ISSN YEARBOOK CROATIAN EMPLOYMENT SERVICE
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1 ISSN YEARBOOK
2
3 ISSN YEARBOOK Zagreb, April 2007
4 IMPRINT Publisher: Croatian Employment Service, Zagreb, Radnička cesta 1 Phone: Fax: Editorial Staff: marica.baric@hzz.hr Website: On Behalf of the Publisher: Ankica Paun Jarallah Acting Director General of the Croatian Employment Service Editor: Marica Barić English Translation: Abis d.o.o., Zagreb Graphic Design and Print: Znanje d.d., Zagreb Circulation: 200 copies
5 Content Economy and Labour Force 7 Unemployment Labour Force Demand and Employment Vocational Guidance and Selection Annual Employment Incentive Plan 2006 Benefits from Unemployment Status Projects Supported by the International Community Organization and Activities of the CES: Main Responsibilities of the Croatian Employment Service Organization and Employees Financing of the Croatian Employment Service IT Support to the Functioning of the CES International Relations
6 I. Zagreb County City of Zagreb GEOGRAPHICAL DISTRIBUTION OF REGIONAL AND LOCAL OFFICES OF THE BY COUNTIES County Regional Office Local Office Zagreb II. Krapina-Zagorje County Krapina III. Sisak-Moslavina County Sisak Kutina IV. Karlovac County Karlovac V. Varaždin County Varaždin Sesvete Dugo Selo Ivanić-Grad Jastrebarsko Samobor Donja Stubica Klanjec Zabok Petrinja Dvor Glina Gvozd Novska Duga Resa Ogulin Ozalj Cestica Ivanec Velika Gorica Vrbovec Sveti Ivan Zelina Zaprešić Zlatar Pregrada Hrvatska Kostajnica Sunja Topusko Slunj Vojnić Ludbreg Novi Marof VI. Koprivnica-Križevci County Križevci Ðurđevac Koprivnica VII. Bjelovar- Bilogora County Bjelovar VIII. Primorje-Gorski Kotar County Rijeka IX. Lika-Senj County Gospić Čazma Daruvar Cres-Lošinj Crikvenica Čabar Delnice Donji Lapac Novalja Otočac Garešnica Grubišno Polje Krk Opatija Rab Vrbovsko Senj Korenica X. Virovitica-Podravina County Virovitica Orahovica Slatina Pitomača XI. Požega-Slavonia County Požega Pakrac XII. Brod-Posavina County Slavonski Brod Nova Gradiška Okučani XIII. Zadar County Zadar Benkovac Biograd Gračac Obrovac Pag XIV. Osijek-Baranja County Osijek Beli Manastir Donji Miholjac Ðakovo Našice Valpovo XV. Šibenik-Knin County Šibenik Drniš Knin XVI. Vukovar-Srijem County Vukovar Vinkovci XVII. Split-Dalmatia County Split XVIII. Istria County Pula XIX. Dubrovnik-Neretva County Dubrovnik Ilok Županja Supetar Hvar Imotski Makarska Omiš Sinj Umag Buzet Labin Korčula-Lastovo Metković Trogir Vis Vrgorac Kaštela Solin Trilj Pazin Poreč Rovinj Ploče 4 XX. Međimurje County Čakovec Mursko Središće Prelog
7 Map of Regional and Local Offices of the Croatian Employment Service by Counties Croatian Employment Service 5
8 6
9 Economy and Labour Force Basic Economic Trends In 2006, Croatia s gross domestic product (GDP) increased by 4.8 per cent in real terms in comparison with The GDP growth oscillated throughout the year. The biggest growth was recorded at the beginning of the year (6.0 per cent in the first quarter), it significantly slowed down in the second quarter (to 3.6 per cent), only to intensify once again in the second part of the year producing an increase of 4.7 per cent in the third and 4.8 per cent in the fourth quarter. The realized cumulative annual GDP growth in 2006 increased in relative terms by 0.5 percentage points in comparison with the year before, when the growth rate equaled 4.3 per cent. The GDP growth is a result of positive trends in most segments of the Croatian economy, i.e. industrial production, construction, transport and tourism, and a relatively low consumer price growth rate. Such an economic growth has induced positive changes in the labour market so that, in the past few years, a continuous increase in employment as well as a decline in registered unemployment and unemployment rate have been recorded. Basic Economic Indicators for 2005 and 2006, Growth Rates (per cent) Gross Domestic Product Physical Volume of Industrial Production Physical Volume of Construction Works Real Retail Trade Turnover Tourist Overnights Exports Total (HRK) Imports Total (HRK) Consumer Price Indices Real Net Salary Total Number of Employed Persons Total Number of Unemployed Persons Registered Unemployment Rate Survey-based Unemployment Rate, HY Source: Central Bureau of Statistics In 2006, a relatively high growth of 4.5 per cent was recorded in the field of industrial production, although somewhat slower (by 0.6 percentage points) compared to Industrial production encompasses three fields from the National Classification of Economic Activities: manufacturing industry, electricity, gas and 7
10 water supply, and mining and excavation. The increase in the total production is primarily a result of the increase (of 4.5 per cent) recorded in the manufacturing industry, since it accounts for the largest share in the total production, but also of the increase in other two fields, namely mining and excavation (10.3 per cent) and energy supply (1.6 per cent). After last year s slowdown in the field of construction activities caused by the reduction of State investments in transport infrastructure, these activities were intensified in Relatively high growth rates were realized throughout the year when compared to the year before. Consequently, the realized cumulative annual growth of 9.3 per cent in the field of construction works contributed greatly to the total economic growth. The total retail trade turnover realized by legal entities engaged in the mentioned activity increased in 2006 by 4.8 per cent in nominal terms in comparison with 2005, while the increase of retail trade turnover in real terms amounted to 2.1 per cent. The positive trend in tourism was continued, moving significantly slower compared to the year before. More precisely, the number of arrivals increased by 3.9 per cent and the number of tourist overnights increased by 3.1 per cent in comparison with At the same time, a significantly faster growth was recorded in the number of domestic arrivals and overnights (12.9 and 10.1 per cent respectively) compared to arrivals and overnights by foreign tourists (2.3 per cent). However, foreign tourists still accounted for the largest share in both the number of arrivals (83.4 per cent) and the number of overnights (88.7 per cent). According to the temporary data, total annual exports in foreign trade exchange increased by 15.6 per cent in 2006, whereas total imports increased by 13.3 per cent in the same period. Due to a relatively higher growth rate of exports in comparison with imports, the coverage of imports by exports increased from 47.3 per cent in 2005 to 48.3 per cent in The annual nominal growth of average net salary equaled 5.2 per cent in 2006 (0.7 percentage points less than in 2005), while the real net salary growth rate was realized at a 1.9 per cent annual growth rate, down by 1.8 percentage points compared to The annual inflation rate, measured on the basis of the consumer price index, equaled 3.2 per cent in 2006, down by 0.1 percentage points in comparison with the year before. Labour Force in Croatia Registered Employment and Unemployment, 2006 Annual Average According to the data from the Central Bureau of Statistics based on administrative sources, in 2006 the level of total active population in Croatia increased (by 30,180 or 1.7 per cent) as a result of the increase in the number of employed persons (by 47,302 or 3.3 per cent) and a simultaneous decline in the number of unemployed persons (by 17,122 or 5.5 per cent). 8
11 Active Population Based on Administrative Sources (Annual Average for 2005 and 2006) Index Active Population 1,729,312 1,759, Employed Persons 1,420,574 1,467, Employed in legal entities 1,113,208 1,160, Employed in craft businesses and free professions 258, , Insured farmers 49,034 44, Unemployed Persons 308, , Registered Unemployment Rate Izvor: Državni zavod za statistiku RH The annual registered unemployment average amounted to 1,467,876 in 2006, which is an increase of 47,302 persons or 3.3 per cent in comparison with The majority of employed persons were employed in legal entities 1,160,321 or 79.0 per cent (by 4.2 per cent more than in 2005), then in craft businesses and free professions 262,690 or 17.9 per cent (by 1.7 per cent more than in 2005), whereas there were 44,865 or 3.1 per cent insured farmers (by 8.5 per cent less than in 2005). According to the National Classification of Economic Activities, the largest number of employed persons was recorded in the manufacturing industry (291,886 or 19.9 per cent), trade and repair of motor vehicles and household items (251,155 or 17.1 per cent). In comparison with the year before, the number of employed persons increased almost in all fields of economic activity (except in the household and energy supply fields). The greatest increase was recorded in trade (by 10,328 persons or 4.3 per cent), construction (by 10,085 persons or 8.4 per cent), real estate and business services (by 9,079 persons or 10.1 per cent), hotel and restaurant business (by persons or 6.5 per cent), and the manufacturing industry (by persons or 1.8 per cent), see Appendix 1, p. 13. In terms of economic sectors (agricultural, non-agricultural and service), the structure of employed persons in 2006 showed that 63.2 per cent employed persons worked in service activities, 31.2 per cent in non-agricultural and 5.4 per cent in agricultural activities. In comparison with 2005, an increase in the share of service (of 0.4 percentage points) and non-agricultural activities (of 0.1 percentage points) was recorded, whereas the share of agricultural activities declined (by 0.5 percentage points). The average annual level of registered unemployment decreased in 2006 by 17,122 persons or 5.5 per cent, i.e. from 308,738 registered persons in 2005 to 291,616 in Unemployment Rate Based on Administrative Sources Under the influence of the reduced number of unemployed persons and the simultaneous significant increase in the number of employed persons, the average annual registered unemployment rate in the Republic of Croatia fell from 17.9 per cent in 2005 to 16.6 per cent in 2006 (according to the Central Bureau of Statistics). 9
12 There are significant differences in the unemployment rate at the regional level, i.e. by counties. In December of 2006, the average unemployment rate at the State level amounted to 16.0 per cent. The unemployment rate was lower than the average State-level rate in eight, and higher in thirteen counties. The lowest unemployment rate was recorded in the Istria County (7.0 per cent) and the City of Zagreb (7.2 per cent), followed by the counties of Primorje-Gorski Kotar (12.0 per cent), Varaždin (12.9 per cent), Krapina- Zagorje (13.9 per cent) etc. The highest unemployment rate was recorded in the counties of Vukovar-Srijem (30.6 per cent), Virovitica-Podravina (29.1 per cent) and Sisak-Moslavina (29.1 per cent). Compared to the year before, the unemployment rate declined in all counties, primarily in the counties of Šibenik-Knin (2.9 percentage points), Dubrovnik-Neretva (2.3 percentage points), Zadar (1.6 percentage points), Primorje- Gorski Kotar (1.4 percentage points) and Split-Dalmatia (1.4 percentage points). In order to calculate the unemployment rate by counties, the data on insured persons registered with the Croatian Pension Insurance Institute (as registered employed persons) and the data on unemployed persons registered with the Croatian Employment Service were used. Employment and Unemployment According to the Labour Force Survey in HY The Labour Force Survey is carried out by the Central Bureau of Statistics in accordance with the methodological rules and principles of the International Labour Organization (ILO) and the Statistical Office of the European Communities (Eurostat). This source of data is therefore internationally comparable. The survey is carried out on a monthly basis, whereas the results are announced on a half-yearly basis. 10
13 According to the Labour Force Survey, in the first half of 2006 Croatia s active population amounted to 1,755,000, which is by 47,000 or 2.6 per cent less than in the same period the year before. As a result, the activity rate, i.e. the share of labour force in working-age population, also fell from 49.9 to 48.3 per cent. Active Population (Labour Force) According to the Labour Force Survey, (Half-Yearly Results for 2005 and 2006) 2005/I 2005/II 2006/I Index 2006I/2005I Active Population 1,802,000 1,802,000 1,755, Employed Persons 1,566,000 1,580,000 1,548, Unemployed Persons 236, , , Survey-based Unemployment Rate Survey-based Unemployment Rate The reduction in total active population was a result of the simultaneous reduction in employed and unemployed population. More precisely, the number of employed persons decreased by 18,000 or 1.1 per cent (from 1,566,000 to 1,548,000), whereas the number of unemployed persons decreased by 30,000 persons (from 236,000 to 206,000), having a significantly higher relative rate of decline of 12.7 per cent. The unemployment rate equaled 42.6 per cent according to the ILO criteria (15+) and 54.2 per cent according to the Eurostat criteria (15-64). Unemployment Rate According to the Labour Force Survey Despite of the simultaneous reduction in employment and unemployment, i.e. total active population, the relatively higher rate of decline in unemployment resulted in a decline in the unemployment rate, from 13.1 per cent in HY to 11.8 per cent in the same period of 2006 (by 1.3 percentage points). In terms of gender, the unemployment rate declined both in the case of women (from 13.9 to 13.5 per cent) and men (from 12.4 to 10.3 per cent) in the observed period. Comparison of Data Based on Administrative Sources and the Labour Force Survey Administrative statistical sources are based on the data about registered employed and unemployed persons from the statistical records of relevant institutions in the labour market. They measure the activity of the population according to their formal status, while the Labour Force Survey measures the economic activity of the population according to the real status, in accordance with the methodological rules and principles of the International Labour Organization. The following graph shows the comparison of the structure of active population based on administrative sources and the Labour Force Survey for two comparable periods, i.e. HY1 of 2005 and
14 Comparable Indicators of the Structure of Active Population , Labour Force Survey Employed 1, Administrative Sources 1, Labour Force Survey Unemployed , Administrative Sources 2005/I 2006/I The results of the Labour Force Survey regularly show a significantly larger number of employed and smaller number of unemployed persons in comparison to the administrative sources. An especially significant difference is seen in terms of the unemployment rate, which was 17.2 per cent in the first half of 2006 according to the administrative sources, and 11.8 per cent according to the Labour Force Survey. The average number of unemployed persons according to the survey was by 95,000 persons less than the number found in the administrative records of the Croatian Employment Service. The causes are as follows: from the total number of registered unemployed persons, 127,000 or 42.2 per cent did not meet the international unemployment criteria since they were inactive (they did not look for work or they could not accept an offered one) or were considered employed since they said in the survey that they worked. It should also be noted that, according to the survey, 32,000 or 15.5 per cent of the unemployed were not registered with the Croatian Employment Service. 12
15 Appendix 1 Number of Employed Persons by Activities (in accordance with the National Classification of Activities) for the period from January to December 2006 and Comparison with the Same Period of 2005 Activity Agriculture, hunting and forestry Number TOTAL per cent 2006/2005 Index Legal Entities Number 2006/2005 Index Craft Business and Free Professions Number 2006/2005 Index 30, , , Fishing 4, , , Individual farming 44, Agricultural Activities 79, , , Mining and excavation 8, , Manufacturing industry 291, , , Electricity, gas and water supply 27, , Construction 130, , , Non-agricultural Activities 458, , , Trade, repair of motor vehicles and household items 251, , , Hotels and restaurants 85, , , Transport, storage and communications 98, , , Financial intermediation 34, , , Real estate, renting and business services Public administration, defense, compulsory social insurance 98, , , , , Education 94, , Healthcare and social welfare 88, , , Other community, social and personal service activities 59, , , Household activities 10, , Extraterritorial organizations and bodies Service Activities 927, , , Unclassified 2, , TOTAL 1,467, ,160, , Source: Central Bureau of Statistics, Zagreb, Statements No , 2006 and
16 Unemployment During 2006, the number of unemployed persons in the records of the Croatian Employment Service followed the usual seasonal pattern. At the beginning of the year unemployment was high with a slow downward trend. It was falling significantly until the middle of summer, only to increase significantly from the end of the summer season until the end of the year. Therefore, the largest number of unemployed persons was recorded in January (314,166), and the smallest in June (270,753). In December 2006, the number of unemployed persons in the records of the Croatian Employment Service was 293,153, 4.8 per cent less than in the same month the year before. Generally speaking, the number of unemployed persons in 2006 was smaller than in 2005, as that can be seen from the following graph. Number of Unemployed Persons in 2005 and Number of People (thousands) I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII. Month The number of unemployed persons at the end of 2006 was smaller than the number of unemployed persons at the end of the previous year due to the fact that in 2006 the number of newly registered persons (233,163) in the unemployed persons register was smaller than the number of those deleted from the register (of which 149,460 persons were removed on account of finding employment and 98,401 for other reasons). Unemployment Structure and Trends By Gender, Age and Educational Background The average number of unemployed persons declined from 308,738 in 2005 to 291,616 in 2006, a decrease of 5.5 per cent in comparison with the year before. The percentage decrease in unemployment was greater in the case of men (8.9 per cent), than in the case of women (3.2 per cent). Therefore, the share of men in the total number of unemployed persons also declined, whereas the share of women rose from 58.6 to 60.0 per cent. 14
17 Average Number of Unemployed Persons by Gender in 2005 and 2006 Total Men Women , , ,796 Structure , , ,097 Structure /2005 Index In terms of age, the average number of unemployed persons decreased in all age groups except in the oldest that includes persons of 50 and over in the case of which unemployment rose by 5.4 per cent. Consequently, their share in the total number of unemployed persons also rose, reaching almost one quarter (24.5 per cent). The most significant decrease was recorded in the age group from (11.8 per cent), and the one from years of age (10.2 per cent). Average Number of Unemployed Persons by Age in 2005 and 2006 Age Indeks 2006/2005 Number per cent Number per cent , , , , , , , , , , , , , , and over 67, , TOTAL 308, , As far as the structure of unemployed persons by educational background is concerned, the average number of unemployed persons declined across all educational levels except for the average number of unemployed persons with a non-university degree. The reason lies in the significantly greater number of the newly registered unemployed persons with the above-mentioned educaltional level than last year. The average number of unemployed persons with completed three-year secondary school fell by 11.3 per cent, due to a significantly smaller number of newly registered persons. 15
18 Average Number of Unemployed Persons by Educational Level and Gender in 2005 and 2006 Total No schooling and uncompleted basic school Basic school 1 to 3-year vocational secondary school 4 (or more)-year vocational secondary school and grammer school Non-university degree University level and postgraduate degrees , Structure ,616 19,311 69, ,293 74,234 9,195 11,808 Structure /2005 Index Women ,796 10,594 42,793 62,026 52,065 5,794 7,524 Structure Women ,097 10,503 42,907 56,622 51,469 6,095 7,501 Structure /2005 Index Unemployment Trends and Structure by Activity Related to Previous Employment If we exclude from the total number of unemployed persons those persons who had previously been employed, their structure can be observed by the activity they had been engaged in during previous employment. The number of such persons recorded at the end of 2006 was 227,567, down by 4.5 per cent compared to the end of the previous year. So, the total number of unemployed persons that had been previously employed declined over the observed period. Significant differences in the number of unemployed persons who had been previously employed appear if we classify those persons according to the activity they had been engaged in during previous employment. In that way, for example, the greatest percentage increase in the number of unemployed persons was recorded among persons who had been previously engaged in groups of activities related to real estate, renting and business services (11.3 per cent). From larger groups in the case of which the number of unemployed persons declined, we should mention the group of unemployed persons who had previously worked in the manufacturing industry, since that is the largest one. The number of unemployed persons in this group fell by 8.2 per cent. A reduction was also recorded in the construction industry (8.7 per cent) as well as in the case of unemployed persons who had previously worked in trade (4.8 per cent). As we can see, unemployment fell in the case of activities accounting for the largest share with respect to the total number of unemployed persons. The only exception is hotel and restaurant industry in which a slight increase in unemployment was recorded. The mentioned changes in the number of unemployed persons according to the activity they had been engaged in during previous employment did not however produce a significant change in the structure of the total number of unemployed persons. The share of unemployed persons who had been previously employed in the manufacturing industry fell a little, however it remained over one quarter, while the share of unemployed persons who had previously 16
19 worked in trade remained over one fifth. Finally, it is interesting that the third largest share included the group of unemployed persons who had been previously employed in hotel and restaurant industry, which is obviously a consequence of the fact that the analysis was made at the end of the year, i.e. outside the tourist season. Activity Unemployed Persons According to Activity Related to Previous Employment (Dec. 31, 2005 and 2006) /2005 Index Number Share Number Share Agriculture, hunting and forestry 12, , Fishing Mining and excavation Manufacturing industry 61, , Electricity, gas and water supply Construction industry 20, , Wholesale and retail trade; repair of motor vehicles and personal and household items 49, , Hotels and restaurants 30, , Transportation, storage and communications 9, , Financial intermediation 2, , Real estate, renting and business services 11, , Public administration, defense, compulsory social insurance 4, , Education 4, , Healthcare and social welfare 4, , Other community, social and personal service activities 13, , Household activities 12, , Extraterritorial organizations and bodies Extraterritorial organizations and bodies 238, , Unemployment Structure and Trends by Counties As it has been previously mentioned, the average number of unemployed persons fell by 5.5 per cent in 2006 in comparison with the number of unemployed persons in Although we can see obvious decline in unemployment in all counties, the unemployment analysis showed that there were significant differences in the level of decrease of unemployment among counties. The most significant percentage decrease of average unemployment was recorded in the counties of Šibenik-Knin (11.4 per cent), Varaždin (10.3 per cent) and Primorje-Gorski Kotar (7.7 per cent). The change in the number of unemployed persons was the smallest in the case of the counties of Istria (0.9 per cent) and Lika-Senj (0.4 per cent). 17
20 The Split-Dalmatia County had the largest number of unemployed persons in 2006, followed by the City of Zagreb and the Osijek-Baranja County. Except for the change in the top of the table, the structure of unemployment by counties did not significantly change. County Average Number of Unemployed Persons by Counties in 2005 and /2005 Index Number Share Number Share Zagreb 13, , Krapina-Zagorje 6, , Sisak-Moslavina 18, , Karlovac 13, , Varaždin 10, , Koprivnica-Križevci 8, , Bjelovar-Bilogora 11, , Primorje-Gorski Kotar 17, , Primorje-Gorski Kotar 3, , Virovitica-Podravina 9, , Virovitica-Podravina 5, , Brod-Posavina 15, , Zadar 11, , Osijek-Baranja 32, , Šibenik-Knin 9, , Vukovar-Srijem 19, , Split-Dalmatia 39, , Istria 6, , Dubrovnik-Neretva 7, , Međimurje 7, , City of Zagreb 40, , TOTAL 308, , In terms of gender, the greatest share of women in the total number of unemployed persons at the end of 2006 was recorded in the counties of Istria (65.5 per cent), Primorje-Gorski Kotar (64.1 per cent) and Međimurje (63.8 per cent). In the first two counties mentioned, this number reflects the significant volume of seasonal employment of women. The smallest share of women was recorded in the counties of Bjelovar- Bilogora (55.1 per cent), Varaždin (57.5 per cent) and Vukovar-Srijem (57.5 per cent). The largest number of young unemployed persons was recorded in the counties of Međimurje (29.6 per cent), Koprivnica-Križevci (27.3 per cent) and Varaždin (26.3 per cent). Finally, the greatest number of highly qualified unemployed 18
21 persons (with secondary, non-university or university degree) was recorded in the counties of Dubrovnik- Neretva (81.6 per cent), Split-Dalmatia (79.7 per cent) and Primorje-Gorski Kotar (77.4 per cent).. County Structure of Unemployed Persons by Counties (as of Dec. 31, 2006) Total Persons up to 24 Women Qualified persons years of age Number Share Number Share Number Share Zagreb 12,870 8, , , Krapina-Zagorje 5,480 3, , , Sisak-Moslavina 17,050 9, , , Karlovac 12,851 7, , , Varaždin 8,800 5, , , Koprivnica-Križevci 7,417 4, , , Bjelovar-Bilogora 11,886 6, , , Primorje-Gorski Kotar 16,899 10, , , Primorje-Gorski Kotar 3,832 2, , Virovitica-Podravina 9,421 5, , , Virovitica-Podravina 5,477 3, , , Brod-Posavina 15,311 9, , , Zadar 11,898 7, , , Osijek-Baranja 29,767 18, , , Šibenik-Knin 9,122 5, , , Vukovar-Srijem 18,280 10, , , Split-Dalmatia 38,836 24, , , Istria 7,232 4, , , Dubrovnik-Neretva 8,400 5, , , Međimurje 6,563 4, , , City of Zagreb 35,761 21, , , TOTAL 293, , , , Unemployment Structure and Trends Related to Croatian War Veterans At the end of 2006, the Croatian Employment Service records included 23,964 unemployed Croatian war veterans, a decrease of 9.0 per cent in comparison with the end of the previous year. From that number, more than 43.0 per cent were skilled and highly skilled workers or persons with three-year secondary school. The share of unemployment benefit recipients in the total number of unemployed war veterans amounted to as little as 0.2 per cent. In terms of their age structure, more than 40 per cent of unemployed Croatian war veterans were between 40 and
22 Unemployment Structure and Trends by Duration and Particular Features Registered unemployed persons can be classified according to the duration of their unemployment. At the end of 2006, among the registered unemployed persons there were 43.5 per cent persons who had been waiting for employment up to 1 year (short-term unemployment), whereas 56.5 per cent of unemployed persons had been waiting for employment for more than 1 year per cent on the other hand had been waiting for more than 3 years. Compared to 2005, the share of short-term unemployed persons increased, whereas the share of long-term unemployed persons decreased (by 1.5 percentage points). Unemployed Persons by Duration of Unemployment (Dec. 31, 2005 and 2006) Duration of Unemployment /2005 Index Number Share Number Share Up to 3 months 56, , From 3-6 months 35, , From 6-9 months 18, , From 9-12 months 19, , From 1-2 years 49, , From 2-3 years 29, , More than 3 years 99, , TOTAL 307, , As far as duration of unemployment by gender is concerned, the share of unemployed persons who had been waiting for employment for up to 1 year in the total number of unemployed men was 53.8 per cent, and in the total number of unemployed women 58.2 per cent. Therefore, the share of long-term unemployed persons in the total number of unemployed persons was somewhat greater in the case of women than in the case of men. Unemployed Persons by Duration of Unemployment and Gender (as of Dec. 31, 2006) Duration of Unemployment Total Men Share Women Share Up to 3 months 57,535 24, , From 3-6 months 38,791 16, , From 6-9 months 15,446 6, , From 9-12 months 15,729 6, , From 1-2 years 40,486 15, , From 2-3 years 27,066 9, , More than 3 years 98,100 36, , TOTAL 293, , ,
23 It can be noticed that the duration of unemployment falls with the increase of educational level. The share of longterm unemployed persons (over 1 year) in the total number of the unemployed with no education or uncompleted primary school was 75.7 per cent, whereas the same share was significantly smaller in the case of the total number of unemployed persons with primary school education, equaling 64.9 per cent. The share of long-term unemployed persons was even smaller in the case of persons with secondary school education (55.8 and 48.7 per cent) and in the case of persons with non-university or university degreee (46.5 and 40.6 per cent). It can therefore be concluded that the level of education has a significant influence on the duration of unemployment. Unemployed Persons by Duration of Unemployment and Educational Level (as of Dec. 31, 2006) Duration of Unemployment Total No schooling and uncompleted basic school Basic school 1 to 3-year vocational secondary school 4 (or more) - year vocational secondary school and grammer school Nonuniversity degree Nonuniversity degree Up to 3 months 56,680 1,736 10,692 22,247 16,518 2,163 3,324 From 3-6 months 35, ,996 14,633 10,978 1,219 1,762 From 6-9 months 18, ,846 7,064 4, ,064 From 9-12 months 19, ,392 6,979 5, From 1-2 years 49,554 2,616 10,619 20,125 12,997 1,414 1,783 From 2-3 years 29,771 2,241 8,278 10,741 6, More than 3 years 99,089 10,522 28, ,760 2,276 2,553 TOTAL 307,851 19,501 71, ,680 77,328 9,189 12,243 Structure of Unemployed Persons by Duration of Unemployment and Educational Level (as of Dec. 31, 2006) Duration of Unemployment Total No schooling and uncompleted basic school Basic school 1 to 3-year vocational secondary school 4 (or more) - year vocational secondary school and grammer school Nonuniversity degree Nonuniversity degree Up to 3 months From 3-6 months From 6-9 months From 9-12 months From 1-2 years From 2-3 years More than 3 years TOTAL Short-term Unemployment Long-term Unemployment
24 Labour Force Demand and Employment Registered Job Vacancies During 2006, the volume of registered demand for workers at the Croatian Employment Service increased significantly (by 19,948 or 18.0 per cent). Employers registered a total of 130,517 job vacancies with the Service. According to the National Classification of Economic Activities, the greatest number of registered job vacancies came from the manufacturing (28,993 or 22.2 per cent), wholesale and retail trade (23,715 or 18.2 per cent), hotel and restaurant (18,343 or 14.1 per cent), construction (15,100 or 11.6 per cent), and real estate industries (13,324 or 10.2 per cent). In comparison with the year before, the greatest increase in the demand for workers was recorded in the manufacturing industry (by 6,096), real estate, renting and business services (5,682), as well as trade (4,084). The number of wanted workers significantly decreased only in the field of education (by 2,779), agriculture, hunting and forestry (by 1,100) and financial intermediation (by 338), see Appendix 2, p.25. According to the regional organization, the greatest number of vacancies was registered in the City of Zagreb (22,344 or 17.1 per cent) and the smallest in the Lika-Senj County (1,285 or 0.9 per cent). Compared to the year before, the volume of registered demand for workers increased in eighteen counties, and decreased in three, i.e. the counties of Požega-Slavonia (by 680 persons), Lika-Senj (by 341 persons) and Osijek-Baranja (by 214). The greatest increase was recorded in the City of Zagreb (by 5,372 persons) and the counties of Primorje-Gorski Kotar (by 3,558 persons), Vukovar-Srijem (by 1,655 persons) and Zagreb (by 1,538 persons), see Appendix 3, p.26. During 2006, employers mostly looked for workers engaged in elementary occupations such as cleaners, couriers, transport workers, workers without occupation and similar (31,770 or 24.3 per cent), up by 29.7 per cent in comparison with the year before. Furthermore, employers looked for workers engaged in service and trade occupations (30,952 or 23.7 per cent), as well as for workers engaged in craft business and individual production (25,536 or 19.6 per cent), up by 25.5 and 26.2 per cent respectively in comparison with Registered Job Vacancies by Groups of Occupations (in accordance with the National Classification of Occupations) in 2005 and 2006 Group of Occupations 2005 per cent 2006 per cent Index (1) Legislators, senior officials and managers (2) Professionals 12, , (3) Technicians and associate professionals 11, , (4) Clerks 7, , (5) Service workers and shop and market sales workers 24, , (6) Skilled agricultural and fishery workers (7) Craft and related trades workers 20, , (8) Plant and machine operators and assemblers 8, , (9) Elementary occupations 24, , Total 110, ,
25 Employment of Persons from the Croatian Employment Service Register During 2006, a total of 149,460 persons from the records of the Croatian Employment Service were employed, up by 8,570 persons or 6.1 per cent compared to From the total number of employed persons, 84,016 persons were women, with a share in the total employment of 56.2 per cent, compared to 54.8 per cent in Educational Level and Groups of Occupations the greatest part of registered employment refers to persons with secondary school education, including persons who have finished three-year vocational secondary school or school for skilled and highly skilled workers (60,388 or 40.4 per cent) and persons who have finished either vocational or general four-year secondary school (43,666 or 29.2 per cent), followed by persons who have finished primary school (15.8 per cent), university or academy (7.5 per cent), non-university education (5.3 per cent), and persons with no education or with uncompleted primary school education (1.8 per cent). In comparison with the year before, registered employment increased in all educational groups, primarily in the group of persons with uncompleted primary school education (26.5 per cent) and those with non-university degree (18.3 per cent). Employed Persons from the Croatian Employment Service Records in 2005 and 2006 by Educational Level Godina Year TOTAL No schooling and uncompleted basic school Basic school 1 to 3-year vocational secondary school 4 (or more)-year vocational secondary school and grammer school Nonuniversity degree University level and postgraduate degrees ,890 2,167 21,366 60,181 40,140 6,703 10,333 Structure ,460 2,741 23,546 60,388 43,666 7,929 11,190 Structure /2005 Index What follows is the account of shares of groups of occupations (in accordance with the National Classification of Occupations) in the total registered employment: Service workers and shop and market sales workers (37,320 or 25.0 per cent), Elementary occupations (34,123 or 22.8 per cent), Craft and related trades workers ( or 14.2 per cent), Technicians and associate professionals (18,990 or 12.7 per cent), Clerks (16,857 or 11.3 per cent), Plant and machine operators and assemblers (9,966 or 6.7 per cent), Professionals (9,788 or 6.5 per cent), Skilled agricultural and fishery workers (1,100 or 0.7 per cent), Legislators, senior officials and managers (98 or 0.07 per cent), Armed forces (31 or 0.02 per cent). 23
26 Work Experience out of the total number of employed persons, 118,362 (79.2 per cent) had prior work experience, whereas 31,098 persons (20.8 per cent) were employed for the first time. In comparison with the year before, the share of employed persons without prior working experience increased by 0.3 percentage points, whereas the share of employed persons with prior work experience decreased. Duration of Employment - 127,022 persons (85.0 per cent) were temporarily employed, whereas 22,438 persons (15.0 per cent) were permanently employed. Compared to 2005, the share of permanent employment increased, and the share of temporary employment decreased (by 0.6 percentage points). Activity - it is a common thing that the register of unemployed persons with prior working experience primarily includes persons from the manufacturing industry, trade, hotel and restaurant business, and that these four areas of activity are also the ones in which most persons are consequently employed. In 2006, the number of employed persons was as follows: Wholesale and retail trade: 33,200 persons or 21.5 per cent, Manufacturing industry: 27,904 persons or 18.7 per cent, Hotel and restaurant industry: 22,228 persons or 14.9 per cent, Construction industry: 14,305 persons or 9.6 per cent. Compared to the year before, registered employment increased in all areas of activity. The largest growth of employed persons in absolute terms was recorded in real estate and renting activities (3,986 persons or 40.7 per cent), wholesale and retail trade (1,862 persons or 6.1 per cent) and the manufacturing industry (1,706 persons or 6.5 per cent), while a decrease in employment was recorded in agriculture, hunting and forestry (by 993 persons or 12.6 per cent), household activities (by 240 persons or 9.7 per cent) and financial intermediation (by 195 persons or 12.3 per cent). 24
27 Appendix 2 Registered Job Vacancies and Employed Persons from the Croatian Employment Service Register by Sectors of Activity (in accordance with the National Classification of Economic Activities) in 2006 Sector of Activity Number Registered Vacancies per cent 2006/2005 Index Number Persons per cent 2006/2005 Index Agriculture, hunting and forestry 4, , Fishing Excavation Mining and Excavation 28, , Electricity, gas and water supply Construction 15, , Wholesale and retail trade: repair of motor vehicles and motorcycles, and personal and household items 23, , Hotels and restaurants 18, ,228 14, Transportation, storage and communications 4, , Financial intermediation 1, , Real estate, renting and business services 13, , Public administration, defense, compulsory social insurance 3, , Education 7, , Healthcare and social welfare 5, , Other community, social and personal service activities 4, , Household activities , Extraterritorial organizations and bodies , TOTAL 130, ,
28 Appendix 3 Registered Job Vacancies and Employed Persons from the Croatian Employment Service Records by Counties in 2006 County Number Registered Vacancies per cent 2006/2005 Index Employed Persons from the CES Records Number per cent 2006/2005 Index Zagreb 6, , Krapina-Zagorje 3, , Sisak-Moslavina 5, , Karlovac 3, , Varaždin 7, , Koprivnica-Križevci 5, , Bjelovar-Bilogora 3, , Primorje-Gorski Kotar 10, , Primorje-Gorski Kotar 1, , Virovitica-Podravina 2, , Virovitica-Podravina 1, , Brod-Posavina 2, , Zadar 4, , Osijek-Baranja 8, , Šibenik-Knin 4, , Vukovar-Srijem 5, , Split-Dalmatia 9, , Istria 9, , Dubrovnik-Neretva 6, , Međimurje 5, , City of Zagreb 22, , TOTAL 130, ,
29 Employment Rate by Educational Level and Occupation The annual employment rate shows how many persons from the total number of unemployed persons who had looked for employment during the year actually found employment. In 2006 the employment rate equaled 27.6 per cent, which means that more than a quarter of persons who had looked for employment during the year actually found it. Significant differences were recorded in the employment rate among groups of unemployed persons distinguished by educational level. In the case of persons with no education or with uncompleted primary school, the employment rate was 10.3 per cent, whereas it equaled 20.5 per cent in the case of persons who have completed primary school. In the case of persons who have completed a three-year vocational secondary school or school for skilled and highly skilled workers, the employment rate was 29.4 per cent, whereas in the case of persons with fouryear secondary school education (vocational or general) it was 29.6 per cent. In the case of persons who have completed non-university education, the employment rate equaled 40.6 per cent, and in the case of persons who have completed university, academy, masters or doctoral studies the employment rate was 41.1 per cent. Therefore, the higher the educational level, the higher the employment rate. Levels of Education: A no schooling, uncompleted basic school B basic school C 1 to 3-year vocational secondary school D 4 (or more)-year vocational secondary school and grammer school E non-university degree F university level and postgraduate degrees Within the same educational groups there are quite large differences in the employment rate between persons of different occupations. The table shows twenty occupations with the highest and twenty with the lowest rate of employment within the most frequent groups at the secondary school level. 27
30 Employment Rate by Occupation at the Secondary School Level Occupation per cent Occupation per cent Cook 48.9 Painter and finishing worker 18.3 Cook 48.7 Administrator / typist 18.2 Waiter 48.5 Manufacturer of leather products 18.1 Confectionery maker 45.4 Classic secondary school graduate 17.3 Engine fitter 45.1 Gardener 17.1 Electrical engineering technician 44.5 Tailor for mass-production of clothes 16.6 Salesperson 43.8 Chemical worker 15.9 Vehicle technician 43.2 Tailor 15.8 Construction machine operator 42.0 Typist 15.7 Sanitary technician 41.1 Assistant shoemaker 15.4 Ecology technician 41.0 Farmer / gardener 15.0 Chemical process technician 40.8 Textile goods salesman 14.7 Geology technician 40.7 Building security guard 14.4 Baker 40.6 Rubber manufacturer 14.2 Forest technician 40.5 Traveling salesman 13.9 Forest technician 40.4 Stenographer 12.7 IT technician 39.9 House and woodwork painter 12.6 Engine fitter 39.2 Typist 12.3 Pharmaceutical technician 39.2 Transport worker 11.7 Joiner 38.7 Administrative assistant 8.2 The following table shows ten occupations with the highest and ten with the lowest rate of employment at the level of non-university, university and postgraduate degree. Employment Rate by Occupation at the Non-university, University and Postgraduate Degree Level Occupation per cent Occupation per cent M Sc in Pharmacy 71.8 Chemical Technology Engineer 27.8 Teacher 69.8 Traffic & Transport Engineer Road 27.8 Biology and Chemistry Professor 61.4 Textile and Clothing Designer 26.8 Croatian Language and Literature Professor 59.6 Commercial Economist 26.7 Geography Professor 58.6 French Language Professor 26.7 General Education Professor 55.0 B Sc in Political Sciences 24.4 Preschool Education Professor 54.8 Textile & Chemical Technology Engineer 22.9 Graphic Technology Engineer 53.2 Marine Engineer 20.8 Construction 53.2 B Sc in Social Sciences 20.4 Construction 52.7 Navigation Expert
31 Seasonal Employment in Tourism Intermediation in seasonal employment in the tourism industry is one of the more significant activities of the CES. Continuing the practice pursued over the previous years, at the beginning of 2006 the CES organized regular regional meetings with the representatives of larger hotel and tourism companies for the purpose of reaching concrete agreements concerning the planning and meeting the demand for seasonal workers. The meetings were held in the counties of the Croatian coastal region, namely the counties of Istria, Primorje-Gorski Kotar, Zadar, Šibenik-Knin, Split-Dalmatia and Dubrovnik-Neretva, which were getting ready for the then upcoming tourist season. According to the forecasts by employers from the field of tourism, the planned number of needed seasonal workers in 2006 was 16,848. During the tourist season, a total of 15,347 workers were employed, mostly salespersons (1,870 persons or 12.2 per cent from the total number of unemployed persons), waiters (1,717 persons or 11.2 per cent), room maids (1,598 persons or 10.4 per cent), cooks (1,289 persons or 8.4 per cent), kitchen (980 persons or 6.4 per cent) and cleaning staff (968 persons or 6.3 per cent). At county level, most seasonal workers in 2006 were employed in the counties of Split-Dalmatia (2,784 persons or 18.1 per cent), Dubrovnik-Neretva (1,700 persons or 11.1 per cent), Istria (1,661 persons or 10.8 per cent), Primorje- Gorski Kotar (1,616 or 10.5 per cent), Šibenik-Knin (1,255 or 8.2 per cent) and Zadar (807 or 5.3 per cent). After the planning and selection of seasonal workers from the unemployed domicile population, the representatives of the companies conducted, in cooperation with CES Regional offices from the interior counties (Osijek, Bjelovar, Sisak, Vinkovci, etc.), informative interviews with candidates interested in seasonal employment and selected the most appropriate ones. Therefore, the largest number of such employment opportunities had been agreed beforehand, and the workers were referred to the agreed job positions as the need occurred. Through the interregional mediation activities undertaken by CES Regional Offices from Croatia s interior regions, the greatest number of seasonal workers was employed from the counties of Osijek-Baranja (1,136 persons), Vukovar-Srijem (830 persons), Bjelovar-Bilogora (632 persons), Sisak-Moslavina (520 persons) and Brod-Posavina (474 persons). Interregional Mediation By introducing an information system which allows the integration of employment mediation activities, the data on unemployed persons and jobseekers became available at the level of the entire CES. The mentioned data include information concerning unemployed person s or jobseeker s willingness to move for employment purposes, i.e. whether the person is willing to migrate daily or accept employment in other regions of the Republic of Croatia. Interregional mediation is based on the employers notifications of job vacancy received in the place of the offered employment. If relevant Regional Office is not in the position to satisfy the request for worker(s), the request is then forwarded to the Central Office, the Placement and ALMP Department. 29
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