State policy in the field of ensuring employment in the agricultural sector of the Bulgarian economy (1989-2007)

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Institute for Historical studies Bulgarian Academy of Sciences

STATE POLICY IN THE FIELD OF ENSURING EMPLOYMENT IN THE AGRICULTURAL SECTOR OF THE BULGARIAN ECONOMY (1989-2007)

Mariia Heorhiieva,

Ph.D. (History), Associate Professor

Abstract

employment state policy bulgaria

Ensuring the stable socio-economic development of Bulgaria, improving the demographic and infrastructural situation of rural areas and the well-being of villagers are possible primarily under the condition of increasing employment of the rural population level. However, the significant mismatch between the demand and supply of the agricultural labor market, and the lack of competitiveness of agricultural products in most of its sales markets, had a negative impact, first of all, on the efficiency of the use of labor and the differentiation of its activities in the agricultural sphere. Thus, the use of hired labor, the number of hired workers, mobility of the labor force in the labor market, and employment of the population in the agricultural sector of the economy for the period 2000-2007 in Bulgaria decreased by an average of 30% according to each of the above indicators. As a result, a significant and uncontrolled migration of labor resources in the agricultural sector negatively affected the food security of the country as a whole.

Taking into account the above-mentioned problem, an urgent issue at the current stage of the development of the agrarian sector of the economy is the formation of effective diversification of the employment of labor resources. This, first of all, provided for the disclosure of the socio-economic essence, definition, characterization, and development of ways to increase the effectiveness of the diversification of labor force employment in the agricultural sector.

As a result of the research, we established that there were different approaches to the interpretation of the content of effective state policy in the field of employment.

The current state of employment of the population of Bulgaria was primarily characterized by a sharp decrease in the demand for labor, the closure or temporary suspension of the activities of enterprises, the reduction of employees, and part-time working hours. As a result, the number of unemployed increased, which was directly caused by the difficult political and socio-economic situation in Bulgaria. All this substantiated the relevance of this study.

Keywords: state employment policy, European Union, agricultural sector of the economy, Bulgaria, adaptation, integration.

Анотація

Марія Георгієва, канд. іст. наук, доц., Інститут історичних досліджень Болгарська академія наук, м. Софія, Болгарія

ДЕРЖАВНА ПОЛІТИКА В ГАЛУЗІ ЗАБЕЗПЕЧЕННЯ ЗАЙНЯТОСТІ В АГРАРНОМУ СЕКТОРІ ЕКОНОМІКИ БОЛГАРІЇ (1989-2007)

Забезпечення стабільного соціально-економічного розвитку Болгарії, поліпшення демографічного та інфраструктурного становища сільських територій і добробуту селян, стало можливим насамперед за умови підвищення рівня зайнятості сільського населення. Проте значна невідповідність між попитом і пропозицією аграрного ринку праці, неконкурентоспроможність болгарської сільськогосподарської продукції на більшості європейських ринків збуту негативно вплинули, насамперед, на ефективність використання праці та диференціацію своєї діяльності в аграрній сфері. Так, використання найманої праці, кількість найманих працівників, мобільність робочої сили на ринку праці та зайнятість населення в аграрному секторі економіки за період 2000-2007 рр. в Болгарії знизилися в середньому на 30 %. Як наслідок, значна та неконтрольована міграція трудових ресурсів в аграрному секторі негативно вплинула на продовольчу безпеку країни в цілому.

Враховуючи вищезазначену проблему, актуальним питанням на сучасному етапі розвитку аграрного сектору економіки Болгарії є формування ефективної диверсифікації використання трудових ресурсів. Це передусім передбачає вивчення соціально-економічної сутності кадрового забезпечення болгарського села, визначення, характеристику та розробку шляхів підвищення ефективності диверсифікації зайнятості робочої сили в аграрному секторі.

У результаті дослідження ми встановили, що існували різні підходи до формування змісту ефективної державної політики у сфері зайнятості.

Сучасний стан зайнятості населення Болгарії, який в першу чергу характеризувався різким зниженням попиту на робочу силу, закриттям або тимчасовим припиненням діяльності підприємств, скороченням штатів працівників, неповним робочим днем, а також, як наслідок, зростання кількості безробітних безпосередньо спричинене складною політичною та соціально-економічною ситуацією в Болгарії. Все це обґрунтувало актуальність даного історичного дослідження.

Ключові слова: державна політика зайнятості, Європейський Союз, аграрний сектор економіки, Болгарія, адаптація, інтеграція.

The main text

The current period of economic and social transformations in Bulgaria is characterized, first of all, by a crisis, which manifests itself in the form of a decline in production and investment activity, the development of inflationary processes, and a decline in the level of well-being of the main part of the rural population. After all, the transition from the command-administrative system to the market system in the country was accompanied by a gradual increase in the level and duration of unemployment, the development of forced part-time and informal employment.

If in 1992 the number of people who lost their jobs and were officially registered as unemployed was 70.5 thousand people, then in 1996 - 351.1 thousand people, and in 1999 - 1174.5 thousand people [3, p. 73].

The transformation of the economic sector had a particularly painful effect on the life of the Bulgarian village and its inhabitants, because as a result of the restructuring of the command-administrative system and the creation of new organizational and legal forms of enterprises based on private property, many Bulgarian peasants not only lost their jobs, but also lost the main value orientations of their the worldview fostered by the command system.

It is worth noting that the problem in the field of employment existed even during the socialist period and, according to the definition of many economists, it was the most deformed in the sector of the country's economy. Therefore, at the time of the collapse of the command-administrative system in 1989, the sphere of employment in rural areas was characterized by:

-lack of state and legal institutions of the labor market, as well as legislation regulating issues related to the employment of the population, as well as nonrecognition of the problem of unemployment at the government level;

- the lack of flexibility of the remuneration system due to its state regulation;

- low level of mobility of the labor force, as a result of legislative restrictions of the socialist period [2, p. 64].

However, at that time, the existence of 100% employment was typical for the Bulgarian countryside, which, along with the provision of a number of public services to the villagers, was provided almost exclusively by agricultural enterprises (cooperatives and state agricultural enterprises).

Thanks to the production of various plant and animal products, the presence of auxiliary divisions (transportation, construction, machinery repair), workshops for processing agricultural raw materials, production of other industrial goods, these enterprises provided work for the majority of the rural population. The rest of the villagers worked in the service sector: salespeople in stores, cooks in village cafes and canteens, hairdressers, seamstresses, etc. There was also a category of the socalled rural intelligentsia: teachers, doctors, employees of cultural and educational institutions (clubs and libraries).

However, with the beginning of agrarian transformations, the social activities of agricultural enterprises gradually declined, and accordingly, the number of employed workers in agriculture also decreased. If in 1990, 48,810 thousand people were released, then in 2012, 625,300 people had the status of unemployed (almost 7.8 times). In Haskovo, Sliven, Pazardzhik, and Plovdiv regions [7, p. 61], the decrease in employment in rural industry ranged from 5 to 33 times. The largest share of peasants released from the agricultural sector was recorded by the bodies of the National Statistical Institute in mountainous regions [7, p. 64].

In addition, at the beginning of the 2000s, the activities of large landowners of the agrarian market - agroholding structures [9, p. 11], which during the first decade of the 21st century intensified provided employment for only a fifth of the workingage rural population. Thus, the focus of business giants on the production of commercial export crops and the curtailment of labor-intensive fields of crop production (vine growing, tobacco cultivation, etc.) and the reduction of a large number of the least profitable livestock enterprises left a significant part of the rural population without work.

In addition, the owners of agricultural holdings artificially reduced the costs of paying peasants, which had a negative effect on the material situation of the peasants [3, p. 124].

In fact, such agricultural industries as viticulture, vegetable growing, and tobacco growing have reduced the planting of peas and other labor-intensive crops, for the cultivation of which thousands of jobs were used. And also the production of animal husbandry products was reduced by two times.

So, it can be stated that the reduction of the average annual number of employees in agriculture and forestry was significant: in 1995, they numbered 3,888,000 people, in 2000 - 2,752,000 people, in 2003 - 1,613,800 people [1, p. 109], in 2007 - 493.5 thousand people (if we take the percentage indicators, the unemployment rates this year was 7.1%, and the employment rate was 62.7%) [1, p. 111].

In the following years, a more positive trend emerged. According to official statistics, the number of people who lost their jobs decreased. During 2007, 188,500 unemployed people were registered with the Bulgarian State Employment Service from the number of former agricultural workers, or 40.3% of all registered unemployed people.

It is worth noting that, at the same time, lower rates of release of working peasants were characteristic of the social sphere. Mainly, this process took place due to the reorientation of a certain part of the population to private activities (trade, catering).

At the same time, an extremely acute situation developed in small and remote villages, where the process of destruction of social infrastructure was occurring at a catastrophic pace and was becoming irreversible. Only in the last years of the 20th century, the number of rural workers employed in this field of activity decreased by 35.2%. And in the Varna, Smolyan and Vidin regions, the corresponding trends developed at an even greater pace - the indicators reached the mark of 45-60%. In the Vidin region, in particular, it was 56% [22, p. 59].

However, in addition to official statistical indicators, there was a large hidden unemployment in rural areas during the period of independence. This happened because not all the rural unemployed population was registered with the employment services. The lack of sufficiently clear information for the peasants regarding registration, the remote location of employment centers, difficulties with transport connections, travel expenses were practically not compensated by the amount of unemployment benefits, which in the late 1990s - 2007 were paid irregularly and with long delays. That is why there were significant differences in the levels of actual and officially registered unemployment. According to the survey of the State Employment Center of the Ministry of Labor and Social Policy of Ukraine, in October 1996, only every third unemployed citizen was registered in Vidin and Sliven regions. At the same time, in some southern and eastern regions (Smolyan and Dobrich regions) less than 9% of unemployed citizens applied to the employment service [21, p. 47].

In general, the amount of hidden unemployment in 2000 reached 1.4 million people, or 57% of the total number of workers employed in agriculture [17, p. 19]. And at the end of the first decade of the 21st century, according to various estimates, they reached 30-50% of the total number of employed people. In general, in 2007, the amount of hidden unemployment in the rural areas of Bulgaria was estimated at the level of 900-950 thousand people. By the way, the acuteness of the situation in the field of employment of the rural population was constantly increased by the unevenness, even the opposite direction of the dynamics of the development of the urban and rural labor markets [20, p. 118]. Since the specificity of employment in the rural sphere, unlike the urban sphere, had its own characteristics:

- the dominant field of employment in the village was and remains agricultural production (in some regions, the share of workers in this field reached 80%);

- it was necessary to take into account the seasonal nature of agricultural work, which created temporary significant reserves of labor with the production structure formed in the village (in the Plovdiv region, part of the unemployed was involved in seasonal work in agricultural enterprises) [14, p. 24];

- indicators of productivity and efficiency, financial, energy and electrical labor supply in the villages remained at a low level;

- the working and living conditions of rural families were more closely related to each other, which significantly reduced the possibilities of maneuvering the labor potential;

- the social infrastructure, which played not the least role in securing workers in rural areas, was either underdeveloped or almost non-functional [20, p. 29].

Therefore, the number of released workers in rural Bulgaria was almost always higher compared to the same number in cities. The only exception was the period from 2004 to 2008, when the growth rate of the employed urban population was 1.82%, and the rural population was 6.82%, which indicated an anticipatory increase in the number of employed peasants [3, p. 25]. Unfortunately, already in 2009, these positive trends changed radically - the number of released workers in rural areas became larger every year compared to cities.

Regarding gender characteristics, more women lost their jobs than men. In 2000, 345,900 men and 535,600 women were officially unemployed in the Bulgarian agricultural sector. At the end of 2007, the situation leveled off a little: 233,100 men and 273,700 women were considered unemployed [22, p. 94].

As for the educational level, not only people who had no education at all, but also sufficiently educated persons became unemployed in rural areas. In particular, the following negative regularity of the rural labor market became noticeable: the higher the level of education of an unemployed person, the more difficult it became for him to get a job in the countryside. This process went against the general trend of greater protection of the highly educated workforce from unemployment.

First of all, the professions of agronomists, zootechnicians, veterinarians and paramedics turned out to be undemanding in the agricultural sector. The unemployment rate among agronomic specialists was 9 times higher, and among zootechnical specialists 6 times higher than the general rate of unemployment in Bulgaria. The reason for this was insufficient coordination of personnel training with the labor market situation.

Looking ahead, we note that it was precisely this inconsistency that ultimately caused an increase in the demand for certain types of professions in the countryside in the early years of the 21st century: there were often vacancies for tractor drivers, low-skilled manual laborers, gardeners, grape growers, milkmen, animal breeders, etc. [5].

The question of the quality of the personnel potential of workers in rural areas remained open. Most researchers claim that it was constantly deteriorating. According to T. Turlakova [20], the deterioration of the quality of agricultural personnel was provoked by the following factors:

- low work motivation;

- changing the structure of production and unemployment;

- underestimation by enterprise managers of the importance of personnel training;

- the reduction of education funding and the lack of adequate social protection for employees;

- low efficiency of material production;

- low wages, late payment and lack of moral stimulation [2, c.35].

So, all the factors mentioned above made the prospect of engaging in agricultural work unattractive for many peasants. That is why the beginning of the 21st century was constantly characterized by intensive staff turnover in rural areas. In general, according to statistical data, at the beginning of 2000 there were 4.4 million working people among the rural population (53.4% of the total population of working age), which was 30.6% less compared to the survey data of 1996. Moreover, every fourth of the employed worked outside their locality, almost every second - in cities and towns. By the sphere of employment -55.4% were employed in material production, 320 16% - in the spheres of education, health care, public administration, 11.9% - in various spheres of industry and construction, 4.4% - in transport.

The process of aging of personnel potential was also observed in rural areas. In particular, the largest increase in the level of employment in the early 2000s was recorded in the oldest age group (from 60 to 70 years old). Quite often, elderly people, experiencing constant financial problems (they received only a pension), were forced to work additionally.

As for the youngest age group (15-28 years old), during 1989-2007, their number of employed in agriculture significantly decreased. If at the end of 2000 there were 310,500 people aged 15 to 28 (15.1% of the total number of employees in the industry), then at the end of 2007 - 192,200 and 13.6%, respectively [5, p. 40].

The fact that agriculture has become an unpromising field of activity for rural children and youth, and the village itself is an unprestigious place to live, was also evidenced by the data of sociological studies conducted by the National Statistical Institute of Bulgaria.

According to their results, it turned out that among high school students of rural educational institutions, only 11% would like to live in a village in the future, while 25% - in the capital, 22 - in a big city [8]. Degrading rural settlements could not provide jobs for young people.

The work of the district and regional state employment services, which were supposed to help those who wanted to find a job, was not very effective. In 2004, these institutions could offer the rural population only 7,600 jobs. This is at a time when 35 unemployed peasants applied for one job.

The problems related to the sphere of employment were also deepened by the uncoordinated policy of the state leadership, which essentially did not regulate employer-employee relations. In 1998, the Law «On Support of Agricultural Producers» [2, p. 50] was adopted, but Bulgarian agrarian entrepreneurs were not yet ready to take full responsibility for the implementation of collective agreements and agreements with trade unions. As a result, due to the lack of collective agreements at some agricultural enterprises, systematic detention and non-payment of wages to employees became a permanent phenomenon, which, in the end, nullified the stimulating role of wages.

In addition, the state did not form a legal framework for the development of individual contracts (agreements) and flexible forms of employment, which were actively used in the conditions of globalization in the West.

Therefore, the functioning of private small and medium-sized enterprises, which, in contrast to the leading market operators - agricultural holdings, became a source of creating new jobs was almost the only positive step in the field of employment of peasants. However, rural entrepreneurs could not solve the problem of overcoming unemployment.

A growing percentage of people engaged in so-called informal or «shadow» work, and they were officially registered as unemployed for the state, also became characteristic of the Bulgarian countryside during the period of independence.

It is worth noting that it was the countryside that became the main environment where informal activities became widespread. The results of the survey of villages conducted in 2006 also testify to their spread among the villagers. According to their data, almost 2/3 of the working rural population did not participate in the formation of local budgets at their place of residence. At the same time, the highest share of people employed outside the formal sector of the rural economy was observed in the «low-budget» regions: Sliven (83.5%), Yambol (82.9%) [15].

The main areas of employment in the informal sector of the Bulgarian countryside during the period of independence were the cultivation and sale of agricultural products, provision of repair, transport, tourist services, small trade, provision of financial and credit services, provision of household services.

Often, in order to reduce the amount of taxes or not to pay them at all, peasants did not register household production units, did not license their activities in the field of gathering and selling berries, mushrooms, wood, fish, etc. In the villages, it became a common practice for entrepreneurial structures to recruit people without concluding employment contracts, and the latter received wages in «envelopes» (28% of the population) [6, p. 42].

The potential opportunities of the peasants employed in the informal sector of the economy, in relation to their qualifications, are evidenced by statistical data on the educational level. They show that in the structure of the rural population, the share of persons with complete higher education, basic higher education, and incomplete higher education in 2012 was 15.4%. Persons with a complete general education made up 66.4% of all workers in the informal sector of the rural economy, and with a basic general education - 17.2%. The participation rate of the rural population, employed in the informal sector of the economy, of working age was: with full higher education - 18%, with basic higher education - 29.9%, with incomplete higher education - 31.1%. The level of participation of persons with complete general secondary education was high - 52.8% and basic general secondary education - 73.7% [20, p. 87].

Constant problems with the population's employment, loss of jobs and constant economic troubles in the country had an extremely negative impact on the level of the peasants' well-being. During the years of independence, the level of material wellbeing of the villagers inevitably went down.

Since the beginning of the 1990s, agriculture has taken the last place among other sectors of the Bulgarian economy in terms of wages. And the new cohort of employers, which was formed at the beginning of the 21st century (mainly from the number of representatives of big business in the agrarian environment), in addition, gradually reduced its already small size.

According to some scientists, in particular Iskra Beleva [1, 2], the increase in wages was restrained in the agricultural sector due to the fact that it would lead to an increase in the cost of agricultural products, which were already not distinguished by high profitability [3, p. 53]. Consequently, the demand for it would decrease - and, as a result, the owners of enterprises in the agrarian sector would suffer significant losses.

At the beginning of the 21st century, the trend of low wages for employees in the agricultural sector compared to other sectors of the economy remained constant. The average monthly salary in 2000 was only 137 leva, in 2001 - 154 leva and was 2 times less compared to the average salary in the country. In 2002, it increased slightly and amounted to 183 leva (48.7% of the average salary level by economic sector) [20, p. 98]. It is worth noting that in 1990 this indicator was equal to 95%.

In the following years, the situation did not improve. In 2006, in 6 regions of Bulgaria, wages in agriculture were lower than the average subsistence minimum [22, p. 104].

It is worth noting that, in addition to low wages, in a significant part of the reformed agricultural enterprises, the norms and guarantees of the current labor legislation were constantly violated, in particular, there were cases when collective agreements were not concluded by the owners or their authorized bodies.

At a significant part of the enterprises of the agro-industrial complex, the owners also did not observe inter-qualification and inter-position ratios. Surcharges and allowances guaranteed by legislation and the agreement were not established and paid for harmful and especially harmful working conditions, for overtime work, night shift, etc. Wage indexation was not carried out in accordance with the law.

For rural areas of the late 20th - early 21st centuries. an increase in salary arrears remained an urgent problem. For example, in the Sliven region in 1998, rural teachers did not receive wages for 7 months, and the technical staff of certain schools and cultural workers - for 16 months [13].

As of 2007, the situation with salary arrears was still relevant. Although the state leadership has so far repaid more than 70% of the debts [6, p. 133].

Another channel that influenced the formation of the income structure of the Bulgarian rural population during the period of independence was pension provision. In most regions of Bulgaria, this type of cash income accounted for 36% of peasant income [21].

Thus, excessive inflation, the decline in production, underemployment and unemployment, low standards of labor remuneration, lack of adaptation to new conditions of the social protection system and effective legislative levers of influence led to a drop in the incomes of peasant families, aggravation of the process of marginalization of the population and the spread of poverty (as defined by the UN, absolutely poor are people who spend less than 5 USD per day or spend more than 60% of their budget on food).

Every year in Bulgaria, the poverty rate increased by an average of 2%. In 2007, it was 32.3% in rural areas, while in cities it was much lower and stopped at 20.2% [21, p. 50].

Consequently, the rural areas of the period 1989-2007, as a result of reforming the agrarian sector, constantly had problems related to the employment of the population. Their main reason was a significant decrease in the functioning of collective agricultural enterprises, which began to release people en masse. In addition, at the beginning of the XXI century. agricultural holdings appeared, involving only a small part of the rural population. The situation was supplemented by crisis phenomena in the cultural and household infrastructure, which left a large part of rural workers in this field without work.

Thus, the period 1989-2007 was affected by the dynamics of growth in the number of people who lost their jobs. The period of independence also brought changes in the income structure of peasants, a significant part of which was wages and pensions. At the same time, against the background of transformational processes, the amount of wages in rural areas decreased significantly, and the amount of pensions constantly lagged behind the amount of the minimum subsistence level, due to which the majority of villagers became significantly poorer, because they often could not afford to purchase basic necessities and medicines.

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