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What Do Bulgarians Want
submited on 10.05.2009 in category Political stability | Fiscal affairs | Privatisation
submited on 10.05.2009 in category Political stability | Fiscal affairs | Privatisation
According to a sociological survey among 1200 Bulgarians carried out by Market Links the main priorities of the next Bulgarian government should be to pursue higher salaries and pensions. Data for December 2008 show that the average monthly salaries compared to December 2007 have risen by 22.8%, from 421 to 517 lv. Divided by type of sector, the average salaries in the public sector went 25.3% up, from 502 to 629 lv, whereas in the private sector they went 22.3% up, from 390 to 477 lv. Inflation for the same period, measured by the harmonized index of consumer prices, was 7.2%, even though it reached its peak at levels over 14% for June and July. Hence, the real salary growth for 2008 was 14.5%, and for workers in the public and private sectors it was 16.9 and 14.1%, respectively.
If we look at only these data, then we will see that the living standard among Bulgarians has risen fairly well last year. However, the perspective for 2009 is not so bright. The incredible 25% rise of salaries in the public sector will shrink seriously by the end of this year. Due to the precautions taken against budget deficit, which already seems inevitable, the government will have to cut its costs further. It will try to avoid lay-offs but there won’t be many salary rises.
The outlook for the workers in the private sector is negative too. Foreign capital inflows are diminishing, the stress on subsidiaries for cutting costs from their parent companies is growing. For January and February the FDIs in Bulgaria are 433.2 million Euro, and for the same period in 2006, 2007 and 2008 they were 804.3 million, 614.1 million and 674.1 million Euro. Other benefits like salary bonuses and covering transport and food costs are also left behind.
Even though according to the survey the most essential for Bulgarians is the salary levels, important for their well-being is also the amount of people that participate in the labor force. In 2008 Bulgaria was one of the countries in the EU with lowest unemployment rates – 6.3%, reaching its peak at 5.8% in September. However, for March this year it is already at 6.9% and according to some of the reasons mentioned above we might observe further worsening.
If we look at only these data, then we will see that the living standard among Bulgarians has risen fairly well last year. However, the perspective for 2009 is not so bright. The incredible 25% rise of salaries in the public sector will shrink seriously by the end of this year. Due to the precautions taken against budget deficit, which already seems inevitable, the government will have to cut its costs further. It will try to avoid lay-offs but there won’t be many salary rises.
The outlook for the workers in the private sector is negative too. Foreign capital inflows are diminishing, the stress on subsidiaries for cutting costs from their parent companies is growing. For January and February the FDIs in Bulgaria are 433.2 million Euro, and for the same period in 2006, 2007 and 2008 they were 804.3 million, 614.1 million and 674.1 million Euro. Other benefits like salary bonuses and covering transport and food costs are also left behind.
Even though according to the survey the most essential for Bulgarians is the salary levels, important for their well-being is also the amount of people that participate in the labor force. In 2008 Bulgaria was one of the countries in the EU with lowest unemployment rates – 6.3%, reaching its peak at 5.8% in September. However, for March this year it is already at 6.9% and according to some of the reasons mentioned above we might observe further worsening.
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