Unemployment levels in Bulgaria have not yet surpassed six per cent, which is one of the lowest levels in the European Union. But, according to Deputy Social Minister Dimitar Dimitrov, the Bulgarian government anticipates possible unemployment levels of up to 7.4 per cent later this year.

Unemployment looks set to increase in the second quarter of the year from the current six per cent. These figures are likely to deteriorate even further should economic stagnation in Europe and elsewhere continue or worsen. The financial crisis was bound to affect employment levels. It was therefore crucial that all institutions, from the current administration to business and social partners, as well as employers, should collaborate and seek suitable solutions, Dimitrov said. 

Dimitrov said that the National Employment Action Plan, due to be approved by the end of January 2009, had set some significant goals. These included maintaining an average employment level for the 15-64 age group of 64 per cent and an unemployment level of 7.4 per cent. The plan also aims to create various programmes and steps through which the labour market could be stabilised. Some of these include securing employment for 84000 people and providing training for 60000 more, Dimitrov has said.

The Bulgarian government has pledged to release assistance to companies most affected by the global financial crunch in a bid to maintain productivity and keep qualified workers in the country. Dimitrov declared that the government wishes to stem the possibility of losing them to foreign companies abroad. 
 
Companies most affected by the crunch will be boosted with state aid  amounting to 6.7 million leva, to keep them operational and retain their personnel. The scheme is meant to create a safety net for more than 18 000 specialists who face potential redundancies.

Additionally, there will be government aid attached as an additional payment to their wages which will be allocated  within 390 days for workers who have been reduced from full time employment to part-time duties, Dimitrov added.

Some of the new measures featured in the programme involve re-directing all laid off workers to new fields of employment. In addition, part-time employment would be subsidised to assist employers to retain their work force in a time of temporary economic crisis, Focus news agency quoted Dimitrov as saying.

As BNR previously reported, the national employment plan will be supported by 190 million leva, with an additional 60-70 million leva through two Beautiful Bulgaria projects of the Human Resources Development Operational Programme and from the Social Investment Fund. Those projects are expected to secure about 10 000 new jobs, mostly in the construction sector.