Economic slowdown to further limit new jobs in Cambodia

PHNOM PENH, May 8, 2008 (Xinhua) -- An average of 250,000 new workers entered the job market each year from 2003 to 2007, but only an average of 150,000 new jobs were created in each of those years, the Cambodia Daily newspaper reported Thursday.

The number of jobs created annually peaked at 200,000 in 2005 and 2006, though 2007 saw a sharp decline to about 115,000 new jobs created, and further economic slowdown is expected to keep the number low for 2008, Sok Hach, director of the Economic Institute of Cambodia (EIC) was quoted as saying.

The World Bank is aware of the glut of new workers, said Senior Country Economist Stephane Guimbert, and in cooperation with the government, the bank is exploring ways to create about 250,000 new jobs per year.

By the end of the year, Guimbert said, the World Bank will submit an analysis to the government on ways to tackle the unemployment issue.

Meanwhile, the Cambodian Ministry of Labor is also training workers to better meet the demands of the local and overseas job markets, ministry Undersecretary of State Oum Mean said.

Oum Mean said the nation's unemployment rate remains low because of an informal, unregulated labor market, which he said employs millions from motorbike taxi drivers to street vendors.

National budget could jump to $1.5 billion in 2008

The national budget could be increased in 2008

27-11-07
By Ky Soklim
Cambodge Soir
Translated from French by Luc Sâr

A draft law plans for a budget increase of $300 million. The draft law would be put on vote in December.

The national budget could increase from $1.2 billion to $1.5 billion for fiscal year 2008. Cheam Yeap, chairman of the National Assembly (NA) committee for the economy and finance, confirmed during a seminar held on Tuesday 27 November, saying that with this budget amount, the government wishes to maintain its current policy which consists of reducing the costs involving defense, and increasing spending for social services. “We hope that the discovery of natural resources, such as natural gas and oil, we will be able to increase the salaries of government workers and reduce the price of gasoline,” Cheam Yeap added to a seminar he was giving about budget issues and fight against poverty. The seminar was participated by MPs, Senators, economists and officials from the civil society.

Sok Hach, Director of the Economic Institute of Cambodia, approved the law on the national budget for 2008. According to him, 15 years ago, Cambodia has turned away from a planned economy to a market economy. He added that nowadays, the county is “able to get out of an international aid-dependent economy, and able to live on its local activities. The raise in the local revenues is undeniable, but the government must pay attention to the inflation for the price of goods.”

The draft law on the 2008 budget will be debated during the NA session which will take place at the beginning of December.