspectorate", financed under the Operational Program "Development of Human Resources", co-financed by the European Social Fund. Those hired on one-day contracts do not lose social and insurance rights, and employers do not have to register them with the National Revenue Agency, draw up employment records and termination orders.
In case the employer wishes to test the skills of the employees, he can conclude a contract with them with a clause for a trial period. The trial period is agreed in the employment contract, and cannot be more than 6 months in the general case. However, when the employment contract is fixed-term and is for a period of less than 1 year, the trial period can be a maximum of 1 month according to the changes to the labor legislation from 1 August 2022.
In order to protect the labor rights of workers and employees, they should not agree to work under verbally agreed conditions. They must also report while they are still at their jobs and it can be established beyond doubt that they are working without an employment contract.
The Labor Inspectorate often receives reports from workers who worked without an employment contract and were not paid after they were released. In these cases, the Agency's control bodies are prevented from using their powers to declare the existence of the employment relationship. Another practice is to not pay a part of the remuneration that was agreed orally upon termination of the employment relationship. In these cases, due to lack of written evidence that the amount is due, the employer cannot be obliged to pay it.
An employer who uses undeclared labor is subject to a fine of at least BGN 1,500, and this violation is grounds for removal from participation in public procurement procedures.
Workers and employees can check the probability that their work or part of it is undeclared, as well as receive guidance on how to react in such cases through the special software developed by the Labor Inspectorate. It is a questionnaire that assesses the risk of undeclared work in its various directions – work without an employment contract or under fictitious conditions, unregulated payments, are the lives and health of workers at risk, etc.
The software was created under the cross-border project "Cooperation for decent work", financed by the Fund for bilateral relations under the Financial Mechanism of the European Economic Area and the Norwegian Financial Mechanism 2014 - 2021. The self-assessment tool is freely available on the website of the Executive Agency "Main Labor Inspectorate", which is a partner in the project, at https://www.gli.government.bg/udw/ A shortcut to it is also provided through the banner "Check if you are working undeclared".
Access to it, as well as to other informational materials aimed at the benefits of labor declaration, is provided through the "Activity" section, "Projects" heading - Project DFPO-1.002-0002-C01 "Cooperation for decent working conditions".
On the website of the Executive Agency "General Labor Inspectorate" in the "Administrative service" section, detailed information on how to submit reports is published. Citizens can also contact the Agency's national telephone number 0700 17 670 for consultations.
06.04.2023
NEW RULES AGAINST THE GENDER PAY GAP
The European Parliament has passed tough rules that will force EU businesses to be transparent about wages to ensure equal pay for women and men, and introduce potential fines for pay discrimination.
According to official data for 2020, women are paid on average nearly 13% less per hour than men for the same work in the 27 countries of the European Union.
Under the new rules, workers can request to know the individual and average pay levels broken down by gender in their workplace.
"Pay secrecy will be prohibited," the parliament said in a statement.
Other rules stipulate that if a company has at least 100 employees, it must regularly publish information on the gender pay gap.
In addition, companies must negotiate with staff representatives if there is a difference of 5%. Persons who violate any of the rules are subject to penalties, including fines. Employees who believe they have been discriminated against can seek compensation.
"Equal work deserves equal pay. And equal pay requires transparency," Ursula von der Leyen, head of the European Commission, said before the vote in parliament.
"Women need to know if their employers are treating them fairly. And when they're not, they should be able to fight back and get what they deserve," she added.
The gender pay gap is different across the bloc. The difference is only 0.7% in Luxembourg, but reaches 15.8% in France and 18.3% in Germany, while in Latvia it is 22.3%.
The Commission, the EU's executive arm, first proposed the rules in March 2021. Before they can be adopted, they must be formally signed off by the European Council, which represents member states. EU countries will then have to start implementing the rules into their national laws within three years of their publication in the bloc's official journal.
06.04.2023
RIGHT OF REFUSAL FROM A CONSUMER CREDIT AGREEMENT
Have you ever made a rash money decision that you later regretted? This is exactly what happens to quite a few people who have decided to resort to the services of a lender. The good news is that in this case, there is a way to change your mind without incurring large losses.
According to the Law on Consumer Credit, every customer who has taken out a loan has the opportunity to withdraw from the concluded contract within 14 calendar days from signing it (or from the day of receiving the conditions under it). Whether you've realized that you don't really need a loan or you can't afford it, the reason doesn't matter.
In this situation, you do not owe compensation or a penalty and there is no need to give any explanation to the creditor. However, you will have to pay back the amount you borrowed, along with interest and other non-refundable fees paid by the lender.
Get ready to lose some money
Unfortunately, if you refuse a loan, you will have to return not only the amount received, but also all interest and fees related to its granting. For example, the lending bank may charge an "administrative fee for credit approval and contract signing."
In the general terms and conditions of the bank, which you automatically agree to when signing the contract, it should also be written that the administrative fee for loan servicing is paid when signing the loan contract to the current account from which the loan will be serviced.
In this case, the collected fee is not refundable, even if the loan is not used. From this point of view, the bank has the right to retain it since you have agreed to this condition by signing the terms and conditions.
How is the waiver done?
First of all, you must notify the creditor in writing of your desire to terminate the contract. If you don't do it and just return the amount, this may not be considered as a cancellation of the contract, from which you will lose a lot, namely - at a future time you will have to pay the originally agreed interest on the loan.
The notification must be sent within 14 days of the conclusion of the transaction. If you have chosen to have the necessary documentation accompanying the contract sent to you by post, the period in which you can cancel the loan is 19 days. The added 5 days are considered sufficient to receive the documents.
The next step is to return the money. You must do so to the creditor's bank account within 30 calendar days of the date on which you sent a message that you are withdrawing from the contract.
Even though you are essentially giving up on the deal you made earlier, you still won't get back an amount equal to what you withdrew. As already mentioned, you will have to pay the agreed interest on the loan for the time that the money has been "sitting" with you.
If you have difficulty calculating the exact amount, you can contact an employee of the credit company. However, one thing is certain – the amount will be much less than what you would eventually pay back by periodically making your monthly installments.
Please note that the right to refuse a credit agreement applies only to loans worth more than BGN 400.
Entry of the loan in the Central Credit Register
Sometimes it happens that even unutilized credit is entered in the Central Credit Register. Despite the logic that this should not happen, there is one feature that can cause the credit to be registered in the Central Credit Register.
The register includes not only loans that have already been granted, but also those that have been approved but not yet granted. If the loan account for your credit has not been closed after you have not used the credit, it may still be present in the Central Credit Register.
If this happens to you, you should contact the bank branch where you signed the credit agreement and ask for a request to close the loan. This is the right approach to clear credit from the Central Credit Register.
Early repayment of a loan
If at some point you were in financial difficulty and had to take out a loan, and now you have free funds, you should know that you can repay it early at any time. In this case, the creditor does not have the right to charge you the interest and costs for the remaining part of the contract term.
The borrower does not owe compensation or a penalty when the repayment of the loan is carried out in a period during which the interest rate under the loan agreement is not fixed, the repayment is made on the basis of a payment under an insurance contract aimed at guaranteeing the return of the loan, or the contract is in the form of an overdraft.
In all other cases of early repayment of the loan by the consumer, the creditor has the right to compensation. However, it cannot exceed 1% of the early repaid loan amount with a remaining contract period of more than one year and 0.5% of it with a remaining contract period of less than a year.
Compare different offers quickly and easily
To avoid taking out a loan that you later have to refuse, first compare all available offers before making a decision. Although this takes more time, it will probably save you a lot of headaches and money down the road.
Before you sign a contract, the creditor must provide you with a standard European form with information on consumer credit. This document is intended to help you understand as well as possible the terms and conditions of any loan agreement you may be considering signing.
The European form includes:
- the main characteristics of the contract;
- the amount of the loan and its price;
- the annual percentage of expenses (APЕ – a single value, meaning the total amount of expenses under the loan, including interest, commissions, fees and any other type of expenses);
- the number, frequency and amount of all your payments;
- information on important legal aspects.
In this way, you will be able to compare loan offers from different providers and choose the most suitable one for you. If the creditor has not provided you with this form, you have the right to request it.
05.04.2023
THE SUPPLY OF LABOR IS LIMITED, BUT THERE IS A SPARE RESOURCE IN THE LABOR MARKET
Commentary by specialist Adrian Nikolov, Institute of Market Economy
The year 2022 was marked by a series of crises - energy, inflationary, political. In no case, however, can we claim that they are accompanied by a crisis in the labor market. Quite the opposite - most indicators in 2022 exceed their pre-covid crisis levels, and the main challenge to further development is insufficient labor supply.
According to the 2022 Labor Force Survey overview, the employment rate in all age groups considered increased from 2021, with 15-64 year olds reaching 70.4% - slightly above the previous record high of 2019. when the share of working people among them was 70.1%. Among the 20-64 year olds, employment again approaches 76%, registering a significant growth of 2.5 points on an annual basis. It is noteworthy, however, that the significant difference in employment between men and women remains - 79.5% against 71.8% for 20-64 year olds. This also reflects the different rates of recovery and growth in industries dominated by both sexes (more on the role of women in the Bulgarian labor market in the IME special analysis here). Unemployment for the population aged 15 to 64 fell to 4.3%, one point less than the previous year. The very large differences according to the degree of completed education remain - while unemployment among university graduates is only 1.7%, among people with primary and lower education it reaches 25%. The observed growth of unemployment among the least educated is also cause for concern. This is a sign that the current expansion of the labor market continues to reduce the number of jobs available to people with very low skills and literacy. The number of inactive people remains high - 1.15 million people aged 15-64, mostly women (649 thousand). At the same time, the share of inactive youth aged 15-29 (the so-called NEETS, more about them here) remains relatively high, 15%. In other words, despite the apparent restriction of labor supply, there is still a spare resource in the labor market. Here the question is mainly what are the appropriate approaches to activation, literacy and acquisition of labor-relevant skills by the inactive, as at this stage state-led policies seem rather to fail to achieve the desired result. Insofar as the researches of the National Statistical Institute do not provide a direct assessment of labor demand, such can be found in the surveys of the Employment Agency. The findings of the latest survey, which refers to the end of 2022, point to a very active demand for workers, especially in industry, while employers indicate that finding suitable staff is increasingly difficult. An alternative view of the demand is also provided by the statistics of the web platform jobs.bg, where throughout 2022 a higher demand for labor is evident, even compared to the very strong years before Covid-19.
The latest data on the dynamics of the labor market unequivocally demonstrate that the demand for labor continues throughout 2022, despite the negative processes in other spheres. However, some structural problems remain unsolved - improving the skills of the poorly educated, who find it increasingly difficult to integrate into the modern economy, as well as the activation of the rest outside the labor market. It is also an open question whether the unsatisfied demand for labor will become a limiter of the potential for economic growth in the medium and long term.
