Sorensen: The fight against unemployment is the core of economic reform

Speaking at the "Conference on Increasing Employment Rate - On the Path to Recovery" held today in Sarajevo, the Head of the European Union Delegation to BiH and EU Special Representative in BiH, Ambassador Peter Sorensen, highlighted the central role of the fight against unemployment in Bosnia and Herzegovina. He emphasized that the six areas for reform identified at the Forum for Prosperity and Employment in May this year are very relevant to the goals of today's conference. As a next step, the European Union will host a workshop in Banja Luka on July 15, reports the Patria News Agency.

- Everything begins and everything ends with employment - stated Ambassador Sorensen, noting that the need for structural reforms is evident in the fact that "in Europe, to reduce the unemployment rate, about 2% GDP growth was needed. In Bosnia and Herzegovina, 6 percent is needed."

The Ambassador pointed out that high taxes and contributions are the reason why employers think twice before hiring a worker. The current level of payments for these contributions "represents a significant deterrent to employment," Sorensen stressed, adding that "very often employers decide to hide from the authorities that they have hired someone. In this way, workers enter the grey economy zone and have reduced access to social protection: they do not contribute to the pension and healthcare systems and therefore are not active participants." The Ambassador said that in April 2013, the number of unemployed people in BiH was 550,000, and if workers in the grey economy are excluded, that number is around 190,000.

Youth unemployment has been identified as an area requiring action.

- Young people have very little work history. One in eight in the 16 to 24 age category in Bosnia and Herzegovina is employed. In Europe, that figure is one in three. It is very difficult for them to find a job. They are perhaps even willing to accept temporary work so that they can start working and enter the labor market... And this means that they are often forced to work in the grey economy - said Sorensen.