State reduces costs for hiring young people aged under 29

Those employers in the private sector who will hire people under the age of 29, registered as unemployed individuals in the Employment Agency, will be exempted from paying social benefits in the first year, Prime Minister Nikola Gruevski told Sunday's press conference.

The measure, for which the government at a session has adopted changes to three laws, will be in effect for two years with a possibility to be extended depending on the achieved results. The target group includes all young jobless persons below the age of 29 years. According to data of the Employment Agency, these include 45 thousand people - 25 thousand are active job seekers, while 20 thousand are passive.

Under the new measure, the employer will be exempt from paying fees for pension and invalid insurance, health insurance and insurance in case of being laid off, according to Gruevski.

"The exemption from social benefits will be in effect for a period of 12 months with the employer being obliged to keep the job of a person for additional 12 months. The exemption refers to the base salary to which social benefits are paid i.e. the base of an average gross salary from the previous year," he elaborated.

The government measure, the PM added, in addition to creating new opportunities for hiring young people, also alleviates the work of and supports the business community, because the state is reducing the costs for hiring staff.

According to PM Gruevski, the new measure is a resumption of recent government activities and policies aimed at opening new jobs and reducing the unemployment rate.

"The government's employment policies have enabled the unemployment rate to drop from 38% to 28% between 2006 and 2014," Gruevski concluded.