Bulgarian unemployment in the middle of August 2007 was 6.9 per cent but it would probably reach 7.06 per cent according to a two-year report on the Cabinet's work presented by Labour and Social Policy Minister Emilia Maslarova.

Maslarova said as quoted by Bulgarian National Radio that employment has already reached 3.2 million people as the new work places are 241 000.

The main problem is the unemployment among low educated people. Almost 75 per cent of young people have no professional qualification.

The Cabinet's effort will focus in future on stimulating employers to increase their staff's qualification rather than hire new workers, Maslarova said.

Bulgarian Cabinet also reported on increased salaries and reduction of social security installments in the past two years.