WE WISH we could share the optimism of Labour Minister Zeta Emilianidou who believed that the three schemes she announced yesterday would provide work for some 8,000 people who are currently unemployed. Had she not been informed about the unsuccessful schemes that were implemented by her predecessor and did next to nothing in restricting, let alone reducing, unemployment figures?
In Cyprus all politicians, irrespective of their ideological background, subscribe to the idea that the state has a moral obligation to create jobs. For decades, this was exactly what our state was doing – creating tens of thousands of unnecessary, highly-paid jobs in the civil service, the National Guard, local government, semi-governmental organisations – and it is the main reason it is now bankrupt.
But we still refuse to learn anything from the mistakes of the past. Only a few weeks ago, President Anastasiades announced that the state would hire some 800 unskilled workers on temporary contracts and that all 300 graduates of military academies would be given jobs in the National Guard. We very much doubt the Cyprus army, which already has an absurdly high number of overpaid officers and would still be overstaffed if it got rid of half of them, needs another 300 officers.
Emilianidou’s schemes are in line with the thinking that the state should create unproductive jobs. The most ambitious of these aims to create 6,000 jobs in the hotel/tourism industry, at a cost to the taxpayer of €20 million. It seems strange the government is helping out a sector which is in good shape compared to others, and should not need employment subsidies. Perhaps the decision was taken because other sectors of the economy have been so badly hit that not even state subsidies would persuade them to hire people.
This is the crux of the matter. With the economy in a deep depression and the banks malfunctioning, unemployment will continue to rise no matter how many job-creation schemes the government comes up with. Real jobs are created by businesses and not by the state subsidising wages. Then again, the government wants to be seen to be doing something about the rising number of jobless and the announcement of job-creation schemes is better than nothing.
As things are, the number of the jobless would keep rising, while wages in the private sector would keep falling, no matter how many schemes the government announces. This unfortunately is the reality and there is very little that can be done by state to change it.
