Employment Policy Convention, 1964 (No. 122) - Bulgaria (Ratification: 2008)

Direct Request (CEACR) - adopted 2022, published 111st ILC session (2023)

The Committee notes the observations of the Confederation of Independent Trade Unions of Bulgaria (CITUB) received on 12 August 2021.The Government is requested to provide its comments in this respect.

Articles 1 to 3 of the Convention. Employment trends and implementation of an active employment policy. Active labour market measures for other specific groups vulnerable to decent work deficits. Consultations with the social partners. The Committee welcomes the information provided in the Government’s report, including replies to its previous questions, updates on the implementation of employment plans and measures and the information on the measures envisaged under the Updated Employment Strategy of the Republic of Bulgaria for the period 2021–2030 (Employment Strategy). The Committee also notes that, while the period 2017 to 2019 was characterized by continuing positive trends in the labour market, including a decrease in the unemployment rate and an increase in employment, the COVID-19 pandemic interrupted these positive long-term trends, with effects being still partly tangible in the first quarter of 2021. The Committee notes that, during this period, unemployment was increasing for the first time since 2013, reaching a total of 168,600 unemployed persons in 2020. The Committee nevertheless notes that the overall unemployment rate in Bulgaria declined to 6.6 per cent (6.6 per cent for men and 6 per cent for women) in the first quarter of 2021, remaining below the average unemployment rate of 7.3 per cent for countries in the European Union. In this context, the Committee notes marked variations in the unemployment rate across the country, with 18 districts reporting a higher unemployment rate than the national average in the first quarter of 2021. The Government indicates that the active employment measures implemented in these districts had only limited effects on improving the employment situation. The Committee notes that the national Employment Strategy has the stated objective of decreasing these disparities by 2024. It also intends to achieve 2019 employment levels (which stood at 75 per cent) and to increase, by 2030, the overall employment rate to 78.2 per cent of the population between 20 and 64 years of age and to decrease the unemployment rate to 4 per cent, below the 2019 rate of 4.2 per cent. The Employment Strategy takes into consideration new forms of work and focuses on, among other things: improving the quality of the workforce to enable it to meet the demands of the labour market and the activation of inactive and disadvantaged groups who face difficulties in securing employment, including school dropouts. The Strategy also provides for key measures to: promote social inclusion and prevent undeclared work; increase labour demand in economically less developed regions; and promote job creation in small and medium-sized enterprises, as well as in the social and the green economy, with a focus on groups in vulnerable situations, such as persons of Roma origin, persons with disabilities and the long-term unemployed.The Committee requests the Government to continue to provide detailed updated information, including statistical data disaggregated by gender, age and region, on employment and labour market trends, including information on employment, unemployment and visible underemployment. It further requests the Government to continue to provide information on any evaluations carried out on the impact of the active employment policies, strategies and other measures taken to promote full, productive and freely chosen employment. In particular, the Committee requests the Government to communicate detailed updated information with respect to the achievement of the benchmarks set for the implementation of the Employment Strategy, including those measures aimed specifically at groups in vulnerable situations, including those vulnerable to intersectional discrimination, and regions with higher unemployment rates. The Committee further requests the Government to provide information on the nature, scope and impact of measures adopted and implemented with the objective of supporting the development of the social and green economy. Finally, it requests the Government to include information on the nature and extent of the involvement of the social partners, in accordance with Article 3 of the Convention, in the design and implementation of an active employment policy, as well as in respect to consultations held with representatives of groups affected by the measures to be taken, as contemplated under Article 3 of the Convention.

Undeclared work. The Government indicates that the decrease in undeclared work over the years is mainly due to legislative reforms that have addressed key areas, including strengthening administrative sanctions, and increasing the enforcement capacity of the General Labour Inspectorate, the National Revenue Agency and the National Social Security Institute, in cooperation with the other EU countries and the social partners. Measures taken include the “Gray Skills” project carried out together with CITUB to address undeclared work in the car repair industry, as well as the Strategic Plan 2018–2021 on“Limiting the manifestations of the shadow economy”. The latter aims to create a culture of commitment to declared work and includes campaigns to inform undeclared workers about the risks and costs of undeclared work and the benefits of formalizing their work (for example, informing them what their taxes are spent on), legal incentives to encourage enterprises to work on a declared basis, as well as inspection and educational activities conducted by the Government and the social partners. The Government stresses that trade unions are permitted to inspect enterprises at any time. In this respect, they may request documents and recommend administrative sanctions. The Government also refers to the project on “Improving access to employment and job quality by limiting and preventing undeclared employment", being implemented together with the Association of Industrial Capital in Bulgaria. To create and foster a general culture of compliance with labour legislation, these measures will continue to be implemented under the Employment Strategy and information campaigns will be extended to employers before the start of seasonal employment in agriculture, with the aim of promoting the use of daily employment contracts and educating students who are about to enter the labour market in relation to their labour rights.The Committee requests the Government to continue to provide updated detailed information, including disaggregated statistical data, on the impact of the measures taken to address undeclared work– particularly in respect to the benchmarks set for the implementation of the Employment Strategy – and the role of both employers’ and workers’ organizations in this regard.

Young persons. The Government indicates that, in the first quarter of 2021, the youth unemployment rate for persons 15-24 years of age stood at 21.3 per cent, whereas the unemployment rate for persons in the 15–29-year age group was 11 per cent. The Government adds that young persons continue to be a priority target group in the national employment policies, highlighting that youth unemployment has recovered and returned to pre-pandemic-levels. The Committee notes the series of active labour market projects implemented by the Government during the reporting period, which benefitted more than 240,000 youths and ranged from employment mediation based on individual action plans to fostering the work of youth mediators, special work projects in the public administration and targeted labour exchanges for young persons, conducted together with local employers. In addition, the Government provided wage subsidies as part of the active labour market measures implemented together with employers under the Employment Promotion Act for persons below the age of 29. The Committee notes with interestthat long-term unemployed youth are also provided with psychological support, according to their individual needs. As of May 2021, 1, 268 young people up to the age of 29 had received individual psychological support, and 925 had received group psychological support. In addition to continuing to implement these current measures, the Government indicates that the Employment Strategy targets young persons’ acquisition of basic, social and soft, as well as entrepreneurial skills, and provides for intensive mentoring and counselling. Partnerships are being constructed at the local level, with a view to ensuring early interventions and the provision of a flexible package of services, with a particular focus on youth from the most disadvantaged groups, and the development of inclusive education systems aimed to prevent youth from dropping out of school. The Committee requests the Government to continue to provide detailed updated information, including statistical information disaggregated by age, sex and region, on the impact of measures designed to increase the employability of young people, particularly on their ability to secure sustainable, lasting employment and decent work.

Persons belonging to the Roma minority. The Government reports that, reflecting the overall increase in unemployment throughout 2020, the number of unemployed persons registered with the Labour Bureaus who self-identify as Roma also increased by 9.8 percentage points in 2020. The Government adds that women accounted for 58.1 per cent of this 9.8 per cent figure, while older persons aged 50 and above accounted for 31.1 per cent and persons below the age of 29 accounted for 17.1 per cent. At the same time, the Government has continued to implement measures to increase employability and employment rates, and the development of an entrepreneurial culture among Roma. In 2020, the Labour Bureaus were able to place 17,521 unemployed Roma in employment, with most of these persons being placed in non-subsidized jobs. At the same time, 11,565 Roma participated in targeted programs to enhance their employability. An additional 9,963 economically inactive young persons belonging to the Roma community participated in further targeted activation measures offered by the employment services to assist them in securing employment. The Committee notes that the Employment Strategy undertakes to implement the European Commission’s ten-year plan to support Roma in the EU, adopted in October 2020, which calls on EU Member States to adopt national strategies that promote equality, socio-economic inclusion and participation for members of the Roma community.The Committee requests the Government to continue to provide detailed updated information, disaggregated by age, sex and district, on the nature, scope and impact of measures taken to promote access to full, productive, freely chosen and lasting employment for members of the Roma community.

Direct Request (CEACR) - adopted 2018, published 108th ILC session (2019)

The Committee notes the observations of the Confederation of Independent Trade Unions of Bulgaria received on 17 November 2017 relating to alleged imprecisions in the report. The Government is requested to provide its comments in this respect.

Articles 1 and 2 of the Convention. Employment trends and implementation of an active employment policy. The Government reports that amendments have been made to the Employment Promotion Act that include measures to tailor training on job-seeking skills to individual jobseekers, enhancing incentives to encourage mobility by providing for allowances for taking up work that is up to 50 km away from the jobseeker’s place of residence, an extension of subsidized employment to 18 months for young men up to the age of 29 years, and supportive measures for single parents and pensioners seeking work. In addition, further improvements were made to the system of dual education and training which forms part of professional education and training services provided. The Committee notes that the amendments also enable the public employment services to outsource mediation services to private employment agencies for jobseekers with disabilities or those belonging to other disadvantaged groups. In particular, it notes the information provided by the Government on the methods used by unemployed men and women seeking employment in the first quarter of 2017. The statistics provided indicate that the majority relied on assistance from relatives and acquaintances, while contacting public employment offices ranked fourth, after the establishment of direct contacts with employers and exploring published job advertisements. The Committee notes that the Government has set new priorities for addressing labour market needs in its Updated Employment Strategy 2013–20 (UES), through concrete actions set out in annually adjusted National Employment Action Plans. These new priorities seek to reduce the number of school drop-outs and ensure better integration into the labour market of early school leavers, as well as the activation of unemployed persons from disadvantaged groups, such as young men up to the age of 29, unemployed persons above the age of 50, unemployed persons of Roma origin and persons with disabilities. It notes with interest that an additional priority contained in the UES is the promotion of “green workplaces” and “white workplaces”, the latter referring to the health sector. The Committee further notes the detailed labour market statistics provided in reply to its previous request, which indicate that the labour market continued to improve in 2016 and the first quarter of 2017. This positive trend is reflected in the general unemployment rate, which fell from 9.2 per cent in 2015 to 6.9 per cent in the first quarter of 2017, which compares favourably to the European average of 8.2 per cent as of December 2016. The Committee notes that, in the first quarter of 2017, the unemployment rates of men (6.8 per cent) and women (6.9 per cent) are almost identical. In contrast, the general unemployment rates in towns and cities (5.4 per cent) compared to villages (12.5 per cent) differ markedly. As the Committee noted in its previous comments, there are also regional imbalances in employment, especially in the northern regions of the country. The Committee notes the Government’s indication that the lowest unemployment rate for the population aged 16–64 years was reported for south-western Bulgaria (3.4 per cent), while the north-western region had the highest unemployment rate (13 per cent). The Committee notes in this regard that section 33 of the amended Employment Promotion Act places new focus on the implementation of regional employment and training programmes to confront these disparities. Following the launch of 28 regional employment programmes in 2016, the thrust of the 2017 National Employment Action Plan is to achieve balanced, sustainable and integrated development of the regions. Additionally, the Committee notes that unemployment rates for young persons aged 15–24 years was close to twice the national average at 12.8 per cent. The importance of appropriate education and training is underlined by statistics showing significantly higher unemployment rates for persons with lower levels of education. The unemployment rate for persons aged 15–64 years with only a basic level of education was 19.2 per cent, rising to 41.7 per cent for those with only elementary education or lower. The Committee also notes that in the first quarter of 2017, a significant number of unemployed – 64,300 – were former temporary or seasonal workers and that 27,300 of this group had been unemployed for more than eight years. The long-term unemployed made up 3.7 per cent of all unemployed persons in the first quarter of 2017 (3.9 per cent for men and 3.6 per cent for women). The Committee also notes the detailed analysis of the impact of the Government’s active labour market policies especially in regard to the different regions and groups in vulnerable situations, such as the Roma minority and persons with low levels of education. The Government also highlights the training measures implemented to promote entrepreneurship among unemployed persons, which are accompanied by financial support and strengthened by provision of incentives aimed at supporting microenterprises to create jobs. The Committee requests the Government to continue to provide detailed statistical information on employment and labour market trends disaggregated by gender, age and region, including information on employment, unemployment and visible unemployment. It further requests the Government to provide information on any evaluations carried out on the impact of the employment policies and measures implemented for promoting full, productive and freely chosen employment, including measures aimed specifically at groups in vulnerable situations and regions with the highest unemployment rates, such as the northern regions of the country. The Committee also requests the Government to continue to provide information on the nature and impact of measures adopted and implemented with the objective of supporting the development of entrepreneurship and microenterprises for employment creation.

Undeclared work. In reply to the Committee’s previous comments, the Government acknowledges the dangers that the undeclared economy poses for the long-term development of the country. In this regard, it refers to the 2015–17 Single National Strategy for improving tax collection, tackling the shadow economy and reducing compliance costs, including undertaking preventive measures aimed at preventing entry into the shadow economy and measures aimed at assisting persons working in the informal economy to transition to the formal economy. The Government adds that these measures are combined with inspections in relation to different areas of the economy, with the assistance of the employers’ organizations and heightened sanctions in the event that violations are detected. The Committee requests the Government to provide updated detailed information on the impact of the measures taken to address undeclared work, their impact on the labour market – particularly on reducing undeclared work in the informal economy and protecting the rights of informal undeclared workers – and the role of both employers’ and workers’ organizations in this regard.

Youth employment. In reply to the Committee’s previous comments, the Government reports on the impact of active labour market measures implemented in 2011, noting that since young persons are included as a priority group in all of the national employment and training programmes, schemes and measures, the majority of these are directed to young men up to the age of 29 years. The Committee notes that every Labour Bureau has staff dedicated to providing employment-related services for young persons, for whom individual action plans are developed. The Committee notes in particular the specific psychological support provided to long-term unemployed young persons and the measures focused on young persons with low levels of education. The Government indicates that as a result of these measures, 40,269 young men entered the primary labour market and 13,106 were covered under subsidized employment schemes. The Committee notes that the unemployment rate for young persons has fallen by 2.3 percentage points since 2015, reaching 12.2 per cent in 2016. The Committee requests the Government to provide detailed updated information, including statistical information disaggregated by age, sex and region, on the impact of measures designed to increase opportunities for young people of both genders to secure sustainable, lasting employment, in particular for those with low levels of education.

The Roma minority. The Government states that, in the framework of the National Roma Integration Strategy 2012–20, 30,757 persons who self-identify as Roma were included in active labour market measures in 2016, out of which 17,978 were women, 11,505 were young persons up to the age of 29 years, 6,184 were persons over 50 years of age and 13,862 were long-term unemployed persons. Out of the 19,380 Roma who entered employment in 2016, 13,610 entered the primary labour market. The Committee notes that under the “Activate the Inactive” National Programme, Labour Bureau Directorates employ Roma mediators to encourage persons belonging to the Roma minority to register with local labour bureaus. Moreover, labour exchanges have now been established to facilitate access for Roma to information concerning vacant positions as well as contacts with employers. In 2016, 92 Roma mediators activated and motivated 11,946 Roma and five labour exchange fairs took place for members of the Roma community. The Committee requests the Government to continue to provide detailed information, disaggregated by age and gender, on the measures taken to encourage and support labour market participation of the Roma population.

Active labour market measures for other specific groups vulnerable to decent work deficits. The Committee notes the information provided by the Government on the various education and training programmes for groups vulnerable to decent work deficits. In regard to older persons (55–64 years of age), the Government indicates that the active labour market measures directed at this age group – including subsidized employment – have contributed to increased employment opportunities. The employment rate for older workers continues to rise, reaching 54.5 per cent in 2016, representing an increase of 1.5 percentage points in comparison to 2015. In addition, the Government refers to targeted programmes and measures for the employment of persons with disabilities, indicating that the employment rate for this group fell slightly from 2015 to 2016, from 18.4 to 18.3 per cent. Nevertheless, their unemployment rate also decreased in this period by 3.6 percentage points, reaching 13.1 per cent in 2015. As the unemployment rate of persons with elementary and lower education remains a challenge, the Government provides examples of targeted programmes established for this group. While the decrease in the number of long-term unemployed persons continued in 2016, with a ratio of 4.5 per cent – as compared to 5.6 per cent in 2015 – the Government continues to implement specific labour market measures for this group. The Committee notes the information provided by the Government in relation to 73 employment and social assistance centres in which joint teams from the Employment Agency and the Social Assistance Agency provide employment assistance and social assistance information to the long-term unemployed. In addition, eight labour exchange fairs for this group took place in 2016. The Committee requests the Government to provide updated detailed information on the impact of active labour market measures aimed at increasing the employment rate of specific groups vulnerable to decent work deficits, including older workers, persons with disabilities, persons with low levels of education and skills, persons from rural areas and disadvantaged regions and the long-term unemployed, including information on the involvement of the social partners and representatives of the groups concerned in the development, implementation, monitoring and review of such measures.

Article 3. Consultations with the social partners. The Government reports that it has taken steps to enhance Bulgaria’s compliance with the European Commission’s recommendation for the participation of the social partners in all forms of the management, control and implementation of specific European structural funds. In this regard, the Government indicates that the amendments to the Employment Promotion Act also provide for further cooperation between the Ministry of Labour and Social Policy, other state institutions, including regional administrations, the Employment Agency, the social partners and other non-profit legal entities to increase the sustainability of joint actions to be jointly developed and implemented across the country. The Committee requests the Government to provide information on the outcomes of improved cooperation with the representatives of employers’ and workers’ organizations in the formulation and implementation of employment measures. It also requests the Government to provide information on consultations with representatives of the persons affected by the measures taken, such as young people, the Roma minority and other specific groups in relation to the development and implementation of such measures.

Direct Request (CEACR) - adopted 2015, published 105th ILC session (2016)

Articles 1 and 2 of the Convention. Employment trends and implementation of an active employment policy. The Government indicates in its report that the Ministry of Labour and Social Policy has been implementing a project since 2012 with the aim to improve the quality and efficiency of the active policy on the labour market, based on a comprehensive evaluation of its effect. The evaluation results will be discussed with the social partners and other stakeholders, which will then outline the priority directions for policy development. The Government indicates that the Employment Strategy 2013–20, adopted by the Council of Ministers in October 2013, is a key document laying down the tasks and directing the efforts of all stakeholders on the labour market. The strategy aims at reducing unemployment through job creation, the improvement of the quality and scope of employment services, and the activation of unemployed persons through measures such as their involvement in education and training programmes. The Committee further notes that, over the 2010–13 period, regional differences in employment and unemployment have continued to vary broadly. The long-term trend of municipalities and regions with highest unemployment levels continue to be concentrated primarily in the northern regions of Bulgaria. To overcome the regional imbalances, the Employment Agency implements training and employment programmes at the regional and sectoral level, such as the “Closer to work” scheme under the Operational Programme Human Resources Development (OP HRD). Over the 2011–13 period, 5,627 persons have benefited from available funds under the “Closer to work” scheme under OP HRD for transportation to and from the workplace and for conducting of training of newly employed persons. The Committee notes that, according to EUROSTAT, unemployment was measured at 10.4 per cent in March 2015. The Committee requests the Government to provide an evaluation of the effectiveness of the employment policies and measures implemented for promoting full and productive employment and those aimed specifically at vulnerable groups. The Committee also invites the Government to continue to include information on the measures taken to address higher levels of unemployment in northern regions of the country. Please also continue to provide information on the impact of measures adopted with a view of supporting the development of SMEs for employment creation.

Undeclared work. In reply to previous comments, the Government indicates that there is no legal definition of undeclared labour in Bulgarian legislation. The term is most often associated with work without an employment contract, work of minors without permission, activity of enterprises providing temporary jobs without registration at the Employment Agency, conducting of intermediary activities without registration at the Employment Agency or work of foreigners not complying with the work licensing regime. The Government states that an increase in the number of alerts and requests under the aforementioned issues was observed in 2013, thus indicating that the issues of this nature exist and that people are starting to defend their rights, which in turn is encouraging and could help in combating undeclared labour. The Committee requests the Government to provide information on the impact of the measures taken to address the issue of undeclared work, and on their impact on the labour market.

Youth employment. The Government indicates that, over the 2010–13 period, the group of persons up to 24 and up to 29 years of age continues to be a main target group to which the active employment and training policy implemented by the Employment Agency is oriented. It adds that high unemployment among young people is one of the most acute social problems arising out of the economic crisis, with lasting adverse consequences upon society as a whole and with serious personal consequences in view of the long-term negative effects resulting from the lack of the necessary knowledge, skills and work experience. For the purpose of joining the efforts of all stakeholders for the reduction of youth unemployment, the Committee notes that, among the various measures adopted, the National Initiative “Work for Young People in Bulgaria” 2012–13 mobilized the efforts of the state institutions, the social partners and local authorities towards the implementation of programmes, measures and activities for the promotion of youth employment. The Committee further notes that unemployment of young people was measured at 23.8 per cent in March 2015, compared to 25.7 per cent in March 2014. The Committee requests the Government to provide information on the impact of measures designed to increase opportunities for young people to find lasting employment, in particular those with low levels of education.

The Roma minority. The Government indicates that one of the most vulnerable groups in the labour market is unemployed Roma people. Over the 2010–13 period, a total of 48,758 unemployed Roma people benefited from the active policy of the Employment Agency, out of which 35,896 unemployed Roma people were included in training and employment under employment programmes and measures and 12,862 unemployed Roma people were included in training and employment schemes under the OP HRD. The Committee requests the Government to continue to provide information on the measures taken to encourage and support labour market participation of the Roma population.

Other vulnerable workers. The Committee notes the detailed information provided on employment measures directed at persons with disabilities, low-skilled persons and the long-term unemployed. It notes in this regard that the share of long-term unemployed persons among those over 50 years of age remains relatively high (40.4 per cent in 2013). The Committee requests the Government to continue to provide information on the impact of measures aimed at increasing the employment rate of older workers, persons with disabilities, low-skilled persons and the long-term unemployed.

Education and training. The Committee notes the information provided on various education and training programmes directed at vulnerable groups of workers, including the long-term unemployed. In reply to previous comments, the Government indicates that, for the purpose of matching workers’ knowledge, qualifications and skills to the requirements of the labour market, training was carried out in February 2014 on forecasting labour supply and demand. One of the objectives of that training was building the capacity of the labour market institutions for the formulation and implementation of policies based on long-term and short-term forecasts of the development of the labour market in Bulgaria. The Committee requests the Government to continue to provide information on the measures taken in the area of education and training policies and on their relation to prospective employment opportunities, as well as the involvement of the social partners in this process.

Article 3. Consultations with the social partners. The Government indicates that consultations with the social partners included discussions within the National Employment Promotion Council on matters relating to the Employment Strategy 2013–20, the National Plan for the Implementation of the European Youth Guarantee and national employment action plans. The Committee requests the Government to provide information on the outcome of the consultations held with the representatives of employers’ and workers’ organizations on the formulation and implementation of employment measures. It also requests the Government to indicate to what extent consultations have been held with the representatives of the persons affected by the measures taken, such as young people, the Roma minority and other vulnerable workers.

Direct Request (CEACR) - adopted 2011, published 101st ILC session (2012)

Articles 1 and 2 of the Convention. Employment trends and active labour market measures. The Committee notes the Government’s first report on the application of the Convention received in February 2011. The Government indicates that according to data from the National Statistical Institute (NSI), the country’s employment rate decreased from 64 per cent in 2008 to 62.6 per cent in 2009 (3,204,800 persons employed) and this decline continued throughout 2010. The global economic and financial crisis resulted in the loss of about 358,000 jobs since its peak in 2008 and the unemployment rate rose from 5.4 per cent in 2008 to 10.2 per cent in 2010. The Government reports that as an implementing tool of the Revised Employment Strategy 2008–15, the National Employment Action Plan (NEAP) for 2009 included measures aimed to redirect workers who were laid off as a result of the crisis to new jobs, subsidized employment, training and qualification, as well as to promote the employment of unemployed and inactive persons. As a result of the NEAP 2009 implementation, 111,996 persons found employment. The Committee notes that 41.9 per cent of the Bulgarian population experiences a greater degree of poverty compared to their EU counterparts. The Committee invites the Government to provide in its next report an evaluation of the effectiveness and relevance of the employment policies and measures implemented for promoting full and productive employment for the unemployed and other categories of vulnerable workers. It also requests the Government to include information on the impact of active labour market measures and social assistance programmes on reducing poverty and mitigating the negative impact of the crisis.

Regional development. The Government indicates that the NEAP 2009 targeted decreasing regional disparities in employment and unemployment rates. The Committee notes that in Bulgaria regional unemployment rates vary substantially with Northern regions having an unemployment rate higher than the national average. The Committee invites the Government to include in its next report information on the measures undertaken to address regional imbalances, with a particular focus on employment promotion, and their effectiveness.

Undeclared work. The Government reports in detail the recent measures taken to reduce employment in the informal economy. These include amendments to the Labour Code aimed at enhancing the formalization of employment relationships, strengthening labour inspectorate capacity and increasing fines and penalties for violations of labour legislation. Undeclared work is estimated at 22 to 25 per cent of GDP and accounts for up to 25 per cent of all employees. The Committee notes that the functioning of the labour market is hampered by overall weak legal compliance in the area of undeclared work. The Committee requests the Government to continue to provide information on policy approaches as well as curative and preventative measures adopted to address the issue of undeclared work, and on their impact on the labour market.

Vulnerable categories of workers. The Government indicates that the priority of its active labour market policy has been reoriented to support vulnerable categories of workers and to promote their labour market integration. The Employment Promotion Act (EPA) provides for programmes and measures, such as subsidized employment and financial incentives for job creation, to integrate in the labour market “at risk” groups which include persons with disabilities, older workers, low-skilled persons and the long-term unemployed. The Government indicates that according to 2009 NSI data, the employment rate among older workers was 46.1 per cent (452,000 persons) and the unemployment rate for this group was 5.9 per cent (31,700 persons). In 2009, 2,272 older persons were employed as a result of the incentives provided for by the EPA and 2,216 persons were employed in the framework of the Support in Retirement National Programme. The Committee observes that the crisis particularly hit low skilled workers who represent 70 per cent of the unemployed population. The Committee requests the Government to provide information on the results of measures aimed at increasing the employment rate of older workers. It would also appreciate receiving information on the results achieved with respect to the sustainable integration of other vulnerable categories of workers, such as persons with disabilities, low-skilled persons and the long-term unemployed.

Youth employment. The Government refers to 2009 NSI data showing that the youth employment rate was 24.8 per cent: 240,000 young persons were employed, which represents 22,600 persons less compared to 2008. This marked the largest decrease compared to the other age groups. In 2009, 2,658 young persons benefited from the incentives for job creation provided for by the EPA. As a result of these measures, 17,140 young persons found employment. In the same year, 44,831 young persons participated in the Career Start Programme aimed at training young persons with completed higher or vocational education for jobs within the public or private sector. Under the ongoing Project for Young School Dropouts, 109 young persons were trained and 25 of them found employment. The Committee observes that the crisis particularly affected young persons. In fact, the youth unemployment rate reached 23.2 per cent in 2010. The Committee invites the Government to provide information on the impact and cost effectiveness of measures designed to increase opportunities for young people to find lasting employment, in particular those with low levels of education.

The Roma minority. The Government indicates that, as a result of the implementation of a project to stimulate the employment of inactive persons, 11,873 Roma people registered at employment offices in 2009. The Committee observes that the Roma (estimated to constitute 10.3 per cent of the Bulgarian population) are confronted by multiple social and economic barriers: the majority of them drop out of education and have no employment record. The Committee requests the Government to provide information on the measures taken to encourage and support labour market participation of the Roma population.

Promotion of small and medium-sized enterprises. The Committee notes that the EPA provides for different forms of financial support for unemployed persons wishing to start up their own or a joint business. Micro-enterprises and SMEs in Bulgaria are the main driving force of the economy as suppliers of goods and services in the most dynamic sectors, particularly in the tourism industry. However, the dynamism of these enterprises seems confronted with a limited capacity to define and implement policy support and encouragement measures for entrepreneurship and SME development. The Committee invites the Government to provide in its next report information on the impact of measures adopted with a view of supporting the development of SMEs for employment creation.

Coordination of education and training policies with employment policy. The Government indicates that both the Revised Employment Strategy 2008–15 and the National Strategy for Lifelong Learning 2008–13 aim at enhancing the relation of education and training to labour market needs. As a result of the implementation of the NEAP 2009, 18,212 persons participated in trainings. Moreover, the New Employment Opportunity Programme benefited 1,412 persons. Four training schemes for adults were adopted which target workers under an employment contract, persons who either work on a part-time basis or were laid off as a result of the financial crisis, and unemployed persons. Furthermore, various measures were taken to increase the quality of education for adults and to improve access to vocational training. In the spirit of cooperating towards the development of vocational education and training, an agreement was signed in March 2009 between the main education and training bodies and the six national representative employers’ organizations. The Committee requests the Government to continue to supply information on the measures taken in the framework of education and training policies and on their impact on the employability and competitiveness of the labour force, as well as the involvement of the social partners in this process. It also requests the Government to report on the impact of the measures adopted in collaboration with the social partners to enhance the capacity of the public employment service to match workers’ knowledge, qualifications and skills to the requirements of the labour market.

Article 3. Participation of the social partners in the formulation and application of policies. The Government indicates that the National Council for Employment Promotion (NCEP) under the Ministry of Labour and Social Policy is the main advisory body providing cooperation and consultation for the development and implementation of the state employment policy, vocational training of adults and other employment-related issues. It includes an equal number of representatives from the state administration and the national representative workers’ and employers’ organizations. The Committee invites the Government to provide information on the outcome of the consultations with the representatives of employers’ and workers’ organizations on the development and implementation of employment policies.