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THE LABOUR MARKET POLICY IN BULGARIA (1990 - 1993)
 

INTRODUCTION



  Three years after the beginning of the political changes and two years after the beginning of the economic reform in Bulgaria a large portion of the population think that unemployment is not an inevitable phenomenon. Data from a national opinion poll of March 1993 reveal that a mere 27.3 percent consider unemployment natural and inevitable , and 63.3 percent think the Government should take measures to stop unemployment. Full employment was achieved at the 'cost' of wage-levelling, low wages and economic non-viability, and yet, many are still prepared to pay it. Old illusions die hard, even if it is the conviction that governments can stop unemployment and create jobs for everyone. 

 

Ungrounded illusions and unduly high hopes are among the major problems in labour market policy. Another is in the restricted possibilities of the policy itself. A major source of unemployment is the maintaining of insufficient employment over a prolonged period of time which extends to cover the last few years as well. On the other hand, the external factors for the economic slump, among which is the collapse of the COMECON, as well as the war in the Gulf and the embargo imposed on former Yugoslavia, placed the economy in a state of collapse. Thirdly, the labour force was definitely unprepared and not flexible enough to respond adequately to the economic reform in terms of sector distribution and ownership within a short period. A large share of the unemployment figures therefore account for those structural changes. 

 

The lack of adequately trained professionals and the high instability of tenure of the few competent in the field are serious obstacles to the implementation of the LMP. Very often, the technical assistance generously granted by developed countries and international institutions does not have the expected effect due to frequent staff reshuffles among decision makers. 

 



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