American Economic Oda government: Do not approve minimum wage growth at 250 euros

According to this, in view of the level of economic development in the country, it is most important that decisionmakers prepare and implement policies that would enable faster strengthening of the private sector and increased investment, which would result in sustainable economic development and job creation.

“In this regard, the American Economic Oda in Kosovo estimates that the minimum wage proposed by the 250-euro Social Economic Council is contrary to the above targets, since it can affect the further deterioration of employment prospects as well as increased employment informality, and as such this proposal should be rejected by the country's government”, the OAK response is said.

The American Oda believes that the minimum wage should be the reflection of economic parameters in the country and should be taken for the basis of private sector competitiveness.

“Free Workout is one of the main factors affecting not only business competitiveness, but also Kosovo's efforts to attract foreign direct investment”.

According to Oda, the rise in minimum wage could exacerbate even more unemployment among young people, as well as less skilled workers, who usually belong to the minimum wage beneficiaries group.

The third quarter of 2017 labour force anxiety explains that unemployment among young people by age 24 is nearly 60%. Therefore, the American Oda called on the Government to reflect, since policies that could boost the deterioration of such indicators must be avoided at any cost”.

The American Oda reiterates its stance against the groundless increase in public sector wages, as it increases pressure on the private sector, and stimulates the shift of qualified frameworks into the public sector.