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The Government of the Republic of Serbia

In the service of citizens

Unemployment rate in Serbia 21.6%

Belgrade, 12 September 2007

Serbian State Secretary at the Ministry of Economy and Regional Development Vladimir Ilic said today that currently there are 826,572 unemployed persons, but it is estimated that the actual figure is 680,000 and the rate of unemployment is 21.6%.

Vladimir Ilic

Ilic told a press conference that a sum of RSD 2.3 billion was allocated from the Serbian budget for increasing employment, which is 1 billion more than in the previous year, while the number of unemployed persons is less than by 100,000 compared to the figure at the beginning of the year.

He pointed to the fact that there are many persons who are registered as unemployed because of benefits rather than for the purpose of finding a job. He added that some 100,000 persons are employed illegally.

Ilic said that within five years the rate of unemployment could be reduced by half, in which the most important factor will be accelerated integration of Serbia into the EU.

According to Ilic, due to the completion of privatisation a large number of workers will be without a job in the next year, but precisely due to the conclusion of privatisation there will be also a sudden decrease in unemployment from 2009 onwards.

He said that during the upcoming year, within the framework of active measures for providing employment, it is planned that funds will be allocated from the budget for subsidies and loans.

He explained that two types of subsidies will be provided, worth from €1,000 to €2000, to persons seeking self-employment and to employers for creating new jobs.

Above all small and medium-sized enterprises will be encouraged, and the sum of the stimulant will depend on the degree of regional development, said Ilic and announced that two kinds of start-up loans will be issued – for first time businesspeople, worth from €5,000 to €15000, without conditions and mortgage, and developmental loans for expanding activities, introduction of new equipment, modernisation and innovation.

According to Ilic, it is envisaged that a special fund for subsidies will be formed to provide subsidies for salaries of employed persons with disabilities in the amount of 80% of profit, and special funds will be provided for employing members of the Roma community and other persons belonging to socially disadvantaged groups.

Tamara Samardzic

Director of the National Employment Service Tamara Samardzic said that owing to subsidies 8,655 persons were employed, among whom there are 2,800 persons older than 45 or 50 years, 4,700 up to 30 and 55 persons with disabilities.

She specified that measures for employment included 479,287 persons, and warned that two programmes are in the process of realisation – self-employment of 4,000 persons and organisations of public works.

According to Samardzic, during the first seven months a total of 71,000 persons were employed, 244,000 are no longer registered as unemployed, and 200,000 new employees were registered.

Of the total number of unemployed persons, 28% are young, of 19 to 30 years, while those older than 50 years number 185,000. A particular problem is the number of unqualified persons who form a third of those registered as unemployed, said Samardzic.