Bulgarian Construction Chamber Predicts Swelling Unemployment

Business | July 25, 2012, Wednesday // 16:03|  views

BCC Chair Svetoslav Glosov has said he expects a total of 100 000 unemployed in the construction sector by end-2012. Photo by BGNES

Svetoslav Glossov, Chair of the Bulgarian Construction Chamber (BCC), has cautioned about a forthcoming wave of job cuts in the sector.

Glossov told journalists Wednesday that the number of unemployed in the construction sector could swell over 100 000 by end-2012.

He noted that small and medium-sized enterprises (SMEs) had been the first to suffer from the financial crisis still gripping the sector.

The BCC Chair explained that an increasing number of major construction companies were facing increasing costs and a lack of investments.

He made clear that the main problems in the sector were the state and municipal debts to private companies and also drew attention to the unattainable criteria for participation in public procurement.

"The crisis hit small companies first. However, the impact will very soon spread to big companies. I think that it is already tangible because the number of large-scale projects seems to have slumped. Big projects like highway lots are quite difficult to find," Glossov stated, adding that only 77 projects had a price tag of over BGN 2 M.

He also emphasized that the number of unemployed in the sector was expected to increase from the current 75 000 to 100 000.

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Tags: construction sector, Bulgarian Construction Chamber, Svetoslav Glossov, unemployed, small and medium-sized enterprises, financial crisis


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