TEHRAN -- Given a projected five percent growth in economy and 13.7 percent inflation rate and growth of population, Iran's social welfare index would increase by about 3.5 to 4 percent next year compared to this year, according to the Management and Planning Organization's (MPO) Macro Economy Department.

The MPO's Public Relations Department said that President Mohammad Khatami, while submitting the next year's budget bill to the Majlis, had expressed optimism that the income distribution and social welfare index would improve next year given the growth in national economy and increasing rate of employment this year.

The president had said the economic growth over the past two years had pushed down the unemployment rate to 12.5 percent and the figure is expected to further decline next year.

The MPO's report also announced that in fact the statistical figures released by the Central Bank of Iran (CBI) and Iran's Statistics Center (ISC) last year put the unemployment rate at about 13.5 percent. It is expected that the unemployment rate will be down by one percent this year.

The president had also said, however, that expert studies pointed to the improvement of income distribution indices next year compared to the this year and it is expected that the indices would further improve in the coming years given the growth of economy and creation of more job opportunities.

The MPO said it should be taken into consideration that the income and welfare distribution indices are affected by macro economic variables.

The MPO report envisions repayment of due foreign debts, control of inflation, drawing up of a deficit-free budget, increase in foreign exchange reserves, support for the low income classes, encouragement of investment in the less developed regions, increase in budget for research, repayment of government's debt to the banking system and reforms in government's structures as the basic goals of the government for next year.

The report further quoted Khatami as saying that latest statistical research, conducted by ISC and the CBI, point to decrease in unemployment rate last year. Expert estimates shows that unemployment rate stood at 12.5 percent this year, down by about two percent compared to last year.

Based on the CBI-ISC research the unemployment rate last year was about 13.5 percent.

Meanwhile, the Macro Economy Department of the MPO put the unemployment rate last year at a little higher level. The estimates were based on the figures released by the CBI on the economic growth and increase in investment. Review of the figures on growth in investment and the gross domestic product (GDP) point to a change in the figure on demand for work force and unemployment rate.

Based on latest statistics, released by the Macro Economy Department, the unemployment rate stood at between 14.5 to 15 percent last year. Given about a five percent growth in the GDP and about 7.8 percent growth in investment this year, as announced by the CBI recently, it is expected that there would be a two percent decline in the unemployment rate this year compared to the preceding year. Hence the unemployment rate would stand at about 12.5 percent this year, matching the figure released by the CBI on the job market.

(IRNA)