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The Government of the Republic of Serbia

In the service of citizens

Necessary to provide incentive for creating new jobs

Tara, 22 June 2006

Director of the National Employment Service Radovan Ristanovic said today that unemployment is a huge economic and social problem, and it is necessary to design projects and programmes that will provide incentives for creating larger number of jobs.

Speaking at a meeting themed “Employment programme- how to do better and more”, held on Mt Tara, Ristanovic warned that the process of restructuring will lead to an increase in unemployment in the upcoming period. He said that the only way to solve that problem is dialogue between all social partners who can impact on the reduction of unemployment.

Giving reasons for the low rate of employment he stressed the inadequate level of domestic and foreign investment activities for employment programmes, subsidized employment and microlending.

He said that last year 9,668 persons used subsidies for self-employment, which represents a major increase when compared to 2004.

According to Ristanovic, the programme for microlending was used by some 7,500 persons, while the regional programme for employment operating through the National Employment Service included 1000 persons.

For the first time since 2000 the number of persons using active measures of the labour market policy has doubled, said Ristanovic. He specified that more than 140,000 persons use the active measures, while some 75,000 persons receive only monetary compensation.

Serbian Assistant Minister of Labour, Employment and Social Policy Radmila Katic-Bukumiric said that by adopting the National action plan for employment the Serbian government has confirmed that its priority is to eradicate unemployment.

She explained that emphasis has been put on active measures for employment, concluding the privatisation process and employment of persons who have been declared redundant in that process.

A major step forward in solving the problem of unemployment is represented by the concessions given to entrepreneurs, who employ persons younger than 30 and older than 50, as well as persons with disabilities, said Katic-Bukumiric.