07.12.2022
THE NATIONAL STATISTICAL INSTITUTE: 5% OF BULGARIANS WORK FROM HOME
The phenomenon of daily labor migration is closely related to the economic condition of settlements, their location and infrastructure, as well as the presence and characteristics of the labor force in them. This is shown by "Census 2021" data on daily labor migration, distributed by the National Statistical Institute.
The importance of this process for society is great, since participation in daily trips, in contrast to permanent resettlement, does not lead to depopulation of settlements or to disruption of the age structure of the population, reports the National Statistical Institute.
Busy
As of September 7, 2021, 121,235 people - 5.1 percent of those who answered the question in the last census - indicated that they mostly work from home.
There are 100,547 people without a fixed job, or 4.2 percent. The absolute number and relative share of people who work in the same settlement where they live is the highest - 1,661,017 (69.5 percent). 494,719 people or 20.7 percent travel to the place where they work. The employed who travel outside the country are 13,086 or 0.5 percent. This is shown by "Census 2021" data on daily labor migration, distributed by the National Statistical Institute.
Daily labor migrants account for 18.6 percent of all employed persons aged 15 and over. Of these, 262,238 people or 53 percent live in villages, and 232,481 or 47 percent live in cities, with men predominating - 56.9 percent, compared to women - 43.1 percent of all labor migrants.
Learners
As of September 7, 2021, 21,522 people, or 2.6 percent of those who answered the question, indicated that they study mostly from home. The absolute number and relative share of students in the same settlement where they live is the highest - 610,621 (75.1 percent). 176,440 people or 21.7 percent travel to the settlement where they study. Students who travel outside the country are 4,242, or 0.5 percent.
Mobile learners represent 21.7 percent of all learners. 59,621 people, or 33.8 percent, live in cities, and 116,819, or 66.2 percent, of student migrants live in villages.
06.12.2022
A LARGE COMPANY IS BUILDING A FACTORY IN ROMANIA INSTEAD OF BULGARIA, RECRUITING 700-800 WORKERS
The German company Diehl Controls, a division of the German Diehl group, will invest over 40 million euros in building a production base for electronic components in the Romanian city of Brasov, the local municipality announced. "The company aims to open the factory by 2024," reported the city hall of the Romanian city, which was competing with Bulgaria and Serbia for its new production.
The company, which specializes in the production of parts for household appliances, will build a research center and a manufacturing plant at the selected location.
Diehl's facility in Brasov will be its third in Europe, along with those in Germany and Poland. Upon completion, the factory will employ between 600 and 650 people, with another 100 to 150 jobs added for the company's research department.
According to the company's calculations, between 2023 and 2027, up to 20 million euros will be invested in the factory in Brasov, and for the period 2023-2033, the investment may reach 45 million euros.
The value of the new plant's output will grow from 35 million euros in 2024 to 100 million euros in 2025 and 160 million euros in 2027, according to Diehl's estimates.
"We chose the site in the Brasov area because it is close to the city where there is a university. The local authorities convinced us to choose Romania. We aim to start production in mid-2024. We are currently dependent on when we get the building permit, to start work, said Josef Fellner, CFO at Diehl Controls.
The research center and manufacturing unit will be built by industrial property developer CTP as part of a wider project. The new business park will have a total area of about 50,000 square meters, of which 18,000 will be leased to the German company, reports Romania Insider.
The Diehl company was founded in Germany in 1902. The company currently employs over 16,000 people, of which 3,687 work for Diehl Controls. The company is active in metalworking, electronic component manufacturing, defense, aviation and utilities. In 2021, Diehl recorded revenues of 3.1 billion euros.
05.12.2022
HOW WILL THE NEW SINGLE HEATING ASSISTANCE BE RELEASED?
The National Social Security Institute informed about the procedure by which the new one-time financial aid for heating in the amount of BGN 300, which was voted by the Council of Ministers at the end of November, will be granted.
The funds will be paid once in the period from December 12, 2022 to December 23, 2022, according to the way in which individuals receive other social payments, the department specified.
The aid of BGN 300 will be provided as follows to:
- Parents or adoptive parents raising children with permanent disabilities and receiving monthly allowances;
- Families who receive monthly allowances for a child without the right to an inheritance pension from a deceased parent;
- Families of loved ones and relatives, as well as foster families, receiving monthly social assistance for the child placed in their family;
- War veterans, war disabled and war injured, assisted by the Social Assistance Agency under the Law on War Veterans and the Law on War Disabled and War Injured;
- People with disabilities with over 90 percent degree of disability with certain foreign assistance, receiving a disability pension due to a general illness or due to an occupational accident or occupational disease, or a social disability pension, who are granted monthly financial support under the Law on People with Disabilities;
- Persons and families who suffered from fires, floods and other natural disasters in 2022, to whom one-time assistance was granted in accordance with Art. 16 of the Regulations for the Implementation of the Law on Social Assistance.
In order to receive this assistance, it is not necessary to submit applications to the "Social Assistance" directorates at the current address. The funds will be disbursed ex officio on the basis of a list approved by the director of the relevant "Social Assistance" directorate, according to the National Social Security Institute.
The institute draws attention to the fact that the new heating aid will not be provided to individuals and families who for this heating season have already received targeted heating aid of BGN 623.55 or one-time financial support for heating to compensate for the increased prices of energy sources of BGN 400, as well as to individuals and families who received in 2022 one-time assistance to meet an incidental need.
This is the third measure within the framework of the government's policy towards risk groups. About 370-380 thousand people during this heating season are beneficiaries of the support provided by the state.
05.12.2022
CARING FOR THE POOR: ROMANIA STEADILY RAISES PENSIONS AND THE MINIMUM WAGE
Romania is preparing steady increases in pensions and the minimum wage to ease the lives of its citizens struggling with rising prices and the economic crisis. The authorities have prepared energy aid, food vouchers and higher social payments for the most vulnerable groups in society. This was agreed upon by the parties of the triple ruling coalition, reports the state agency Agerpres.
All pensions will be increased by 12.5%, and the pension point, according to which pensions are calculated, will reach 1,784 lei (361 euros). The minimum wage in the country will rise to 3,000 lei (607 euros) compared to the current 2,550 lei, of which 200 lei are tax-free. The increase is 17.7%, and 1.2 million Romanians are expected to benefit from it.
Supplements for pensioners
People with a pension of less than 3,000 lei will receive a financial supplement next year. It will have a different value depending on their monthly income. The supplement will be 1,000 lei (202 euros) for pensions up to 1,500 lei (304 euros), 800 lei (162 euros) for pensions up to 2,000 (405 euros) lei and 600 (121 euros) for those up to 3,000 lei (607 euros). The aid will be split into two tranches in 2023.
"In recent weeks, there was a lot of talk about percentages and numbers, but less about people's lives. For the Social Democratic Party, it was never about numbers and percentages, but about people and what they need," said the chairman of the Social Democratic Party (SDP) Marcel Cholaku.
"We considered that each category should be supported in a different way, and the support from the state should go to a greater extent to those who feel the effects of the economic crisis the most. And here I mean both the active persons - the working on the minimum wage - as well as those who have worked all their lives and yet now have small pensions," explained the leader of the largest party in the coalition.
The construction sector will continue to be stimulated, with the minimum wage in this branch increasing to 4,000 lei (810 euros) while maintaining the current tax benefits.
Help for the most vulnerable
The Romanian authorities will seriously increase social payments for the most vulnerable groups in society. People with disabilities will receive a "13th salary" - an additional benefit at the end of the year. Romanians with incomes up to 1,700 lei (344 euros) will receive food vouchers worth 250 lei (51 euros) once every two months throughout 2023.
Elderly people with the lowest pensions will receive energy assistance of 1,400 lei (283 euros), divided into two six-monthly installments, to pay their heating bills. Pensioners over the age of 60 who have pensions below 2,000 lei (405 euros) will be entitled to the assistance.
The veterans' and war widows' benefit, which has not been changed since 2018, will rise by about 30% to match the level of inflation. State child benefits will also be indexed to price increases.
95% of vulnerable families in Romania cannot cover their children's basic needs such as medical care, medicine, food and education because of the economic crisis. A large part of the large families in the country support themselves thanks to social assistance from the state, according to a study by the organization "Save the Children". The authorities must take urgent measures to ease the impact of the economic crisis on children's lives.
The planned measures were also confirmed by Prime Minister Nicolae Chuka, who is the leader of the National Liberal Party (NLP). "The period we are going through is marked by multiple crises worldwide and we need to ensure mitigation of the effects caused by high inflation. That is why the NLP strongly opposed increases of less than 15% and obtained in the negotiations total increases of more than 15.8%," Chuka pointed out.
Danger to public finances
The increases in pensions, social security payments and salaries are part of a 26.65 billion lei (5.4 billion euro) social package called "Support for Romania" proposed by the rulers.
The Balkan country collects budget revenues worth around 30% of gross domestic product, well below the EU average of around 46% of GDP, and spends most of it on public sector wages, pensions and social grants.
The government plans a budget deficit of 4.4% of GDP, down from this year's forecast of 5.7%, and the European Commission, International Monetary Fund, Romania's central bank and rating agencies have warned that the fiscal deficit and low revenue collection are major risks to the economy.
Fitch Ratings, Moody's and S&P Global Ratings place Romania in their lowest investment grade. Analysts expect economic growth to slow significantly in 2023.
03.12.2022
DECEMBER 3 - INTERNATIONAL DAY OF PERSONS WITH DISABILITIES
In 1992, the UN General Assembly declared December 3 as the International Day of Persons with Disabilities. This is the day to support the dignity, rights and well-being of people with disabilities and for their full participation in public life.
Dear friends,
The international community celebrates the International Day of Persons with Disabilities on December 3.
This is another occasion to show our respect and express our support for more tolerance and understanding of people with disabilities.
This is another reason to think about whether the society and the Bulgarian institutions take enough care and empathy towards people with disabilities and their families?
The answer is in each of us, in the whole society. For our friends to feel good, it is the responsibility of all Bulgarians.
The Consultancy center for disadvantaged people in the city of Berkovitsa is aimed at people with disabilities. We are together and will continue to defend the need to change attitudes and behavior, a new way of thinking, a new culture.
Because a society is strong when it is united!
We wish you courage, strength and sharing!
02.12.2022
PHOTO EXHIBITION "THROUGH MY EYES AND YOURS" DEDICATED TO PEOPLE WITH DISABILITIES
On the eve of the International Day of People with Disabilities, a multimedia photo exhibition "Through my and your eyes" was opened at the Ministry of Labor and Social Policy. "We have to prove to society that people with disabilities are a valuable resource. This is a long process that cannot happen solely with the efforts of the state," Minister Lazarov said at the presentation of the exhibition organized by the Ministry of Labor and Social Policy and the Human Resources Development Program. "It is necessary for each of us to make an effort to have a society without borders, without an inaccessible public environment, without social exclusion - a society that guarantees everyone's right to realize themselves. We will fully support initiatives to provide employment to people with disabilities," he added.
The photo exhibition "Through my eyes and yours" is dedicated to people with disabilities in Bulgaria with a focus on autistic individuals. The aim of the project is to put an emphasis not on the diagnosis of "disabled", but on their knowledge, skills, talent and opportunities to fully integrate into society and contribute to its development. The exhibition presents photographs of 18-year-old Sevdalin Tlachenski, an autistic person, and his mentor Alexander Nikolov, winner of the "Journalist of the Year" award for 2021 of the Bulgarian Helsinki Committee.
Deputy Ministers Nataliya Efremova and Nadya Klisurska, representatives of the Metropolitan Municipality and non-governmental organizations providing social services for people with disabilities participated in the premiere of the exhibition.
"In the coming year, we will continue to work hard to support disadvantaged people. Our main focus will be on the opportunities for their employment. We will have special programs for employers, for the non-governmental sector," said Deputy Minister Natalia Efremova.
Nadya Klisurska emphasized the need to "see the world through the eyes of those who are different from us". "I hope that we will all have the sensitivity and patience to appreciate the uniqueness of each one, to see for their strengths and skills and give them a chance to develop them," she said.
Five poets from different generations - Petar Chuhov, Kristin Dimitrova, Maria Doneva, Konstantin Trendafilov (Papi Hans) and Anastasia Stoilova - wrote poems based on the photographs of Sevdalin Tlachenski and Alexander Nikolov, which reflect society's sensitivity to the problems of people with disabilities in Bulgaria.
02.12.2022
THE COUNCIL OF MINISTERS ADOPTED A SECTOR STRATEGY FOR E-CUSTOMS
The Council of Ministers adopted the Sectoral Strategy for the Development of Electronic Management in the Customs Agency and the Roadmap for the Implementation of the Sectoral Strategy for the Development of Electronic Management in the Customs Agency - "e-Customs" 2021-2027.
The Strategy for Digitization of the Customs Administration - "e-Customs" 2021-2027 was created by the Customs Agency as a sectoral strategic document in the field of policy for the development of e-government in the Republic of Bulgaria 2019-2027 in the Customs Agency.
The aim is to propose the general strategic framework for achieving the digital transformation of the customs administration and its activities in accordance with the current European principles for e-governance, cyber security, control and supervision of customs and excise legislation, development policies at the national level and the current regulatory framework.
The sector strategy for the development of electronic management in the Customs Agency - "e-Customs" 2021-2027 continues, develops and upgrades the projects on digitalization of the customs administration, which were implemented with the Sector Strategy for the Development of Electronic Management in the Agency in the period 2016-2025.
The decision of the Council of Ministers will improve the conditions for the implementation of the Strategy for the Development of Electronic Government in the Republic of Bulgaria for the period 2021-2027, will create the necessary prerequisites and conditions for the continuation of the work of the Customs Agency in the field of automation of processes related to the implementation of customs legislation and the measures set out in the "e-Customs" Sectoral Strategy. The fulfillment of the objectives of will contribute to the fulfillment of the commitments undertaken by the Republic of Bulgaria as a member state of the European Union to facilitate legal trade.
02.12.2022
BNB WITH A FORECAST FOR INTEREST RATES ON LOANS AND DEPOSITS
The trend of increasing interest rates in the Eurozone is expected to be quickly transferred to interest rates in Bulgaria, which will cause them to increase both on loans and on deposits in our country. This is what the Bulgarian National Bank predicts in its Economic Review.
In the sector of non-financial enterprises, the weighted average interest rate reached 0.91% as of September 2022, mainly under the influence of the increase in interest rates on new time deposits of companies in dollars. The interest rates on company deposits in BGN and in Euro also rose, becoming positive from August and reaching 0.04% and 0.19% respectively as of September. In the case of household deposits, the trend for the rise of interest rates on new time deposits was upward from the middle of the year, but the increase was less pronounced and by September 2022 the interest rate reached 0.26% (at a level of 0.09% as of December 2021) and 0.12% as of June 2022).
Inflation in the fourth quarter of 2022 and in the first quarter of 2023 should follow a gradual slowing trend, the Bulgarian National Bank predicts. Factors for this are expected to be the substantial increase in labor costs per unit of production, the growth of private consumption, as well as the suspension of some fiscal measures.
We expect the unfavorable development in the external environment in terms of global economic growth and the tightening of global financial conditions to lead to a more significant deterioration of the prospects for the Bulgarian economy in the fourth quarter of 2022 and in the first quarter of 2023, the bank also says.
In the first nine months of 2022, there is a tendency to accelerate the annual growth of deposits of the non-governmental sector in the banking system. This dynamic is due to the growth of company deposits, which was contributed to by the weakening of the investment activity of companies in the conditions of increased uncertainty in the economic environment and the growth of the nominal gross operating surplus in the industry sector. The cancellation in the third quarter of the year of the fee for maintaining cash balances above a certain amount by the large commercial banks is a factor with a possible influence on stopping the tendency to slow down the annual growth of household deposits, the bank indicates.
In the first nine months of the year, both firms and households continued to save mostly in local currency. At the same time, from the end of the first quarter, a more significant increase was also observed in the deposits of non-financial enterprises in foreign currency (mainly in euros), and on an annual basis the growth of the deposits of companies in foreign currency amounted to 25.0% as of September.
Annual growth in credit to the non-government sector continued to accelerate in the first eight months of 2022, which was more pronounced in corporate credit. Rising commodity prices and continued difficulties in global supply chains have spurred firms to look to banking for working capital and stockpiling.
The rise in corporate lending rates that began in September, reflecting the reversal of the interest rate cycle in the Eurozone, likely contributed to the observed slowdown in annual business credit growth at the end of the third quarter of the year.
The growth of credit to households continued to follow a trend towards a smooth acceleration under the influence of the still low levels of interest rates and the continued acceleration of consumer price inflation, which created the conditions for increased demand for financial resources for the purchase of real estate and durable goods for the purpose of storing value. An increase in economic activity on an annual basis was reported in all main economic sectors and to the greatest extent in the mining and processing industry sub-sector.
Employment increased by 1.3% year-on-year mainly due to the increase in the number of employed persons in the service sector. Compensation per employee accelerated significantly, supported both by rising consumer prices amid limited domestic labor supply and by increased demand for labor amid rising economic activity from high inflation on consumer purchasing power, and also and reduced consumer confidence given the high level of economic uncertainty, reports the Bulgarian National Bank.
02.12.2022
BNB RAISED THE MAIN INTEREST RATE AGAIN
The Bulgarian National Bank announced a new increase in the main interest rate. This is the third promotion in a row. From December 1, the main interest rate becomes 1.3%. 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. Mainly the 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.
The main interest rate is an instrument by which the value of a monetary unit in a country's economy is regulated and measured. Its amount is determined by the Central Bank.
When the main interest rate rises, it usually happens in a strong economy in order to balance it out.
The Central bank reduces its size when the economy is in difficulty and there is a need to support it. This is done in order to stimulate the withdrawal of loans and provide new jobs. Inflation is also regulated in this way.
01.12.2022
500,000 BULGARIANS WILL ACQUIRE DIGITAL SKILLS BY MID-2026.
The plans of the Ministry of Labor and Social Policy are for 500,000 unemployed and employed Bulgarians to acquire digital skills by mid-2026 with funding under the Recovery and Resilience Plan. This was announced by the Deputy Minister of Labor and Social Policy, Emil Mingov.
Within the project, the social ministry will develop a digital platform and electronic resources for conducting online courses. It is planned to create 760 digital clubs, which will also have equipment for online training of disadvantaged people.
Deputy Minister Mingov emphasizes that increasing the quality of the workforce, people's digital skills and the increased use of digital technologies in the training process are among the main priorities of the national employment policy. In this regard, through the Human Resources Development Program 2021-2027, another 160,000 people will participate in specific training for the acquisition of digital skills. According to the deputy minister, about 100,000 people who have digital skills but do not have a certificate will have the opportunity to certify them.
Investing in upskilling and reskilling the workforce is a key priority aimed at fostering an inclusive recovery and supporting the digital and environmental transition.
The Deputy Minister points out that the Corporate Social Responsibility Strategy developed by the ministry also aims to encourage companies to improve working conditions and invest in the development of their employees.
The possibilities of financing projects with EU funds
The operations under the Human Resources Development Program, which are planned for 2023, are mainly related to the development of the labor market and employment support. Among the measures to be launched are "Qualification, skills and career development of employed persons" with a budget of BGN 55 million, "Active inclusion and access to employment of disadvantaged people" with a budget of BGN 30 million, "Sustainable employment for disadvantaged persons" with a budget of BGN 100 million, "Promotion of the social economy at the local and regional level" with a budget of BGN 22 million and "Youth employment +" with a budget of 80 million BGN. Municipalities can still apply for the "New Opportunity for Youth Employment" project, which is implemented by the Employment Agency.
The Deputy Minister explained the financing possibilities under the National Recovery and Resilience Plan. The investment "Modernization of long-term care" has a budget of over BGN 700 million and is divided into three procedures. The first procedure of these has a budget of BGN 189.8 million and is related to the renovation of 82 residential services for elderly people who are beyond working age. The second measure has a budget of BGN 215 million and will increase energy efficiency in 840 existing social services. Under the third procedure, which has a budget of BGN 331 million, 125 new social services for residential care for people with disabilities and 125 new accompanying specialized and advisory social services for people with disabilities will be built.
