More than 750,000 people in Serbia are unemployed and one citizen in four is on the verge of poverty. That is why the government is preparing a strategy to contribute to the resolving of the two big issues – a programme of reforms in the field of employment and social policy, which is being prepared in cooperation with the European Commission and should include concrete measures and their implementation plan.
According to the State Statistics Bureau, the poverty rate in Serbia is 24.6% and is the highest in Europe. The poorest countries of the EU, Greece, Spain, Romania and Bulgaria have a slightly lower rate and they have been facing financial problems, such as the high budget deficit and debts, for years. Some 1.8 million people in Serbia are on the verge of poverty, but recent research has yielded even more alarming results, showing that more than half of the population is facing poverty. Although social cards have been announced as a priority project for 2015, the government keeps sending messages that they cannot afford that. According to experts, the state has neither money, nor institutions, mechanisms or staff to realize such a project. At the moment, more than two billion dinars are being set aside for social aid and children’s allowance, which is received by more than 600,000 people. The number of public kitchen users is also on an increase and the most difficult situation is in south and southeastern Serbia.
Serbia is also one of the countries with the top unemployment rates. An IMF report shows that the rate will reach 21.6% this year. Only Spain and Greece have higher unemployment rates. What is concerning is the fact that IMF experts do not expect the situation to improve next year either. On the other hand, the National Employment Service data show that the unemployment rate is currently 20.3%. In August 757,000 people were registered in the Service, which was by 4.8% less than in February, which means that more than 36,000 had found jobs meanwhile, mostly seasonal ones. This was also due to the application of new regulations on employment incentives and increased inspection controls. Since July this year, employers have been motivated to register their workers more as the state has provided benefits for them in terms of reduction of tax and contribution charges ranging from 65% to 75%, depending on the number of employees. Also, inspection services have intensified their activites, their controls showing that one employee in three has not been registered.
In the forthcoming period, the government will have to take concrete measures to deal with the unemployment issue. The most efficient way is to increase the inflow of foreign investments, the level of which has been very low for the past two years. That means that other measures are required. The National Employment Service has filed a request that 3.2 billion dinars for the realization of several projects should be allotted to them from the budget. They wish to hire thousands of people for public works, to realize self-employment projects and to approve additional incentives for employers opening new work positions.
Source; Radio Srbija
