UNEMPLOYMENT
BLIGHTS KOSOVO
(Luan
Qorraj)
Muhamed Mustafa: Our public surveys are telling us that, ever
since November last year, problem nr 1 for Kosovars is unemployment. Our
analysis says that, in order to cut down on unemployment in Kosovo, we need to
create 25 to 30 thousand new jobs every year, for the next ten years.
Hello and welcome to UNMIK on Air.
Muhamed Mustafa, head of the private institute RIINVEST,
talking about the biggest issue in the minds of Kosovan people,
unemployment.
To help tackle this problem the institute, in cooperation
with USAID, conducted a survey on the job market and unemployment in Kosovo,
the results of which were published yesterday. RIINVEST surveyed over a
thousand Kosovar households and hundreds of businesses of all sizes. The
result? Not very optimistic. Altogether, states the report, the unemployment
rate is now 38 percent. Some 11 percent of the population survives on seasonal
work. Speaking in numbers, it would mean that around 450 thousand people are
currently unemployed.
Avdullah Hoti, an economist from RIINVEST, worked on
compiling this report. He warns that, with the natural population growth, these
numbers will only increase in the future:
Avdullah Hoti: starting with the number of
people who are joining the labor force every year, and taking into account the
retirements and those who reach working age, we have estimated that in Kosovo,
every year, 21 to 25 thousand people join the labor market.
Ahmed Isufi, the minister
of labor and social welfare, says the job crisis runs deep through Kosovar
society. There is, he says, some demand
for skilled workers. The problem is that most of the unemployed don’t have the
qualifications.
Ahmed Isufi: It estimated that 10 percent
of Kosovar households do not have any employed family member. The situation on
the employment field is hardened by an extraordinarily high number of the
unqualified and semi-qualified job seekers.
Mr. Isufi says the
Assembly has granted the ministry a budget increase this year, which it plans
to use in dole payments for the unemployed, though the details have yet to be
finalized. This may encourage the unemployed to register, something many have
failed to do, perhaps because they are pessimistic about their chances of
landing one of the few jobs available.
Ahmet Isufi: we should underline that,
there is a trend, of unemployed people not registering in labor offices since,
up to now, the possibilities of them getting employed through these offices are
small. For this year we have planned to increase our engagement and to offer
benefits for the unemployed who register in our offices. And in the future, a
symbolic pay for everyone that has spent more than a year looking for work
through our offices.
But what can be done to
increase the number of jobs? Most of those who are employed work either in the
private sector, or agriculture. Since around 55 percent of Kosovars still live
in rural areas these figures do not come as a big surprise. The report warns of
an interesting phenomenon: private-owned businesses tend to employ relatives,
giving a large number of employed in one household - and extremely low
employment rates in other families.
The job market is still
very small in Kosovo and it is still unclear whether privatization will yield
noticeable results. According to RIINVEST, the best thing to do is create an
environment that will allow local businesses to develop and, hopefully,
grow. No easy task considering current
tax and customs laws. Avdullah Ahmeti from RIINVEST speaks of the
recommendations the report contains which, if put into practice, would help in
lowering the unemployment rates:
Avdullah Ahmeti: The creation of a macro economic
environment that would stimulate employment. This is an urgent issue. The
investment environment should be improved and made more suitable. The tax and
customs policy should be coordinated and made to support employment. On the
other hand the government and the responsible organs should launch programs of
support for new businesses and especially agriculture.
And with this we close
today’s edition of UNMIK on Air. Stay tuned.