Despite drop, unemployment remains a problem for some

21/07/2008

The rate of unemployment in both Bulgaria and Romania was lower than the EU average in 2007, while in other Balkan nations it is still soaring and could force more young people to leave their homes in search of job opportunities.

By Svetla Dimitrova for Southeast European Times in Sofia - 02/07/08

Of the nearly 1.6 million employees with labour contracts in the Bulgarian private sector, more than 610,000 are in manufacturing. [Getty images]

Unemployment in Bulgaria continued to drop, reaching a 6.2% average for the country in May, down from 6.5% the previous month, the Balkan nation's Employment Agency said in mid-June. Of the nearly 14,000 new job offers, more than 2,000 were for seasonal work in tourism, agriculture transport, the forestry and other sectors, while nearly as many came under special employment promotion programmes.

In Sofia, Plovdiv, Varna, Burgas and several other cities in Bulgaria, the rate of unemployment was typically lower than the average for the country. But in some it was more than, or nearly, twice as high. At 13.7%, it was highest in the town of Targovishte, 270km northeast of Sofia. The northern towns of Montana and Shumen came next, with 11.4% and 11.3%, respectively. In four other towns, unemployment ranged between 10% and 11% of the workforce there.

According to the Employment Agency's Yearbook 2007, the rate of unemployment by municipalities varies within extremely broad ranges. Thus, in some areas, in Bulgaria's northwest and northeast mainly, the figures are higher than the national average. In the municipality of Nikola Kozlevo, in the district of the northeastern town of Shumen, for example, the average annual unemployment rate in 2007 was 55.1%, nearly eight times higher than the national average and the highest for the country.

Unemployment peaked in Bulgaria in 2001, when some 663,000 people were out of a job, representing 19.5% of the labour force aged 15-64.

Since then the number of the registered jobseekers has been steadily decreasing in the Balkan nation, reaching 286,980 people in 2007, or 6.9% of the labour force over 15 years of age, below the 7.1% average for the EU. Of all registered unemployed in Bulgaria last year, close to 60% were women and some 62% were with basic or lower education.

Less than a third of the employees working under a labour contract in Bulgaria in 2006 were in the public sector. According to the country's statistical office, the vast majority were in the education sector, the public administration, and in health and social activities. Of the nearly 1.6 million employees with labour contracts in the private sector, more than 610,000 were in manufacturing and over 335,000 in trade, repair of motor vehicles and personal and household appliances.

Macedonia has the highest unemployment rate in the region. [Getty Images]

In Romania, the unemployment rate for 2007 was even lower than that of Bulgaria, standing at 6.4%. But it was much higher than Cyprus's annual average of only 3.9% last year. In Greece, the number of jobless comprised 8.3% of the active population over 15 years of age, according to Eurostat.

The figures for Croatia and Turkey, which began their accession negotiations with the EU in October 2005, are similar to that of Greece, at 9.1% and 8.5%, respectively.

Citing the results of a labour force survey in Croatia, the European Commission (EC) said there was indication that the unemployment rate had declined to 8.2% in the third quarter of 2007, largely due to seasonal factors, such as tourism.

As to Turkey, the EC said developments on the country's labour market remained in line with traditional seasonal patterns in the last quarter of 2007. "The number of employed decreased by 6.6%, mainly in the agricultural sector. In the manufacturing sector the number of employed increased by 1.7%."

At 71%, the rate of employment in Cyprus was above the EU average of 65.4% in 2007, while those of Bulgaria (61.7%), of Greece (61.4%) and of Romania (58.8%) stood lower.

Macedonia, which is also an official EU candidate, is the country with one of the highest unemployment rates in the region. In 2007, the number of registered Macedonian job seekers equalled 34.9% of the labour force, down from 36% a year earlier. In Serbia, the rate of unemployment dropped from 21.6% in 2006 down to 18.8% in 2007.

Youth unemployment has emerged as a problem not only in the region, but elsewhere in Europe as well. [File]

According to the EC, labour market conditions in the country remained difficult and employment continued to decline during the fourth quarter by 1% year-on-year. That trend continued during the first two months of 2008, said the commission.

In Montenegro, the number of the unemployed has been decreasing steadily since 2003, when 26% of the active labour force aged 15-64 were registered as jobless. In 2007, their share stood at 11.9%, down from 14.7% a year earlier. According to the EC, the unemployment rate in the country declined a further 0.1% over the first quarter of 2008, reaching 11.8%.

As to Bosnia and Herzegovina (BiH), the picture is somewhat blurred. According to a Labour Force Survey, conducted by statistical institutions in the country in April 2007, the average unemployment rate was 29%, ranging from around 25% in Republika Srpska to 31% in the Federation of BiH. The figures were, however, much lower than the EC ones, which showed the unemployment rate in the country as standing at 42.9% in 2007, down from 44.2% the previous year.

In Kosovo, the number of registered job seekers has been growing since 2004, when they accounted for close to 40% of the workforce. The unemployment rate in the country is currently estimated to stand at around 45%, according to the EC. Experts also believe that the reconfiguration of UNMIK, including a substantial reduction of its structures, will add to the difficult labour market situation, especially in Pristina. "Young people and ethnic minorities are also more likely to be unemployed than other groups," they also note.

Youth unemployment, measured as a percentage of the labour force in the 15-24 age group registered as jobless, has emerged as a problem not only in the region, but elsewhere in Europe as well. The EU average in 2006 was 16.9%, above those of both Cyprus (10.5%) and Turkey (16%).

But in some of the other SEE countries the youth unemployment rate is much higher. In Croatia it stood at 28.9% in 2006, in Greece it was 25.2% and in Romania -- 21.4%.

EU labour ministers said during a meeting in Luxembourg on June 9th that young workers in Europe have to cope with labour market conditions that differ significantly from those facing the rest of the population. They are more often hired on temporary contracts and less frequently on full-time ones, and it is more common to see a young person work in irregular employment situations than a representative of any other group. The ministers urged the EC to take quick steps to ensure that the share of people aged 24 and under who hold a regular job will grow.