13.05.2022
WHICH PEOPLE WILL FALL OUT OF THE LABOR MARKET
According to the World Economic Forum, critical thinking and problem-solving skills will be the most sought-after skills by employers. How technology is changing the labor market and creating a need for skills that employees need to have, what are the skills that employers are looking for and will look for in the future in the age of technology, and teleworking.
Krasimira Karadzhova, Member of the Management Board of the Bulgarian Association for Human Management and Deputy Head of Department and Regional Coordinator of the Bulgarian Association for Human Management for the Black Sea Region, spoke on the topic to Radio Sofia. She stressed that a distinction must be made between "competence" and "competency".
"Competence - this is the ability to do something in a certain way and is based on the skills we have acquired. While competency focuses on how a specific task is performed and is based on behavior," Karadzhova said, adding that most companies have introduced competency models.
According to her, according to the World Economic Forum before the covid crisis, the most sought after competencies are complex problem solving, critical thinking, creativity, people management, coordination with other people, emotional intelligence and more.
According to her, the crisis has changed the labor market, as it has forced a large number of people to work remotely, which has led to the development of self-motivation, coordination, critical thinking, communication and social skills and more and a large proportion of employees who have worked online have developed these skills.
Karadzhova said that there is currently a return to the offices and these skills acquired by employees will not be able to be fully applied, but they will lead to better performance of tasks and less supervision by the employer.
"This is future development and these skills will certainly be needed in the future and to work in a global environment," Karadzhova said, adding that emotional intelligence and coping with stress are difficult to measure, but individual plans can be made and everyone to be able to optimize their results.
She added that with the advent of automation and digitalisation, lower-skilled people will drop out of the labor market and be replaced by machines and artificial intelligence. This requires retraining, and that most companies need to create such an atmosphere that their employees themselves want to participate in training.
12.05.2022
WHAT ARE THE OPPORTUNITIES FOR EMPLOYERS TO HIRE UKRAINIAN CITIZENS?
Undoubtedly, the war in Ukraine had its economic and social impact on all European countries. In social terms, the influx of people fleeing the war has necessitated the adoption of swift and adequate measures by EU member states, which have expressed their solidarity and highlighted the role of civil society in helping Ukrainian citizens. As part of this unified policy, the Bulgarian state has also adopted relaxed measures for access to the labor market for Ukrainian citizens in order to respond appropriately to the new workforce flowing into the country.
The measures adopted for access to the labor market of Ukrainian citizens include several procedures, some of which we will discuss in more detail in this article. Ukrainian citizens can stay without a visa in Bulgaria for 90 days, during which time they can apply for temporary protection for one year or for international protection.
Temporary protection
By Decision № 144 of the Council of Ministers of March 10, 2022, temporary protection of Ukrainian citizens was introduced for a period of 1 year, as of February 24, 2022, and may be extended if necessary twice by 6 months, ie. e. until February 24, 2024.
Temporary protection may be granted to the following persons:
- Ukrainian citizens residing in Ukraine before 24 February 2022 and members of their families
- Stateless persons or third-country nationals other than Ukraine who have been granted international protection or other equivalent protection in Ukraine before 24 February 2022 and members of their families
- Stateless persons or third-country nationals other than Ukraine who can prove that they resided legally in Ukraine before 24 February 2022 on the basis of a valid permanent residence permit issued in accordance with Ukrainian law and cannot to return permanently to their country or region of origin under safe conditions.
The regime for granting temporary protection is registration, and is carried out personally by the person who wishes to receive temporary protection. The person is issued a registration card for temporary protection with a personal number of a foreigner (PIN). Receiving temporary protection of persons entitles them to remain in the territory of the Republic of Bulgaria for the duration of the temporary protection, to work legally in the Republic of Bulgaria, for social assistance, free medical care and others.
Persons with temporary protection status can register as jobseekers with the Labor Office Directorate at their permanent or current address.
Work of Ukrainian citizens with a Bulgarian employer with temporary protection
Citizens who have been granted temporary protection have the right to be employed on a labor contract with a Bulgarian employer, and the rules of the Bulgarian labor and social security legislation apply to them. In addition to the necessary documents for starting work, individuals should also present their identity document from the country of origin, as well as the registration card for temporary protection.
International protection
Ukrainian citizens can apply for international protection and receive refugee or humanitarian status in Bulgaria when they are persecuted or when their lives or safety are threatened. The process of granting international protection is considerably longer and more complex, requiring a thorough examination of documents, and the procedure may end in refusal or granting of status (humanitarian or refugee).
During the proceedings for international protection the foreigner has the right: to remain on the territory of the Republic of Bulgaria; to move within the defined zone on the territory of the Republic of Bulgaria; of shelter and food; of social assistance in the order and in the amount determined for the Bulgarian citizens; of health insurance, of affordable medical care and of free use of medical care under the conditions and by the order for the Bulgarian citizens, etc.
With granted humanitarian status (as is usual for Ukrainian citizens), the foreigner has the right to issue a card to a foreigner with humanitarian status, which is valid for 3 years, the rights and obligations of a foreigner with a permanent residence permit in Bulgaria, which include the right of: work without special permission, education in public schools and universities, etc.
Work of Ukrainian citizens with a Bulgarian employer with international protection
Employers should keep in mind that persons in the process of being granted international protection do not have the right to access the labor market and therefore cannot be employed by them. However, in case the procedure for granting international protection is not completed within three months from the submission of the application due to reasons beyond their control, they have the right to work in Bulgaria without a work permit until the end of the procedure. The employer has an obligation to declare the employment of Ukrainians enjoying rights under the Asylum and Refugees Act.
Ukrainians and members of their families with international protection in Bulgaria have the right to work in our country without permission to access the labor market. Persons with refugee or humanitarian status can register as jobseekers with the Labor Office at their permanent or current address.
Additionally, Ukrainian citizens have the right to reduced conditions for access to the labor market in the presence of Bulgarian documents proving Bulgarian origin, as well as the right to seasonal work up to 90 days in agriculture, forestry and fisheries, hotels and restaurants in Bulgaria without interruption at 12 months.
Employers wishing to hire new employees, incl. Citizens who have left Ukraine have the opportunity to apply electronically for vacancies using one of the following opportunities provided by the Employment Agency, namely:
The measures taken by the state can be defined as those on the one hand in line with the common policy introduced by the EU in support of Ukrainian citizens, and on the other hand aimed at facilitating employers in hiring and meeting the need for labor in certain sectors of the economy.
12.05.2022
760 INTERNET CLUBS FOR E-LEARNING FOR OVER 50S ARE BEING OPENED
Already this year, the state will invest funds to open 760 digital clubs across the country, where seniors over 50 will be able to learn computer skills. The intention is enshrined in the National Action Plan for Employment in 2022, and the financing itself is set in the Plan for Reconstruction and Sustainability of Bulgaria, funded by the EU Fund for Reconstruction and Sustainability.
These clubs will be created under a project for a single virtual platform for adult education in an electronic environment, which is planned for this year. The clubs will be equipped with modern computer and other equipment plus internet access, so that the elderly and unemployed Bulgarians would join online training, assisted by mentors. The idea is especially important for those working in agriculture, where there is a great need for online training for people in the second and third ages.
Digital clubs will be open to free access, with priority being given to disadvantaged people, including people who do not have their own equipment and internet.
The construction of the platform will expand the access and opportunities for quality adult education and will allow training at any time and from any place. The virtual platform will bring together electronic learning opportunities and resources, set quality criteria for the online training provided and ensure traceability, monitoring and quality control of training.
Data from the labor offices for 2021 show that the economically inactive population in Bulgaria aged 15-64 has exceeded 1.227 million people, compared to 1.226 million in 2020. The relative share of all registered unemployed increased by 4 percentage points , to 23.6% at the beginning of 2021 compared to the same period in 2020. Lack of qualifications and low education in more than half of the long-term unemployed is the main reason that hinders the faster decline in the number of long-term unemployed.
The downward trend in unemployment in the 50+ group, which has been observed since 2015, was interrupted in 2020 as a result of the COVID-19 pandemic, and in 2021 it resumed its downward trend. The average monthly number of adults over the age of 50 is 74,652 - 19,437 less than in 2020. Their relative share of all unemployed is 41.1%, an increase of 2.2 percentage points. annually.
That is why in 2022 our country will focus on European lifelong promise programs and policies for learning by older people. The European Adult Learning Program and the Recommendation on Skills Development and the Electronic Platform for Adult Learning in Europe (EPALE) will provide methodological support to professionals involved in the adult learning sector by combining online and offline events, conducting various training webinars , as well as methodological support to the newly established regional coordination groups for the development of regional analyzes and programs, is already written in the National Action Plan for Employment in 2022.
12.05.2022
THE DIGITAL FUTURE OF BULGARIA
Specialist analysis
Digitalization has an impact on many processes - on the strategic potential of economic development, improving labor productivity, quality of life and even the formation of different communities, informed by different channels.
This is true for the whole world and Bulgaria is no exception. We have many new opportunities at our disposal to build a modern society that is sustainable in the long run. The strategy for digital transformation undertaken by the European Commission is a headwind for our country, which faces the serious challenge of building an even more open and even more competitive economy.
How digital is Bulgaria?
In order to measure the digital progress of the Member States, the Commission has been using the Digital Economy and Society Index since 2014. Bulgaria continues to rank last with Romania in 2020, which shows that there is huge potential for progress.
The rise of Bulgaria in this important ranking will happen with significant investments from both the public and private sectors. Any delay leads to an increase in the cost of funding, as well as the time it will take for each person to increase their digital knowledge needed to achieve higher added value, as well as to build a sustainable society and a competitive business.
Human capital, technology, digital public services - we can do more
According to the index, the digital skills of the population are divided into basic skills for using the Internet and digital devices and more complex ones, indicating the presence of IT specialists, students and training companies. According to this criterion, Bulgaria is in last place. With more sophisticated skills, however, our country is even at the level of France, which is the EU average. In other words, our focus should be on improving the basic digital skills of as many people as possible. Statistics show that 1 in 5 people in Bulgaria has never used the Internet.
Another important measure that forms the final index is the introduction of digital technologies. They allow businesses to gain a competitive advantage, improve their services and enter more markets. The EU's digital sovereignty will depend on the ability of states to store, retrieve and process data, while respecting the requirements of trust, security and fundamental rights. According to this indicator, Bulgaria is in last place and urgent and purposeful efforts are needed to achieve change. The EC monitors the availability of 12 technologies that companies are developing. In our country, as well as in Romania, Latvia and Hungary, 50% of companies have invested only in a small number of them - from 0 to 3. Among these technologies can be seen typical as having a website with a description of products/services and opportunity for shopping, but also more detailed such as 1% of turnover from e-commerce, big data management, as well as the use of industrial robots or 3D printing. For example, in Bulgaria only 5-6% of companies use big data in their main business processes.
Interaction of citizens with state institutions through digital channels is also an important criterion. 36% of Internet users in Bulgaria communicated with the authorities online in 2020. The interesting thing here is that in fact the availability of digital public services in our country is not so far from the EU average compared to the previous criteria of the index, which shows the need by explaining to citizens what, where and how they can use the digital channel. The fact is, however, that public communication systems are obsolete, but the newly formed Ministry of e-Government is making serious demands to change them.
High level technology sector
Bulgaria is in the first half of the Member States whose technology sectors account for a significant percentage of GDP. For 2018 it is 5.5%, and preliminary NSI data show that this percentage is already close to 8. The productivity of the ICT sector is also in the top 5, which shows that despite its smaller scale in absolute value, the people in it work at a high level.
Recent years have given rise to important organizations for the digital development of our country. One of them is the Institute "Big Data for the benefit of intelligent society" GATE at Sofia University "St. Kliment Ohridski ”, which aims to be a kind of bridge between science, government and business. As of this year, it is officially NATO's test center in the field of big data and artificial intelligence.
The INSAIT Institute of Computer Science, Artificial Intelligence and Technology was officially opened in April this year. It was established in partnership between Sofia University and two of the world's leading technological universities - the Swiss ETH Zurich and EPFL. The project is the first of its kind in Eastern Europe and is recognized by global companies such as Google and DeepMind, which will invest nearly 6 million over the next 3 years, and Amazon Web Services with 7 million. For its part, Bulgaria will invest 170 million over the next 10 years.
12.05.2022
WHAT SHOULD BE THE INCOME IN ORDER TO REPAY A LOAN EASILY
Over the years, many clients have asked themselves questions such as: "Will I be approved for this loan", "What installment will they approve for me", "What amount will the bank agree to grant me", etc. In reality, however, what the bank is ready to take from us as a monthly loan expense and what we are willing to set aside is a question that often diverges. Practice shows that banks are willing (with stable incomes) to provide financing in an amount higher than advisers recommend.
The recommendation of the banks
From the bank's point of view, most require the installment on the loan you want from them plus the installments on your current loan products (if you have any) not to exceed 45-60% of the net monthly income of the applicant (s) (if more than one). Exceptions are made in the debt-to-income ratio, even up to 70% at some banks.
The recommendation of the consultants
Credit counselors as well as financial planning experts recommend that this ratio, which measures the healthy level of indebtedness, should not exceed 40% of the net monthly income of the family. Of course, if the income is different in different months, it is advisable to make calculations based on the average for the last 12 months.
For example:
With an average monthly income (the total amount of net income divided by the number of months, in case 12) of BGN 1,750, the total amount of liabilities on all loans should not exceed BGN 700 or 40% of the average monthly amount.
What kind of loan can a borrower with an average level of income according to NSI data afford?
According to NSI data for the fourth quarter of 2021, the average total gross income per person is BGN 1963.60, which for an employee (born after 1960) is BGN 1523 net remuneration. If we use these data, applying the above methodology for applying the principle of reasonable (healthy) level of indebtedness, the total monthly value to all creditors should not exceed BGN 609. This example is for the purposes of calculations and representative, without claiming for accuracy.
From the point of view of borrowers, it is worth thinking, "Okay! I will set aside a certain amount of my monthly income for loan installments/loans. But will I be able to cover my other fixed expenses (utility bills, food, entertainment, etc.) with the rest? ". You should not neglect questions related to whether you will be able to be regular payers and if the bank in objective circumstances raises the interest rate, respectively the monthly installments on the loans.
Basic recommendation
Expenditure on your loans should be as low as possible as a percentage of household income. This will give you the comfort of not worrying about monthly installment increases. It will help you accumulate liquidity buffer faster. You will not have to "tighten your seat belts" and deprive yourself of pleasures that bring joy to you and your loved ones.
Always try to have a liquidity buffer, popularly known as "white money for rainy days" in the amount of at least 6 monthly household expenses. This will help you to be financially secure in the event of unforeseen surprises (even if these costs are related only to happy occasions).
And remember! Whenever you feel "overly wealthy" and your savings significantly exceed the recommended liquidity buffer, you can repay your loans early (in part or in full), with minimal or no fees.
12.05.2022
NEW FUNDING UNDER THE REACT-EU PROGRAM
A completely new grant funding from the European Union is the REACT-EU program. Through it, the European Regional Development Fund (ERDF) is helping Bulgarian small and medium-sized enterprises to recover from the economic consequences of the spread of the COVID-19 pandemic.
The total amount of the grant under the procedure is BGN 136,226,120 (EUR 69,651,309.16).
The aim is to provide focused support to Bulgarian small and medium enterprises, thanks to which they can improve their energy efficiency. With this important tool, they will be able to stabilize after the economic turmoil of the last two years and continue their sustainable development. The full flexibility of the implementing rules, together with the financial allocation and use of existing programs until 2023, are the main elements on which the successful implementation of REACT-EU depends.
Sustainable energy supply, reducing greenhouse gas emissions, increasing security of supply and reducing import costs are the basis on which energy efficiency can be increased. They are also a means of increasing the EU's competitiveness. Energy efficiency is a strategic priority for the Energy Union and the EU.
With these funds, small and medium-sized enterprises in the manufacturing sector will be able to reduce their costs for electricity, natural gas, liquid fuels or other energy sources. The minimum amount of the requested grant for an individual project is BGN 25,000, and the maximum - BGN 150,000. The maximum aid intensity under the current procedure is 50%. The project will be implemented under the Operational Program "Innovation and Competitiveness" (OPIC) at the Ministry of Innovation and Growth.
In the first week of the procedure for improving energy efficiency, 811 micro, small and medium-sized enterprises applied for grant funding. The submitted project proposals are for nearly BGN 84 million. The total budget of the program is BGN 136 million. Companies from the processing industry will be supported under the procedure.
Depending on their needs, companies can receive between BGN 25,000 and BGN 150,000 in grants. One of the conditions for application is to have 50% own participation. The funds can be used to purchase energy-saving machines and equipment, as well as to make modern insulation of production bases.
The submission of projects under the procedure will continue until May 23 inclusive.
Another measure provides gratuitous financial support to companies with a turnover of over BGN 500,000. Under it, another nearly BGN 41 million are to be paid to 815 small enterprises to deal with the consequences of the pandemic. Each of the companies will receive BGN 50,000 to reimburse the operating costs for salaries, materials and consumables made during the pandemic.
636 of these companies have already signed contracts and are expected to receive their money within a maximum of three months. For the remaining 179 approved small enterprises, the negotiated procedure has started. They will receive approximately BGN 9 million, which were provided at the end of last month. Thus, the total number of companies supported under this measure of the Operational Program will be almost 4400. The allocated funds will exceed BGN 219 million. This will allow companies to reduce their energy bills and create conditions for their sustainable development.
Preferential loans for liquidity support and new investments of small and medium enterprises will be extended until the middle of the year. They will be guaranteed with an additional BGN 96.2 million from the OP "Innovation and Competitiveness" as part of the EU response to the pandemic under REACT-EU.
12.05.2022
ISRAELI ENERGY COMPANY NOFAR ENERGY WILL INVEST MORE THAN 300M EUROS IN ROMANIA
Israeli Nofar Energy will invest more than 300m euros in the construction and purchase of wind and solar power in Romania over the next two years.
The company aims to reach a capacity of 1 GW of renewable energy (RES) projects in Romania by the end of 2022, both organically and through acquisitions, the company said in a statement. "We have the necessary financial resources and our shareholders are very open to investing in Romania," said Favi Stelian, CEO of Nofar Energy Romania.
Nofar recently signed a € 130 million deal for a 169 MWp photovoltaic fleet in Epureste, Giurgiu County, to be built in the first half of 2023. The project is likely to be expanded to 400 MWp, depending on technical conditions. the national electricity transmission network, SeeNews reports.
"This is probably the largest investment in renewable energy near Bucharest and in Romania," Stelian said, adding that Nofar will continue to operate all power plants after the construction of projects in its portfolio.
Nofar entered the Romanian market in 2021 and shortly thereafter purchased a 155 MWp photovoltaic project in Arges County, together with its partner Ecoenergy, for 98m euros.
Founded in 2011, Nofar Energy specializes in the development, operation and maintenance of photovoltaic plants and wind farms. The company is listed on the Tel Aviv Stock Exchange and the third largest renewable energy company in Israel by market value.
Last year, Nofar signed a 30m-euro deal with Elon Musk's Tesla to buy batteries with a capacity of at least 100 megawatts. This will enable it to build solar power plants to become part of the Israeli energy network by the end of 2023, bringing Nofar to a total capacity of 1 GW in its home country.
Nofar Energy operates in Spain, Italy, Israel, Poland, the United Kingdom and the United States. The company's activities include terrestrial solar projects, floating solar projects in water reservoirs, solar roof projects and electricity storage projects. Over the years, the company has developed hundreds of partnerships with leading energy and construction companies.
11.05.2022
ROMANIA: THE CENTRAL BANK HAS DECIDED TO RAISE ITS KEY INTEREST RATE TO 3.75 PER CENT
The Council of the National Bank of Romania (NBR) has decided to raise its key interest rate to 3.75 percent per year from 3 percent a year before, as of May 11, 2022, the central bank said.
At the same time, the representatives of the institution decided to raise the interest rate for the credit facility (Lombard) to 4.75 per year compared to 4 percent, and also to raise the interest rate on deposits to 2.75 percent per year compared to 2 percent per year.
11.05.2022
FOREIGNERS CAN APPLY FOR A LONG-STAY VISA TO WORK IN ROMANIA WITHIN 180 DAYS
According to a recent amendment to the Extraordinary Government Ordinance (OUG) 194/2002 on foreigners in Romania, the deadline for applying for a long-term work visa in Romania has been extended from 60 to 180 days from the date of receipt of the work permit from the employer.
"Emergency Government Ordinance (OUG) 59/2022 amending the legislation on foreigners in Romania entered into force on 5 May, thus amending OG 25/2014 on the recruitment and secondment of foreigners to Romania in order to enable to apply for hiring/posting permits from all local immigration services," the General Immigration Inspectorate (GII) said on Friday.
OUG 59 of 4 May 2022 amending the legislation on foreigners in Romania was published in the State Gazette 450/2022 on 5 May. The ordinance facilitates the issuance of approvals for hiring/posting and work visas and allows for the shorter-term hiring of foreign workers as part of the contingent of new foreign workers admitted to the Romanian labor market.
"The removal of restrictions on the KOVID-19 pandemic in Romania has led to an increase in the number of applications for work permits/postings, which has made it impossible for immigration services to process applications satisfactorily. At the same time this year according to OG 132/2022 to establish a quota for newly recruited foreign workers on the labor market in 2022, a contingent of 100,000 newly recruited foreign workers was established, which is 100 percent more than the previous year."
The provisions in the new legislation aim to streamline the management of applications by creating a single work process throughout the country, thus contributing to supporting the employment of foreign nationals and employers of newly recruited foreign workers by reducing waiting times to submit applications and start work in a shorter time.
11.05.2022
RIGHT TO ADDITIONAL PAID LEAVE ON THE GROUNDS OF ART. 319 OF THE LC UPON EXPIRATION OF THE DECISION OF THE TEMC
According to Art. 319 of the Labor Code, employees with permanently reduced working capacity of 50 and over 50 percent are entitled to basic paid annual leave in the amount of not less than 26 working days. The term of disability is determined by the TEMC in compliance with the requirements of the Ordinance on Medical Expertise (OME). The term of disability is from one to three years depending on the nature of the disability, the dynamics of its development and the possibilities for recovery (Art. 69, para. 1 OME).
It should be borne in mind that the employee may not automatically use leave in the amount under Art. 319 of the Labor Code (LC), despite the fact that a decision has been issued by the TEMC. In order to exercise the right to basic paid annual leave of at least 26 working days, it is necessary for the employee to present to the employer a valid expert decision of the TEMC (with a certain period of invalidity that has not expired) and in the decision to determine a permanently reduced working capacity of 50 and over 50 percent.
