08/26/12 15:52
(http://www.klassa.bg/)

Ivan Neykov: For the first time we have unemployment growth during the summer

“The year 2012 will remain in the history of the Bulgarian labour market because this is the first time when we have rising unemployment during the summer,” Ivan Neykov, former Minister of Labour and Social Policy in the government of Ivan Kostov, said on BNR.

Neykov pointed out that seasonal jobs have always helped reduce the official unemployment rate, but the situation is different this summer. “This might mean that all the talk about a recovery from the crisis is just talk or it might mean that we have seasonal employment, but most of the people have been employed in the grey economy sector and are officially jobless. Currently, we have about 2,000,000 income policies. Instead of having an official government policy on incomes, we have policies on the incomes of every individual household. We went back to a period when Bulgarians became known as “masters of survival by their own means”. One indicator has begun growing rapidly and it is the purchase of sugar and oil. This means that Bulgarian households have turned back to the homemade food industry because, when looking for a way to survive, you go back to forgotten but working instruments,” said the former social minister.

He added that survival will not be the main problem. “We will survive, we have coped with even worse situations. Unemployment will be our biggest problem. According to the National Revenue Agency, we have over 300,000 operating companies, but almost 95% of these are micro-enterprises, i.e. with less than nine employees. These are the Bulgarian enterprises which are most vulnerable to the crisis and we are not doing anything about them. We do not support micro-enterprises and this is the most dangerous thing,” said Neykov. According to him, it is quite realistic to expect an increase in the unemployment rate. “I expect quite an anxious autumn,” concluded Neykov.

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