Annual Report 2010 03 August 2011 - Banka Qendrore e ...

CBK
Annual Report 2010
On the other hand, the Producer
Price Index (PPI) during 2010 was
relatively stable, marking an
annual growth of 2.1 percent
(average December 2010 –
December 2009). Based on the
current developments of the food
prices and the prices of fuel
derivatives at the global level, the
inflationary pressures are expected
to remain present in the Kosovo’s
economy also during 2011.
Figure 4. Indices of import, producer, and global
food prices
110
105
100
95
90
0
85
4 In the absence of data for 2010, the labour market statistics are presented based on the Labor Force Questionnaire 2009.
Q1 Q2 QT3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2008 2009 2010
IPI PPI Global food prices (right axis)
Source: CBK (2011)
3.1.3. Labour Market
3.2. Fiscal Sector
According to the SOK Labour Force Questionnaire (2009), the unemployment rate in
Kosovo in 2009 was 45 percent 4 and it represents one of the main challenges for the
economy. As a result of the young structure of Kosovo’s population, a large number of young
people enter into the labour market every year, while the number of new jobs generated
within the year remains relatively small. Based on the statistics of the Ministry of Labour
and Social Welfare (MLSW), during the period 2004-2010, on average 25,000 people per
year have been registered as new jobseekers, whereas the average number of new working
places reported to the MLSW for each year was around 7,500.
According to the MLSW data, the number of registered jobseekers in 2010 decreased to
335,260, which represents an annual decline of 1.1 percent. The structure of registered
jobseekers is dominated by unqualified jobseekers (63.6 percent), followed by jobseekers
with secondary education (34.6 percent), whereas jobseekers with university qualification
comprise only 1.8 percent of total registered jobseekers. The structure of jobseekers by
gender appears to be balanced, with 47 percent of jobseekers being females. The
unemployment in Kosovo has mainly a long-term character, where more than 90 percent of
jobseekers have been unemployed for a period longer than 12 months. This makes the
unemployment problem in Kosovo even more concerning due to the risk of human capital
devaluation, which further diminishes the probability for an eventual employment for the
unemployed people and at the same time decreases the general productivity of the labour
force in the country.
Although data on the labour market in Kosovo are quite limited, it is estimated that 80
percent of employees are engaged in the private sector. On the other hand, the public sector
also represents an important employer, absorbing around 20 percent of total employees in
Kosovo. Employment through the intermediation of the MLSW in 2010 was at a lower level
compared to the previous year. Through the intermediation of the MLSW, 6,787 jobseekers
were employed in 2010, compared to 7,239 jobseekers employed in 2009.
Kosovo’s budget ended the year 2010 with a deficit of euro 93.2 million, compared to the
deficit of euro 85.5 million in 2009. The budget deficit to GDP ratio in 2010 reached at 2.2
percent.
250
200
150
100
50
| 27