Share of Informal Economy in Bulgaria at 30-35% - Trade Union Head

Business | February 16, 2015, Monday // 16:36| Views: | Comments: 0
Bulgaria: Share of Informal Economy in Bulgaria at 30-35% - Trade Union Head CITUB President Plamen Dimitrov, photo by BGNES

40% of workers on a global scale are part of the informal economy, with Bulgaria occupying a prominent place in the ranking with a share of 30-35%, according to Plamen Dimitrov, President of the Confederation of Independent Trade Unions in Bulgaria (CITUB).

Dimitrov took part in a meeting of the Pan-European Regional Council (PERC) of the International Trade Union Confederation (ITUC), according to reports of econ.bg.

He drew attention to the fact that the businesses operating in the informal economy created unfair competition for lawful businesses.

Dimitrov, as cited by the Bulgarian National Radio, admitted that there were cases when people had no choice but to enter the informal economy.

The President of CITUB argued that curbing the share of the informal economy required measures both on a local and on an international level.

He insisted that the government’s program lacked a vision for the development of the economy and measures aimed at reviving the industry.

Dimitrov argued that the minimum wage hike and the introduction of social security thresholds by sectors had contributed to the transition of income from the informal to the formal economy in the country.

He said that the Economic and Social Council of Bulgaria was preparing a stance on the formalization of the informal economy in the country.

The participants in the meeting of the PERC of the ITUC discussed the draft Recommendation of the International Labor Organization concerning the transitioning from the informal to the formal economy.

According to a report of the Bulgarian Industrial Capital Association (BICA) published in November 2014, the share of the informal economy in Bulgaria amounted to 32.3%.

Meanwhile, Krastyo Petkov, Chair of the Union of Economists in Bulgaria, announced at a press conference of CITUB that Bulgaria was first in the EU by contribution of the informal sector to GDP with a score of 32%.

“We want social protection, decent income and more visible formal employment. The informal economy is most disadvantageous in terms of working conditions, working hours, and social insurance,” he declared, as cited by the BGNES news agency.

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Tags: Plamen Dimitrov, Confederation of Independent Trade Unions in Bulgaria, CITUB, KNSB, informal economy, Bulgarian Industrial Capital Association
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