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Employment Policy Convention, 1964 (No. 122) - Bulgaria (RATIFICATION: 2008)

Other comments on C122

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Articles 1 and 2 of the Convention. Employment trends and active labour market measures. The Committee notes the Government’s first report on the application of the Convention received in February 2011. The Government indicates that according to data from the National Statistical Institute (NSI), the country’s employment rate decreased from 64 per cent in 2008 to 62.6 per cent in 2009 (3,204,800 persons employed) and this decline continued throughout 2010. The global economic and financial crisis resulted in the loss of about 358,000 jobs since its peak in 2008 and the unemployment rate rose from 5.4 per cent in 2008 to 10.2 per cent in 2010. The Government reports that as an implementing tool of the Revised Employment Strategy 2008–15, the National Employment Action Plan (NEAP) for 2009 included measures aimed to redirect workers who were laid off as a result of the crisis to new jobs, subsidized employment, training and qualification, as well as to promote the employment of unemployed and inactive persons. As a result of the NEAP 2009 implementation, 111,996 persons found employment. The Committee notes that 41.9 per cent of the Bulgarian population experiences a greater degree of poverty compared to their EU counterparts. The Committee invites the Government to provide in its next report an evaluation of the effectiveness and relevance of the employment policies and measures implemented for promoting full and productive employment for the unemployed and other categories of vulnerable workers. It also requests the Government to include information on the impact of active labour market measures and social assistance programmes on reducing poverty and mitigating the negative impact of the crisis.

Regional development. The Government indicates that the NEAP 2009 targeted decreasing regional disparities in employment and unemployment rates. The Committee notes that in Bulgaria regional unemployment rates vary substantially with Northern regions having an unemployment rate higher than the national average. The Committee invites the Government to include in its next report information on the measures undertaken to address regional imbalances, with a particular focus on employment promotion, and their effectiveness.

Undeclared work. The Government reports in detail the recent measures taken to reduce employment in the informal economy. These include amendments to the Labour Code aimed at enhancing the formalization of employment relationships, strengthening labour inspectorate capacity and increasing fines and penalties for violations of labour legislation. Undeclared work is estimated at 22 to 25 per cent of GDP and accounts for up to 25 per cent of all employees. The Committee notes that the functioning of the labour market is hampered by overall weak legal compliance in the area of undeclared work. The Committee requests the Government to continue to provide information on policy approaches as well as curative and preventative measures adopted to address the issue of undeclared work, and on their impact on the labour market.

Vulnerable categories of workers. The Government indicates that the priority of its active labour market policy has been reoriented to support vulnerable categories of workers and to promote their labour market integration. The Employment Promotion Act (EPA) provides for programmes and measures, such as subsidized employment and financial incentives for job creation, to integrate in the labour market “at risk” groups which include persons with disabilities, older workers, low-skilled persons and the long-term unemployed. The Government indicates that according to 2009 NSI data, the employment rate among older workers was 46.1 per cent (452,000 persons) and the unemployment rate for this group was 5.9 per cent (31,700 persons). In 2009, 2,272 older persons were employed as a result of the incentives provided for by the EPA and 2,216 persons were employed in the framework of the Support in Retirement National Programme. The Committee observes that the crisis particularly hit low skilled workers who represent 70 per cent of the unemployed population. The Committee requests the Government to provide information on the results of measures aimed at increasing the employment rate of older workers. It would also appreciate receiving information on the results achieved with respect to the sustainable integration of other vulnerable categories of workers, such as persons with disabilities, low-skilled persons and the long-term unemployed.

Youth employment. The Government refers to 2009 NSI data showing that the youth employment rate was 24.8 per cent: 240,000 young persons were employed, which represents 22,600 persons less compared to 2008. This marked the largest decrease compared to the other age groups. In 2009, 2,658 young persons benefited from the incentives for job creation provided for by the EPA. As a result of these measures, 17,140 young persons found employment. In the same year, 44,831 young persons participated in the Career Start Programme aimed at training young persons with completed higher or vocational education for jobs within the public or private sector. Under the ongoing Project for Young School Dropouts, 109 young persons were trained and 25 of them found employment. The Committee observes that the crisis particularly affected young persons. In fact, the youth unemployment rate reached 23.2 per cent in 2010. The Committee invites the Government to provide information on the impact and cost effectiveness of measures designed to increase opportunities for young people to find lasting employment, in particular those with low levels of education.

The Roma minority. The Government indicates that, as a result of the implementation of a project to stimulate the employment of inactive persons, 11,873 Roma people registered at employment offices in 2009. The Committee observes that the Roma (estimated to constitute 10.3 per cent of the Bulgarian population) are confronted by multiple social and economic barriers: the majority of them drop out of education and have no employment record. The Committee requests the Government to provide information on the measures taken to encourage and support labour market participation of the Roma population.

Promotion of small and medium-sized enterprises. The Committee notes that the EPA provides for different forms of financial support for unemployed persons wishing to start up their own or a joint business. Micro-enterprises and SMEs in Bulgaria are the main driving force of the economy as suppliers of goods and services in the most dynamic sectors, particularly in the tourism industry. However, the dynamism of these enterprises seems confronted with a limited capacity to define and implement policy support and encouragement measures for entrepreneurship and SME development. The Committee invites the Government to provide in its next report information on the impact of measures adopted with a view of supporting the development of SMEs for employment creation.

Coordination of education and training policies with employment policy. The Government indicates that both the Revised Employment Strategy 2008–15 and the National Strategy for Lifelong Learning 2008–13 aim at enhancing the relation of education and training to labour market needs. As a result of the implementation of the NEAP 2009, 18,212 persons participated in trainings. Moreover, the New Employment Opportunity Programme benefited 1,412 persons. Four training schemes for adults were adopted which target workers under an employment contract, persons who either work on a part-time basis or were laid off as a result of the financial crisis, and unemployed persons. Furthermore, various measures were taken to increase the quality of education for adults and to improve access to vocational training. In the spirit of cooperating towards the development of vocational education and training, an agreement was signed in March 2009 between the main education and training bodies and the six national representative employers’ organizations. The Committee requests the Government to continue to supply information on the measures taken in the framework of education and training policies and on their impact on the employability and competitiveness of the labour force, as well as the involvement of the social partners in this process. It also requests the Government to report on the impact of the measures adopted in collaboration with the social partners to enhance the capacity of the public employment service to match workers’ knowledge, qualifications and skills to the requirements of the labour market.

Article 3. Participation of the social partners in the formulation and application of policies. The Government indicates that the National Council for Employment Promotion (NCEP) under the Ministry of Labour and Social Policy is the main advisory body providing cooperation and consultation for the development and implementation of the state employment policy, vocational training of adults and other employment-related issues. It includes an equal number of representatives from the state administration and the national representative workers’ and employers’ organizations. The Committee invites the Government to provide information on the outcome of the consultations with the representatives of employers’ and workers’ organizations on the development and implementation of employment policies.