The Working Poor in Serbia, 2006-2022

Abstract

COVID-19 pandemic crisis enlarged „new “poverty among the working class what is a far-reaching consequences of the processes of globalization and privatization, especially in the USA, Canada and Europe. During COVID-19 pandemic crisis a lot of the workers lost their jobs. Others faced decline of the wages due to downturn in the global economy. „New“ poverty among the working class is particularly widespread in Eastern Europe as a result of privatization of state property and pauperization of the working class. The main issue of our paper is to analyze a link between the policy of flexible labor market and phenomenon of „new “poverty among the working class in Serbia. We explore the living standard of the working families in conditions of increased cost of living and the expansion of number of the workers that earn the minimum wage (400,000 persons, 20% of employees) in Serbia during COVID- 19 pandemic crisis. We examine the value and the content of the minimum consumer goods basket and the amount of the minimum wage. The amount of the minimum price of labor per working hour in Serbia for 2022 has not been determined by the Social and Economic Council of the Republic of Serbia. The decision on the amount of the minimum price of labor has been made by the Government of the Republic of Serbia, as it used to in previous years. The minimum cost of labor for 2022 is only 89% of the value of the minimum consumer basket.