EMCC European Monitoring Centre on Change

Encouraging micro enterprise employers to hire unemployed people

Bulgaria
Phase: Management
Típus:
  • Employment incentive
  • Matching/Networking
  • Support of companies' growth
  • Support of SMEs
Utoljára módosítva: 03 August, 2021
Név:

Насърчаване на работодатели-микропредприятия да наемат безработни лица

Angol név:

Encouraging micro enterprise employers to hire unemployed people

Coverage/Eligibility

Employers who hire unemployed people for the first five jobs they create. The company must be a micro enterprise.

Main characteristics

This measure is aimed at job creation by facilitating the recruitment of people who are unemployed. When new jobs in a micro enterprise become available, employers receive a subsidy for a period of 9 months if they hire unemployed people for a period of at least 18 months, referred to them by the National Employment Agency for the first 5 vacant jobs. The subsidy covers the amount that employers would have to pay for wages (a total of BGN 500 or approximately €255) and social security contributions.

 

Funding

  • National funds

Involved actors

National government
Funding (Ministry of Labour and Social Policy).
Public employment services
Implementation.
Employer or employee organisations
Approval by the social partnership council is required.

Effectiveness

The National Action Plan for Employment 2020 reported that in 2019 this measure supported employment for 615 unemployed people (including 334 newly recruited people). The measure was financed by the state budget with BGN 1,520 million (approx. €777,000).

The National Action Plan for Employment 2020 will support employment of 337 unemployed people (including 200 newly recruited people). The measure is financed by the state budget with BGN 1,167 million (approx. €597,000).

According to the Annual report of the Employment agency for 2017, this measure supported employment of 932 people (19.2% more than the 782 initially planned).

In the period January-September 2015, according to the National Action Plan for Employment 2016, this measure provided employment to 123 people (95.3% of the 129 persons initially planned).

The 2014 National Action Plan for Employment allowed 338 people to access employment. Among them, 100 were recruited (that is employed under the measure of the Operative Programme, not having previous relationships with the same employer), at the total state budget of 488,750 BGN (€249,893).

According to the report of the National Employment Agency for the first half of 2008, 1,935 workers were employed through this measure (5.9% more than the 1,883 initially planned). Several years later, the number of participating people decreased and, according to the National Employment Agency Annual report 2012, 153 people were included in the programme in 2012 (eligible to participate, applications accepted, but not employed), and 148 people employed. In comparison, 194 people were included and 141 employed in 2011.

Strengths

The measure encourages employment activation and labour market (re)integration of unemployed people by subsidising jobs in micro enterprises. 

Weaknesses

The measure's effectiveness depends on the employer's willingness to participate in the programme and on whether they have vacant jobs or not.

Employed individuals with appropriate skills willing to change their job may be disadvantaged compared to an unemployed person with less training. Therefore, the instrument may promote unfair employment practices.

Példák

No information available.
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