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Record low pensioner-employee ratio could destabilise pension system

ZAGREB, Feb 24 (Hina) - It is estimated that the number of employed people in Croatia in January could drop under 1.3 million, which will further deteriorate the pensioner-employee ratio, which is now at a record low of 1.07, analysts at the Croatian Chamber of Commerce (HGK) have warned.

In consideration of the latest data of growing unemployment, in an analysis released on Monday, HGK concluded that the number of employed could fall in January to below 1.3 million. That would be the first time since the end of 2000 when the number of employed slipped that low.

The National Bureau of Statistics reported on Monday that the unemployment rate in January had grown from 19.6% to 20.3% and that it would release figures of the number of employed by the end of February.

HGK analysts warned that the situation could jeopardise the stability of the pension system if nothing was done.

"Currently the ratio of pensioners to employed persons is at a record low level of barely 1.07, which means that for every 100 pensioners there is 107 people employed. By comparison, at the beginning of 2008 the ratio was 1.34. At the same time the number of pensioners and unemployed is about 18% higher than those employed," HGK analysts said.

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