advertisement
Sat, Feb 11 2012
Bulgaria's unemployment 'to peak in 2010'
Bozhidar Danev.
Photo: Julia Lazarova
Bulgaria’s labour market will collapse in 2010, pushing unemployment to 12 to 13 per cent, businesses and unions predicted at a conference on October 5 2009.
Bulgarian companies, which have used relatively less drastic measures to contain plummeting production and demand, including cutting pay, shortening work hours and sending workers on paid leave, will run out of resources in February-March 2010, worsening unemployment which has so far risen only gradually against the severe economic downturn.
This dismal picture was painted by the chairperson of the Bulgarian Industrial Association, Bozhidar Danev.
Other negative factors that would speed up unemployment include the Government’s plans to lay off 15 per cent of the state administration, or 20 000 out of about 145 000 civil servants along with a massive payroll cut at state-run railway operator BDZ, where 2000 people will be forced into retirement or dismissed.
At the same time, sectors like real estate, construction, trade and financial brokerage, which have created the most jobs in recent years, will no longer bring added value in the future.
Plamen Dimitrov, deputy chairman of Bulgaria’s largest trade union CITUB, said that about 150 000 Bulgarians will lose their jobs in the next 12 to 15 months, lifting the official end-September unemployment rate of 8.03 per cent by three to five per cent.
Labour Minister Totyu Mladenov and the executive director of the Confederation of Employers and Industrialists in Bulgaria (CEIBG), Evgeni Ivanov, made more moderate projections, with Mladenov expecting unemployment of up to 10 per cent by the end of 2009.
While unemployment had spiralled out of control in other countries in Central and Eastern Europe, Bulgaria curbed the pace, largely due to the former cabinet's measures, sponsored by CEIBG, to help companies save jobs by paying bottom wages for short-hour workers, Ivanov said. The effort proved successful as only 0.4 per cent of companies drawing on the aid had cut jobs.
Source: Dnevnik.bg
Bulgarian companies, which have used relatively less drastic measures to contain plummeting production and demand, including cutting pay, shortening work hours and sending workers on paid leave, will run out of resources in February-March 2010, worsening unemployment which has so far risen only gradually against the severe economic downturn.
This dismal picture was painted by the chairperson of the Bulgarian Industrial Association, Bozhidar Danev.
Other negative factors that would speed up unemployment include the Government’s plans to lay off 15 per cent of the state administration, or 20 000 out of about 145 000 civil servants along with a massive payroll cut at state-run railway operator BDZ, where 2000 people will be forced into retirement or dismissed.
At the same time, sectors like real estate, construction, trade and financial brokerage, which have created the most jobs in recent years, will no longer bring added value in the future.
Plamen Dimitrov, deputy chairman of Bulgaria’s largest trade union CITUB, said that about 150 000 Bulgarians will lose their jobs in the next 12 to 15 months, lifting the official end-September unemployment rate of 8.03 per cent by three to five per cent.
Labour Minister Totyu Mladenov and the executive director of the Confederation of Employers and Industrialists in Bulgaria (CEIBG), Evgeni Ivanov, made more moderate projections, with Mladenov expecting unemployment of up to 10 per cent by the end of 2009.
While unemployment had spiralled out of control in other countries in Central and Eastern Europe, Bulgaria curbed the pace, largely due to the former cabinet's measures, sponsored by CEIBG, to help companies save jobs by paying bottom wages for short-hour workers, Ivanov said. The effort proved successful as only 0.4 per cent of companies drawing on the aid had cut jobs.
Source: Dnevnik.bg
-
Print
-
Send via email
- Translate to
-
Share:
Comments
To post comments, please, Login or Register.
Please read the The Sofia Echo forum comments policy.
CEIBG to name new chairman
CEIBG will also elect, by secret ballot, new members of its management and supervisory board for a two-year term of office.
Bulgaria unemployment climbs to 6.7% in Q3
Bulgaria's jobless rate rose by 1.5 percentage points year-on-year in the third quarter of 2009, reaching 6.7 per cent, according to National Statistical Institute data.
Bulgarian state rail company BDZ reports 150M leva debt
Regardless of the difficult times, BDZ will not increase ticket prices and "is looking for alternative ways to become more attractive to customers," Popov told the media.
Bulgarian state railways board sacked
The newly-appointed BDZ CEO is Pencho Popov, while everyone else at the management board of the company also has been replaced. The Transport Ministry has not disclosed any further details as to why they were fired, however.
Europe's economic recovery will be 'slow and fragile' IMF says
European economic recovery will be fragile and calls for policy action to secure a solid rebound, the International Monetary Fund said on October 3 2009.
The G20 - ‘It worked’?
The G20 is making the transition from an event to a process. The question, how productive is that process?
Unemployment in EU highest in more than five years
The number of jobless in the 16 countries using the euro was 9.6 per cent in August 2009, the highest in more than a decade, while the EU bloc had 21.8 million people out of work – the highest since March 2004.
'G20 meeting is a step on the way' - EU presidency
The G20 summit in Pittsburgh did not resolve the problems and challenges being faced, but is an important foundation to build on, says Sweden, current holder of the EU presidency.
EU ‘emerging from recession, but uncertainty remains’
European Commission sees a better economic growth outlook for the second half of 2009, but GDP is still expected to fall by four per cent overall in 2009 in the EU27 and euro area.
More in this category
Average monthly salary in Bulgaria rose in Q4 2011, statistics institute says
In the fourth quarter of 2011, the average monthly salary increased to 727 leva, 4.9 per cent higher than in Q3, the National Statistics Institute says.
Global food prices rebound, FAO says
For the first time in six months, global food prices rose overall in January 2012, the UN Food and Agricultural Organisation said.
Bulgaria mulls tighter regulation of bank fees - updated
The package will be discussed with the Association of Bulgarian Banks before the amendments are submitted to Parliament.
Bulgarian ICT Watch event in March
Debate at the half-day event will cover what has been achieved so far and what further can be done by the Bulgarian Government to support development of the market.
Movers and shakers
Selectivity, not popularity, is the driving force behind Sofia's most exclusive members' only club.
Appointments
British Council
Lyubov Kostova was appointed country manager of British Council Bulgaria effective January 1, replacing Tony Buckby, who left in October 2011 to take a similar position at British Council Greece. Kostova has been with British Council Bulgaria for 11 years, as public communications manager and, since 2008, as the head of project and partnerships department. Prior to joining the British Council, Kostova was head of international activities at the National Academy for Theatre and Cinema Arts (NATFIZ). She has a degree in Indian studies from Kliment Ohridski Sofia University.
CEZ
Stefan Apostolov is the new chief executive of CEZ Razpredelenie Bulgaria, the power transmission subsidiary of Czech energy company CEZ in the country. He replaces interim chief executive Ales Damm, who remains the chairperson of the CEZ Razpredelenie management board. Apostolov has 30 years of experience in the energy sector, joining CEZ in 2007 as director of customer service and was later appointed as head of business development. Apostolov has a master's degree in electric systems from the Belorussian National Technical University in Minsc, management diplomas from Open University London and New Bulgarian University, as well as a master's degree in business administration from Plovdiv University.
BASF Bulgaria
Valentina Dikanska is the new general manager of chemical industry giant BASF subsidiary in Bulgaria, taking over from Herbert Fisch, BASF vice president for Southeastern Europe. Dikanska, who started her career as an expert in the Finance Ministry, joined BASF Bulgaria as director of finance and administration in 2002. She becomes the first Bulgarian to hold the top management position in the company in its 40-year history on the Bulgarian market. Dikanska holds a master's degree in economics from the University for National and World Economy in Sofia.
Rompetrol Bulgaria
Alexander Albin has been appointed chief executive of fuel distributor Rompetrol Bulgaria, replacing Nichita Sorin, who left to become chief executive of Rompetrol Gaz in Romania. Albin was previously chief executive of Rompetrol Georgia. He has more than 15 years of experience in the oil and gas industry; prior to joining Romania's oil group Rompetrol in 2008 as an adviser, he oversaw operations at Atyrau refinery in Kazakhstan, owned by Rompetrol's parent company KazMunaiGaz. He previously held top management positions at two other leading Kazakh oil and gas companies.
© 2000-2012, Sofia Echo Media Ltd.
Web Design by RIZN
Sofia Echo Media is part of the Economedia Group.
The news and information content on this website is provided by our editorial team and is copyrighted.
Any unauthorised reproduction or use of it is strictly forbidden. Reproduction of this website's content is permitted only
with prior written permission from the Editor-in-Chief, should be propertly acredited and provide an active link back to our site.
Comments posted by the website's visitors are independent of the editorial materials and do not represent the views of sofiaecho.com.
Sofia Echo Media cannot be held responsible for the statements contained in visitor comments.
The percentаge change in the shares' prices are based on the price of the last transaction of the current session compared to the
price of the last transaction of the previous session. Bulgarian Stock Exchange data is not real-time, but updated every 15 minutes,
and should not be used as a basis for decisions about buying or selling stock options.
- Economedia Group portfolio:
- In Bulgarian:
-
Business:
Капитал,
Кариери,
Пазари,
Ho Re Mag,
Регал,
Градът.bg,
Одит,
Foton.bg,
Online shop
- News: Дневник, Европа, Foreign Policy - България
- IT: IDG.BG, Computerworld, PC World, CIO, Networkworld
- Entertainment: Бакхус
-
In English:
The Sofia Echo
If Bulgaria ever want to become anything, they should start out making some basic Infrastructure like making highways between the mayor cities !!!
Then we can talk about starting on all the rest of your good ideas !
Of course Bulgaria cannot compete with Asia that is very clear.
The gab becomes only deeper every year.
Im afraid that to make a turn-around of this country takes such a degree of clear global strategic and political thinking and resolute actions, that it is highly unlikely to happen in a foreseeable future. The new government will also fail, it is obivous from the way it acts.
Tourism is Bulgaria's only trump card – but it is world class
Lacking in oil / gas, technology, innovation, a [...]
Read the full comment high class education system, biotech and the capacity to compete with aggressive Far Eastern production markets, Bulgaria was handed a window of opportunity to lift itself from poverty by creating a thriving tourist industry capable of taking the country into the next decade.
Yet, the decision makers and the Bulgarian business elite failed to seize this chance and have failed through incompetent national leadership and thoughtless, reactive marketing strategies to position Bulgaria in the competitive tourism landscape of Europe and indeed the world. The potential is still there, but nobody in power is taking this fact seriously.
Sadly lacking,are improvements in productivity and wealth generating infrastructure in tourism. We need a world class Tourism University in Bulgaria, National Strategic Tourism Development Bank, new airports, modern hospitals, safe roads, super spa and wellness facilities, a La Santa Sports Bulgaria, Varna “Las Vegas” Gambling, an organised programme for a large-scale national environmental clean up, impressive customer service, we first class theme and tropical water parks, more golf courses like Lighthouse Golf Resort & Spa, top class marinas and improved quality in the development of the ski resorts.
What needs to be fixed most is the mind set that accepts corruption on all levels of society and a strict and fair legal system. Until this is in place nothing else will have positive long term impact.
The whole of Bulgaria's tourism industry is falling apart. Tourists nordic countries fell by 60% during the month of August, and revenue from tourism dropped by 30%. The majority will never to back to Bulgaria because of poor service and over build turist places. Find it difficult to see what the Bulgarian industry could offer. Low pay worker is not enough when you have an outdated industrial park which not can be quickly converted to new demands on manufacturing and quality.
I don't think BG can compete with India or China. Those markets operate with numbers (of employees), where BG can never compete. The more realistic chance for BG is Nearshore with in EU - high quality service for low cost, close to the original market.
The on the first sight very attractive low labor costs are not so attractive on second thought for outsourcing production. taking into account that employee cost are 1/3 compared to CE, but if productivity is also only 1/3 the net gain is ZERO. Not speaking of lack in service and product [...]
Read the full comment quality.
From my point of view there are two most crucial issues which must be addressed:
* no soaring labor costs
* drastic improvement of productivity
* substantial improvement of service and product quality
I agree with both of you. Bulgaria has very chance of competing with China or India etc. for low cost production. Weaknesses:
1)The industry structure of Bulgaria
2) The level of competence is low compared to international standards
3) The low productivity; maybe 15- 20%
4) The weak financial marked for small and middle sized businesses
5) The weak legal system
6) Lack of strategic business innovation
7) The labour market is not working proberly, Bulgaria is still bound by historical thinking.
The has [...]
Read the full comment to be a an ambitious national program for developing business clusters / hubs in areas where Bulgaria can reach an strong position; research, finance, marketing. And the PM has to take responsibility for a strageic deleopment of Bulgarias tourisme. This is a card that Bulgaria must play, to make this nation prosper. This is a unique product, that cannot be copied by the Asians
I fully agree. the underestimated factor in unemployment rate is the low productivity rate in the BG companies. if these companies facing real and EU wide competition than employees need to perform better. as long as the real estate bubble has distorted the market the low productivity could be hidden and cross-financed. all this in combination with the BGN-EUR beg will be very tough years ahead for BG, but if the country (and the people) succeed to work on themselves and the country and use it as learning opportunity than after these painful years there will be a long period [...]
Read the full comment of prosperity
Probably even higher up to 15% to even 20%. If we recall Bulgaria did in fact have such a rate many years ago. It was the property boom which reduced this significantly. This has effectively gone, so I imagine it will be a very long recovery for Bulgaria, perhaps 5 to 10 years. Severe Budget restraints will or have already suppressed public expenditure, so this really leaves only EU funding as a source of external investment! But this is not guaranteed due to persistent organised crime and corruption!