01.10.2021
IN FIVE MUNICIPALITIES, 20% OF PEOPLE HAVE BEEN OUT OF WORK FOR MORE THAN A YEAR
The Covid-19 crisis has significantly changed the labor market in Bulgaria, with restrictions leading to a significant increase in unemployment in many regions of the country, especially in municipalities with traditionally more active labor markets, according to information from employment offices published by the Employment Agency, shows an analysis of the Institute for Market Economics (IME).
The data of the agency allow us to look at the permanent unemployment, through the data on the unemployed with registration in the labor offices for at least one year. While the presence of unemployment within certain limits is normal for a functioning labor market and a sign of labor mobility, long-term unemployment speaks only of the presence of insurmountable structural problems.
A map made by the IME visualizes the share of the long-term unemployed in the period from the end of 2019 to the latest available data and clearly demonstrates that this phenomenon is typical, above all, for Northern Bulgaria, and almost half of the municipalities in which it affects 8 % of the workforce are concentrated in the Northwest, the analysis said.
By the middle of 2021 in five municipalities - Hayredin, Ruzhintsi, Dimovo, Yakimovo and Kaolinovo registered unemployed for over a year exceed 20% of the economically active population, and more than 10% are in 36 municipalities. On the other hand, with less than 1% permanently unemployed are 100 municipalities, without any - five. In the leading economic centers - Sofia, Plovdiv, Varna their share is below 0.1%.
The impact of the crisis on long-term unemployment is visible in the comparison between its level at the end of 2019 and 2020, as it has increased in 117 municipalities, and in 18 of them - by more than 1 percentage point.
By mid-2021, the number of municipalities in which the indicator has deteriorated compared to its pre-crisis level has risen to 131, and many of those in which it is improving have initially high levels of permanent unemployment and the improvement is a logical step in period of growth in which the economy is from 2021. In the country as a whole the number of unemployed with more than a year of registration has increased from 42.3 to 44.4 thousand people.
Judging by the data published by the Employment Agency, we can conclude that the crisis has not significantly affected long-term unemployment in most regions, especially because the registered increases are not particularly high.
And by the middle of 2021 this type of unemployment remains localized mostly in Northwestern and Northeastern Bulgaria. Another question, however, is the number of permanent dropouts from the labor market as a whole, something that the data of the Employment Agency cannot show, the IME concludes.
01.10.2021
THE 60/40 MEASURE LASTS UNTIL THE END OF THE YEAR
The National Council for Tripartite Cooperation (NCTC) adopted a Draft Decree of the Council of Ministers amending and supplementing Decree № 151 of 2020.
The measures affect enterprises with a decrease in turnover and income of 30 and 40 percent, for which support of 50 and 60 percent is provided by the state on the insurance income of the persons for the respective month and the respective insurance contributions by the employer. This was announced at a briefing after the end of today's meeting of the NCTS by Galab Donev, Chairman of the Tripartite Council, Deputy Prime Minister and Minister of Labor and Social Policy.
By the end of the year, the budget available for the "60/40" measure is BGN 250 million, as the funds are allocated in the updated state budget.
On average, about 67-73 thousand employees and workers will be supported per month under the measure "60/40". The average monthly financial resource under the measure is about BGN 63 million.
BGN 100 million are provided for the measure "Keep me plus" as the average monthly support under the measure covers 67 thousand workers and employees and self-insured persons who will be supported under this measure, informed Minister Galab Donev.
He specified that under the measure "60/40" with a drop in turnover of 30 percent, the intensity of support is 50 percent for the insurance income on which the workers are insured and respectively 50 percent of the insurance contributions for the employer. With a drop in turnover of 40 percent, the familiar design of the measure, which was in effect until the end of May, is preserved, i.e. 60 percent support for the insurance income of employees and 60 percent for insurance contributions from the employer, Donev explained.
He pointed out that both in the old design of "60/40" and in the new design with both declines, the number of companies applying for this support has hardly decreased. There is only a three percent decrease in the number of employers, and there is also no significant decrease in the number of workers receiving support.
Sectors such as restaurants and hotels stand out, which in the old design of the measure received about 13 percent of the financial resource of the aid, while in the new design of the measure they reach about 25 percent of the financial resource, which is allocated monthly to the individual sectors that receive monthly support, said Minister Donev.
Minister Donev also informed that under the decree for payment of compensations to workers and employees and to self-insured persons, insured in economic activities, for which temporary restrictions have been imposed by a state body for their implementation in the period of declared state of emergency or declared epidemic situation. The NCTC reached a consensus that the decree should be adopted with some technical notes.
It is planned to support the persons affected by the cessation of the activity of the enterprises on economic activities by order of a state body - this is the Minister of Health and the respective directors of the Regional Health Inspectorates, the Minister said.
The Council of Ministers is about to approve the proposed by the NCTC changes in the measures of the state in support of business and employees.
30.09.2021
MORE THAN 5,000 JOBS FOR PEOPLE WITH DISABILITIES HAVE BEEN CREATED IN THE SOCIAL ECONOMY IN THE LAST 5 YEARS
Over 5,000 jobs for people with disabilities have been created in the social economy in the last 5 years through the joint efforts of the state, municipalities and the non-governmental sector. This was announced at the opening of the ninth European Forum for Social Entrepreneurship by Deputy Ministers of Labor and Social Policy Nadia Klisurska and Ivan Krastev. The event is held in Plovdiv in the period September 29 - October 3.
The Ministry of Labor and Social Policy will continue to support social enterprises, to promote entrepreneurship in this area and the creation of new jobs for disadvantaged people in the labor market, as well as to seek opportunities for direct support for jobs, said the Deputy Minister Ivan Krastev. The social and solidarity economy embodies the future, mainly because it allows people to be involved in processes that provide them with real opportunities for development and equal opportunity, he added.
The principles of the social and solidarity economy have the potential to develop public relations in a new way, added Deputy Minister Nadya Klisurska. According to her, in recent years the social economy in Bulgaria is developing more successfully and sustainably as an integral part of the national economy.
In the coming years, the Ministry of Labor and Social Policy will continue to support social entrepreneurs in the development of social innovations and tools for direct contact with citizens, as well as for strengthening their public role in maintaining social and environmental balance. For the implementation of these goals by 2027, about BGN 70 million are provided under the Recovery and Sustainability Plan and the Human Resources Development Program.
Deputy Minister Klisurska presented awards for merits in the development of European social entrepreneurship "Stilian Balasopulov" to the municipality of Troyan, the Bulgarian Association for Neuromuscular Diseases, the Italian company "CONAST" and the International Fair in Plovdiv.
29.09.2021
UBB GRANTS EUR 74 MILLION IN PREFERENTIAL LOANS TO SMALL AND MEDIUM-SIZED BUSINESSES
The successful cooperation between United Bulgarian Bank (UBB) and the European Investment Fund (EIF) continues with the signing of a new agreement under the Pan-European Guarantee Fund - EGF program. This will allow UBB to create a portfolio of EUR 74 million, under preferential terms for SMEs, in order to overcome the consequences of COVID-19. The program also allows full refinancing of liabilities, which is a key feature of the new guarantee instrument.
The EGF is part of the European Union's recovery package, which aims to provide a total of € 540 billion in support for the most severely affected parts of the EU economy. The scheme is part of the new generation of financial instruments, which are fully in line with the "green policy" of the European Union and correspond to the plans and goals of UBB to promote sustainable business development. The program is implemented by the EIF with financial support provided through the contribution of the participating Member States to the EGF.
The EGF guarantee instrument allows for coverage of 70% of the amount of each investment and working capital, free of charge for final recipients. The maximum amount of financing at the level of the borrower and related parties is approximately BGN 2.2 million, and limited financing of companies in the Agriculture sector is allowed. The maximum term for investment loans is up to 120 months, and for working capital - up to 36 months.
"Small and medium-sized enterprises are key players in every country, regardless of size and income level. Their role in supporting sustainable development is paramount. As small and medium-sized enterprises are valuable players in the economy, and COVID-19 continues to fill a large part of our lives, I am sure that the program will provide them with another useful tool for their stable and sustainable growth," said Peter Ruben, Country Manager of KBC Group in Bulgaria and CEO of UBB.
This is the eighth guarantee agreement signed between the EIF and UBB. The total volume of the Bank's loans included in EIF instruments exceeds BGN 1 billion. The successful partnership allows access to preferential financing conditions and supports the development of Bulgarian business.
29.09.2021
MORE THAN BGN 200 MILLION FOR ASSISTANCE TO FAMILIES WITH CHILDREN AND FOR THOSE WORKING AT RISK IN THE PANDEMIC
These additional costs were approved by the government in the MLSP budget
The government approved additional expenditures of BGN 214.6 million from the budget of the Ministry of Labor and Social Policy for 2021, provided by the update of the state budget.
The funds will be used to pay monthly targeted assistance for families with children up to 14 years of age in the event of a declared epidemic emergency, heating allowances, personal assistance mechanism costs, as well as to provide additional remuneration for employees of the Social Assistance Agency, The Employment Agency and the Executive Agency "General Labor Inspectorate" for October, November and December, in connection with work in risky conditions and overtime work on controlling the pandemic C0VID-19.
28.09.2021
THE BULGARIAN DEVELOPMENT BANK PROVIDES EASY LOANS FOR SMALL AND MEDIUM-SIZED COMPANIES
The main advantages are the reduced requirement for collateral and minimum deductible
The Bulgarian Development Bank (BDB) has launched a new program with the support of the Pan-European Guarantee Fund, the bank announced on its website. The idea is to encourage investment and reduce the negative effects of the COVID-19 pandemic. The scheme is specifically targeted at small and medium-sized businesses, creative industries and start-ups.
The new program amounts to 40m euros and provides for the granting of direct loans with lower than standard collateral and deductible requirements, depending on the project and the business history of the applicant companies.
Loans for companies with creative activities, which are among the most affected by the pandemic, are up to BGN 500,000. The main advantages are the reduced requirement for collateral and minimum deductible - 10% of the amount of the requested loan.
Newly established companies without a credit history, which have the most difficult access to financing, can apply for loans with a ceiling of BGN 250,000, without the need to pledge their property or look for a solvent co-debtor. A guarantee for the bank will be the asset purchased through the loan.
Small and medium-sized enterprises from all sectors that do not fall into the other two segments can also benefit from better loan terms: from BGN 100,000 to BGN 5 million, for up to 10 years and a grace period up to 18 months. For them there is a possibility for financing without collateral and with reduced requirements for own participation - 2 times lower than the standard levels.
Interest rates on loans under all three programs will be discounted due to EIF guarantee coverage.
Companies can now submit their applications online or on site, at the BDB office in Sofia, at 1 Deacon Ignatius Street.
28.09.2021
BANKS DO NOT PAY INTEREST ON SAVINGS
Loans for both businesses and households are getting cheaper
Interest rates on retail deposits continue to fall, averaging 0.0%, which means that banks do not pay interest to companies and households to dispose of their money. This shows the latest interest rate statistics of the BNB.
In August, compared to July, the average interest rates on corporate deposits in BGN and EUR decreased by 0.01 percentage points up to -0.20% and 0.00%, respectively.
The average interest rates on overnight deposits in BGN and EUR remain at 0.00%. The volume of new business on BGN deposits decreased by 20.7% (BGN 20.8 million) to BGN 79.4 million, and on those in EUR increased by 35.9% (BGN 16.2 million) up to BGN 61.2 million.
Last month, the average interest rate on household deposits in BGN increased by 0.02 percentage points up to 0.07%, and for those in euro - by 0.04 percentage points. up to 0.08%. The average interest rates on overnight deposits in BGN and EUR remain at 0.00%.
Interest rates on loans to individuals and companies also continue to decline. The annual percentage rate of charge (APR) on housing loans, which includes interest and all fees of banks, remains below 3% for August - an average of 2.98%, according to BNB data.
Business loans are also getting cheaper. Interest rates on BGN loans to companies amounting to less than BGN 1 million are on average 2.94%, which is a decrease of 0.10% compared to the previous month. Interest rates on BGN loans to businesses for over BGN 1 million decreased from 2.57% to 2.19%.
27.09.2021
LOWER UNEMPLOYMENT IN THE THREE NORTHWESTERN DISTRICTS IN OUR COUNTRY
At the end of August, unemployment in the three northwestern districts of Montana, Vratsa and Vidin was 10.5 percent and decreased by 2.8 percent compared to the same period last year.
Compared to the end of July, it decreased by 0.2 percent, according to the Regional Employment Service in Montana.
The number of unemployed registered at the end of August in the three districts is 18,110. Their number is 310 less compared to the end of July and 4,847 less compared to the end of August 2020.
In August, 1,098 people started working in the three regions, 65 percent of whom work in the real economy, and the rest have taken state-subsidized jobs under employment programs and measures. Most unemployed persons are employed in the manufacturing sector - 16.7%, followed by trade - 16.6%, general government - 14%, construction - 10.1%, hotels and restaurants - 6.5%, human health and social work - 5%, administrative and support service activities - 4.3%, education - 4%, transport - 3.5%, agriculture, forestry and fisheries - 2.9%, added the Regional Employment Service in Montana.
27.09.2021
NINTH EUROPEAN FORUM ON SOCIAL ENTREPRENEURSHIP
A hybrid edition of the Ninth European Forum for Social Entrepreneurship will be held on September 29 in Plovdiv. Among the officials are Bulgarian President Rumen Radev, Labor Minister Galab Donev, Sergey Stanishev, President of the Party of European Socialists and Giuseppe Guerini, a representative of the European Conference of Production and Service Cooperatives.
The organizer of the forum is the National Union of Labor Production Cooperatives in Bulgaria, a member of the Bulgarian Chamber of Commerce and eight national representative organizations for people with disabilities. The co-organizers are the European Commission, the Ministry of Labor and Social Policy, the European Economic and Social Committee, the European Confederation of Industrial Cooperatives and Social Enterprises.
All events will be held in a hybrid (live and online platforms), in prestigious halls with organized filming and online broadcasting. Participants from beyond the borders of Europe will be encouraged in the work of the individual events, whose active participation in the business work will take place thanks to the modern technological possibilities.
An international online fair of enterprises and cooperatives from the social economy will take place during the forum. Exhibitors from all over the world will take part in it. The participants in the fair are expected to receive publicity, fast and convenient communication with potential customers online from all types of devices.
The President is also expected to present the awards for merits in the development of European social entrepreneurship "Stilian Balasopulov".
The European Conference "Social Entrepreneurship for Sustainable Development in Europe" will be held on 29 September, at which European and national policies in various sectors related to social entrepreneurship will be presented.
The official opening is from 11:30 am on September 29, 2021 at the International Fair - Plovdiv, Hall 11. The forum will last until October 4, 2021.
27.09.2021
ENTREPRENEURSHIP: HOW TO MAKE MONEY WHILE ON MATERNITY LEAVE
With maternity leave, a new way of life always begins, a new chapter in the history of the family opens up, values are reconsidered, we think about what will happen in the future…
Here, business coach Jeanne Lurie lists the main advantages and disadvantages of women starting new work projects during maternity leave.
Now we offer you ideas on which activities to pay attention to when starting your own company with low start-up capital. Because, isn't it, maternity leave is not the most cloudless financial period in the life of the family ... We outline ideas that you can turn into a profitable, albeit small, business without endangering your health - sometimes two watermelons under one arm are a mission possible:
Beauty services
Maternity leave gives you a good opportunity to test your strengths and skills in something new. If you do not plan to change your profession, but are only looking for an additional source of income, choose a business that you can quickly master.
For example, to do a manicure or makeup, it is enough to complete a short course. The mastery will be manifested with regular practice and desire for development. The advantages of such work for the young mother are that beauty services are always in demand and you can easily find clients in your immediate environment. And also that you can make a floating schedule so that you are busy when it is convenient for you.
Training
You don't have to be a professional teacher to teach others. You can have a mathematics or philology education, or be fluent in a foreign language, or be "you" with the principles of economics - if you are interested, you will master the process over time and thanks to your students. You will help them too, and you will refresh and enrich your knowledge.
Think about what you understand better than others and make it a source of income.
Work in the specialty from home
For those who are maternity leave from their favorite job, the biggest fear is to lose their competencies during the holidays. If you can be useful to the company you work for, for example with transfers or annual reports, you will receive additional income and you will not lose your professional skills.
Ask your boss to leave you some of the duties you will perform remotely for a fee. He may like the idea, especially if there are things you can do best.
But don't try to do everything you've done before, because you run the risk of overloading yourself and not doing everything on time. Let what you take on be a little part-time work to be able to stay professionally active and spend enough time on yourself and your child.
Photographer
There is a strong demand for quality themed photos: business portraits, photo shoots - for prom, weddings, street walks, expecting a baby, family stories ... You can catch this trend and take advantage of it, the investment and effort are worth it , and they are not impossible. The most important thing is to have the talent of a photographer.
Cakes and pastries to order
Delicious and high quality pasta and bakery products are always in demand. You can make original cakes, holiday or wedding cakes, or emphasize wholemeal cookies and cakes - you are sure to find many fans of healthy food.
Healthy food to order
This trend of 10-15 years is becoming more widespread: homemade pasta, fruit compositions, fresh fruit, canned vegetables and fruits according to grandmother's recipes, homemade muesli and other foods and dishes can give you an idea how to develop a whole diet of the basis of useful products that help health, and offer it.
Textile production and knitting
If you can sew and knit well, you are a rich woman! And if you are up to date with fashion trends and you know how to handle different textures, patterns and colors, you are ready to open a sewing studio. The skill with the sewing machine and the knitting hooks is always welcome.
How to analyze the viability of your business ideas:
- Get to know the competition well;
- Define the market potential and the target audience;
- Develop the products or services you will sell and test them so that you have the opportunity to adjust the process in a timely manner, if necessary;
- Discover what sets your product apart from competitors and focus on it;
- Define a strategy for "capturing" the market;
- Assess what investments and resources you need and if the personal ones are not enough, look for an investor;
- Most importantly - answer the question: "What gives me personally the realization of this business idea, what is my motivation to achieve this goal?"
- Create a unique commercial offer;
- Do not try to do everything yourself, but find an effective team that will help you breathe life into your project;
- Do not market all products at once. If you have several, bet on gradual adaptation - this is more effective. Try it and you will succeed!
