Minister plays down unemployment fears

A MARGINAL increase in unemployment in Cyprus can be expected, but not to the extent of opposition DISY’s estimations, the Labour Minister said yesterday.

Minister Sotiroula Charalambous blasted the opposition party’s claims that there would be a severe increase in unemployment during 2009, and invoked the recent Eurostat report on the subject, which saw Cyprus come third (with 3.9 per cent) among EU states with the best rate of unemployment.

Presenting a study it carried out on the matter, DISY said that if there was a two per cent growth rate during 2009, this would result in a six per cent rate of unemployment.

“I would really like this survey sent to us so we can see what DISY is basing these estimations on,” said Charalambous. “For us, the most credible sources for estimating employment tendencies are public employment services and the results of the European Statistics Office on unemployment.”

Charalambous repeated the Finance Minister’s analysis of the Eurostat figures and shared his view that compared to the rest of Europe, employment levels in Cyprus were at very satisfactory levels.

“We are expecting a marginal increase in unemployment, but not in these exaggerated numbers that have been given and which only manage to create a sense of panic among the working public and a climate of insecurity within the economy,” said the minister.

Charalambous admitted that unemployment had increased in the public constructions sector, but this was due to the completion of a number of big construction projects.

“Paphos Airport was complete two months ago,” she explained. “This construction absorbed a large number of workers from the construction industry.”

Asked whether any precautionary measures had been taken to deal with the increase in unemployment – even if it was marginal – Charalambous said this was being achieved by reinforcing sectors and helping them create new job vacancies.

“The biggest precautionary measure taken by the government was its decision to increase the implementation rate of the development budget, as well as the €40 million worth of added constructions,” she added.

The minister was speaking after announcing the start of a competition called ‘Productivity in Education’.

The competition is the first of its kind and is part of the government’s aim to embody the meaning of productivity in education, under the 2007-2013 National Productivity Programme’s project, ‘Developing the Culture of Productivity’.

Teams consisting of pupils and teachers can participate, while those interested must submit a project proposal, which will offer pupils and teachers the opportunity to understand the meaning of productivity and the factors that affect it.

Proposals must be sent to the Cyprus Productivity Centre by February 20. The proposals will be evaluated and those approved will be funded and awarded.