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‘No miracle to solving unemployment’

NOBEL laureate Christophoros Pissarides suggested extending the jobless allowance beyond the current six months and introducing a system of part-time employment as ways of combating unemployment.

Pissarides, who met Labour Minister Sotiroulla Charalambous, said there were no “miracle solutions” to solve all the problems created by the downturn.

He said the Ministry is doing a good job in tackling the problem, however “there is more to be done and a discussion can take place with the engagement of the trade unions as they play a very vital role”.

Pissarides’ proposals include temporarily extending benefits beyond the six-month period, introducing a system of part-time employment as well as the temporary suspension of some of the provisions of collective agreements so that there is a bigger demand for jobs to the benefit of the young population.

He said it was not the fault of the unemployed for not having jobs but “a mistake of the entire economy, which does not create enough positions.”

Pissarides suggested the cost of extending the benefits period would not be very high.

The Minister said Pissarides’ proposals will be thoroughly studied, noting however that we need to take into consideration employment practices in Cyprus as well as the employment environment as a whole.

She also said that during the meeting she had the chance once again to present to Pissarides all the actions and projects the Ministry is pursuing in its effort to tackle unemployment in Cyprus.

“We had the opportunity to discuss the various schemes the Ministry is offering, the incentives given to all those entrepreneurs who hire unemployed and also the projects for the integration of the unemployed in the market”, Charalambous said.

Source: Cyprus-Mail


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