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Advancing Labor Market Flexibility: Insights from Bulgaria’s National Forum

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21 diapositives · 331 Views · Jul 31, 2014

The Annual National Forum organized by the Bulgarian Association for Management and Development of Human Resources emphasized the urgent need for a flexible labor market in Bulgaria. Labor Economist Gary Reed discussed recent improvements in labor market indicators, highlighting challenges like youth unemployment, wage-setting mechanisms, and the skills gap. The forum aimed to enhance labor market flexibility and complete pension reforms through education, training, and improved policies, while fostering communication and transparency in labor regulations.

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  1. “Need for a Flexible Labor Market in Bulgaria” Annual National Forum of the Bulgarian Association for Management and Development of the Human Resources Sheraton Hotel, Sofia November 11, 2004 Gary Reed, Labor Economist USAID Labor Market Project

  2. Recent Improvements in Bulgarian Labor Market Source: Stat.bg

  3. Labor Market Indicators: Bulgaria vs. the EU in 2003 Source: Eurostat, "European Labour Force Survey, Principal Results 2003"

  4. Youth Unemployment Rates: Bulgaria vs the EU in 2001 Source: Eurostat, "Regional Unemployment Rates in the Central European Candidate Countries 2001"

  5. Per Capita GDP: Bulgaria vs. the EU in 2003 Source: Eurostat, "GDP per capita in Purchasing Power Standards for EU, Candidate Countires and EFTA," Nowcast 2003.

  6. Key Variables for Labor Market Flexibility • Wage setting mechanisms • Geographic labor mobility • Labor policies • Education and training systems • Employment Rules Source: Brodsky, Melvin, “Labor Market Flexibility: a changing international perspective,” U.S. Department of Labor, Monthly Labor Review, November 1994.

  7. Percentage of 18-year-olds not in National Education System 2000/2001 Source: Eurostat, "Education in Europe Key Statistics 2000/2001," Theme 3-13/2003

  8. Public Expenditures on education (percent of GDP) Source: European Commission, "Progress on the implementation of the Joint Assessment Papers on employment policies in candidate countries," COM(2003)37 final, January 2003.

  9. Participation in Education or Training Spring 2003 Source: Eurostat, "European Labour Force Survey, Principal Results 2003," 14/2004.

  10. Vocational Training in Enterprises 1999 Source: Eurostat, "Working time spent on continuing vocational training in enterprises in Europe," Theme 3 -1/2003.

  11. Employment Protection Legislation Indicators, late 1990’s Source: ILO, “Employment Protection Legislation (EPL) and its effects on Labor Market Performance,” I 1 March 2003.

  12. Bulgarian Labor Code vs. Three other Transition Countries • Permissible reasons for individual dismissals • Use of fixed-term contracts • Use of overtime • Organization of working hours

  13. Labor Market Project Goals • ADDRESSING THE SKILLS GAP • ENHANCING LABOR MARKET FLEXIBILITY • COMPLETING THE PENSION REFORM

  14. Adressing the Skills Gap • Promoting internships for students • Linking professional training and certification programs • Assisting the Employment Agency in promoting customer service

  15. Enhancing Labor Market Flexibilty • Educating the population on labor market flexibility issues • Monitoring and evaluating existing measures and programs • Identifying labor code constraints to economic growth, labor and investment

  16. Completing the Pension Reform • More efficient supervision of pension insurance companies • Improved communications between the NSSI, the private pension funds, the insurers and insured

  17. Results in Institutional Development • Establishment of a State Insurance Supervision Agency in 2000 • Strengthening of the FSC established in 2003 • Assistance and support to the BASPIC

  18. Results in Legislation and Regulations • Mandatory Social Insurance Code – 1999. • Supplementary Voluntary Pension Insurance Act - 1999. • Social Insurance Code - 2003. • Drafting regulations and providing expert opinions. • Developing procedures for supervision of pension companies.

  19. Results in IT Solutions • Developing and implementing web-based applications (e-government) for a state-of-the-art information exchange within the state administration and between the different participants in the pension system. • Providing complex IT solutions for NSSI, FSC, BASPIC, EA enabling improved accountability and transparency of financial regulation, enhanced work efficiencies, and improved fraud diction and corruption fighting mechanisms

  20. Results in Training Experts • More than 1000 experts from the MLSP, FSC, NSSI, tax administration, pension companies, labor unions, CPA's, judges, and journalists, have attended Project training programs in Bulgaria, the US, EU member-states, Central and Eastern European and other countries.

  21. Results in Public Awareness and Education • Town-hall meetings held in more than 25 towns. • Dissemination of more than 10,000 brochures on employment programs and measures benefiting employers, workers and the unemployed • Discussions, roundtables, national and international conferences on important pension reform and labor market issues. • TV educational films and radio programs, preparation and distribution of brochures, leaflets, posters. • Pensions hotline launched at the NSSI in 2000 and later expanded into a Social Information Center at the MLSP. • Customer service Call Center launched at the FSC in 2004.