FYR Macedonia : Country Economic Memorandum Tackling Unemployment
Reducing the high rates of unemployment from which the Macedonian economy suffers is a leading priority of the Government. The large share of working age population who are inactive or occupying themselves with low productivity, occasional work rep...
| Main Author: | |
|---|---|
| Format: | Country Economic Memorandum |
| Language: | English en_US |
| Published: |
Washington, DC
2013
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2003/09/2518607/macedonia-country-economic-memorandum-tackling-unemployment http://hdl.handle.net/10986/14636 |
| Summary: | Reducing the high rates of unemployment
from which the Macedonian economy suffers is a leading
priority of the Government. The large share of working age
population who are inactive or occupying themselves with low
productivity, occasional work represents output foregone and
income lost. Moreover, the important goal of sharing the
benefits of growth more equitably between groups and regions
proves increasingly elusive when many citizens are trapped
in long-term unemployment, a state closely linked to
household poverty. It seems that the formal job market in
the former Yugoslav Republic of Macedonia (FYR Macedonia)
has failed. What actions can and should the Government take
t o get more people into work? As the authorities strive to
solidify peace and stability, accelerate remaining
structural reforms, and move policies and institutions
towards European norms, the problem of high unemployment
cannot be ignored. Very high levels of unemployment
discourage the authorities from imposing further s hocks on
the economy and may add to the delay of needed structural
reforms. But reform of labor market institutions and
policies is only one part of the solution, and not the most
important. The Government has limited ability to raise labor
demand directly. Overall growth and job creation by the
private sector will be the only long-term solution. The
first chapter of this report sets out a preliminary strategy
for long-term growth. It argues that high unemployment is
primarily an inheritance from the pre-transition era. Growth
has been limited since independence by low investment
levels, and to remove this constraint, the Government should
be focused on ways t o improve education, create a
supportive investment climate (especially for foreign
investment and small and medium enterprises), and accelerate
free trade as part o f integration into European markets. |
|---|