Date Presented:

Abstract:

Despite the positive trends achieved in the last few years, high unemployment is still one of the worst indicators of the success of the applied macroeconomic and social policy of the state from independence until today. The indicators for the degree of unemployment among young people up to 29 years old (the age immediately after formal education) are particularly unfavorable. Unemployment in these years is one of the main reasons for young people leaving abroad. The motive is clear - employment is sought. The employment of young people in the homeland will reduce the trend of emigration, but it will also positively affect several segments of the socioeconomic life in the country.

To encourage the employment of young people from 15 to 29 years old, the state applies several measures and policies, and one of them is the subsidized employment of unemployed young people up to 29 years old through the regime of exemption from social contributions.

Encouraged by the initial results of this measure, the new Action Plan for the employment of young people for the period 2016-2020 foresees its extension. For now, this has not been translated into a specific legislative framework. The new Action Plan for the employment of young people for the period 2016-2020 (pages 26 and 33) provides for the extension of the measure after 2016 with the following parameters: planned employment of 3,000 people aged 15 to 29 and a budget in the amount of 2,040 .000 euros. The effects of the planned measures and policy for the employment of young people up to 29 years of age will depend on the successful implementation of the overall planned measures for the socioeconomic development of the country.

The subject of our interest is the measure for the subsidized employment of unemployed young people up to 29 years old through the form of exemption from paying contributions, by the defined legal provisions.

The subject analysis of costs and benefits aims to evaluate the costs and benefits of the implementation of the measure “Subsidized employment of unemployed young people up to 29 years old” through exemption from contributions.

The measure is part of the state's policy to reduce unemployment and is governed by provisions of the Law on Employment and Unemployment Insurance (Articles 98-b and 98-c), which have limited application from March 2014 to March 2016.

The analysis is structured in an introduction and eight main sections:

1. Trends

2. Legal framework

3. Terms and conditions for using the measure

4. Facts about the measure

5. Cost-benefit analysis

6. Qualitative analysis

7. Conclusion

8. Recommendations

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