Unemployment rate at 18.8 percent

The current unemployment rate of 18.8 percent is still high, despite being smaller than last year’s. State Secretary in the Economic and Regional Development Ministry Vladimir Ilic, said at a press conference that the decreased unemployment is not necessarily positive, because the number of unemployed in Serbia has not changed in three years, while the rate is dropping because more and more people, for one reason or another are giving up on looking for jobs. Unemployment rate at 18.8 percent “Creating new jobs is key for solving the problem of unemployment,” Ilic said, adding that direct investments, foreign and domestic, no less than USD 5bn worth a year, are the only solution to this. The structure of unemployment is still unfavorable, because more than one-third have no qualifications, more than half have been waiting for a job for over two years, while 55 percent of the unemployed are women. Ilic said that there are 2.5 million people working in Serbia currently and that this figure has been stagnant over the last three years. Of the total people who are employed, he said that 1.5 million are receiving wages while 500,000 are working in independent activities and 50,000 are in agriculture. “About 20 percent of those who work are in farming, and that is a lot higher than the European average which is about 5-7 percent,” Ilic said. He said that the state administration or public companies pay the wages of about half a million workers. In order for unemployment to be decreased in Serbia, there must be macroeconomic stability, a continuation of structural reforms and integration into the European Union, to secure a rate of economic growth of an average of seven percent, Ilic further stated. “The level of direct foreign investments should not be less than RSD [sic] 5-8bn per year,” Ilic said, adding that this is necessary to achieve the goal of finding jobs for about 200,000 people over the next four years. He said that there will be a new concept of public works in 2009, which will involved those who are harder to employ (people older than 50, the disabled and those who live in less-developed regions where there are no new job openings). The state secretary concluded a minimum of 20,000 people are expected to be included in this concept next year.

Unemployment rate at 18.8 percent

“Creating new jobs is key for solving the problem of unemployment,” Ilić said, adding that direct investments, foreign and domestic, no less than USD 5bn worth a year, are the only solution to this.

The structure of unemployment is still unfavorable, because more than one-third have no qualifications, more than half have been waiting for a job for over two years, while 55 percent of the unemployed are women.

Ilić said that there are 2.5 million people working in Serbia currently and that this figure has been stagnant over the last three years.

Of the total people who are employed, he said that 1.5 million are receiving wages while 500,000 are working in independent activities and 50,000 are in agriculture.

“About 20 percent of those who work are in farming, and that is a lot higher than the European average which is about 5-7 percent,” Ilić said.

He said that the state administration or public companies pay the wages of about half a million workers.

In order for unemployment to be decreased in Serbia, there must be macroeconomic stability, a continuation of structural reforms and integration into the European Union, to secure a rate of economic growth of an average of seven percent, Ilić further stated.

“The level of direct foreign investments should not be less than RSD [sic] 5-8bn per year,” Ilić said, adding that this is necessary to achieve the goal of finding jobs for about 200,000 people over the next four years.

He said that there will be a new concept of public works in 2009, which will involved those who are harder to employ (people older than 50, the disabled and those who live in less-developed regions where there are no new job openings).

The state secretary concluded a minimum of 20,000 people are expected to be included in this concept next year.