2012 Yearbook. Yearbook. Croatian Employment Service

Transcription

1 2012 Yearbook 2012 Yearbook Croatian Employment Service 71

2 2012 Yearbook Croatian Employment Service ISSN Zagreb, April 2013

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4 2012 Yearbook Impressum Publisher: Croatian Employment Service, Zagreb, Radnička cesta 1 Phone: Fax: Editorial Office: marica.baric@hzz.hr Website: On Behalf of the Publisher: Ankica Paun Jarallah Director General of the Croatian Employment Service Editor: Marica Barić English Translation: Abis d.o.o, Zagreb Graphic Design and Print: Intergrafika TTŽ d.o.o., Zagreb Circulation: 150 copies 3

5 Croatian Employment Service Table of Contents Economy and Labour Force 7 Unemployment 12 Labour Force Demand and Employment 20 Preparation for Employment 31 Active Labour Market Policy 35 Unemployment Entitlements 41 Projects Supported by the International Community 44 Organisational Structure and Operations of the CES Main Responsibilities and Development Strategy of the Croatian Employment Service 54 Organisational Structure and Employees 56 Sources of Financing and Structure of Expenditures 60 Internal Financial Control System 64 ICT Support to CES Operations 65 Publicity of the CES and International Cooperation 66 4

6 2012 Yearbook Geographic Locations of Regional and Local Offices of the Croatian Employment Service by Counties COUNTY REGIONAL OFFICE LOCAL OFFICE Sesvete Velika Gorica Zagreb Dugo Selo Vrbovec I. Zagreb Ivanić-Grad Sveti Ivan Zelina City of Zagreb Jastrebarsko Zaprešić Samobor Donja Stubica Zlatar II. Krapina-Zagorje Krapina Klanjec Pregrada Zabok Petrinja Hrvatska Kostajnica Sisak Dvor Sunja III. Sisak-Moslavina Glina Topusko Gvozd Kutina Novska Popovača Duga Resa Slunj IV. Karlovac Karlovac Ogulin Vojnić Ozalj V. Varaždin Varaždin Cestica Ludbreg Ivanec Novi Marof VI. Koprivnica-Križevci Križevci Đurđevac Koprivnica VII. Bjelovar-Bilogora Bjelovar Čazma Garešnica Daruvar Grubišno Polje Cres-Lošinj Krk VIII. Primorje-Gorski Kotar Rijeka Crikvenica Opatija Čabar Rab Delnice Vrbovsko Donji Lapac Senj IX. Lika-Senj Gospić Novalja Korenica Otočac X. Virovitica-Podravina Virovitica Orahovica Pitomača Slatina XI. Požega-Slavonia Požega Pakrac XII. Slavonski Brod-Posavina Slavonski Brod Nova Gradiška Okučani Benkovac Obrovac XIII. Zadar Zadar Biograd Pag Gračac Beli Manastir Našice XIV. Osijek-Baranja Osijek Donji Miholjac Valpovo Đakovo XV. Šibenik-Knin Šibenik Drniš Vodice Knin XVI. Vukovar-Srijem Vukovar Ilok Vinkovci Otok Županja Supetar Trogir Hvar Vis XVII. Split-Dalmatia Split Imotski Vrgorac Makarska Kaštela Omiš Solin Sinj Trilj Umag Pazin XVIII. Istria Pula Buzet Poreč Labin Rovinj XIX. Dubrovnik-Neretva Dubrovnik Korčula-Lastovo Ploče Metković XX. Međimurje Čakovec Mursko Središće Prelog 5

7 Godišnjak Croatian Employment Service Map of Regional and Local Offices of the CES by Counties Centarl office Regional office Local office 6

8 2012 Yearbook 7

9 Croatian Employment Service Economy and Labour Force Basic Economic Trends After stagnant 2011, Croatia s GDP decreased again in The real rate of decrease was 2.0%. A decrease in overall economic activity was recorded in all four quarters (Q1: -1.1%, Q2: -2.5%, Q3: -1.9% and Q4: -2.3% compared to the same quarters of 2011). The mentioned decrease in GDP was mainly a result of a decrease in domestic demand and a continuing decrease in the value of investments in fixed capital. Foreign demand did not contribute much to GDP growth either, as the negative trends in the international environment prevented a more significant increase in the export of goods and services. Basic Economic Indicators Recorded in 2011 and 2012, Growth Rates (in %) Gross Domestic Product Physical Volume of Industrial Production Physical Volume of Construction Works Nominal Retail Trade Turnover Real Retail Trade Turnover Tourist Overnights Exports Total (HRK) Imports Total (HRK) Average Monthly Net Salaries Real Net Salaries Consumer Price Indices Total Number of Employed Persons Total Number of Unemployed Persons Registered Unemployment Rate LFS Unemployment Rate Source: Croatian Bureau of Statistics 8 Compared to the year before, 2012 ended with a decrease in industrial production of 5.5%. The recorded decrease shows that the negative trend which marked 2011 continued in 2012 at an even faster rate. The negative trend is a result of a decrease in production in all three industrial activities: mining and quarrying (-15.7%), manufacturing (-5.1%) and electricity, gas, steam and air-conditioning supply (-2.2%). The significant negative trend recorded in the previous year continued in construction as well, both in terms of residential, infrastructural and other buildings. The annual rate of decrease in the physical volume of construction works was 11.8%. In 2012, nominal retail trade turnover decreased by 0.9%, while real retail trade turnover decreased by 4.1%. This is quite a difference from the results recorded in 2011 when retail trade turnover increased both in real and nominal terms. Despite the negative economic trends recorded in the wider environment, 2012 ended with good results in tourism as well. The number of tourist arrivals grew by 3.3%, while the number of tourist overnights increased by 4.0%. The share of foreign tourists in the total number of arrivals was 87.6% and in the total number of overnights 91.7%, while domestic tourists accounted for 12.4% of total arrivals and 8.3% of total overnights.

10 2012 Yearbook The foreign trade exchange from Croatia towards other countries, i.e. exports, measured in Croatian kuna, increased by 1.4% at the annual level. At the same time, imports to Croatia increased by 0.4% as well. The coverage of imports by exports increased from 58.9% recorded in 2011 to 59.4% in A nominal increase of 0.7% was recorded in average net salaries in 2012, which is a significant drop compared to 2011 (1.8%). Real net salaries decreased by 2.6% compared to 2011 due to the inflation rate of 3.4%. The annual inflation rate, measured on the basis of the consumer price index, increased from 2.3% recorded in 2011 to 3.4% in Labour Force in Croatia In 2012, the labour market was once again marked by negative trends. The average number of employed persons further decreased, while the number of unemployed persons increased. The average unemployment rate grew accordingly. Registered Employment and Unemployment According to the data of the Croatian Bureau of Statistics derived from administrative sources, the total number of economically active citizens (active population) increased by 0.2% in At the same time, the number of employed persons decreased by 1.1%, while the number of unemployed persons increased by 6.2%. Number of Economically Active Citizens (Active Population) Derived from Administrative Sources (2011 and 2012 Annual Average) Indeks Active Population 1,716,571 1,719, Employed Persons 1,411,238 1,395, employed in legal entities 1,159,657 1,153, employed in crafts and free professions 220, , insured farmers 30,944 28, Unemployed Persons 305, , Registered Unemployment Rate Source: Croatian Bureau of Statistics The number of employed persons continued to decrease in 2012 as well, although at a slightly slower rate than in The annual registered employment average was 1,395,116, which represents a decrease by 16,122 persons or 1.1% compared to 2011 when the total number of employed persons decreased by 1.5%. In 2012, the greatest relative decrease in the number of employed persons was recorded in the segment of individual farmers (by 7.0%), followed by crafts and free professions (by 3.5%), and legal persons (by 0.5%). According to the National Classification of Activities (Schedule 1, Page 11), the largest number of employed persons was recorded in manufacturing (240,483 or 17.2%), wholesale and retail trade and repair of motor vehicles and motorcycles (216,112 or 15.5%), public administration, defence and compulsory social security (116,147 or 8.3%), education (108,344 or 7.8%) and construction (102,211 or 7.3%). Compared to 2011, a significant decrease in the number of employed persons was recorded in wholesale and retail trade and repair of motor vehicles and motorcycles (by 2.0%), manufacturing (by 3.3%), construction (by 6.9%), mining and quarrying (by 10,7%) and activities of households as employers (by 13.6%), while the largest increase was recorded in administrative and auxiliary service activities (by 4.4%), other service activities (by 2.3%) and agriculture, forestry and fishing (by 2.0%). 9

11 Croatian Employment Service In terms of economic sectors (agricultural, non-agricultural and service sectors), the 2012 structure of employed persons showed that 67.6% of employed persons was engaged in service activities, 27.8% in non-agricultural and 4.6% in agricultural activities. Compared to 2011, the share of service activities increased (by 0.9 pp), the share of non-agricultural activities decreased (by 0.9%), while the share of agricultural activities remained at the previous year s level. The trends concerning the number of unemployed persons recorded in 2012 were even more unfavourable compared to the previous year. The average registered unemployment increased by 18,991 persons or 6.2%, i.e. from 305,333 persons registered in 2011 to 324,324 persons in Unemployment Rate Derived from Administrative Sources The simultaneous increase in the number of unemployed and decrease in the number of employed persons recorded in the Republic of Croatia resulted in an increase in the annual average registered unemployment rate from 17.8% recorded in 2011 to 18.9% in 2012 (according to the Croatian Bureau of Statistics). Unemployment Rates by Counties Unemployment rates by counties are calculated on the basis of the data on pension insurance beneficiaries registered with the Croatian Pension Insurance Institute as employed persons and the data on unemployed persons registered with the Croatian Employment Service. According to the afore-mentioned data, the average unemployment rate at the state level amounted to 18.1%. In six counties it was lower, in fourteen higher and in one equal to the state level. Unemployment Rate by Counties, 2011 and 2012 Annual Average 40 Percentage % City of Zagreb Istria Primorje-Gorski Kotar Varaždin Dubrovnik-Neretva Međimurje Republic of Croatia Zadar Lika-Senj Koprivnica-Križevci Zagreb Krapinsko-zagorska Šibenik-Knin Split-Dalmatia Karlovac Požega-Slavonija Bjelovar-Bilogora Osijek-Baranja Vukovar-Srijem Sl. Brod-Posavina Sisak-Moslavina Virovitica-Podravina Unemployment rates differed significantly across counties. The lowest unemployment rates were recorded in the City of Zagreb (8.7%) and the County of Istria (8.9%). Unemployment rates of Primorje-Gorski Kotar (14.0%), Varaždin (14.6%), Dubrovnik-Neretva (15.3%) and Međimurje (16.4%) were also below the state average. The Zadar County recorded an unemployment rate of 18.1%, equal to the state average, while the highest unemployment rates were recorded in the Counties of Virovitica-Podravina (33.4%), Sisak-Moslavina (32.7%), Brod-Posavina (32.6%) and Vukovar-Srijem (32.0%).

12 2012 Yearbook Compared to the year before, unemployment rates increased in all counties except in the County of Lika-Senj, where it decreased by 0.3%. The largest increase was recorded in the Counties of Virovitica-Podravina (by 2.9 pp) and Sisak-Moslavina (by 2.8 pp), followed by the Counties of Vukovar-Srijem (by 2.4 pp), Koprivnica-Križevci (by 2.2 pp) and Požega-Slavonia, Krapina- Zagorje and Split-Dalmatia (by 1.9 pp). Employment and Unemployment According to the Labour Force Survey The Labour Force Survey is carried out by the Croatian 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. According to the Labour Force Survey, the average number of economically active citizens (active population) recorded in Croatia in 2012 was 1,718,000 (7,000 persons or 0.4% less than in 2011), of which 1,446,000 employed and unemployed persons. Compared to the year before, the average number of employed persons decreased by 47,000 or 3.1%. The employment rate (15-64) decreased accordingly, from 52.4% recorded in 2011 to 50.7% in The average number of unemployed persons grew by 40,000 persons or 17.2% compared to Unemployment Rate Derived from the Labour Force Survey Results According to the Labour Force Survey, the 2012 average unemployment rate was 15.9%, up by 2.4 pp compared to 2011 when unemployment grew at a slightly slower rate (by 1.7 pp). Number of Economically Active Citizens (Active Population) Derived from the Labour Force Survey (2011 and 2012 Annual Average) Indeks Active Population 1,725,000 1,718, Employed Persons 1,493,000 1,446, Employment Rate (15-64) Unemployed Persons 232, , LFS Unemployment Rate Source: Croatian Bureau of Statistics As we can see, the Labour Force Survey data concerning the labour market trends recorded in 2012 point to similar labour market developments as the administrative data, although the Labour Force Survey data point to a significantly stronger negative trend. 11

13 Croatian Employment Service Schedule 1 Employed Persons by Activity (National Classification of Activities), 2012 Annual Average Activity (according to the National Classification of Activities) TOTAL Number % 2012/ 2011 Index Legal Entities Number 2012/ 2011 Index Craft Businesses and Freelance Professions 2012/ Number 2011 Index Agriculture, forestry and fishing 34, , , Individual farmers 28, Agricultural Activities 63, , , Mining and quarraying 5, , Manufacturing 240, , , Electricity, gas, steam and air-conditioning supply Water supply; sewerage, waste management and remediation activities 16, , , , Construction 102, , , Non-agricultural Activities 387, , , Wholesale and retail trade; repair of motor vehicles and motorcycles 216, , , Transportation and storage 75, , , Accommodation and food service activities 84, , , Information and communications 34, , , Financial and insurance activities 38, , , Real estate business 6, , Professional, scientific and technical activities Administrative and auxiliary service activities Public administration, defence and compulsory social security 68, , , , , , , , , Education 108, , Health and social welfare activities 96, , , Arts, entertainment and recreation 23, , , Other service activities 29, , , Activities of households as employers; undifferentiated goods- and servicesproducing activities of households for 4, , own use Service Activities 943, , , TOTAL 1,395, ,153, , Source: Croatian Bureau of Statistics, Announcements No from 2011 and

14 2012 Yearbook Unemployment Total Unemployment Trends In 2012, seasonal factors influenced the number of unemployed persons registered with the Croatian Employment Service, which is common to the Croatian labour market. Unemployment increased in January and February and then it started significantly decreasing during the spring months, only to start increasing again in July, continuing so until the end of the year, particularly in the last three months. Accordingly, the smallest number of unemployed persons was recorded in June, and the largest in December. In December 2012, there were 358,214 unemployed persons registered with the Croatian Employment Service, up by 13.6% compared to the same month the year before. While the number of unemployed persons was a bit greater in the first half of 2012 compared to the same months the year before, in the last several months of 2012 the number of unemployed persons was significantly higher, as illustrated by the diagram below. Number of Unemployed Persons in 2011 and 2012 Number of unemployed (000) I II III IV V VI VII VIII IX X XI XII Months The number of unemployed persons was significantly greater at the end of 2012 than at the end of the previous year, as the number of newly registered unemployed persons (338,514) was much greater than the number of those employed or deleted from the register for other reasons (295,738). Therefore, unemployment significantly increased because the number of newly registered unemployed persons was greater than the number of persons deleted from the register of unemployed persons. Unemployment Structure and Trends by Gender, Age and Educational Level The average number of unemployed persons increased from 305,333 recorded in 2011 to 324,324 in 2012, up by 6.2%. Both the average number of unemployed men and the average number of unemployed women increased. The increase in the number of unemployed men was a bit greater, so that the share of men in the total number of unemployed persons grew accordingly. 13

15 Croatian Employment Service Gender Average Number of Unemployed Persons by Gender in 2011 and /2011 Number % Number % Index Men 141, , Women 163, , TOTAL 305, , As far as unemployment by age is concerned, the average number of unemployed persons increased in most age groups. The most significant percentage increase in the number of unemployed persons was recorded in the oldest age group. The average number of unemployed persons in the 60 plus group increased by 10.7%. The share of the oldest age group in the total number of unemployed persons increased accordingly. However, a high rate of increase in the number of unemployed persons was also recorded in the youngest age groups. The number of unemployed persons in the group from years of age grew by 10.0%, while the average number of unemployed persons in the group from years of age increased by 9.2%. The smallest increase in the average number of unemployed persons was recorded in the group of middle aged persons, while the number of unemployed persons in the group from years of age even slightly decreased. Age Average Number of Unemployed Persons by Age in 2011 and /2011 Number % Number % Index , , , , , , , , , , , , , , , , , , , , UKUPNO 305, , As far as educational level is concerned, the average number of unemployed persons increased in most groups distinguished by the level of education. The smallest increase was recorded in the group with the lowest level of education, while the greatest increase was recorded in the group with the highest level of education. Thus, the average number of unemployed persons with completed basic school increased by only 0.4%, while the average number of unemployed persons with post-secondary non-university education increased by 20.6%. 14

16 2012 Yearbook Average Number of Unemployed Persons by Educational Level in 2011 and 2012 Educational Level /2011 Number % Number % Index No schooling and uncompleted basic school 17, , Basic school 68, , to 3-year vocational secondary school and school for skilled and highly skilled workers 104, , (or more)-year vocational secondary school and grammar school 84, , Post-secondary non-university education 12, , University and post-graduate education 17, , TOTAL 305, , Croatian War Veterans Unemployment Structure and Trends In 2012, there were 28,070 unemployed Croatian war veterans registered with the Croatian Employment Service, of which 37.0% with completed or uncompleted basic school and 38.0% with completed three-year vocational secondary school or school for skilled and highly-skilled workers. For comparison purposes, the share of the mentioned groups distinguished by the level of education was in the total number of unemployed persons 26.8 and 34.2% respectively. In terms of age structure, 45.2% of unemployed Croatian war veterans were aged 50 to 65. Unemployment Structure and Trends by Previous Employment Activity If we exclude from the total number of unemployed persons those who had been previously employed, their structure can be observed by the activity they had been engaged in during previous employment. The average number of such persons recorded in 2012 was 267,048, up by 5.9% compared to Therefore, the total number of unemployed persons who had been previously employed significantly increased in Compared to 2011, 2012 brought an increase in the number of unemployed persons in almost all groups of activities. In many of these groups, the increase was significant and particularly in the public sector. Thus, for example, the number of unemployed persons who had previously been employed in public administration, defence and compulsory social security increased by 51.8%, while the number of persons who had previously been employed in health and social welfare activities increased by 31.0%. The number of persons who had previously been employed in education increased by 11.9%, and a similar increase was also recorded in the arts, entertainment and recreation activities. As far as the number of unemployed persons who had previously been employed in the private sector is concerned, the number of unemployed persons who had previously been employed in construction, manufacturing and trade increased from 1.3 to 1.7%. The number of unemployed persons who had previously been employed in financial activities also grew by 3.6%. Generally speaking, it is evident that the number of unemployed persons increased in most groups of activities, but the most significant increase was recorded in the group of unemployed persons engaged in some sort of public activity. 15

17 Croatian Employment Service Average Number of Unemployed Persons by Previous Employment Activity in 2011 and 2012 Activity (2007 National Classification of Activities) /2011 Number % Number % Index A Agriculture, forestry and fishing 10, , B Mining and quarrying C Manufacturing 55, , D Electricity, gas, steam and airconditioning supply E Water supply; sewerage, waste management and remediation activities 3, , S Construction 30, , G Wholesale and retail trade; repair of motor vehicles and motorcycles 48, , H Transportation and storage 7, , I Accommodation and food service activities 28, , J Information and communications 3, , K Financial and insurance activities 2, , L Real estate business 1, , M Professional, scientific and technical activities 8, , N Administrative and auxiliary service activities 10, , O Public administration, defence and compulsory social security 7, , P Education 5, , Q Health and social welfare activities 5, , R Arts, entertainment and recreation 2, , S Other service activities 13, , T Activities of households as employers; undifferentiated goods- and servicesproducing activities of households for 4, , own use U Activities of extraterritorial organisations and bodies TOTAL 252, , Unemployment Structure and Trends by Counties and Particular Features Compared to the previous year, in 2012 the average number of unemployed persons increased in all counties except in the County of Lika-Senj, in which a slight decrease in the number of unemployed persons was recorded. The most significant percentage increase in the average number of unemployed persons was recorded in the Counties of Koprivnica-Križevci, Krapina- Zagorje and Međimurje. A significant increase in unemployment was also recorded in the Counties of Sisak-Moslavina and Split Dalmatria. The smallest increase in unemployment was recorded in the Counties of Karlovac, Brod-Posavina and Bjelovar-Bilogora. 16

18 2012 Yearbook Average Number of Unemployed Persons by Counties in 2011 and 2012 County /2011 Number % Number % Index Zagreb 15, , Krapina-Zagorje 7, , Sisak-Moslavina 18, , Karlovac 11, , Varaždin 9, , Koprivnica-Križevci 7, , Bjelovar-Bilogora 11, , Primorje-Gorski Kotar 17, , Lika-Senj 3, , Virovitica-Podravina 9, , Požega-Slavonia 5, , Brod-Posavina 16, , Zadar 10, , Osijek-Baranja 32, , Šibenik-Knin 7, , Vukovar-Srijem 18, , Split-Dalmatia 39, , Istria 7, , Dubrovnik-Neretva 7, , Međimurje 6, , City of Zagreb 39, , Total 305, , As far as unemployment by gender is concerned, at the end of 2012 the greatest share of women in the total number of unemployed persons was recorded in the Counties of Karlovac and Slavonski Brod-Posavina, followed by the Counties of Split-Dalmatia, Zadar and Primorje-Gorski Kotar. The largest share of young unemployed persons up to 24 years of age in the total number of unemployed persons was recorded in the Counties of Krapina-Zagorje, Požega-Slavonia and Bjelovar-Bilogora. Finally, the largest share of qualified persons, i.e. those with secondary; post-secondary non-university; or university and post-graduate education, was recorded in the Counties of Dubrovnik-Neretva, Split-Dalmatia and the City of Zagreb. 17

19 Croatian Employment Service County Structure of Unemployed Persons by Counties (as of 31 Dec. 2012) TOTAL Women Persons up to 24 years of age Qualified Persons Number Share Number Share Number Share Zagreb 19,289 9, , , Krapina-Zagorje 8,960 4, , , Sisak-Moslavina 21,071 11, , , Karlovac 11,918 6, , , Varaždin 11,523 5, , , Koprivnica-Križevci 9,037 4, , , Bjelovar-Bilogora 12,911 6, , , Primorje-Gorski Kotar 20,935 11, , , Lika-Senj 3,650 1, , Virovitica-Podravina 10,887 5, , , Požega-Slavonia 7,187 3, , , Brod-Posavina 18,548 10, , , Zadar 12,353 6, , , Osijek-Baranja 37,426 20, , , Šibenik-Knin 9,020 4, , , Vukovar-Srijem 21,615 11, , , Split-Dalmatia 48,674 27, , , Istria 10,742 5, , , Dubrovnik-Neretva 9,040 4, , , Međimurje 8,040 4, , , City of Zagreb 45,388 22, , , Total 358, , , , Unemployment Structure and Trends by Duration of Unemployment and Particular Features Registered unemployed persons can also be classified according to the duration of unemployment. At the end of 2012, 43.0% of the total number of unemployed persons had been unemployed for up to 6 months and 42.1% for more than one year. Compared to the year before, the number of unemployed persons who had been unemployed for a period of up to 3 months increased by 4.9%, the number of those who had been unemployed for a period of 3 to 6 months increased by 45.3%, while the number of those who had been unemployed for a period of 9 to 12 months increased by 34.7%. It can be concluded that short-term unemployment grew significantly. 18

20 2012 Yearbook Duration of Unemployment Unemployed Persons by Duration of Unemployment (as of 31 Dec and 2012) /2011 Number % Number % Index Up to 3 months 89, , From 3 to 6 months 41, , From 6 to 9 months 24, , From 9 to 12 months 19, , From 1 to 2 years 52, , From 2 to 3 years 27, , More than 3 years 59, , TOTAL 315, , As far as duration of unemployment by gender is concerned, the share of unemployed persons who had been unemployed for more than 1 year in the total number of unemployed men was 40.7% and in the total number of unemployed women 43.4%. Hence, 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. The difference in the number of unemployed men and women was significant in the group of those unemployed for more than three years. Unemployed Persons by Duration of Unemployment and Gender (as of 31 Dec. 2012) Duration of Unemployment Total Men % Women % Up to 3 months 93,606 45, , From 3 to 6 months 60,250 28, , From 6 to 9 months 26,733 13, , From 9 to 12 months 26,645 13, , From 1 to 2 years 61,009 28, , From 2 to 3 years 29,483 14, , More than 3 years 60,488 25, , TOTAL 358, , , Finally, if we consider duration of unemployment in terms of the level of education, it is evident that persons with lower levels of education account for the greater share of long-term unemployed persons. Thus, the share of long-term unemployed persons (1 year or more) in the total number of unemployed persons with no schooling or uncompleted basic school was 62.9%, while the share of those with basic school education was 52.0%. The share of long-term unemployed persons was even smaller in the groups of persons with three- or four-year secondary school education (40.9 and 38.2%). The smallest number of long-term unemployed persons was recorded in the group of those with post-secondary non-university and university and postgraduate education (31.5 and 27.5%). Although the number of unemployed persons with postsecondary non-university and university and post-graduate education increased significantly, it can still be concluded that the level of education has a significant influence on the duration of unemployment. 19

21 Croatian Employment Service Structure of Unemployed Persons by Duration of Unemployment and Educational Level (as of 31 Dec. 2012) Duration of Unemployment Total No schooling and uncompleted basic school Basic school 1 to 3-year vocational secondary school and school for skilled and highly skilled workers 4 (or more)-year vocational secondary school and grammar school Postsecondary nonuniversity education University and postgraduate education Up to 3 months From 3 to 6 months From 6 to 9 months From 9 to 12 months From 1 to 2 years From 2 to 3 years More than 3 years TOTAL Short-term Unemployment Long-term Unemployment

22 2012 Yearbook Labour Force Demand and Employment Reported Job Vacancies In 2012, employers reported a total of 131,927 job vacancies to the CES, which represents an increase by 6,349 or 5.1% compared to the last year s figure (125,578) and a continuation of an annual increase in the number of reported vacancies (2010 was marked by an increase of 19.9%). According to the National Classification of Activities, the largest number of the reported job vacancies (Schedule 2, Page 28) came from the following groups of activities: education (18,496 or 14.0%), accommodation and food services (17,392 or 13.2%), manufacturing (15,712 or 11.9%), public administration, defence and compulsory social security (14,409 or 10.9%) and wholesale and retail trade (14,366 or 10.9%). The greatest contributors to the increase in the number of reported job vacancies were the following groups: public administration, defence and compulsory social security (absolute increase: by 4,535 workers or 45.9%), professional, scientific and technical activities (by 2,537 workers or 69.7%), education (by 825 workers of 4.7%), administrative and auxiliary service activities (by 660 workers or 11.0%) and other service activities (by 615 workers or 17.7%). At the same time, a significant decrease in the number of reported job vacancies was recorded in manufacturing (by 2,712 workers or 14.7%), agriculture, hunting and forestry (by 1,365 workers or 28.8%) and construction (by 568 workers or 6.7%). As far as Regional Organisation is concerned, most job vacancies (Schedule 3, Page 29) were reported in the City of Zagreb (22,468 or 17.0%), followed by the Counties of Split-Dalmatia (12,872 or 9.8%), Primorje-Gorski Kotar (11,535 or 8.7%) and Osijek-Baranja (10,315 or 7.8%). Compared to the year before, the registered workforce demand increased in 15 counties. The largest percentage increase in registered workforce demand was recorded in the County of Šibenik-Knin (39.8%), the City of Zagreb (17.3%) and the County of Primorje-Gorski Kotar (10.8%), while the largest decrease in registered workforce demand was recorded in the Counties of Međimurje (16.7%), Koprivnica-Križevci (12.6%) and Vukovar-Srijem (11.4%). In 2012, employers mostly looked for workers engaged in elementary occupations, such as cleaners, deliverers, transport workers, workers without occupational qualifications and similar (31,128 or 23.6%), as well as service workers and shop and market sales workers (28,197 or 21.4%). A significant share in the total workforce demand referred to professionals (23,537 persons or 17.8%), technicians and associated professionals (18,345 or 13.9%) and craft and related trade workers (14,662 or 11.1%). Compared to 2011, a significant increase was recorded in the demand for clerks (by 29.0%), professionals (by 18.0%) and technicians and associated professionals (by 13.4%) and a decrease in craft and related trade workers (by 13.2%), workers engaged in elementary occupations (by 2.2%) and plant and machine operators and assemblers (by 0.6%). 21

23 Croatian Employment Service Reported Job Vacancies by Group of Occupations in 2011 and 2012 Group of Occupations 2011 % 2012 % 2012/2011 Index (1) Legislators, senior officials and managers (2) Professionals 19, , (3) Technicians and associated professionals 16, , (4) Clerks 7, , (5) Service workers and shop and market sales workers 26, , (6) Skilled agricultural, hunting, forestry and fishery workers (7) Craft and related trade workers 16, , (8) Plant and machine operators and assemblers 5, , (9) Elementary occupations 31, , Total 125, , Employment of Persons from the CES Register A total of 186,156 persons from the register of unemployed persons of the Croatian Employment Service were employed in 2012, of which 175,535 (94.3%) were employed on a work contract basis and 10,621 persons (5.7%) on the basis of other business activities (vocational training for employment without a work contract, employment under special regulations, registering a company or a craft business, temporary service contract, etc.). Most of the registered employment referred to employment based on a work contract (175,535 persons, i.e. 8,004 persons or 4.8% more compared to 2011). The structure of employment by different features was as follows: Gender - From the total number of the persons employed, 91,547 were women (accounting for 52.2% of the total number of employed persons) and 83,988 were men (accounting for 47.8% of the total number of employed persons). Compared to 2011, the share of employed women decreased, whereas the share employed men increased by 0.2 pp. Educational Level and Groups of Occupations - The largest number of registered employed persons referred to persons with secondary school education, including those who completed a three-year vocational secondary school or school for skilled and highly skilled workers (37.5%) and those who completed a four-year vocational secondary school or grammar school (29.5%), followed by those with basic school education (15.5%) and no schooling (2.1%), and those with university and post-graduate education (9,4%) and post-secondary non-university education (6.0%). Compared to the year before, an increase in registered employment was recorded across all groups distinguished by the level of education. The largest increase was recorded in the group of persons with university and post-graduate education (10.4%). 22

24 2012 Yearbook Persons from the CES Register Employed on a Work Contract Basis in 2011 and 2012 by Educational Level Educational Level /2011 Number % Number % Index No schooling and uncompleted basic school 3, , Basic school 27, , to 3-year vocational secondary school and school for skilled and highly skilled workers 63, , (or more)-year vocational secondary school and grammar school 48, , Post-secondary non-university degree 9, , University and post-graduate degrees 15, , TOTAL 167, , Different groups of occupations (defined in accordance with the National Classification of Occupations) accounted for the following shares in the total registered employment recorded in 2012: Persons from the CES Register Employed on a Work Contract Basis in 2011 and 2012 by Groups of Occupations Group of Occupations 2011 % 2012 % 2012/2011 Index 0 Armed forces Legislators, senior officials and managers Professionals 14, , Technicians and associated professionals 25, , Clerks 18, , Service workers and shop and market sales workers 38, , Skilled agricultural, hunting, forestry and fishery workers 1, , Craft and related trades workers 29, , Plant and machine operators and assemblers 11, , Elementary occupations 28, , TOTAL 167, , Compared to 2011, the largest increase in employment was recorded in the following groups: professionals (10.4%), technicians and associated professionals (7.9%) and service workers and shop and market sales workers (6.0%), while the largest decrease was recorded in plant and machine operators and assemblers (0.7%). Work Experience - From the total number of persons from the CES register employed on a work contract basis, 154,936 (88.3%) had prior work experience, whereas 20,599 (11.7%) were employed for the first time. Duration of Employment - 162,532 persons (92.6%) were employed on a temporary basis, whereas 13,003 persons (7.4%) were employed on a permanent basis. Compared to 2011, the share of temporary employment increased, while the share of permanent employment decreased (by 7.1 pp). Employment Activity The persons from the CES register of unemployed persons who were employed in 2012 (Schedule 2, Page 28) came mainly from the four frequent areas of activity, i.e. those recording the greatest fluctuations in registered employment and unemployment: accommodation and food services (30,084 persons or 17.1%), manufacturing (27,565 persons or 15.7%), wholesale and retail trade (26,739 persons or 15.7%) and construction (15,686 persons or 8.9%). The main contributors to the increase in registered employment compared to 2011 were: accommodation and food services (recording an increase by 2,768 persons or 10.1%) and public 23

25 Croatian Employment Service administration, defence and social security (recording an increase by 2,469 persons or 36.1%), followed by education (by 1,060 or 9.4%) and administrative and auxiliary services (by 921 persons or 8.6%). Regional Employment Structure The structure of registered employment by counties (Schedule 3, Page 29) shows that the largest number of persons employed on a work contract basis was recorded in the County of Split-Dalmatia (22,064 persons or 12.6%), the City of Zagreb (18,800 persons or 10.7%) and the County of Osijek-Baranja (17,016 or 9.7%). Compared to the year before, an increase in registered employment of persons from the CES register of unemployed persons increased in most counties. The greatest percentage increase in employment was registered in the Counties of Dubrovnik-Neretva (13.6%), Šibenik-Knin (10.6%) and Sisak-Moslavina (10.3%), while the Counties of Požega-Slavonia, Primorje-Gorski Kotar, Split-Dalmatia and Zadar also recorded a significant increase. The increase was therefore mainly recorded in coastal counties characterized by seasonal employment in tourism. Employment Rate by Educational Level and Occupation The annual employment rate shows how many persons from the total number of unemployed persons who looked for employment during the year were employed on a work contract basis. The total number of persons looking for employment includes persons registered as unemployed at the beginning of the year and the persons registered as unemployed in the course of the year. In 2012, the employment rate was 26.8%, which means that more than one fourth of unemployed persons who looked for employment during the year were employed. Significant differences were recorded in the employment rate among the groups of unemployed persons distinguished by the level of education. In the case of persons with no schooling or uncompleted basic school, the employment rate was 12.2%. It was 21.8% in the case of those who completed basic school, 29.0% in the case of those who completed vocational secondary school in the duration of up to three years or school for skilled and highly skilled workers, 27.5% in the case of those who completed four-year vocational secondary school or grammar school, 30.8% in the case of those with post-secondary non-university education and 33.4% in the case of those with university and post-graduate education. It is evident that higher employment rates are associated with higher educational levels. Employment Rates by Educational Level in 2012 (%) 40 Employment Rate (%) A B C D E F 24 Educational Levels: A no schooling and uncompleted basic school, B basic school, C 1- to 3-year vocational secondary school and school for skilled and highly skilled workers, D 4(or more)-year vocational secondary school and grammar school, E post-secondary non-university education, F university and post-graduate education.

26 2012 Yearbook Within the same groups distinguished by the level of education, there are considerably large differences in employment rate between persons engaged in different occupations. The following table shows twenty occupations with the highest and twenty with the lowest rate of employment within the most frequent groups at secondary school level. Employment Rate by Occupation at Secondary School Level Occupation % Occupation % Plumbing and Gas Fitter 39.0 Physiotherapy Technician 23.0 Fire Technician 38.5 Architectural Technician 22.7 Cook 38.2 REL Welder 22.7 Electrical and Mechanical Technician 37.6 Upholster 22.6 Gas Fitter 37.5 Marine Sailor 22.6 Automatic Construction Machine Operator 37.5 Graphic Designer - Preparation 22.1 House Painter 36.9 Shoemaker 21.9 Freight Motor Vehicle Driver 36.1 Midwife 21.6 Waiter 35.0 Graphic Designer 21.6 Forest Technician 34.9 Fine Art and Design 21.5 Fireman 34.4 Administrative and Personnel Clerk 21.2 Motor Vehicle Driver 34.3 Dental Technician 20.8 Carpenter 34.3 Engine Electrician 20.1 Hotelier 33.6 Technical Drawer 20.1 Farmer 33.6 International Correspondent 19.9 Baker 33.4 Radio and TV Electrician 19.9 Hotel/Tourism Technician 33.3 Typist 19.3 Gardener 33.1 Florist 17.4 Food Production Machine Operator 33.1 Tailor Bookbinder 11.8 The following table shows ten occupations with the highest and ten with the lowest rate of employment at post-secondary non-university and university and post-graduate levels. Employment Rate by Occupation/Major at Post-secondary Non-university and University and Post-graduate Levels Occupation/Major % Occupation/Major % Biology and Chemistry 67.1 Sociology 23.3 Pharmacy 65.4 Fashion Design 23.2 Teaching 63.1 Kinesiology 22.6 English Language 57.3 Economics 22.6 Croatian and English Language 57.3 Public Administration 22.6 Geography 54.5 Journalism 22.1 Senior Nurse 52.7 Architecture and Urban Planning 21.3 Pre-school Education 51.5 Physiotherapy 21.0 General Medicine 50.1 Political Sciences 19.6 Electrotechnical Engineering and Information Technology 46.0 Management

27 Croatian Employment Service Seasonal Employment Seasonal employment accounts for a significant share of the total number of persons employed from the CES register of unemployed persons. Seasonal employment mainly refers to tourismrelated activities which in addition to accommodation and food services also include other associated activities (commerce, transport, other service activities). Furthermore, seasonal employment is also typical in agriculture, forestry and fishery, some of the manufacturing activities and construction. Provision of placement services with regards to seasonal employment in tourism is one of the important business activities of the Croatian Employment Service. At the beginning of each year, the CES organises regional meetings with the representatives of large hotel and tourism companies for the purpose of reaching concrete agreements concerning the planning (forecasting) and meeting the demand for seasonal workers. The meetings are held in coastal counties of Croatia (Istria, Primorje-Gorski Kotar, Zadar, Šibenik-Knin, Split-Dalmatia and Dubrovnik-Neretva) which are getting ready for the upcoming tourist season. After preparing the demand forecasts and selecting seasonal workers from unemployed domicile population, the representatives of the afore-mentioned companies conduct, in cooperation with regional offices of the Croatian Employment Service based in continental counties (Osijek, Vinkovci, Bjelovar, Sisak, etc.), informative interviews with the interested candidates from those counties and then select the most appropriate ones and refer them to the agreed job positions. In 2012, a total of 39,438 workers were seasonally employed, accounting for 22.5% of the total number of persons from the CES register employed on a work contract basis. Compared to the year before, the number of seasonal workers grew by 2,365 persons or 6.4%. Seasonal employment was most significant in accommodation and food service activities (18,289 workers and a share of 46.4%), wholesale and retail trade (4,274 workers or 10.8%), agriculture, hunting and forestry (3,216 workers or 8.2%), administrative and auxiliary service activities (3,037 workers or 7.7%), and manufacturing (2,128 workers or 5.4%). In 2012, most seasonal workers came from the following counties (Schedule 4, Page 30): Split- Dalmatia (6,299 or 16.0%), Dubrovnik-Neretva (3,510 or 8.9%), Vukovar-Srijem (3,340 or 8.5%), Osijek-Baranja (2,942 or 7.5%), Zadar (2,796 or 7.1%), Šibenik-Knin (2,755 or 7.0%), Primorje- Gorski Kotar (2,732 or 6.9%), Istria (2,387 or 6.1%) and Bjelovar-Bilogora (2,272 or 5.8%). It is evident that most seasonal workers came from the coastal counties whose activities are primarily associates with tourism, but also certain continental counties which usually produce a significant number of seasonal workers for working at the seaside, as well as in agriculture and manufacturing (as seasonal activities). Most seasonal workers employed were engaged in the following occupations: salespersons (3,619 or 9.2%), waiters (3,049 or 7.7%), cooks (2,838 or 7.2%), chambermaids (1,830 or 4.6%), cleaning ladies (1,624 or 4.1%), kitchen help (1,287 or 3.3%) and assistant cooks (1,275 or 3.2%). Interregional Mediation 26 Interregional mediation is provided with the aim of meeting the employers demand for workers, especially in areas where there is an insufficient number of workers engaged in particular occupations, as well as encourage migration of workers and ensure their employment, particularly in areas recording high unemployment rates. Therefore, if a certain regional office is not in the position to fill a job vacancy by referring to it a registered worker from its own county, the relevant request is then forwarded to other regional offices with registered workforce meeting the job-specific requirements. Interregional job placement services are especially important in the process of meeting the demand for seasonal workers during the tourist season and meeting the demand for workers in occupations in demand. Through interregional mediation, a total of 31,229 workers registered with the CES as unemployed were employed in 2012 in the place outside of the territorial scope of the regional or local office to which the request had originally been submitted. In terms of counties (Schedule 4, Page 30), most workers who were employed in the place outside the territorial scope of the regional

28 2012 Yearbook or local office to which the request had originally been submitted came from the following counties: Osijek-Baranja (3,551 or 11.4%), Vukovar-Srijem (3,494 or 11.2%), Sisak-Moslavina (2,955 or 9.5%), Brod-Posavina (2,517 or 8.1%) and Bjelovar-Bilogora (1,992 or 6.4%). As far as employment activity is concerned, most such workers were employed in accommodation and food services (9,313 or 29.8%), wholesale and retail trade (4,927 or 15.8%), construction (3,943 or 12.6%), manufacturing (3,611 or 11.6%) and administrative and auxiliary service activities (2,769 or 8.9%). The workers employed outside the territorial scope of the regional or local office to which their request had originally been submitted were mainly engaged in the following occupations: salespersons (2,524 or 8.1%), cooks (1,766 or 5.7%), waiters (1,476 or 4.7%), economic clerks (831 or 2.7%), cleaning ladies (745 or 2.4%), administrative clerks (732 or 2.3%), assistant cooks (657 or 2.1%), freight vehicle drivers (615 or 2.0%), kitchen help (613 or 2.0%), chambermaids (563 or 1.8%). Employment of Persons Abroad In the scope of international job placement services, the CES is in charge of executing two bilateral agreements on employment in the Federal Republic of Germany, as well as consultation, informing, referral and employment of Croatian citizens in the Federal Republic of Germany. Employment of Croatian citizens abroad is subject to a working and resident visa issued by the relevant state for a specific period of time. The Croatian Employment Service provided placement services to seasonal workers, medical technicians, the so-called guest workers and students participating in summer practical training programmes in the Federal Republic of Germany, as well as to sailors on ships owned by foreign companies. Through the job placement activities carried out by the CES, a total of 6,837 Croatian citizens were employed abroad during 2012, which is 1,110 workers or 19.4% more than in 2011, thus continuing the positive trend concerning the number of workers employed abroad recorded in the past three years. Employment in the Federal Republic of Germany is mainly seasonal in character, so that in 2012 most workers found employment, on the basis of the bilateral agreements in force, in the following areas of activity: agriculture (3,559 persons or 57.4%) and accommodation and food services (2,525 persons or 40.7%) for a period of 6 months; and amusement parks for a period of up to 9 months (114 persons or 1.8%), i.e. 6,198 persons from the total number of persons engaged in seasonal employment. Most seasonal workers were came from the Counties of Brod-Posavina, Osijek-Baranja and Vukovar-Srijem, mainly women (3,336 or 53.8%). Throughout the year, employers from the Federal Republic of Germany report their need for seasonal workers to the Croatian Employment Service. A significant number of such workers had already worked for the same employers during the previous years. If the German employers are satisfied with the work performed by particular workers and there is a need for their employment, they send new employment agreements for the same workers through the Central Employment Intermediation Office in Bonn each year. Under German law, seasonal workers in agriculture and accommodation and food services had been permitted until 2009 to work in the Federal Republic of Germany for a period of up to four months. However, in January 2009, the permitted duration of temporary work contracts was extended to six months. As far as the entertainment business is concerned, seasonal workers can now be employed for a period of up to nine months during a calendar year. The agreements (together with the description of work, salary amount and other terms of employment offered and required by the employer) are received by the Central Office of the Croatian Employment Service. They are made out to a specific unemployed person (name and surname, date of birth and address). Such agreements are called name-based agreements. They are sent by the Central Office to be executed by the relevant regional office according to the place of permanent residence of the specified unemployed person. If the German employer does not specify the person by name, but only states certain work-related requirements (the so-called anonymous agreements ), the Central Office then provides its job placement services and organises a selection of workers. 27

29 Croatian Employment Service Pursuant to the Agreement signed between the Croatian Government and the Government of the Federal Republic of Germany on the Employment of Workers for the Purpose of their Professional Advancement and Language Improvement (Agreement on Temporary Employment, Official Gazette International Agreements 14/2002), 293 persons of up to 40 years of age engaged in various occupations were employed for a period of 18 months, while 94 medical nurses and technicians who passed the qualifying exam were employed for a longer or indefinite period of time. In 2012, in cooperation with the Central Employment Intermediation Office in Bonn, the CES organised two selections/interviews for candidates seeking to find employment in the Federal Republic of Germany as guest workers and medical nurses/technicians. 280 persons responded. During summer vacations, 79 students were employed in the Federal Republic of Germany for a period of up to 3 months. All activities concerning the placement of sailors on foreign ships were carried out by the Rijeka and Split Regional Offices onto which the CES transferred its job placement duties in this regard. In 2012, a total of 173 sailors registered with the Croatian Employment Service were employed on foreign ships. Number of Workers Employed Abroad in 2011 and /2011 Index Seasonal Workers 5,298 6, Medical Technicians Guest Workers Students Sailors on Foreign Ships TOTAL 5,727 6, The Croatian Employment Service has so far carried out a number of activities the purpose of which is preparation for active participation in the EURES Network after the admission of the Republic of Croatia to the European Union. A project entitled EURES Services for Employers was carried out as part of Component 1 of the IPA Programme. The main objective of the project was to promote mobility and employment at the European level within the European Economic Area in accordance with the requirements defined under Negotiation Chapter 2: Workforce Mobility. The purpose was to support the Croatian Employment Service in developing quality EURES services for employers. Activities were carried out with the aim of improving the services and business processes of the Croatian Employment Service by strengthening the abilities of counsellors to provide quality EURES services to international and local employers interested in employment and by raising the awareness of employers and other EURES Network participants concerning the possibilities of employment at the European level. 28

30 2012 Yearbook Schedule 2 Reported Job Vacancies and Persons from the CES Register Employed on a Work Contract Basis by Activity (according to the National Classification of Activities) in 2011 and 2012 Activity (2007 National Classification of Activities) Reported Job Vacancies Share in / 2011 Index Persons Employed from the CES Register on a Work Contract Basis Share in / 2011 Index Agriculture, forestry and fishing 4,743 3, ,211 7, Mining and quarrying Manufacturing 18,424 15, ,084 27, Electricity, gas, steam and air-conditioning supply Water supply; sewerage, waste management and 3,337 3, ,835 3, remediation activities Construction 8,484 7, ,512 15, Wholesale and retail trade; repair of motor vehicles and 14,248 14, ,439 26, motorcycles Transportation and storage 3,167 3, ,183 5, Accommodation and food service activities 16,849 17, ,316 30, Information and communications 1,203 1, ,444 1, Financial and insurance activities 2,252 2, ,740 1, Real estate business Professional, scientific and technical activities 3,638 6, ,413 5, Administrative and auxiliary service activities 6,004 6, ,754 11, Public administration, defence; compulsory social 9,874 14, ,835 9, security Education 17,671 18, ,280 12, Health and social welfare activities 9,563 9, ,733 6, Arts, entertainment and recreation 1,933 2, ,365 2, Other service activities 3,470 4, ,138 4, Activities of households as employers; undifferentiated goods- and servicesproducing ,088 1, activities of households for own use Activities of extraterritorial organizations and bodies T O TA L 125, , , ,

31 Croatian Employment Service Schedule 3 Reported Job Vacancies and Persons from the CES Register Employed on a Work Contract Basis by County in 2011 and 2012 County Reported Job Vacancies Share in / 2011 Index Persons Employed from the CES Register on a Work Contract Basis Share in / 2011 Index Zagreb 4,772 5, ,415 8, Krapina-Zagorje 2,888 3, ,139 4, Sisak-Moslavina 4,207 4, ,483 8, Karlovac 2,889 3, ,015 5, Varaždin 6,191 5, ,663 6, Koprivnica-Križevci 3,966 3, ,562 4, Bjelovar-Bilogora 3,744 3, ,461 6, Primorje-Gorski Kotar 10,407 11, ,874 11, Lika-Senj 1,997 1, ,074 2, Virovitica-Podravina 3,714 3, ,259 5, Požega-Slavonia 2,019 2, ,543 3, Brod-Posavina 4,163 4, ,501 7, Zadar 4,751 4, ,454 6, Osijek-Baranja 10,078 10, ,238 17, Šibenik-Knin 4,197 5, ,923 5, Vukovar-Srijem 5,769 5, ,517 10, Split-Dalmatia 12,708 12, ,470 22, Istria 7,954 8, ,159 8, Dubrovnik-Neretva 4,747 5, ,317 6, Međimurje 5,257 4, ,780 4, City of Zagreb 19,160 22, ,684 18, T o ta l 125, , , ,

32 2012 Yearbook Schedule 4 Persons Employed from the CES Register through Seasonal and Interregional Mediation in 2011 and 2012 by Counties County Seasonal Employment Share in / 2011 Index Interregional Employment Share in / 2011 Index Zagreb Krapina-Zagorje ,341 1, Sisak-Moslavina 1,387 1, ,672 2, Karlovac ,294 1, Varaždin ,036 1, Koprivnica-Križevcia 537 5, , Bjelovar-Bilogora 1,788 2, ,846 1, Primorje-Gorski Kotar 2,630 2, Lika-Senj Virovitica-Podravina 1,970 1, ,136 1, Požega-Slavonia ,147 1, Brod-Posavina 1,739 1, ,333 2, Zadar 2,253 2, Osijek-Baranja 3,182 2, ,360 3, Šibenik-Knin 2,151 2, Vukovar-Srijem 3,653 3, ,030 3, Split-Dalmatia 5,790 6, ,678 1, Istria 2,565 2, Dubrovnik-Neretva 2,911 3, Međimurje City of Zagreb ,622 1, TOTAL 37,073 39, ,113 31,

33 Croatian Employment Service Preparation for Employment Activities Intended for Unemployed Persons For the purpose of ensuring that unemployed persons are well prepared for the labour market as well as for the purpose of developing their career management skills, the CES applied various labour market inclusion models intended for unemployed persons. Various types of group and individual activities were carried out involving all those in need of job search related support and assistance, particularly long-term unemployed persons, thus promoting active job search and participation in educational and other active employment policy measures. In 2012, workshops on the topic of career management skills improvement and active job search involved 26,395 persons, while 9,816 persons received individual counselling. In accordance with the Vocational Rehabilitation and Employment of Persons with Disabilities Act (Official Gazette No. 143/02 and 33/05) and the implementation of measures prescribed under the National Strategy for Equalisation of Possibilities of Persons with Disabilities for the period from 2007 until 2015, 1,355 persons with disabilities participated in vocational guidance activities carried out by the Croatian Employment Service in 2012, of which 360 persons participated in workshops. Vocational guidance and educational activities intended for persons with disabilities were carried out in cooperation with the Croatian Sign Language Interpreters and Translators Association, thus helping the participants study the related educational material with the help of a sign language interpreter. In order to increase the level of employability of persons with disabilities, 779 persons with disabilities participated in some kind of educational activity carried out within the scope of active policy measures implemented by the CES, local partnerships or IPA projects, which represents an increase of 25.4% compared to the number recorded in The Croatian Employment Service also participates in re-socialisation of drug addicts who have completed a drug addiction treatment and rehabilitation programme in a therapeutic community or prison. The activities of the CES under this project include promotion of education and employment of former addicts through vocational guidance activities and subsidies for inclusion of project beneficiaries in educational and employment programmes. In 2012, 94 unemployed persons (former drug addicts) were involved in vocational guidance activities. Furthermore, 16 re-socialisation project beneficiaries were included in educational activities provided by the CES, while 21 were employed (7 project beneficiaries were employed through active policy co-financing measures). The Lifelong Learning Week was held in September It is an initiative started in order to sensitize the public about the concept of lifelong learning, promote the learning culture and encourage personal motivation of all stakeholders in the field of education and employment. During the campaign, more than 460 events were organised across Croatia, involving over 700 different institutions, and Dandelion of Knowledge (Maslačak znanja) awards were presented. All regional offices of the CES participated in the Lifelong Learning Week in cooperation with their partners, i.e. state administrative bodies, counties, local communities, social partners, associations, adult education institutions, schools and other organisations. Activities Intended for Employers In cooperation with employers the CES continuously carries out vocational informing and counselling activities as well as vocational selections which include psychological testing of potential candidates for employment for the purpose of ensuring competent workforce on the basis of identified competencies and job-specific requirements. Special attention is given to companies in the process of restructuring and companies forced to reduce their economic activity due to the economic crisis. In 2012, 9,387 persons participated in vocational psychological selections for inclusion of unemployed persons in educational activities and/or employment. Early Intervention and Prevention Activities Intended for Pupils and Students 32 Considering the need to continuously adjust the labour market demand with the offer of educational programmes, i.e. to adjust the competencies sought in the labour market with the

34 2012 Yearbook skills acquired through educational activities, pupils and students make a significant group of Croatian Employment Service users. Vocational guidance activities intended for elementary and secondary school pupils are an important employment policy tool. They include early interventions and are aimed at preventing (long-term) unemployment, also providing support in reaching adequate decisions concerning the choice of educational programmes and employment. The pupils and students most in need of vocational guidance services were identified in cooperation with schools, particularly the groups of pupils defined in the Decision on Elements and Criteria for Enrolment of Pupils in the First Grade of Secondary School passed by the Ministry of Science, Education and Sports. During 2012, informing and counselling activities on the topic of educational programmes, demand forecast and occupations in demand in the labour market were held for the pupils of final grades of elementary and secondary schools. 18,821 pupils of final grades of elementary and secondary schools participated in various types of individual and group informing and counselling activities. Also, for the purpose of promoting occupations in demand in the labour market, the Croatian Employment Service carries out various promotional activities in cooperation with regional chambers of crafts and trade, as well as finances medical examinations of pupils required for their enrolment in the programmes preparing them for such occupations. On the basis of the Vocational Interest Questionnaire, a survey of vocational interests of pupils of final grades of elementary and secondary schools was carried out on a sample of 15,350 pupils. The results of the survey are important for the process of planning, implementation and monitoring of vocational guidance activities, providing recommendations for the enrolment policy and the policy concerning scholarships for secondary and post-secondary education, as well as the process of adjusting supply and demand in the labour market. With the aim of developing and improving the pupil and student standard as well as promoting the educational programmes associated with occupations in demand in the labour market, on the basis of the analysis and forecasts concerning the labour market demand for particular qualifications, the Croatian Employment Service drew up the Recommendations for the Enrolment and Scholarship Policy in 2012 as well. The said recommendations were forwarded to the Ministry of Science, Education and Sports, local and regional self-government units, as well as sector committees. The recommendations are used in the preparation of scholarship competitions organised by the National Foundation for Support to the Pupil and Student Standard, preparation of competitions for admission of pupils/students in campuses, etc. Five regional brochures called Where to after Elementary School? (Kamo nakon osnovne škole?) providing guidelines for the enrolment of pupils in secondary schools in academic year 2012/2013 were prepared in the course of the year. The CES also released 100 informative brochures called A Guide for Future Students (Vodič za buduće studente) in cooperation with the University of Zagreb and for the purpose of providing information to pupils of final grades of secondary schools. Self-informing about educational, employment and vocational guidance programmes, possibilities and services was made possible to various groups of users through a computer program called My Choice, the 4 th advanced version of which provides insight into descriptions of 350 occupations, information about educational and employment programmes and possibilities, as well as interest and competence tests based on which the program refers the users to the most adequate occupations or types of jobs. Other Activities Under Component 4 of the IPA Programme, the Croatian Employment Service continued implementing the projects envisaged under the grant scheme called Promoting Greater Inclusion of Persons with Disabilities in the Labour Market. The purpose of grant programmes was to support employment and education of persons with disabilities by developing professional support services, improving cooperation between key participants in the local labour market, creating a support network for employers, educating employers about working possibilities of persons with disabilities, developing a model of a regional vocational rehabilitation centre, 33

35 Croatian Employment Service 34 establishing a mobile team for inclusion in the working environment, developing a model of a virtual workshop for persons with disabilities, and similar. Intensive activities were carried out on improving cooperation among institutions and ministries with the aim of improving the preconditions and methodology for promoting greater inclusion of persons with disabilities in the labour market. Pursuant to the National Strategy for Equalisation of Possibilities of Persons with Disabilities for the period from 2007 until 2015, which envisages the establishment of regional vocational rehabilitation centres, a project called Vocational Rehabilitation as a Method of Integrating Persons with Disabilities into Croatian Market is currently being implemented. Project partners include: Foundation for Vocational Rehabilitation and Employment of Persons with Disabilities, Croatian Employment Service, Ministry of Labour and Pension System, URIHO as well as Centaroprema (a security workshop in Rijeka), DES in Split and Vocational Rehabilitation Centre in Osijek. The purpose of the project is to acquire the methods and techniques applied at the Austrian BBRZ Vocational Rehabilitation Centre and develop a professional concept of regional centres as well as influence the creation of conditions for establishment and sustainable functioning of the same. In 2012, a proposal of an improved text of the Quality Standards for Vocational Guidance and Selection Services Provided by the Croatian Employment Service, which would enable standardisation of vocational guidance service quality across regional offices, availability and transparency of activities intended for users and the wider public, adjustment of services to user needs and continuous professional advancement of counsellors, was drafted. 4 training seminars on the topic of applying and using new group counselling methods were held as part of the INTRADA Naviguide project involving 90 counsellors from the field of education, employment and social inclusion. In addition to providing education to counsellors, the aim of the project was also to disseminate innovations, present the plan of group vocational guidance activities intended for various target groups, as well as create a database of group counselling methods. The process of implementing and improving the lifelong vocational guidance system was continued through practical work and lectures involving 250 students and cooperation with the Croatian Psychological Chamber, Croatian Psychological Association and the Croatian Andragogical Association. Vocational guidance counsellors informed the public about the CES activities by participating in international and national professional gatherings, conferences, job fairs, round tables, etc. CES representatives also participated at the annual Cross Border seminar in Bled, a platform for exchanging experiences with colleagues from the neighbouring countries, learning about the European examples of good practice and presenting vocational guidance methods applied in the Republic of Croatia associated with the improvement of career management skills. In cooperation with the Euroguidance Centre Croatia, the CES also produced a brochure called Which Road to Take? (Kojim putem krenuti?) providing an overview of the lifelong vocational guidance system in the Republic of Croatia. In the framework of the Enterprise Learning Strategy for the period from 2010 until 2014, CES representatives actively participated in the implementation of measures from the Action Plan through a series of activities aimed at promoting a positive attitude towards entrepreneurship, raising the interest in enterprise training and advancement programmes, developing entrepreneurial competencies, strengthening of cooperation and networking with economic entities, etc. CES representatives also continuously participated in the activities of the Working Group responsible for the creation of a Vocational Rehabilitation and Employment of Persons with Disabilities Bill. The cooperation with the Office for Curbing Drug Use on the Re-socialisation of Treated Drug Addicts project was also continued. Apart from various models used to improve vocational rehabilitation in accordance with the National Strategy for Equalisation of Possibilities of Persons with Disabilities (Official Gazette 63/07), the Croatian Employment Service participated in the process of improving the rights of persons with disabilities and proposed the passing of the related regulations. The CES also participated in the Working Group responsible for the creation of a bill concerning the Croatian Qualifications Framework, a

36 2012 Yearbook project run by the Ministry of Science, Education and Sports, as well as in other working groups associated with the implementation of measures from various national strategic documents, strategies, policies and plans from the field of employment, education and social inclusion: National Strategy for the Creation of an Enabling Environment for Civil Society Development, Enterprise Learning Strategy, National Strategy to Combat Family Abuse, National Strategy for Equalisation of Possibilities of Persons with Disabilities, Youth Strategy, etc. Within the European Lifelong Guidance Policy Network (ELGPN), the CES played a role of a national representative and operative coordinator for the Republic of Croatia. During the implementation of the ELGPN Work Programme for 2011 and 2012 one of the outcomes was the creation of a Manual providing guidelines for the preparation of lifelong vocational guidance policies in EU member states. The Manual mentions two Croatian examples of good practice in the field of lifelong vocational guidance: Partnership Approach to Early Intervention in Croatia and Partnership Approach to Improvement of Career Management Competencies for Persons with Disabilities in Croatia. Other outcomes of the ELGPN Work Programme include the publication of overview articles on the topic of the concept of flexicurity, career management skills and youth employment and the publication of a unique European lexicon associated with lifelong vocational guidance policy development. The mentioned documents have been translated in the Croatian language and distributed to the relevant stakeholders in the field of education, employment and social inclusion. 35

37 Croatian Employment Service Active Labour Market Policy 36 The active employment policy measures falling under the responsibility of the Croatian Employment Service implemented under the National Employment Incentive Plan, National Programme for the Roma and employment incentive programmes financed by the EU or local self-government units involved in 2012 a total of 41,555 persons, of which 28,807 new beneficiaries that got involved in the programmes during the year. The active policy measures implemented under the National Employment Incentive Plan for 2011 and 2012, which have been harmonised with European employment incentive strategies, mainly refer to co-financing of employment of unemployed persons, co-financing of personal advancement for the purpose of retaining employment, financing of labour market oriented education for unemployed persons and vocational training for employment without a contract, as well as co-financing and financing of employment in public work programmes. The measures providing co-financing of employment and education and financing of education involved in 2012 the following groups of unemployed and employed persons: young persons up to 29 years of age with no work experience registered as unemployed; unemployed persons listed in the register of unemployed persons for a period of more than 30 days with completed pre-graduate, graduate or integrated pre-graduate and graduate university education or pre-graduate or specialist vocational education, persons with secondary school education in crafts and trades, and those trained in occupations the performance of which requires membership in vocational associations established on the basis of special regulations, regardless of whether work experience or qualifying exams are prescribed under the same or not, provided they have not worked for more than 12 months performing their respective occupation and without restrictions concerning the total insurance period; long-term unemployed persons up to 25 years of age provided they have been registered as unemployed for at least 6 months or over 25 provided they have been registered as unemployed for at least 12 months; unemployed persons over 50 years of age registered as unemployed for at least 6 months as well as employed persons over 50 years of age facing the threat of losing their employment due to their age, educational level, lack of professional knowledge and skills; persons with disabilities; special groups of unemployed persons including single parents, young persons leaving care (children s homes), victims of family abuse, Croatian war veterans, parents of four and more underage children, parents of children with special needs, asylum seekers, treated addicts, and other groups of unemployed persons facing the threat of social exclusion and long-term unemployment; unemployed persons who have been registered as unemployed for a period of at least 36, 12 or 6 months in areas of special concern or islands for the purpose of being included in public works; persons of the Roma nationality registered as unemployed; employed workers facing the threat of lay-off due to a change in the production programme, introduction of new technologies and higher standards; workers employed by employers that do not offer fulltime employment due to business problems, i.e. those working less than 40 hours a week. The measures falling within the scope of the National Employment Incentive Plan (Schedule 5a, Page 37) encompassed a total of 40,728 beneficiaries, of which 28,085 new ones that got involved in the programmes throughout the year. 3,746 persons were employed through employment subsidies, 938 received self-employment subsidies, 121 received further training

38 2012 Yearbook subsidies, 2,334 received labour market oriented training, 15,320 were employed in public work programmes, 5,456 received on-the-job training without a work contract, while the job preservation subsidy was provided to 170 persons. From the total number of new beneficiaries that joined the programmes throughout ,073 were women (53.7%). In the course of 2012, HRK 359,391, was spent on the implementation of measures from the National Employment Incentive Plan. The data concerning the implementation of measures show that from the total number of new beneficiaries, those with secondary school education account for the largest share (54.7%), which is in line with their share in the total registered unemployment. A positive effect on persons with lower education was achieved through their involvement in public work programmes (35.9%) and financing of labour market oriented education (25.9%), which was expected considering the fact that these measures are primarily intended for persons with low level of education and those facing the threat of social exclusion. The largest number of persons with post-secondary education participated in the following measures: co-financing of first employment of young persons with no work experience (47.1%) and vocational training for employment without a work contract (78.2%). As far the age structure of beneficiaries of the measures from the National Employment Incentive Plan is concerned, young persons in the group from 20 to 24 (18.1%) and 25 to 29 years of age (19.8%) account for the largest share, followed by age groups from 45 to 49 and 50 to 54 (with a share of 10.0% each). The Croatian Employment Service also implemented the measures aimed at increasing employment of the Roma pursuant to the National Programme for the Roma and the Action Plan for the Decade of Roma Inclusion In 2012, the measures intended to ensure opportunities for employment and education for the Roma (Schedule 5b, Page 38) encompassed 697 persons from the register of unemployed persons, of which 664 new entrants that joined the programmes in the course of the year. 633 persons were employed in public works programmes, 10 received an employment subsidy and 21 unemployed persons participated in educational programmes. In 2012, a total of HRK 7,489, was paid out for employment and education of unemployed persons of the Roma national minority. Besides under the National Employment Incentive Plan and the National Programme for the Roma, educational programmes intended for unemployed persons were also financed by the EU and local self-government and administrative units. In 2012, 130 unemployed persons participated in such programmes, of which 58 new entrants. 37

39 Croatian Employment Service Schedule 5a 38 Beneficiaries of Measures under the National Employment Incentive Plan for 2011 and 2012 by Counties in 2012 Job Preservation Subsidy On-the-Job Training without Work Contract Public Works Trainig of Unemployed Persons Further Training Subsidies Self-employment Subsidies Employment Subsidies TOTAL County Total Participants New Entrants Total Participants New Entrants Total Participants New Entrants Total Participants New Entrants Total Participants New Entrants Total Participants New Entrants Total Participants New Entrants Total Participants New Entrants Zagreb 785 1, Krapina-Zagorje 724 1, Sisak-Moslavina 1,806 2, ,216 1, Karlovac 847 1, Varaždin 1,062 1, Koprivnica-Križevcia Bjelovar-Bilogora 1,251 1, , Primorje-Gorski Kotar 1,552 2, Lika-Senj Virovitica-Podravina 1,082 1, Požega-Slavonia Brod-Posavina 1,498 1, ,012 1, Zadar 665 1, Osijek-Baranja 3,944 5, ,933 3, Šibenik-Knin 724 1, Vukovar-Srijem 1,810 2, ,094 1, Split-Dalmatia 2,927 4, ,669 1, Istria Dubrovnik-Neretva 794 1, Međimurje 972 1, City of Zagreb 3,557 5, , ,089 1,385 1, TOTAL 28,085 40,728 3,746 5, , ,334 5,096 15,320 17,177 5,456 9,

40 2012 Yearbook Schedule 5b Beneficiaries of Measures under the National Programme for the Roma/Action Plan for the Decade of Roma Inclusion in 2012 by Counties County New Entrants TOTAL Total Participants Training of Unemployed Persons New Entrants Total Participants On-the-Job Trainig without Work Contact New Entrants Total Participants Public Works New Entrants Total Participants Co-financing of Employment New Entrants Total Participants Zagreb Sisak-Moslavina Karlovac Varaždin Koprivnica-Križevci Bjelovar-Bilogora Virovitica-Podravina Brod-Posavina Osijek-Baranja Šibenik-Knin Istria Međimurje City of Zagreb TOTAL Redeployment Programme In accordance with Article 120, Section 1 of the Labour Act 1, any employer that establishes a surplus of at least twenty employees whose work contracts will, regardless of the reason, be terminated within a period of 90 days as well as any employer that plans to terminate the work contracts of at least five employees due to business reasons must consult the workers council for the purpose of eliminating the need for lay-offs. Any employer that, after the consultations on redeployment programmes, still intends to terminate a number of work contracts due to business reasons, within the meaning of the provisions of Article 120, Section 1 of the Labour Law, shall be obligated to draft a Redeployment Programme. While drafting the programme, employers must consult with the competent public employment office (regional office of the Croatian Employment Service according to the seat of the employer) regarding the possibilities of involving the affected employees in active employment policy programmes. Drawing up of a redeployment programme is a special measure the goal of which is to remove or mitigate the damage arising from the termination of the work contract for the worker. More precisely, a situation where a large number of lay-offs happens at the same time or within a short period of time has substantially different social, economic and other consequences compared to individual lay-offs. The Croatian Employment Service actively participates in solving the soarisen problem. Already during the counselling activities, the CES tries to help the redundant employees or those facing the threat of lay-off by providing placement services during the notice period with the aim of securing other employment for them by referring such employees to retraining or advancement programmes for the purpose of obtaining some other position in the same company 1 Official Gazette No. 14/09 39

41 Croatian Employment Service or elsewhere. In the implementation of the said activities associated with the manner of handling surplus employee situations, the CES faces a series of objective problems, primarily the lack of job vacancies in the case of both the same and other employers, followed by the psycho-physical condition of persons covered by the programmes. The end goal of the mentioned activities is to help persons facing the threat of lay-off be reemployed as fast as possible, ensure the return of as many workers as possible to the world of labour and prevent long-term unemployment. Surplus of employees is mainly caused by privatisation, restructuring, change of production programme, introduction of new technologies, inability to adjust to market demands, and other. In 2012, the CES received 91 Redeployment Programmes involving persons, of which 2,245 women (with a share of 39.4%) and 3,452 men (with a share of 60.6%). As far as the structure of workers covered by redeployment programmes by the level of education is concerned, workers with secondary school education (46.6%) accounted for the largest share, followed by skilled and highly-skilled workers (18.5%), low-skilled workers (13%) and workers with post-secondary education (10.1%). As far as the age structure is concerned, most workers belonged to the following groups: from 55 to 59 years of age (18.5%), from 50 to 54 (16.3%), from 45 to 49 (13.9%), from 40 to 44 (12%), from 35 to 39 (11.7%) and from 30 to 34 years of age (11.4%). The persons covered by redeployment programmes mainly came from manufacturing (a share of 55.4%), wholesale and retail trade (a share of 11%), construction (a share of 8.6%), information and communications (a share of 8%) and transport and storage (a share of 6.5%). Compared to 2011, when the CES received 44 Redeployment Programmes encompassing 3,457 persons, the number of programmes received in 2012 increased by 47, while the number of persons encompassed by the same increased by 4.8%. The number of persons registered as unemployed immediately following the termination of their employment due to economic, technical or organisational reasons was 52,463 in The figure shows that only a small number of persons registered as unemployed immediately following the termination of their employment due to economic, technical or organisational reasons (10.9%) was covered by redeployment programmes, which is nevertheless a significant increase compared to previous years. Number of Programmes and Persons Covered by Redeployment Programmes and Number of Persons Registered as Unemployed Immediately after Termination of Employment due to Economic, Technical and Organisational Reasons, Year Number of programmes received Number of persons covered by the programmes Number of newly registered unemployed persons whose employment was terminated for economic reasons Ratio between the number of persons covered and the number of programmes received ,504 26, ,642 29, ,199 64, ,637 65, ,457 49, ,697 52,

42 2012 Yearbook Mobile Teams For the purpose of ensuring support to workers covered by redeployment programmes, regardless of whether their employment was terminated due to restructuring, organisational or economic reasons, the Croatian Employment Service offers assistance through its mobile teams. Mobile teams are organised in all CES regional offices and are composed of career development professionals: employment counsellors, psychologists, lawyers, and other professionals, if necessary. The purpose of mobile teams is to prepare surplus workers for the labour market and act on their behalf while they are still employed in their respective companies in order to reduce the number of persons entering the register of unemployed persons. Mobile teams perform their activities through mobile centres established in companies with surplus employees as long as there is a need for team work. For the purpose of making the surplus employees aware of the new possibilities and conditions in the labour market, mobile teams provide various services: information about the labour market and the manner in which various rights can be claimed, counselling, i.e. assistance in defining their work potential, organisation of job-search workshops, vocational training, self-employment assistance, assistance to start a business, organisation of an internal employment service within a particular company where job vacancies can be posted, job placement services in the open labour market, and co-financing of employment with other employers in the case of workers over 50 years of age, persons with disabilities and special groups (treated addicts, human trafficking victims, victims of family abuse, asylum seekers, young persons leaving care - children s homes). In 2012, mobile team counsellors conducted individual informing sessions in 134 companies for 5,672 workers. Group informing services were provided to 1,986 workers, while 3,470 workers facing the threat of lay-off participated in individual counselling sessions. 41

43 Croatian Employment Service Unemployment Entitlements Pursuant to the provisions of the Act on employment mediation and unemployment rights 2, unemployment entitlements includes: unemployment benefit, pension insurance, financial assistance, reimbursement for education expenses and financial assistance for on-the-job training without a work contract, one-off financial assistance and reimbursement for travel and relocation expenses. The unemployment insurance claiming procedure is initiated upon request of an unemployed person. The requests are handled in accordance with the provisions of the Administrative Procedure Act. The first-instance procedure is carried out by the regional offices of the CES, while the appeal over first-instance decisions are resolved by the Ministry of Labour and Pension System. Unemployment Benefit Unemployed persons acquire the right to unemployment benefit provided they had worked 9 out of 24 months preceding the termination of employment. In order to be eligible for unemployment benefit, an unemployed person must report to the CES and submit a request for unemployment benefit within 30 days from the date of termination of employment or sick or maternity leave. If an unemployed person fails to report to the CES within the specified deadline of 30 days due to justifiable reasons, he/she may report to the authorised employment service and submit a request for unemployment benefit within 8 days from the date of termination of the reason that caused the failure to meet the deadline, however no later than 60 days from the missed deadline. An unemployed person whose employment was terminated trough his/her own fault or will shall not be eligible for unemployment benefit. Depending on the total years of service, an unemployed person acquires the right to unemployment benefit for the period of 90 to 450 days. The exception to this rule are unemployed persons with 32 or more years of service missing up to 5 years to be eligible for age-based retirement who may claim unemployment benefit until reemployment or until one of the circumstances prescribed by the afore-mentioned law resulting in termination of the right to unemployment benefit arises. At the request of the unemployed person who has been granted right to unemployment benefit, the same may be disbursed as a one-off payment. The terms and the method of payment are determined under the Decision on the One-off Payment of the Unemployment Benefit 3. The oneoff payment of the unemployment benefit may be granted for opening a craft or sole business, and for employment in a company in which the relevant unemployed person has a share of no more than 25%, as well as for starting a company and employment within the same. The basis for determining the unemployment benefit amount is the average salary earned in the three-month period preceding the termination of employment reduced by statutory contributions. If the basis cannot be determined on the basis of the salary, it is then determined on the basis of the minimum salary reduced by statutory contributions, depending on the time spent in service. During the first 90 days, unemployment benefit amounts to 70%. During the rest of the period, it equals 35% of the base amount. During the first 90 days, unemployment benefit may not exceed 70% of the base amount, while during the rest of the period it may not exceed 35% of the average salary paid in the Republic of Croatia in the previous year according to the last officially published data. The highest unemployment benefit paid out in 2012 was HRK 3, The average unemployment benefit in 2012 amounted to HRK 1, The right to unemployment benefit may be extended in the case of unemployed persons registered with the CES continuously for more than 12 months and if they had fully claimed the previously determined unemployment benefit right. Unemployment benefit right is extended for a period of 30 to 120 days, depending on the determined duration of the unemployment benefit claimed Official Gazette No. 80/08, 121/10, 25/12 and 118/12 3 Official Gazette No. 123/12

44 2012 Yearbook As of March 7, 2012 the amended Law prescribes the possibility of extending the right to unemployment benefit to unemployed persons (women) who were granted right to the so-called permanent unemployment benefit, i.e. unemployment benefit paid until employment or some other circumstance for termination of the right to unemployment benefit prescribed by the Law or until age-based retirement requirements prescribed by the valid Pension Insurance Act are met. 133,091 requests for unemployment benefit (initial requests and requests for continuation of payments) were submitted in 2012, of which 128,263 were approved. Furthermore, 20,137 requests for extending the unemployment benefit right to long-term unemployed persons were submitted in 2012 as well, of which 19,250 were approved. Also, 2,514 requests for extending the unemployment benefit right to unemployed women until the prescribed age-based retirement or early age-based retirement requirements are met were submitted, of which 2,283 were approved. In 2012, 878 requests for a one-off payment of the unemployment benefit were received and 659 approved. Claiming Unemployment Insurance on the Basis of Having Worked Abroad The Act on employment mediation and unemployment rights prescribes that a Croatian citizen who had worked abroad is eligible for unemployment benefit during the period of unemployment in accordance with the provisions of the international agreement. A Croatian citizen who had worked in a country with which the Republic of Croatia has not signed an agreement regulating unemployment insurance or a country in which he/she had not been insured for the event of unemployment, may claim the right to unemployment benefit according to the provisions of the Act on employment mediation and unemployment rights provided he/she had paid the employment contribution to the Croatian Employment Service for at least 9 out of 24 months preceding the termination of employment abroad. In the process of determining the right to unemployment insurance, the Croatian Employment Service applies the agreements on social security the Croatian Government has signed with other countries. Social security agreements containing provisions on unemployment signed with the Republic of Austria, the Netherlands, the Czech Republic, Bosnia and Herzegovina, Former Yugoslav Republic of Macedonia, Republic of Slovakia, Republic of Slovenia, Luxemburg, Yugoslavia (Serbia and Montenegro), Bulgaria, Italy and Turkey are currently in effect. Under the social security agreements signed with other countries, only the periods during which the person was insured count when applying for unemployment benefit, provided also that the employment had been terminated in Croatia and that the unemployed person had been, prior to submitting the request, employed in Croatia for a certain period of time or insured for the event of unemployment (e.g. pursuant to the agreement signed with Slovenia: 9 months in the last 12 months; pursuant to the agreement signed with Austria: 26 weeks in the last 12 months). The data concerning the duration of unemployment insurance were exchanged with the mentioned countries in 2,919 cases. Apart from the terms set forth in these agreements, an unemployed person must also meet the requirements set forth in the Act on employment mediation and unemployment rights. The agreement the Republic of Croatia has signed with the Republic of Italy provides for an exception stipulating that a particular unemployed person may receive unemployment benefit granted in the country where his/her employment was terminated in his/ her country of residence. In that case, the country paying the unemployment benefit may request refund of the paid unemployment benefit from the country which granted the unemployment benefit right. Pursuant to the Unemployment Insurance Agreement signed between the Former Federal Republic of Yugoslavia and the Federal Republic of Germany based on Section III of the Constitutional Decision on the Sovereignty and Independence of the Republic of Croatia, an unemployed person may be granted right to unemployment insurance in the Republic of Croatia after working in the Federal Republic of Germany, provided he/she meets the conditions prescribed under the Agreement and the Act on employment mediation and unemployment rights. The Agreement also regulates the refunding of benefit payments and the Republic of Croatia sends out a request for refund to the Federal Republic of Germany twice a year. 55 such requests were submitted in

45 Croatian Employment Service Pension Insurance The right to pension insurance is granted to an unemployed person who has been granted right to unemployment benefit and meets the age requirements for age-based retirement, until they meet the first requirement regarding pensionable service for age-based retirement, however up to a maximum of 5 years. Financial Assistance and Reimbursement for Education and On-the-Job Training Expenses An unemployed person referred to an educational programme by the CES is eligible to receive financial assistance in the amount of the lowest unemployment benefit, along with reimbursement for travel expenses (public transportation), reimbursement for the cost of prescribed protective clothes, shoes and other aids if receiving training for occupations in demand pursuant to special authorisations and licenses, as well as reimbursement for the cost of food outside the place of permanent or temporary residence for the entire duration of such activities. Furthermore, an unemployed person referred by the CES to on-the-job training without a work contract has the right to financial assistance during such vocational training in the amount of non-taxable scholarship prescribed under special regulations. In 2012, 2,222 persons claimed the right to financial assistance for the duration of a particular educational programme and 4,909 claimed the right to financial assistance for the duration onthe-job training without a work contract. One-off Financial Assistance and Reimbursement for Travel and Relocation Expenses Unemployed persons in the case of which the CES is not in the position to find employment in their place of residence, and who find employment in some other place, either through their own efforts or through the job placement services provided by the CES, have the right to a one-off financial assistance and reimbursement for travel and relocation expenses (from the place of residence to the place of employment) for themselves as well as their spouses and children. The eligibility requirements for receiving this type of unemployment insurance have been determined on the basis of the Decision on the One-off Financial Assistance and Reimbursement for Travel and Relocation Expenses 4. In 2012, 8,157 persons claimed the right to reimbursement for travel and relocation expenses and 12 persons claimed the right to a one-off financial assistance. The following table gives an overview of the number of financial unemployment insurance beneficiaries in 2011 and Unemployed Persons Financial Insurance Beneficiaries in 2011 and Average Number of Beneficiaries Per Month 2012/2011 Index Unemployment Benefit 74,501 74, share of average number of unemployment benefit recipients in the average number of unemployed 24.4% 22.9% - persons Pension Insurance Number of Beneficiaries Receiving One-off Payments One-off Payment of Unemployment Benefit Official Gazette No. 74/09

46 2012 Yearbook Projects Supported by the International Community In 2012, the Croatian Employment Service, co-financed by the EU, implemented projects under the IPA Programme, the Community Programme for Employment and Social Solidarity (PROGRESS) and the Lifelong Learning Programme, i.e. the Leonardo da Vinci Sub-programme. Instrument for Pre-accession Assistance - IPA The main goal of the IPA Programme is to provide support to EU candidate and potential candidate states in the process of harmonising their national legislation with the acquis communautaire and their preparation for using the structural and cohesion funds after acquiring full membership in the EU. The IPA Programme has been divided into five components: 1. Transition Assistance and Institution Building, 2. Cross-border Cooperation, 3. Regional Development, 4. Human Resources Development, 5. and Rural Development. The Croatian Employment Service takes part in the implementation of three components of the IPA Programme: Transition Assistance and Institution Building, Cross-Border Cooperation, and Human Resources Development. In 2012, the following projects were implemented within the scope of Component 1: Transition Assistance and Institution Building: Croatian Employment Service Labour Market Training Centre The objective of the Croatian Employment Service Labour Market Training Centre project was to strengthen the capacities of the Croatian Employment Service and other labour market institutions/organisations for the purpose of developing a more effective and efficient labour market. The purpose of the project was to support the establishment of the Croatian Employment Service Labour Market Training Centre as the hub for providing education to employees of the CES and other key labour market stakeholders. The value of the related services agreement was EUR 1,000,000. The implementation of the project commenced in October The framework of key competencies and quality standards for the core and supporting business processes of the CES was prepared under Component 1. During the first half of 2012, the CES consultants working in cooperation with Working Group 2, which is responsible for developing an organisational and educational model for the CES Labour Market Training Centre (CTR), developed key documents regulating the operations of the Centre: One-year Operational Plan for CTR, Strategy for Operational Development of CTR and Training Procedure Guidelines. Training programmes for CES trainers and trainers from other labour market related institutions and organisations were provided under Component 3 in the form of the basic orientation module as well as the following modules: key business processes, supporting business processes and labour market related knowledge and skills. Under Component 4, the newly educated trainers conducted 18 training seminars on the topics of modules they were trained in under Component 3 involving 203 CES employees and employees from other labour market related institutions and organisations. The implementation of the project ended in August EURES Services to Employers In August 2012, the Croatian Employment Service started implementing the Twinning Light project called EURES Services to Employers. The main objective of the project was to promote mobility and employment at the European level, while its purpose was to provide support to the CES in the development of quality EURES services for employers. The total value of the 45

47 Croatian Employment Service project was EUR 200,000 and the project lasted 6 months. The project was implemented in cooperation with the Swedish Public Employment Service in three components: Component 1: Improvement of activities, services and business processes of the CES intended for foreign and national employers interested in the EURES Network and employment at the European level; Component 2: Strengthening the abilities of CES counsellors to provide quality EURES services to employers; Component 3: Raising the awareness of employers and other stakeholders about the EURES Network and possibilities of employment at the European level. An analysis of the existing CES activities and services intended for employers and a survey of employers examining their interests and needs concerning the EURES Network and employment at the European level were carried out as part of the project. Regional round tables were organised for the purpose of informing the regional labour market stakeholders (employers, representatives of the Employers Association, Chamber of Crafts and Trades, Town Authorities and the Union) about the services and possibilities provided by the EURES Network. In addition, the training programmes conducted under the project strengthened the capacities of the CES for the provision of quality EURES services to both foreign employers searching for Croatian workforce as well as domestic employers with the interest in employment at the European level. The related operational procedures will be developed soon. The CES will also continue conducting activities aimed at raising the awareness about the EURES Network, as well as informing and promoting the EURES Network and services in Croatia. The implementation of the project will end in February Under Component 2, i.e. Cross-Border Cooperation (IPA CBC), the regional offices of the CES participated in projects of cross-border cooperation between the border regions of Croatia and Hungary, and Croatia and Slovenia. Under the IPA II Cross-Border Cooperation between Hungary and Croatia, the regional offices in Čakovec, Krapina and Varaždin participated in the implementation of a project called POM Youth Enterprise Development Network the objective of which was to establish a supporting mechanism for raising the level of youth entrepreneurship and cross-border participation, which would contribute to greater economic growth and competitiveness on both sides of the border. Under the IPA II Cross-Border Cooperation between Croatia and Hungary, the regional offices in Čakovec and Varaždin participated in the implementation of a project called Let s Speak the Same for Success the objective of which was to improve cooperation between the Croatian and Hungarian employment services by applying a linguistic tool ensuring better mutual understanding as well as facilitate cooperation in the field of employment and entrepreneurship between these two border states. Under the same programme, the regional office in Križevci participated in a project called Cross Border Work Flow Promotion the objective of which was to promote workforce mobility in the area surrounding the border between Croatia and Hungary. Under Component 4, i.e. Human Resources Development (IPA HRD), the CES implemented the following projects: 46 Women on the Labour Market The main objective of the project was to increase the level of employability of unfavourably positioned women and support their access to the labour market. The purpose of the project was to support the development of a more efficient labour market policy as a precondition for social inclusion and access of unfavourably positioned women to the labour market. The project entitled Women on the Labour Market consisted of two components: a services agreement and a grant programme. The total value of the project was EUR 3,000,000. The purpose of the competition for non-repayable grants was to promote the development and implementation of active employment policy measures and specially designed methods for working with women who are unfavourably positioned in the labour market, while respecting the gender-aware policies. In February 2012, a palette of new active employment policy measures for women who are unfavourably positioned in the labour market was completed and the new measures were presented at three round tables. The practical tools for applying the new methods of the Croatian Employment Service and Social Welfare Centres for working with women who are unfavourably positioned in the labour market were completed and presented as well. Training seminars for 50

48 2012 Yearbook employees of the CES and Social Welfare Centres were held and a Trainer Manual prepared under Component 2: Development of services adjusted to sensitive groups of women in the labour market to be introduced by the CES and Social Welfare Centres. The implementation of the services agreement ended in March 2012, while the implementation of some agreements signed under the grant programme continued during the following months of 2012 as well. Youth on the Labour Market Although the implementation of the services agreement under the Youth on the Labour Market project (IPA ) ended in July 2011, the implementation of the projects carried out under the grant programme continued in 2012 as well. 31 agreements in the total value of EUR 3,597, were signed under the grant programme. The purpose of the mentioned projects was to provide support to young unemployed persons in accordance with labour market demand. Projects were also designed to provide counselling services, additional training, education in new technologies, guidelines for using renewable energy, as well as to develop soft skills and vocational guidelines. Local Partnerships for Employment Phase 3 The grant programme under the Local Partnerships for Employment Phase 3 project continued in 2012 as well. The implementation of the related services agreement ended in July CES Services for Clients: Improving Lifelong Career Guidance and ICT Support The CES Services for Clients: Improving Lifelong Career Guidance and ICT Support project consists of two components: a services agreement (term: 22 months, value: 2,430,000) and a supply of goods agreement (value: 1,300,000). The implementation of the project commenced on June 27, 2011 and will last until April The tender for awarding the supply of goods agreement was announced in July The activities envisaged under the project are divided in 5 components. Component 1: Cooperation model for integration and exchange of information. Working Group 1 in cooperation with which the CES technical support team prepared a report on the current method of exchanging information between the CES and other stakeholders (Croatian Pension Insurance Institute, Croatian Institute for Health Insurance, Central Register of Insured Persons, Financial Agency, Ministry of Science, Education and Sports, Tax Authority, Croatian Bureau of Statistics, Ministry of Labour and Pension System, etc.) was formed under this component. A series of Working Group 1 (composed of CES experts in key business processes) meetings held under this component produced a draft version of a document describing the coverage of key business processes of the CES with ICT support together with the related recommendations. Both documents served as the basis for developing new software infrastructure. The main component outcomes include a Report on the Cooperation Model for Integration and Exchange of Information among Key Stakeholders in the field of Employment and a Report on the Recommendations for Improving the CES ICT System, serving as the basis for software design of proposed application modules. On the basis of proposals and recommendations prepared under Component 1, the experts responsible for ICT system design and development produced and tested the relevant application modules under Component 2. On the basis of the recommendations, the experts proposed development of the following 8 modules: Module 1: Vocational Guidance, Module 2: CISOK Web Portal, Module 3: CISOK Web Portal IT Support, Module 4: CES ICT System Improvements, Module 5: Info-kiosk, Module 6: Share Point Surveys, Module 7: Labour Market Information System and Module 8: On-line Services. The development phase has been completed. The development of the software support for Module 3 and Module 6 has been completed as well and the project team has started the testing phase in accordance with the Test Plan. The Working Group responsible for the establishment of a National Forum for Lifelong Career Guidance, formed under Component 3, gathers key stakeholders from the field of education, employment and social inclusion and its purpose is to draw up an operational framework for the 47

49 Croatian Employment Service National Forum. The National Forum has been envisaged as an independent advisory network and an umbrella organisation in the field of lifelong career guidance that would gather the key stakeholders in the field of education, employment and social inclusion. By the end of 2012, the National Forum Working Group had held six meetings at which the members discussed the framework defining the operations and responsibilities of the Forum. An analysis of the EU and Croatian legislation associated with the provision of lifelong career guidance services was prepared under this component and a bill concerning the provision of lifelong career guidance in Croatia is currently being prepared. Seven Career and Vocational Guidance Informing and Counselling Centres (CISOK) were established under Component 4 (in Zagreb, Osijek, Koprivnica, Varaždin, Slavonski Brod, Zadar and Šibenik). Prior to the establishment of the mentioned centres, an analysis of the best European practices associated with Vocational Career Centres was carried out. An overview of the services provided by the mentioned centres was also prepared and a study visit paid to Denmark and Sweden. The study visit provided the delegation with an opportunity to learn about the method of providing career guidance services in Denmark and Sweden as well as visit Danish and Swedish Career Guidance Centres, Employment Services and Universities. The elaboration of the operating model for Career and Vocational Guidance Informing and Counselling Centres was the responsibility of Working Group 3 composed of relevant CES experts from the Central and regional offices. Working Group 3 tried to set a common vision of future centres as well as their mission, marketing strategy, goals, beneficiaries and activities the Centres would perform. On the basis of the defined model, a training programme and a procedure manual will be developed for the employees working in the centres. The future CISOK counsellors were trained under this component to perform the operations of such centres. Once the centres are established, the envisaged activities include the provision of support to counsellors in the process of disseminating the acquired knowledge and skills to other employees of the centres and assistance in providing client services. The technical support team will make an evaluation of the operations of the Career and Vocational Guidance Informing and Counselling Centres. Component 5 refers to the presentation of the Career and Vocational Guidance Informing and Counselling Centres to key stakeholders, clients and the wider public at the national and regional level. PROGRESS The Community Programme for Employment and Social Solidarity (PROGRESS) is designed for the period from 2007 until It provides support in the process of achieving EU goals in the field of employment, social inclusion and social security, working conditions, gender equality and fight against discrimination. 48 Equally Diverse The implementation of the Equally Diverse project started in December The project is financed under the PROGRESS Programme component ensuring support to national activities aimed at fighting discrimination and promotion of equality in the total value of 194,846. The project was implemented by the Croatian Employment Service as project owner and other project partners including the Ombudsman of the Republic of Croatia and the Office for Human Rights and Rights of National Minorities of the Government of the Republic of Croatia. The main objectives of the project were aimed at strengthening of the capacities of the key labour market stakeholders in the field of curbing discrimination, development and promotion of good anti-discrimination practices among employers, and raising the public awareness concerning the matters related to anti-discrimination and diversity. In accordance with the objectives of the project, the activities were divided in three components. Component 1 concerned the strengthening of the capacities of the key labour market stakeholders for a more efficient inclusion and implementation of anti-discrimination principles. Under this component, a network of the so-called contact points

50 2012 Yearbook for curbing discrimination was established at the regional level for the purpose of connecting the associations focusing on human rights and discrimination as well as communication, exchange of information and cooperation with the central body for curbing discrimination in the Republic of Croatia, i.e. the Ombudsman. The abilities of contact point representatives were strengthened on the basis of 2 modules on the topic of discrimination and diversity in the labour market, and the role of the contact point of the Ombudsman for curbing discrimination was presented to regional stakeholders through round tables organised in all regions. Component 2 referred more to direct working with employers, i.e. providing counselling for employers regarding anti-discrimination and diversity in cooperation with Selectio d.o.o. 10 employers participated in the project attending antidiscrimination workshops and obtaining anti-discrimination tools required for the improvement of anti-discrimination practices within their organisations. Employer-related operations were defined not only under the general anti-discrimination legislature and diversity management issues but also on the basis of a brochure called Guidelines for Employers Concerning Non-discrimination and Promotion of Diversity in the Workplace. Component 3 included the implementation of an antidiscrimination campaign at a national level the purpose of which was to raise the awareness of the wider public about the issues associated with discrimination and diversity as well as to strengthen the visibility of the Ombudsman as the central body for curbing discrimination in the Republic of Croatia. The campaign was carried out through a series of diverse activities (organisation of a press conference, preparation and distribution of informative leaflets, poster design and installation in different means of public transport in several towns, distribution of promotional office supplies, preparation and distribution of calendars, creation of a web banner, preparation of an antidiscrimination video spot and airing the same on national TV and the regional cinema network, etc.) directed party to employers and in part to the entire public. The implementation of the project ended in December Leonardo da Vinci In the framework of the Lifelong Learning Programme the regional offices of the CES participated in projects run under the Leonardo da Vinci Sub-programme: Under the Leonardo da Vinci Sub-programme activity called Mobility of Persons in the Labour Market, the regional office in Osijek implemented a project called Work Experience in a Foreign Country 2. Under the same activity, the regional office in Požega implemented a project called Practice in Germany! Employment in Croatia?, the regional office in Slavonski Brod the projects called Experience in European Gastronomy and Mobility Creates Opportunities, while the regional office in Vinkovci implemented a project called Get Experienced Get Employment. IPA Project documents for the following projects implemented under the IPA Programme: Developing Investment Plan of the Croatian Employment Service Under the IPA Programme, the Croatian Employment Service started implementing a project called Developing Investment Plan of the Croatian Employment Service on October 15, The total value of the project is EUR 195,000, and the implementation phase will last 12 months. The main objective of this project is to support the Croatian Employment Service in the development of a stack of project ideas for infrastructure-related projects, and its purpose is to develop the strategic preconditions for the financing and implementation of infrastructure-related projects run by the Croatian Employment Service. The analysis of the existing business spaces started in On the basis of the said analysis, recommendations for the improvement of business spaces and creation of concept designs for CES business spaces will be prepared. Project experts have also started analysing the CES infrastructure and infrastructural needs, on the basis of which the Investment Strategy of the Croatian Employment Service for the period will be prepared. 49

51 Croatian Employment Service New CES Approach to Client Services Delivery The main objective of this project is to strengthen and improve the capacities of the Croatian Employment Service for the provision of client services. The purpose of the project is to strengthen the capacities of the Croatian Employment Service for the provision of services related to job placement and preparation for employment. The tender will be announced at the beginning of 2013, and the implementation phase will last 18 months. The total value of the project is EUR 1,500,000. Training for Employment for Workers Facing Unemployment and Long-term Unemployed Persons Under the Training for Employment for Workers Facing Unemployment and Long-term Unemployed Persons project, training and re-training of target groups unfavourably positioned in the labour market will be financed, including surplus employees, workers facing the threat of layoff and long-term unemployed persons. The main objective of the project is to provide support in the implementation of active employment measures, and its purpose is to increase the level of employability of surplus workers and long-term unemployed persons through vocational training for employment. The project will last 24 months. The total value of the project is EUR 4,300,000. Implementation of grant programmes under the following projects is expected: Improving Labour Market Access of Disadvantaged Groups Under this grant programme, projects aimed at providing adjusted programmes for the development of skills and individual support in the process of searching for employment, as well as developing the entrepreneurial potential of threatened groups in the labour market (support in the process of establishing cooperatives with a special emphasis on establishing cooperatives by the members of the Roma national minority) will be financed. Projects aimed at raising the awareness concerning the elimination of stereotypes related to the employment of threatened groups will also be supported. The tender was closed on January 23, Agreement signing is envisaged for January Local Employment Initiatives This grant programme is aimed at financing projects contributing to the realisation of goals defined under county human resources development strategies and other relevant strategic documents at the local or regional level. Projects aimed at strengthening the capacities of Local Partnerships for Employment will also be supported. The value of this grant programme is EUR 1,870,000. The period for submitting the tenders ended on 12 March Improving Sustainable Employment of Highly Educated and Long-term Unemployed Persons The main objective of this grant programme is to support the development and implementation of active labour market policies and its specific objective is to increase the level of employability of long-term unemployed highly educated persons through adjusted services and measures. The tender for awarding non-repayable funds was open until 7 November In October 2012, following the evaluation, 7 agreements were signed. The total value of this grant programme is EUR 1,000,000. IPA The project documents for the following projects run under the IPA Programme have been or will soon be completed: Strengthening of the Croatian Employment Service Labour Market Training Centre The purpose of the project is to support further development of the CES Labour Market Training Centre.

52 2012 Yearbook 2. Improving Labour Market Access of Persons with Disabilities The purpose of this grant programme is to increase the level of employability of persons with disabilities and support their integration in the labour market through developing and implementing training programs, workshops, as well as workplace adjustment. The grant tender is expected in June Local Employment Initiatives A project called Local Employment Development Initiatives is being prepared as a continuation of the Local Employment Promotion Initiatives project. The purpose of the grant programme is to motivate the stakeholders to define and implement the local employment and human resources development policies through a partnership approach financed by national and EU funds. It is expected that the tender will be announced in June Co-financing of Education and On-the-Job Training without a Work Contract The purpose of the project is to improve the skills of workers facing unemployment with the aim of increasing the number of self-employed persons and the number of employed young persons with no work experience. 5. External Evaluation of Active Labour Market Policy Measures The purpose of the project is to raise the level of efficiency and quality of operations of the Croatian Employment Service through an evaluation of the successfulness of active labour market policy measures carried out by the CES in 2011 and Development of Social Networks within the Croatian Employment Service The purpose of the project is to improve client informing and job placement services through alternative channels of communication (Facebook, Twitter, LinkedIn, Google +, etc.). European Social Fund (ESF) The projects proposed under the European Social Fund Programme for the Second Half of 2013 include: 1. Local Employment Initiatives (non-repayable grant award agreement, total value: 5,882,353); 2. Education and Self-employment Subsidies (direct grant award, total value: 2,352,941); 3. Employment Subsidies of unemployed persons over 50 years of age and young persons up to 29 years of age (direct grant award, total value: 3,529,412); 4. Public works for unemployed persons registered for a period of more than three years, unemployed members of the Roma national minority and young persons up to 24 years of age (direct grant award, total value: 5,058,824); 5. On-the-job training without a work contract for persons with no work experience or up to 1 year of experience in the occupation they were trained (direct grant award, total value: 2,352,941); 6. Education for young persons up to 25 years of age (direct grant award, total value: 3,000,000). Financial Management of EU Projects The Amendments to the Financing Agreement signed between the Government of the Republic of Croatia and the European Commission regarding the Multi-year Human Resources Development Operational Programme related to the financial assistance received from the Community under the IPA Programme Component: Human Resources Development (Official Gazette, International Agreements, No. 10/2012) came into effect in December 2012, thus rendering all the preconditions for using the financial funds allocated for 2012 and the first half of 2013 under the Human Resources Development Operational Programme satisfied. With the coming into force of the mentioned Amendments to the Financing Agreement, the Department for Financing and Contracting of EU Projects, which functions within the Croatian Employment Service as an implementation body of the Operational Structure for the Implementation of Component 4 of the IPA Programme, got the authorisation to contract, implement and finance the projects within 51

53 Croatian Employment Service the scope of Priority 1, Measures 2.1 and 2.3 of Priority 2, Priority 4 and Measure 5.1 under Priority 5 of the Human Resources Development Operational Programme using the mentioned allocations. In this way, the Republic of Croatia has been granted additional EUR 28,758,858 making together with the existing allocations granted under the Operational Programme a total of EUR 111,084,756. From the total amount allocated for the Human Resources Management Operational Programme in the period , the implementation body of the Croatian Employment Service is in charge of operations in the value of EUR 61,380,361 instead of the former EUR 44,230,801. In 2012, the implementation and financing of 7 services agreements, 65 non-repayable grant award agreements and 2 direct grant award agreements signed in 2011 were continued. 11 new agreements were signed, of which 2 services agreements, 1 supply of goods agreement, 7 nonrepayable grant award agreements and 1 direct grant award agreement. By the end of 2012, the implementation of 65 non-repayable grant award agreements and the following services agreements was completed: Support to Operational Structure for the Human Resources Development Operational Programme Concerning Informing, Promotion and Visibility, Investigation of the Public Perception of the Human Resources Development Operational Programme, and Creation and Development of the IPA Component 4 Website. Two supply of goods agreements announced in 2012 were annulled. With the aim of informing the public about the situation in the sector, the terms and conditions of particular tenders, and the manner of completing the tender application forms, additional informative workshops were held for each particular tender for awarding non-repayable grants announced at the end of 2011 and in More precisely, a total of 21 such workshops were held involving 314 potential applicants to the tender for awarding non-repayable grants. By the end of 2012, from the total amount of funds allocated to the implementation body of the Croatian Employment Service for the period , operations in the value of EUR 26,965, or 60.97% were contracted, while 77.22% of the contracted funds was disbursed to contractors in accordance with the relevant contractual obligations. System for Curbing Incidents of Irregularities and Frauds in Using EU Funds Further development of the system for curbing incidents of irregularities and frauds applied within the CES was continued in The persons in charge of curbing irregularities within the CES participated in two educational seminars on the topic of introducing the new rules and procedures for curbing irregularities and frauds in using EU funds, and over the year the same have prepared an educational programme on the topic of curbing irregularities and fraud for a total of 10 new CES employees. In the final quarter of 2012, the CES started implementing the OLAF IMS information system which allows that reports on irregularities are directly entered into the OLAF information system. The system is currently being used for reporting requirements under Component 4 of the IPA Programme and is intended for entering reports on irregularities above the EUR 10,000 threshold as well as for submitting the so-called Zero Report. In the case of irregularities below the EUR 10,000 threshold, the system based on written reports still applies. Four regular quarterly reports on irregularities concerning the implementation of Component 1 of the IPA Programme were prepared and submitted within the prescribed deadlines to the Central Agency for Financing and Contracting. Four regular quarterly reports on irregularities concerning the implementation of Component 4 of the IPA Programme were also prepared and submitted within the prescribed deadlines to the body in charge of the implementation of the Operational Programme. 52

54 2012 Yearbook Organisational Structure and Operations of the CES 53

55 Croatian Employment Service Main Responsibilities and Development Strategy of the Croatian Employment Service 54 The Croatian Employment Service is a public institution of special significance to the Republic of Croatia, its citizens, business entities and institutions. The main responsibilities of the CES include: Job mediation of job-seekers in the country and abroad; Ensuring unemployment insurance to unemployed persons; Vocational counselling of unemployed and other persons in making career and occupational choices; Organisation of vocational education, personal advancement and retraining programmes; Promotion of employment and education through implementation of active employment policy measures; Monitoring and analysis of labour market conditions and informing the public of the same. The users of our services include: Employers companies, craft businesses, entrepreneurs, cooperatives and other; Unemployed persons persons actively looking for employment who are available for work, who earn less than the highest amount of the unemployment benefit and unemployment insurance claimants; Job seekers persons registered with the CES who are looking for employment but are not claiming unemployment insurance, including employed persons, students and other; Pupils, students and other the CES is open to all persons who need information concerning employment and labour market. Here is an overview of the services we offer to employers: By providing insight into the most comprehensive database on unemployed persons and job seekers, we conduct selection of candidates that, on the basis of their qualifications, fit the needs of employers best; We advertise the demand for workers free of charge (on our website, in bulletins, on information boards in regional and local offices); We provide team (psychological, medical and pedagogical) assessment of the candidate s characteristics, taking into consideration the job and workplace specific requirements; We conduct the selection procedure (pre-selection, final selection) and refer the agreed number of candidates to employers for particular jobs; We offer financial assistance for re-employment or further education through our employment incentive programme; We provide legal assistance in the field of employment as well as professional and organisational help in the process of restructuring and handling of surplus employees; On the basis of a contractual relationship, we offer the employers the mentioned and other services without involving a lot of administrative work. To unemployed persons we offer informing, counselling and vocational guidance services, organise workshops, provide unemployment insurance, including: Information about job vacancies from various sources, along with information about the labour market demand, economic trends in particular Croatian regions, successful entrepreneurs, and other; Info Desk services (the place for regular reporting, handling of administrative matters, arranging individual counselling and group informing sessions, obtaining legal advice, etc.); Individual counselling assistance in assessment of the work, professional and personal potential, assistance in drawing up a career and employment plan, target job placement services, feedback on activities carried out and the results achieved; Group informing provision of information about the situation in the labour market in a

56 2012 Yearbook particular region (unemployment structure, occupations in short or excess supply) as well as about the CES services that can assist in job search and the rights and obligations based on laws and regulations, emphasising the importance of personal engagement in job search; Various workshops the goal of which is the acquisition of knowledge and skills ensuring as successful orientation in the labour market as possible, as well as occasions for exchanging experiences in the search for employment through informal activities and gatherings; Financial and legal protection of unemployed persons pursuant to the valid laws and regulations (unemployment benefit and other types of assistance); Vocational guidance activities assistance in additional (self) assessment of personal possibilities and characteristics in choosing an adequate educational programme, determining the remaining working ability, and assessment of the working potential for a specific job position. Strategic Development Plan of the CES The CES performs its activities in accordance with the guidelines and goals prescribed under the Strategic Plan of the Croatian Employment Service. The Plan defines the vision, mission and strategic goals of the CES as follows: Vision Statement To be the main participant in the development of the Croatian labour market, especially in the process of matching the overall demand with supply for the purpose of achieving full employment. Mission Statement To provide efficient job placement services in the labour market through the development of high-quality services adjusted to the needs of clients, development of own knowledge, skills and abilities and promotion of partner relationships with other labour market stakeholders. Strategic Goals 1. To develop the services of the Croatian Employment Service with the aim of increasing workforce competitiveness and satisfying labour market demand. 2. To develop human resources and the administrative capacity of the Croatian Employment Service for creating and providing new services in the labour market. 3. To attain the leading position of the Croatian Employment Service in the labour market by establishing partner relationships and strengthening the influence of the CES in the process of drafting and implementation of public policies. The CES continuously strives to enhance its services, invest in the technological development and business process organisation and design. It takes into consideration the needs of the users, adjusts to the constant changes and strives, in cooperation with other labour market stakeholders, to raise the standards concerning the provision of services to all users, primarily unemployed persons and employers, but also other institutions in the environment. The purpose of these activities is to increase the workforce employability as well as satisfy the economic demand for a specific type of workforce. 55

57 Croatian Employment Service Organisational Structure and Employees The Croatian Employment Service is a public institution established pursuant to the Act on employment mediation and unemployment rights (Official Gazette No. 80/2008, 121/2010, 25/2012 and 118/2012). The CES is a legal person with rights, obligations and responsibilities defined by the law, legal documents and the Bylaws passed by the Managing Board. The operations of the CES are public. The CES must report on its work and activities to the Government of the Republic of Croatia and the public at least once a year. The legitimacy of activities and general documents of the CES are monitored by the Ministry of Labour and Pension System. In August 2012, the CES Managing Board passed and the Croatian Government approved the Bylaws of the Croatian Employment Service which came into effect on 3 October 2012 (Official Gazette No. 109/2012). Under the said Bylaws, Croatian names of two organisational units, namely Središnja služba (Central Office) and Područna služba (Regional Office), were changed to read as follows: Središnji ured and Područni ured. The Croatian job title pročelnik područne službe (Head of Regional Office) was changed to predstojnik područnog ureda. The CES performs its operations through the following organisational units: Central Office, 22 regional offices, and 96 local offices, thus making its services available on the entire territory of the Republic of Croatia. The CES includes the following organisational units: 1. Director General s Office, 2. Labour Market and Employment Policy Sector, 3. Financial Management and CES Asset Management Sector, 4. Legal Affairs and Human Resources Management Sector, 5. Organisational Development and Project Implementation Sector, 6. Independent departments. The CES is governed by the Managing Board composed of seven members, i.e. representatives of state institutions, trade unions, employers, workers and associations of unemployed persons. These representatives are appointed by the Government of the Republic of Croatia. The CES is headed by a Director General who has the authority to represent it and is responsible for the legality of its operations. Director General is also appointed by the Government and has a deputy and assistants. The scope, authorities and responsibilities of the Managing Board, Director General and Assistant Director General are defined under the CES Bylaws. On 31 December 2012, the Croatian Employment Service employed a total of 1,249 workers. Compared to 2011, the total number of employees decreased by 3.2%. CES Employees as of 31 Dec Year Number of Employees Index , , , , , From the total number of CES employees, 1,102 or 88.2% was employed in regional offices, while 147 or 11.8% was employed at the Central Office in The largest number of employees was recorded in the regional offices in Zagreb (169), Split (123), Osijek (94) and Rijeka (70),

58 2012 Yearbook collectively accounting for 36.5% of the total number of CES employees. On 31 December 2012, the educational structure of CES employees was as follows: university and post-graduate education (719 workers or 57.6%); post-secondary, non-university education (194 workers or 15.5%); 4(or more)-year vocational school and grammar school (273 or 21.9%); vocational school in the duration of up to 3 years and school for skilled and highly skilled workers (24 workers or 1.9%); and basic education (39 workers or 3.1%). Workers with post-secondary university or non-university education account for more than three quarters (73.1%) of the total number of CES employees CES Employees by Educational Level as of 31 Dec Percentage % University and postgraduate education Post-secondary, non-university education 4 (or more)-year vocational school and grammar school Vocational school in the duration of up to 3 years and school for skilled and highly skilled workers Basic education Employee Education Provision of training opportunities for the new and personal advancement opportunities to the existing CES trainers was at the focus of activities carried out for the purpose of achieving Strategic Goal 2: To develop human resources and the administrative capacity of the Croatian Employment Service for creating and providing new services in the labour market. The training programme intended for trainers provided under the Croatian Employment Service Labour Market Training Centre project (IPA, Component 1) that commenced in 2011 finished. A team of trainers composed of 35 newly educated trainers and five experienced ones held 14 training seminars based on four recently developed modules for 159 other CES employees. The training seminars were held at the regional level and, although most were intended for employees working on key business processes, two modules (five training seminars) were designed to address and held in accordance with the specific needs of employees working on support business processes. Trainers from other labour market partner institutions held four training seminars within the Labour Market Oriented Knowledge and Skills module, giving an overview of the active employment policy and the methods for gathering and analysing labour market data. Furthermore, training seminars for 50 CES mentors were also designed and conducted under the project. In addition to strengthening the capacities of CES trainers and developing new training and advancement modules, the Croatian Employment Service Labour Market Training Centre project enabled the development of new tools and standards within the CES employee training and advancement programme. Documents serving as the basis for development of the Centre were 57

59 Croatian Employment Service 58 also prepared: Organisational Development Strategy, Three-year CES Employee Development Plan, Guidelines Concerning Employee Training and Advancement Procedures within the Croatian Employment Service Labour Market Training Centre. In addition to the opportunities for education provided under the Croatian Employment Service Labour Market Training Centre project, half of the trainers had yet another opportunity to expand their knowledge by participating in educational activities provided under the Women in the Labour Market project (IPA, Component 4). The purpose of these advancement seminars was to support the employees of the CES and the Social Welfare Centres in applying the newly developed methods for working with women with an unfavourable position in the labour market. 25 CES trainers participated in a three-day advancement programme on the topic of Practical Tools and an additional two-day training seminar pairing up employees of the CES and Social Welfare Centres in accordance with the geographic location of the same for the purpose of: building business relationships, planning a common additional future advancement programme, and implementation of the advancement programme on the topic of Practical Tools. The training capacities of the CES were further strengthened through the implementation of the twinning project called Strengthening the Administrative Capacities of Competent Authorities and Implementation Institutions in Coordination of the Social Security System (IPA 2009). A cycle of seminars and training activities for trainers was held under this project for the purpose of strengthening the administrative capacities of all relevant institutions involved in the coordination of the social security system in line with the benchmarks set under Chapter 2: Workforce Mobility of the negotiations associated with the admission of Croatia to the EU. 40 CES employees working in the field of unemployment insurance, job placement, legal affairs and information system development participated in the said activities which were related to the implementation of EU directives for coordination of social security systems in the field of unemployment insurance within the CES as the relevant competent institution. The CES was one of the partners in the implementation of a project called International Methods Database for Vocational Guidance in Group Settings - Naviguide (Leonardo da Vinci, 2011) under which CES employees conducted four advancement seminars for 80 counsellors from the field of education, employment and social inclusion with the aim of presenting and applying new group counselling methods. Compared to the four EU-funded projects which, in addition to CES employees, involved the employees from other institutions as well, the CES Client Services: Improving Lifelong Vocational Guidance and ICT Support (IPA, Component 4) project provided workshops and training seminars designed exclusively for CES employees. In order to improve the competencies of vocational guidance counsellors in using new methods and approaches as well as to successfully implement a new model of services, a professional training based on three modules (nine workshops) was conducted under the said project: Vocational Guidance for Pupils and Students, Vocational Guidance for Unemployed Persons and other Job-seekers, and Business Counselling. Apart from activities aimed at strengthening the capacities of trainers associated with various business processes, the training programme related to self-employment, i.e. understanding and promotion of entrepreneurship, should also be mentioned. In addition to having the opportunity to participate in educational activities associated with self-employment and entrepreneurship carried out under EU projects and those organised by other public institutions, training and advancement seminars for self-employment counsellors were held within the CES as well. It should be pointed out that in 2012 professional advancement programmes intended for CES employees were not only designed and conducted by the CES team of trainers. The design and implementation process involved a significant number of experienced workers from other business processes as well, mainly from job placement, preparation for employment and statistics. A four-member team of trainers conducted, in addition to the activities carried out under the Croatian Employment Service Labour Market Training Centre project, a total of 86 training and advancement activities, of which seven standard training seminars at the national level. At the

60 2012 Yearbook beginning of 2012, workshops on the protection of personal information and record keeping were continued. In 2011 and 2012, a total of 90% of all CES employees participated in the mentioned workshops. A novelty in the CES employee training and advancement programme is the development, preparation and maintenance of intervision (supervision) workshops envisaged as a form of support to the newly educated trainers. In 2012, there were less days reserved for training and advancement activities than in 2011 (2,105 compared to 2,517). In 2012, the team of trainers conducted 91 activities involving 1,037 participants, while 148 activities involving 1,490 CES employees were conducted in The reason for the reduction in activities is the implementation of the Croatian Employment Service Labour Market Training Centre project, which demanded a great engagement on the part of the team of trainers and other CES resources. 59

61 Croatian Employment Service Sources of Financing and Structure of Expenditures Sources of Financing Pursuant to the provisions of the Act on employment mediation and unemployment rights the sources of financing of employment-related activities include the employment contribution and other sources. Pursuant to the Statutory Insurance Contributions Act, employment contribution is paid into the unique state treasury account. Within the meaning of the Budget Act, the Croatian Employment Service is a non-budgetary beneficiary financed through the budget and other sources. Pursuant to the Order of the Ministry of Finance, by cancelling the transfer account of the Croatian Employment Service in 2007, income from other sources is now paid into the state budget as well. The total expenditures of the CES for 2012 are thus also included in the state budget expenditures. The total planned income of the CES for 2012 amounted to HRK 2,168,615,070, of which HRK 2,059,097,381 from the state budget and HRK 109,517,689 from the pre-accession EU funds. The total realised income (Schedule 6, Page 63) amounted to HRK 2,086,896,922, i.e % of the annual plan. The realised income from the state budget amounted to HRK 2,040,836,086 or 99.11% of the planned figure, while the realised income from assistance programmes provided by international organisations and EU bodies and institutions amounted to HRK 39,090,932 or 35.69% compared to the planned figure. In 2012, the CES also realised income from financial aid and donations in the total amount of HRK 618,844; income from assistance received from budget beneficiaries on the basis of a transfer of EU funds in the amount of HRK 5,793,155 (for the financing of EU projects involving the regional offices of the CES and the financing of the Lifelong Learning Programme implemented by the Agency for Mobility and EU Programmes); and income for the financing of expenditures related to vocational training for employment without a work contract in the amount of HRK 557,905, the CES being the beneficiary of the said measure. The mentioned sources of income were not included in the planned budget and were used up to the amount paid into the account pursuant to the provisions of Article 50 of the Budget Act. 60 Structure of Expenditures The funds for operating expenditures of the CES were disbursed in accordance with the State Budget of the Republic of Croatia for 2012, the CES Income and Expenditure Plan for 2012, and the laws and legal provisions applicable to the operations of the CES. In 2012, the total expenditures (Schedule 6, Page 63) amounted to HRK 2,088,163,946 or 3.71% less than planned. In the structure of realised expenditures, expenditures related to the provision of unemployment insurance accounted for the largest share, i.e % or a total of HRK 1,483,853,497, of which HRK 1,365,552,718 was used for the payment of the unemployment benefit to unemployed persons. HRK 116,580,223 was used for the payment of the financial assistance and reimbursement for education expenses (if an unemployed person is referred to an educational programme by the CES), while HRK 1,720,556 was used for the payment of the one-off financial assistance and reimbursement for travel and relocation expenses (if an unemployed person is employed outside of their place of permanent residence). In 2012, a total of HRK 366,881,225 (17.57% of the total expenditures) was spent on active labour market policy measures, of which HRK 359,391,838 on the measures covered by the Annual National Employment Incentive Plan and HRK 7,489,387 on the measures covered by the Action Plan for the Decade of Roma Inclusion HRK 1,354,760, i.e. 0.06% of total expenditures, was spent on vocational guidance activities.

62 2012 Yearbook The expenditures related to the employees of the CES amounted to HRK 139,127,873, accounting for 6.66% of total expenditures. Employee salaries and benefits are paid in accordance with the CES Regulations on Employee Salaries, Basic Collective Employment Agreement for Public Service Employees and Officers, Collective Agreement for the Croatian Employment Service, and other legislation regulating the payment of salaries in public services. Some of the employeerelated expenditures were financed using the funds allocated for the project called Direct Award of Non-repayable Funds to the Human Resources Development Operational Structure, of which HRK 290,000 from the national component and HRK 3,008,154 from the EU funds. In 2012, the material and financial expenditures of the CES accounted for a total of HRK 45,857,702 (2.2% of total expenditures). Some of these expenditures were financed using the funds obtained through financial aid and donations in the amount of HRK 139,839, while some were financed using the income earmarked for financing of expenditures for vocational training for employment without a work contract in the amount of HRK 557,905 and through assistance received from international institutions in the amount of HRK 126,983, while expenditures in the amount of HRK 1,266,796 were financed using the funds allocated for the Direct Award of Non-repayable Funds to the Human Resources Development Operational Structure project. HRK 3,783,254 (0.18% of total expenditures) was spent on the procurement of non-financial assets, of which HRK 3,781,779 using the funds from the state budget and HRK 1,475 using the funds obtained through capital aid and donations. A total of HRK 46,841,105 was spent on expenditures related to the projects financed using the funds allocated under EU pre-accession assistance programmes, of which HRK 38,355,005 using the EU funds; HRK 3,017,626 using the assistance from budgetary beneficiaries on the basis of a transfer of EU funds; HRK 569,426 using the assistance received from international organisations; and HRK 4,899,048 using the funds from the state budget allocated under the national component. HRK 2,739,431 was spent on financing the Croatian Employment Service Labour Market Training Centre project implemented under Component 1 of the IPA Programme: Transition Assistance and Institution Building, while HRK 1,192,408 was spent on the project called EURES Services for Employers. The expenditures related to the project called Equal in Diversity run under the PROGRESS Programme amounted to HRK 819,139, while the expenditures of the project implemented under the Lifelong Learning Programme amounted to HRK 866,396. The regional offices of the CES implemented projects financed under IPA Programme Component 4: Human Resources Development in the value of HRK 2,944,086, and under Component 2: Cross-border Cooperation in the value of HRK 323,826. The 2012 expenditures of the Croatian Employment Service include the expenditures for the implementation of Component 4 of the IPA Programme: Human Resources Development in the total amount of HRK 37,955,819. Pursuant to the provisions of Article 57 of the Regulations on Budget Accounting and Calculation Plan, the CES ledgers include the expenditures related to the received donations of long-term assets and small inventory in the total amount of HRK 464,530. The income/expenditures balance was recorded as an income deficit in the amount of HRK 1,267,024. This deficit is covered using the surplus income from previous years in the amount of HRK 2,555,540, making a surplus income of HRK 1,288,516 to be used in Public Procurement The Croatian Employment Service is an institution obligated to apply the Public Procurement Act (Official Gazette No. 90/11) which came into effect on January 1, 2012 and subordinate regulations. Pursuant to the Act, in 2012 the CES planned and executed procurement operations related to the supply of goods, works and services in accordance with the public procurement principles and ensuring transparent participation and equal treatment of economic entities, while also promoting market competition. 61

63 Croatian Employment Service 62 After adopting the budget and subordinate regulations based on the Public Procurement Act, the CES also adopted a Procurement Plan for The CES Procurement Plan is a document providing public insight into the list of all needs for the procurement of goods, works and services of the CES within a given period in a transparent way. The CES published its Procurement Plan for 2012 on its web pages and notified the central state administrative body responsible for the public procurement system about it, as stipulated under the Public Procurement Act. Until the adoption of the 2012 state budget, the CES had been executing procurement operations associated with the supply of goods, works and services required for proper functioning of the CES in that period pursuant to a Decision on Temporary Financing of Operations, Functions and Programmes of State Bodies and other Croatian State Budget Beneficiaries in the First Quarter of 2012 (Official Gazette No. 131/11) and the Procurement Plan for the First Three Months of In accordance with the Procurement Plan, the CES executed in 2012 a total of 30 low-value procurement operations (procurements whose estimated value is equal or higher than 70, and lower than the European threshold of EUR 200,000) and 15 high-value procurement operations (procurements whose estimated value is greater than the European threshold of EUR 200,000), and signed individual public procurement agreements on the basis of the 15 already signed master agreements. The Public Procurement Act stipulates that all procurement operations (low- and high- value operations together with the signed agreements) must be published in the Electronic Public Procurement Bulletin. In 2012, the CES published 297 notices, including: invitations to tender, letters of intent, notifications of signed agreements, etc. Pursuant to Article 44 of the Public Procurement Act (Official Gazette No. 90/11), 50 invitations to tender concerning four objects of procurement listed in Appendix II B (medical services, vocational training, security services and travel agency services) were published on the CES website. Pursuant to Article 44, Section 5 of the Act, the CES sent two invitations to tender for the procurement of legal services (services listed in Appendix II B), and was not obligated to publish the same on its website. The CES published the relevant agreements in the Electronic Public Procurement Bulletin. The CES is obligated to keep a register of public procurement agreements and master agreements as well as to update the same at least every six months. The CES is also required to publish its Register of Public Procurement Agreements and Master Agreements on its website. The CES keeps a record of procurement operations and procurement agreements signed. In 2012, the CES prepared a statistical report on procurement agreements signed in 2011 and delivered it to the Public Procurement System Administration by 31 March The CES performs its regular operations in either owned or leased commercial space. The CES owns 26, square meters of commercial space which is used by the Central Office, 22 regional offices, and local offices. The CES uses 4, square meters of leased commercial space as well. 42 commercial spaces are used under signed lease agreements which also prescribe a rent, while the CES was granted the right of free occupancy in the case of 22 commercial spaces. In 2012, the CES signed 7 temporary lease agreements, 2 tender document packages were prepared and 2 tender procedures for the lease of commercial space owned by the CES were carried out. Within the scope of its asset management operations, the CES manages its own real estate (commercial spaces, apartments, garages, and other), the leased real estate, as well as the CESowned movables. The regular asset management operations include: registration of ownership, commercial space segmentation, real estate appraisal for purchase, sale and lease purposes, purchase and sale of real estate, execution of public tenders for the sale or lease of the CES-owned real estate, preparation and monitoring of lease or sale agreements concerning commercial space, property insurance, maintenance and repairs, overheads monitoring, and other. Each year, the CES carries out an inventory check for the previous year. It keeps a record on owned real estate, the real estate it uses on the basis of lease or free occupancy agreements, as well as on the CES-owned stocks, business shares and movables. Pursuant to Article 25 of the State Asset Register Decree (Official Gazette 55/2011), the CES is obligated to deliver information concerning the real estate in its ownership, as well as all other real estate used on the basis of lease/rental or free occupancy agreements to the National Asset Management Agency.

64 2012 Yearbook Schedule 6 Income Statement 1 Jan. 31 Dec (HRK) No Account Name of Account Planned Realised INCOME Income from the State Budget 2,059,097,381 2,040,836, Assistance from international organisations and EU institutions and other authorities 109,517,689 39,090, Assistance from budget beneficiaries on the basis of a transfer of EU funds 5,793, ,6332 Income from financial aid 134, Other non-mentioned income 557, Income from donations 484,630 Total Income 2,168,615,070 2,086,896, EXPENDITURES Unemployment Insurance Unemployment benefit 1,365,552,718 Education expenditures (financial assistance, travel expenses, etc.) 116,580,223 Other expenditures (travel and relocation expenses and the one-off financial assistance) 1,720,556 1,489,072, , Vocational Guidance, Informing and Rehabilitation 1,500, , ,3722 National Employment Incentive Plan 359,821, , Action Plan for the Decade of Roma Inclusion 7,500,000 7,489, , 36, 38, Component 4 of the IPA Programme: Human Resources Development Project: Croatian Employment Service Labour Market Training Centre Index (5:4) 114,950,265 37,955, ,801,700 2,739, Project: EURES Services for Employers 1,520,000 1,192, , 37, 4 Projects under IPA Programme Components: Human Resources Development and Cross-border Cooperation 1,646,000 3,267, Project: Training for Employment for Workers Facing Unemployment 5, , 34 Projects under the PROGRESS Programme 1,207, , ,37 Lifelong Learning Programme expenditures 866, Employee expenditures 137,725, ,127, , 34 Material and financial expenditures ensuring proper functioning of the CES 46,972,480 45,857, Non-financial asset procurement expenditures 3,893,442 3,783, ,4 Other expenditures (received asset donations) 464,530 Total Expenditures 2,168,615,070 2,088,163, Total Income 2,168,615,070 2,086,896, Total Expenditures 2,168,615,070 2,088,163, Income/Expenditures Balance -1,267, Surplus Income from Previous Period 2,555,540 Surplus Income 1,288,516 63

65 Croatian Employment Service Internal Financial Control System Internal Audit Pursuant to legal regulations, the CES performs internal audits with the aim of improving its business operations. The Internal Audit Department provides support to the budget user in the process of achieving their goals by drafting strategic and annual internal audit plans based on the objective risk assessment, by performing separate internal audits in accordance with the adopted plans, by assessing the adequacy and efficiency of the financial management and control system, as well as by giving recommendations related to the improvement of their business operations. In 2012, eight audits were conducted within the CES in accordance with the Action Plans which include 13 accepted recommendations and steps to be taken. The implementation of the same is monitored in accordance with the provisions of Article 29 of the Public Internal Financial Control System Act. On the basis of the recommendations specified in audit reports, the existing internal control system, which is integrated into the particular process and which was designed and implemented by the management within the particular process under audit, is improved. Pursuant to the Public Internal Financial Control System Act, an annual report on audits conducted and the activities of the Internal Audit Department was drafted and delivered to the Central Harmonisation Unit of the Ministry of Finance. In order to be allowed to perform internal audit activities in the public sector, one must obtain a certification of competence issued by the Minister of Finance pursuant to the programme and instructions of the Ministry of Finance, the Central Harmonisation Unit. The auditors must also use all other available information and data for the purpose of enhancing their professional abilities and competencies. For the purpose of advancing their knowledge, skills and competencies, the CES internal auditors participated during 2012 in additional educational activities, optional modules, as well as annual and periodic seminars and workshops on the basis of which Reports on Continuous Advancement were drafted and delivered to the Central Harmonisation Unit of the Ministry of Finance pursuant to the Instruction on Continuous Professional Advancement of Internal Auditors in the Public Sector. Cooperation between internal audit departments within other state administrative bodies was maintained through regular meetings and events organised by the Central Harmonisation Unit of the Ministry of Finance, as well as through informal communication among internal auditors for the purpose of exchanging professional experiences and good practices. Internal auditors from the CES also participated in the activities of the World Association of Public Employment Services (WAPES) Working Group formed under the peer learning programme called Internal Auditing. Furthermore, the mentioned Working Group conducted a meeting in 2012 at which further activities concerning the identification of good practices in internal auditing, exchange of experiences and knowledge, and international cooperation among internal audit departments of public employment offices in Germany, Austria, Sweden, Norway, Greece, Russia and Croatia were discussed. 64

66 2012 Yearbook ICT Support to CES Operations In 2012, the CES continued working on the development/improvement of the ICT support to its business processes related to working with unemployed persons. The job placement business process software support was upgraded to include user modules ensuring simpler integration of the CES information system with information systems of other public and state entities. The implemented system architecture allows entering and retrieval of client information when required by using the online services providing information on the status of a person in the Croatian Pension Insurance Institute (created by the Croatian Pension Insurance Institute) and the status of a person in the Croatian Employment Service (created by the CES). An application module for monitoring the EU-financed projects was also designed. The system allows monitoring of the project plan, implementation and payments. As far as security is concerned, the system for controlling the right of accessing and performing operations in user software modules was upgraded and the infrastructure for public key, electronic signature and electronic business implemented. As far as technology is concerned, the central system equipment and the CES Private Cloud infrastructure were upgraded, while user IT equipment was partly renewed. A technology migration and system database upgrade was performed, thus improving the availability of the existing information resources as well as increasing overall system performances. A new CES web page was developed as the main portal for an exchange of information with other users, and the existing functionalities and usage of other channels of communication (social networks) were improved. The CES also implemented a call centre platform, one of the more important channels for communicating with the users of CES services. As far as the business process standardisation and support are concerned, the CES renewed its ISO 9001:2008 certificate covering unemployment insurance operations. The CES also continuously worked on improving internal communications through developing Intranet pages and a system of internal instructions. 65

67 Croatian Employment Service Publicity of the CES and International Cooperation Publicity of Operations PR activities aimed at ensuring the visibility of the CES and its services to unemployed persons, employers and the general public were continued in 2012 as well. The transparency of CES operations and activities is ensured through published printed materials, participation in round tables, television appearances, media and public statements, as well as notifications and news posted on the CES website. Through these activities, the public was timely informed throughout 2012 as well about the conditions and changes in the labour market at both the regional and national level, as well as about the novelties related to the labour market and CES operations. The CES timely provided written information and available data responding to numerous requests received from various media, legal or natural persons. In the course of 2012, the CES thus issued 234 replies to inquiries (tables, written information, communications, statements) at the request of various users. In 2012, the CES published 12 Newsletters for its partners, associates and employers, thus informing them about the most significant events in the CES. Furthermore, 276 Monthly Statistical Bulletins and 23 Yearbooks were issued by 22 regional offices and the central office, along with the Yearbook in the English language and 4 Analytical Bulletins. For the purpose of ensuring better visibility of the CES and familiarising the users with CES services, the CES formed a small team for the purpose of creating CES profiles on Facebook, Twitter and LinkedIn. The most frequently visited CES profile is the one on Facebook. At the end of 2012, the CES recorded about 2,500 visitors with a daily rate of 10 new visitors and the same number of inquiries. The inquiries posted on social networks are answered in accordance with the Strategy of Appearance and Management of CES Profiles on Social Networks approved by the Managing Board at its session held on 19 Dec requests in which the persons requesting information referred to the Access to Information Act were handled and an annual report on the implementation of the said Act was prepared. The mentioned report was delivered to the Agency for Protection of Personal Information, as prescribed. Compared to 2011, the number of requests decreased by 20%, which indicates that an increase in CES information and data transparency. The CES continuously works on updating the data and texts on its website and its portal in order to make all important information and forms available to its users within the shortest possible period. In accordance with the afore-said, a new CES service called Online Statistics was activated. Online Statistics is a service providing online access to statistical data concerning registered unemployment and employment ensuring all users a simpler, quicker and clearer data search and creation of tables according to their own needs. The service is based on an electronic database containing statistical data recorded since January 2004 with monthly updates. The application enables data search years and months as well as various features, such as: gender, age, educational level, territorial unit, economic activity, group of occupations, etc. The search and data filtering results are shown in multi-dimensional tables which the user can, if he needs to, turn into other formats (xls, pdf, html). For each group of information, there is an initial table presenting the relevant data by counties and years or months. The initial table can be subsequently amended by selecting new features or activating the procedure for creating a new report, while the obtained data can also be graphically presented. 66

68 2012 Yearbook International Cooperation International cooperation between the CES and its bilateral and multi-lateral partners was continued. Bilateral international cooperation involved a series of projects, seminars, workshops and study visits to public employment services in Austria, Bosnia and Herzegovina, Montenegro, Italy, Kosovo, Hungary, Macedonia, Germany, Slovenia, Serbia and Turkey. Since it joined the World Association of Public Employment Services (WAPES), the Croatian Employment Service has been an active member of the same. In 2012, the CES actively participated in the implementation of the WAPES Annual Action Plan as one of the 16 members of the WAPES Managing Board. It also continued its close cooperation with the WAPES Presidency (Pôle Emploi, France) and its Executive Secretariat (VDAB, Belgium). In the second half of 2012, the CES further expressed its interest in active membership in the Association by submitting an application for Vice Presidency in the WAPES Europe region. The 9 th session of the WAPES General Assembly was held on 26 June 2012 as part of the World Congress organised in Seoul, Republic of Korea. After presenting the purpose for applying for the mentioned position, the Assembly reconfirmed the membership of the CES in the WAPES Managing Board and decided that the Croatian Employment Service and the French Public Employment Service (Pole employ) would have the honour and responsibility to perform the function of the WAPES Region Europe Vice President for a term of three years ( ). On the same occasion, the Assembly selected the presiding country - Sweden); Vice Presidents for Region Europe Croatia and France; 4 other Vice Presidents: Region America Dominican Republic, Region Asia Pacific Korea, Region Africa Congo Brazzaville, and Region Middle East and Arab Countries - Tunis. At the initiative of the Croatian Employment Service, WAPES Region Europe held a meeting in Bruxellesu, Belgium, in September The outcomes of the said meetings included a proposal of the WAPES Region Europe Action Plan, which was adopted in October 2012 at a session of the WAPES Managing Board. Under the Stability Pact, i.e. the Regional Cooperation Process, the Croatian Employment Service participated in 2012 in activities of the Centre of Public Employment Services of Southeast European Countries (CPESSEC). The purpose of the CPESSEC is to encourage the exchange of experiences and good practices with the aim of improving the chances for employment in Southeast European countries. The CPESSEC member countries are: Bosnia and Herzegovina, Bulgaria, Montenegro, Croatia, Macedonia, Slovenia, Romania, Serbia and Turkey. In February 2012, the CES hosted a study visit by the Macedonian delegation that exchanged experiences and good practices associated with CPESSEC presidency with the representatives of the CES since the Croatian Employment Service performed that function in The CES also attended two managerial and two professional conferences organised by the Employment Service Agency of the Republic of Macedonia in May th Managerial Conference: Facilitating the Transition from the World of Education to the World of Labour and 8 th Professional Conference: Providing Support to Entrepreneurs and Self-employed Persons; and in December th Managerial Conference: Unemployed Persons Register and Individual Career Plan Research, Methods and Effect on Improving Labour Market Conditions, and 9 th Professional Conference: Active Employment Measures as Instruments for Employment Facilitation and Promotion. In November 2012, the CES hosted a study visit by a delegation from the Montenegrin Employment Agency on which occasion the delegation and the CES representatives exchanged their experiences associated with the EURES Network, employment of Croatian citizens abroad, introducing quality systems in business processes, active employment measures, and EU projects. As part of the study visit, the Montenegrin delegation also visited the Ministry of Internal Affairs to discuss the issuance of working visas to foreign citizens. During 2012, the CES actively and systematically performed activities associated with the preparation for full participation in the activities of European institutions responsible for the European labour market and employment by participating at the meetings of the Employment Committee, as well as the Indicators and Ad Hoc Groups. The CES also participated at the meetings of Heads of Public Employment Services (HoPES), meetings of Assistants to HoPES 67

69 Croatian Employment Service and meetings of the EURES Working Party. In addition to the mentioned meetings, the CES also participated at the meetings held on the topic of public and private partnerships for employment (PARES) as well as the meetings of European public employment services (PES-to-PES Dialogue). In 2012, the employees of the Croatian Employment Service attended a number of professional conferences and seminars organised in the country and abroad, responding to invitations from international bodies, organisations and associations (individual governments of EU member states, Council of Europe, ETF, ILO, IOM, UNECE, UNDP, CEI, WAPES, and similar) received through the Ministry of Labour and Pension System, Ministry of Foreign and European Affairs or to direct invitations to participate in the mentioned events as moderators, presenters, and other. 68

70 2012 Yearbook Notes 69

71 Croatian Employment Service 70 ISSN