Unemployment up by 100,000

According to a report from the Central Statistical Office (GUS), in December 2002 over 3.2 million people were registered unemployed - up over 100,000 from a year earlier. The jobless rate rose to 18.1% from 17.5% in December 2001, marking the fifth year-end rise in a row, and the highest since the fall of communism in 1989. Heavy job losses were recorded in the struggling construction sector, which cut 12% of its workers in 2002. The loss-making coal sector also shed 5% of its workers, transport and logistics 6.5% and manufacturing 6.2%. Analysts say, however, that official statistics may overstate the real number of jobless as many are believed to be working in the gray economy to avoid high tax and social security payments. Unemployment does not represent a major drain on public finances as 83% of the jobless have no right to unemployment benefit, although they do have access to free healthcare. (Reuters) K.Z.