Joblessness; Tough year ahead for jobs market

VISIT THE capital’s unemployment office on any given morning and the picture is a dire one as people from all walks of life patiently queue up to sign on for benefits. There are young twentysomethings who have barely seen a glimmer of hope despite their years spent specialising in a their desired subject, there are middle aged professionals who’ve been made redundant for lesser paid recruits, and then there are all the working class labourers who are unfortunate enough to be suffering the brunt of a shrinking industry.

With the recession now having hit the island harder than ever, unemployment rates have reached an all time high of 9.3 per cent in December with 32, 895 registered unemployed island-wide. At the same time last year there was a substantially lower 21,530 registered unemployed with figures amounting to a 6.1 per cent of the population. 

With the most recent figures pointing towards the second highest increase registered in the EU in comparison to last year–outdone only by Greece taking first place- the Labour Ministry has now announced that 2012 stands an extremely tough year ahead for the island. 

Those left without a job are eligible for unemployment benefit which amounts to 70 per cent of the wage they were receiving at their last job. But benefits only last for a period of six months, before being completely cut off. And while the job market shrinks, it means more and more people are left wondering if they’ll be receiving any income at all if no employment opportunities crop up before their six months are through.

“Some people do find a job within the six month period but many don’t, that’s just how it’s been lately,” says District Labour Officer, Panayiota Lyra. “The situation is definitely getting worse and there are far less job opportunities now than there were at the same time last year.” 

But what are the options for those who see their unemployment benefit cut off?

According to Labour Minister Sotiroulla Charalambous if people still haven’t found work, and if they fulfill the relevant criteria, they can apply for social welfare benefits.

“If a family is facing serious problems and both parents aren’t working, provided they fulfill the criteria, they are entitled to public aid,” Charalambous told the Sunday Mail yesterday. 

“Also, if someone has been unemployed for over six months, they are considered long-term unemployed and are given priority in the government’s training schemes and employment schemes (which offer incentives to employers to hire them).”

The minister added: “Due to the difficult economic times of the past few years, the number of unemployed people, and the beneficiaries of public aid has increased.” 

With those under 25 being the hardest hit by unemployment, it all points towards the fact that there are simply no new spaces opening up for those who are only just entering the job market. “They finish university or the army and there is just nothing around for them,” says Lyra. “A lot of the time they can’t find anything that suits their demands or qualifications but we are now trying to send out the message to young people to take what they find. They have to get out into the workplace and not stay at home waiting for what their ideal job would be.” 

While all sectors of the economy are suffering, the industries suffering the most are those of tourism, trade and construction. Currently jobless individuals who were previously working in the hotel industry stand as 18% of the total unemployed while trade and construction are not far behind at 17% and 15% respectively. 

As things stand, men and women have almost equally been hit by the bad economic climate with current statistics pointing to men making up 51% of the total unemployed and women making up 49%. 

While the Labour Office does try to match up any unemployed individual with a suitable new job, training programmes have also been designed to help people build their skills in computing, English and secretarial work. Advisors are also on hand when it comes to building CVs, presentation and personal empowerment. Recommendations are also given on where and how to look for a job as an individual. 

Joblessness: 

What one man did when the cheques stopped

By Bejay Browne

BECAUSE those who are out of work are only entitled to six months unemployment benefit, many families and single people are struggling to make ends meet.

One such person is Nabil Kobyninski, 33, who moved to Cyprus in November 2005 to work in his chosen field of tourism. With the industry booming at that time, Cyprus seemed like an obvious choice to set up home.

Originally from Poland, Kobyninski was eager to get to work straight away, so he took a temporary job in a fruit and vegetable store in Limassol.

Just a few weeks later, the well-educated professional secured a position working in the reservations department of a well-known Cypriot tour company where he worked for four and a half years and paid social insurance.

“Due to the crisis, I was made redundant. I immediately registered at the labour office and filled in the forms to claim unemployment benefit,’ he said. 

“I believe I received 20 days unemployment benefit and it took about two months from the date of my claim before I received any money.”

More than a year later, Kobyninski received a redundancy payout from the government of close to €2,000. “It was a good amount of money which I didn’t expect,” he said.

One month later, he found a new job working in an insurance company which again paid his social insurance but he said the work was very stressful and he left the job in less than a year, and again registered as unemployed.

The married father of two young girls said that he was required to appear at the labour office once a month to sign on.

“Each of the cheques I received was for one month’s money. Most people don’t get the whole payment in one go, unless you have waited for six months to receive it. I know of this happening in some cases,” he said.

Kobyninski received payouts consisting of 70 per cent of his previous income.

“After the six-month period for which you are eligible to receive payments, the money just stopped and there was no further offer of financial help from the government,” he said.

“I continually asked for work at the labour office and although they were very helpful, all of the jobs on their database were either filled or, I believe, just put on there by employers to say they had advertised the position at the labour office. I never even got one interview,” he said.

“The staff was always very helpful and friendly. You are also given a password so that you can check the data base on their computers or at home on yours.”

The family managed to keep their heads above water as Katerina, his wife was working, and the family had managed to save a little money.

“We just managed to survive,” he said.

Kobyninski eventually felt that the way forward was to set up his own small business.

“I had an idea of what I wanted to do and so I registered as self employed and made the minimal investment I could to start up a new business,” he said.

Kobyninski set up a website for his new business, Zebra Kids, and rented a very small shop, which deals in the sale of pre-owned items for babies and children, such as beds and pushchairs.

“I put photos of the goods for sale online and I make a little money if they are sold. I now also pay only a nominal amount of social insurance. A lady from their office visited my shop and was very helpful,” he said.

“I’m not making much money, but at least I make my rent. I hope we are helping people with our service and I’m happy,” he said.