PDK: Temporary Subvention of Employment, Unnecessary Government Test

Kosovo's Department for Finance co-ordinator in the Parliament for Good Governance of the Democratic Party of Kosovo, Arben Mustafa, at a media conference has criticised Kosovo Government for experimenting with public money, in the absence of the ability to manage the financial crisis in Kosovo.

Mustafa said the Kosovo Government's latest initiative for temporary subsidisation of employment has no substatic effect to solve the unemployment problem.

“Unemployment is the structural problem of Kosovo's economy and cannot be addressed with a six-month-long measure. Especially when they're designed only to highlight popular phrases like that “each home from an employee”, based on difficult, complete criteria and that only stimulates public currency fraud. Furthermore, drafting such measures without a preliminary assessment of the number of potential beneficiaries and the expected cost for the state budget presents an irresponsible management of public finances”, he added.

Mustafa stressed that insufficient demand for workers, which stems from the low capacity of local production, as well as the incompatibility between the required skills and those offered in the labour market, are the main causes of unemployment in Kosovo.

To address the first problem, that of insufficient demand in Kosovo's economy, as the most urgent need is that Government returns public capital investments, which have never been lower than currently. The realisation rate of capital projects in relation to the annual plan in the first six months of 2022 is brought to only about 10 percent of the annual plan. Government capital investments are necessary to increase overall demand in the short-term plan and create conditions for sustainable economic development in the long-term plan. Also, the Government of Kosovo should use its fiscal instruments to curb price hikes and undertake measures that we have now proposed to help citizens with fixed incomes cope with price hikes”, he said.

As far as the gap between the required skills and those offered in the labour market is concerned, Mustafa proposed that the Government should provide professional skills programmes for existing unemployed so that they can acquire the skills required by the labour market.

“While, in a longer-term plan, the Government must adapt middle and higher education programmes in order for the country's educational system to produce a better workforce to adapt to market needs. Kosovo's government must understand that the country is in economic crisis and has no time to waste on such experiments that abuse public money. Kosovo's citizens need sustainable employment income and not premature contributions”, said KQM Finance Department Co-ordinator Arben Mustafa.