Yearbook. Croatian Employment Service

Transcription

1 Yearbook 2010

2

3 Yearbook 2010 ISSN Zagreb, April 2011

4 Impressum Publisher:, Zagreb, Radnička cesta 1 Phone: Fax: Editorial: marica.baric@hzz.hr Website: On Behalf of Publisher: Ankica Paun Jarallah Director General of the Editor: Marica Barić English translation Abis d.o.o., Zagreb Graphic Design and Print: Birotisak d.o.o., Zagreb Circulation: 180 copies

5 Yearbook 2010 Content Economy and Labour Force 7 Unemployment 12 Labour Force Demand and Employment 20 Preparation for Employment National Employment Incentive Plan 34 Unemployment Entitlements 40 Projects Supported by the International Community 44 Organisational Structure and Operations of the CES Main Responsibilities and Development Strategy of the 53 Organisational Structure and Employees 55 Sources of Financing and Structure of Expenditures 59 Internal Financial Control System 62 ICT Support to the Operations of the CES 63 Publicity of the CES and International Cooperation 64

6 Geographical Distribution of Regional and Local Offices of the by Counties COUNTY REGIONAL OFFICE LOCAL OFFICE I. Zagreb City of Zagreb II. Krapina-Zagorje III. Sisak-Moslavina IV. Karlovac V. Varaždin VI. Koprivnica-Križevci VII. Bjelovar-Bilogora VIII. Primorje-Gorski Kotar IX. Lika-Senj X. Virovitica-Podravina XI. Požega-Slavonija XII. Brod-Posavina XIII. Zadar XIV. Osijek-Baranja XV. Šibenik-Knin XVI. Vukovar-Srijem XVII. Split-Dalmatia XVIII. Istria XIX. Dubrovnik-Neretva XX. Međimurje 4

7 Yearbook 2010 Map of Regional and Local Offices of the by Counties Central office Regional office Local office 5

8 6

9 Yearbook 2010 Economy and Labour Force Basic Economic Trends The indicators of economic activity were mainly negative during 2010, although the negative trends associated with certain important segments of economy did start to slow down. The exceptions were the positive trends recorded in tourism and foreign trade exchange, and a relatively low rate of inflation. The Real Gross Domestic Product fell by 1.2% compared to the year before. Only in the third quarter of 2010 did the Gross Domestic Product grow, albeit slightly (by 0.3%), while it was falling during the rest of the year (at a rate of 2.3% in the first two quarters and 0.6% in the last quarter of the year). Basic Economic Indicators Recorded in 2009 and 2010, Growth Rates (%) 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 Unemployment Rate Derived from Survey Results Source: Croatian Bureau of Statistics The physical volume of industrial production decreased in 2010 by 1.4% compared to A decrease in production was recorded in manufacturing (by 2.1%) and mining and quarrying (by 9.2%), while the production increased in electricity, gas, steam and air-conditioning supply (by 6.4%). After a decrease of 6.5% recorded in the field of construction works in 2009, the crisis in that sector continued to deepen throughout 2010, so that the annual rate of decrease in the physical volume of construction works amounted to no less than 15.9% at the end of One of the major consequences of the recession in Croatian economy, besides the mentioned decrease in production and construction works, is surely a decrease in retail trade. Compared to the year before, when the recorded decrease in retail trade amounted to 14.1% in nominal and 15.3% in real terms (due to an increase in Consumer Price Indices), the figures recorded in 2010 were considerably lower, i.e. by 1.1% in nominal and 1.8% in real terms. 7

10 Positive rates of change were recorded in foreign trade exchange from Croatia towards other countries, i.e. in exports, which grew in 2010 by 17.4%. Imports to Croatia decreased by 1.4%. The 2010 Import/Export Coverage Ratio was 58.9%. In 2010, Croatian tourism recorded an increase in activity. Compared to the year before, the number of tourist arrivals increased by 3.2%, whereas the number of overnights increased by 2.6%. Foreign tourists accounted for 85.9% of total arrivals and 90.4% of total overnights, while domestic tourists accounted for 14.1% of total arrivals and 9.6% of total overnights. The negative trends in economic activity recorded in 2010 were followed by a considerable slowdown in the growth of nominal salaries of employed persons which decreased by 0.6% compared to With the annual inflation rate of 1.1%, the real salaries of employed persons decreased by 0.5%. The year of 2010 recorded a relatively low annual inflation rate measured on the basis of Consumer Price Indices, i.e. 1.1%. The slowing economic activity recorded at the end of 2009 and in 2010 had a negative impact on labour market indicators. Total employment decreased, while unemployment increased. The result was a significant increase in the unemployment rate. Labour Force in Croatia Registered Employment and Unemployment, 2010 Annual Average According to the data of the Croatian Bureau of Statistics of the Republic of Croatia derived from administrative sources, the total number of economically active citizens (active population) decreased in 2010 (by 27,079 persons or 1.5%). The number of employed persons also decreased (by 66,330 or 4.4%), whereas the number of unemployed persons increased (by 39,251 persons or 14.9%). Number of Economically Active Citizens (Active Population) Derived from Administrative Sources (2009 and 2010 Annual Average) Active Population Employed Persons - Employed in Legal Entities - Employed in Craft Businesses and Freelance Professions - Insured Farmers Unemployed Persons Registered Unemployment Rate Index 1,761,958 1,734, ,498,784 1,432, ,211,085 1,168, , , ,295 32, , , Source: Croatian Bureau of Statistics The annual average number of registered employed persons was 1,432,454 in 2010, which is a decrease by 66,330 persons or 4.4% compared to the year before. The largest number of employed persons was employed in legal entities, i.e. 1,168,179 or 81.5% (down by 3.5% compared to 2009), 231,936 persons or 16.2% were employed in craft businesses and freelance professions (down by 8.1% compared to 2009), and there were 32,339 or 2.3% insured farmers (down by 8.4% compared to 2009). 8

11 Yearbook 2010 According to the National Classification of Activities, the largest number of employed persons was recorded in manufacturing (256,843 or 17.9%), wholesale and retail trade and repair of motor vehicles and motorcycles (224,981 or 15.7%), construction (119,984 or 8.4%), public administration, defence and compulsory social security (115,462 or 8.1%) and education (105,426 or 7.4%). -Appendix 1, p. 11. In terms of economic sectors (agricultural, non-agricultural and service sectors), the 2010 structure of employed persons showed that 65.8% of employed persons were engaged in service activities, 29.5% in non-agricultural and 4.6% in agricultural activities. Compared to 2009, the share of service activities increased (by 1.3 pp), and the shares of non-agricultural and agricultural activities decreased by 1.2 and 0.1 pp respectively. The annual average number of registered unemployed persons increased in 2010 by 39,251 persons or 14.9%, i.e. from persons registered in 2009 to 302,425 persons registered 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 unemployment rate from 14.9% recorded in 2009 to 17.4% in 2010 (according to the Croatian Bureau of Statistics). Unemployment rates by counties were calculated using the data on pension insurance beneficiaries registered with the Croatian Pension Insurance Institute (as registered employed persons) and the data on registered unemployed persons from the register of the Croatian Employment Service. According to the afore-mentioned data, the average unemployment rate at the state level amounted to 16.7%. In eight counties it was lower and in thirteen higher. Unemployment Rate by Counties, 2010 Annual Average 35 Percentage % Counties Average for Croatia City of Zagreb Istria Primorje-Gorski Kotar Varaždin Dubrovnik-Neretva Međimurje Koprivnica-Križevci Krapina-Zagorje Zagreb Zadar Lika-Senj Split-Dalmatia Šibenik-Knin Požega-Slavonia Karlovac 7.7 Bjelovar-Bilogora 8.5 Osijek-Baranja 13.2 Vrovitica-Podravina 13.5 Vukovar-Srijem 14.8 Sisak-Moslavina 15.4 Brod-Posavina Unemployment rates differed significantly across counties. The lowest unemployment rates were recorded in the City of Zagreb (7.7%) and the County of Istria (8.5%). Unemployment rates of the 9

12 following counties were also below the state average: Primorje-Gorje (13.2%), Varaždin (13.5%), Dubrovnik-Neretva (14.8%), Međimurje (15.4%), Koprivnica-Križevci (16.5%) and Krapina- Zagorje (16.6%). The highest unemployment rates were recorded in the following counties: Brod- Posavina (30.4%), Sisak-Moslavina (30.3%), Vukovar-Srijem (30.1%) and Virovitica-Podravina (29.9%). Compared to the year before, unemployment rates increased across all counties, yet primarily in the following counties: Brod-Posavina (4.5%), Zagreb (3.9%), Krapina-Zagorje (3.8%), Osijek- Baranja (3.6%) and Virovitica-Podravina (3.4%). The lowest increase in unemployment rate was recorded in the following counties: Zadar and Karlovac (by 1.3%), Istria and Lika-Senj (by 1.4%), Dubrovnik-Neretva (by 1.6%) and the City of Zagreb (1.7%). Employment and Unemployment Derived from 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, in 2010 the average number of economically active citizens (active population) in Croatia recorded was 1,747,000, out of which 1,541,000 employed and 206,000 unemployed persons. The unemployment rate calculated in accordance with the Eurostat criteria (15-64) was 54.0%. Unemployment Rate Derived from the Labour Force Survey According to the Labour Force Survey, the average number of unemployed persons grew from 160,000 persons recorded in 2009 to 206,000 in 2010, i.e. by 28.8%, so that the unemployment rate increased considerably as well (by 2.7 pp). The 2010 unemployment rate derived from the Labour Force Survey results was 11.8%. Number of Economically Active Citizens (Active Population) Derived from the Labour Force Survey (2009 and 2010 Annual Average) Active Population Employed Persons Employment Rate (15-64) Unemployed Persons Unemployment Rate Derived from the Labour Force Survey Results Index 1,765,000 1,747, ,605,000 1,541, , , Source: Croatian Bureau of Statistics 10

13 Appendix 1 Yearbook 2010 Number of Employed Persons by Activity (National Classification of Activities) January December, 2010 Activity (according to the National Classification of Activities) Number TOTAL Legal Entities Craft Businesses and Freelance Professions % 2010/2009 Index Number 2010/2009 Index Number 2010/2009 Index Agriculture, forestry and fishing Individual farmers Agricultural Activities Mining and quarrying Manufacturing 33, , , , , , , , , , , , Electricity, gas, steam and air-conditioning supply 16, , Water supply; sewerage, waste management and remediation activities Construction Non-agricultural Activities Wholesale and retail trade; repair of motor vehicles and motorcycles Transportation and storage Accommodation and food service activities Information and communication Financial and insurance activities Real estate activities Professional, scientific and technical activities Administrative and support service activities Public administration and defence; compulsory social security Education Human health and social work activities Arts, entertainment and recreation Other service activities 22, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , Activities of households as employers; undifferentiated goods - and services-producing activities of households for own use 5, , Service Activities Unclassified by activity TOTAL 942, , , , , ,432, ,168, , Source: Croatian Bureau of Statistics, Announcements No from 2010 and

14 Unemployment Total Unemployment Trends In 2010, seasonal factors influenced the number of unemployed persons registered with the. Unemployment was increasing from the beginning of the year until March, and then it started significantly decreasing until June. After the end of the summer season, unemployment started increasing again, continuing so until the end of the year. Therefore, the smallest number of unemployed persons was recorded in July, and the largest in December. In December 2010, the number of unemployed persons registered with the Croatian Employment Service equalled 319,845, up by 9.7% compared to the same month the year before. Overall figures show that, in 2010, the number of unemployed persons increased compared to the year before (see picture). Number of Unemployed Persons (thousands) Number of Unemployed Persons in 2009 and I II III IV V VI VII VIII IX X XI XII Months The number of unemployed persons recorded at the end of 2010 was higher than the number of unemployed persons recorded at the end of 2009, as the number of newly-registered persons (289,234) in the unemployment register was higher than the sum of the number of registered employed persons and those deleted from the register for reasons other than employment (260,934). Therefore, unemployment increased because the total number of newly-registered persons exceeded the total number of persons deleted from the register. Unemployment Structure and Trends by Gender, Age and Educational Level The average number of unemployed persons increased from 263,174 recorded in 2009 to 302,425 in 2010, up by 14.9%. A greater percentage increase in unemployment was recorded in the case of men than in the case of women. Thus, the share of men in the total number of unemployed persons also increased. 12

15 Yearbook 2010 Average Number of Unemployed Persons by Gender in 2009 and Structure 2009 Structure 2010/2009 Index Total Men Women 302, , , , , , As far as unemployment by age is concerned, the average number of unemployed persons increased across all age groups. The most significant percentage increase was recorded in the average number younger age groups. Thus, the average number of unemployed persons in the group from 25 to 29 years of age increased by 22.1 percent, and in the group from 30 to 34 by 21.6 percent. The share of young persons in the total number of unemployed persons increased accordingly. Average Number of Unemployed Persons by Age in 2009 and 2010 Age TOTAL Number % Number % 20010/2009 Index 13, , , , , , , , , , , , , , , , , , , , , , As far as educational levels are concerned, the average number of unemployed persons increased across all categories in However, the greatest increase was recorded in the average number of unemployed persons with non-university and university level and and postgraduate degrees. Therefore, their share in the total number of unemployed persons also grew. The percentage increase in the number of unemployed persons with secondary education was significantly greater in the case of men than in the case of women. 13

16 Average Number of Unemployed Persons by Educational Level and Gender in 2009 and 2010 Total No schooling and uncompleted basic school Basic school 1 to 3-year vocational secondary school 4 (or more)- year vocational secondary school and grammar school Postsecondary, nonuniversity degree University level and postgraduate degree 2009 Total 263,174 17,477 64,246 90,421 70,330 9,259 11,441 Structure Total 302,425 18,068 70, ,103 82,772 11,593 15,037 Structure /2009 Index Men in ,115 8,000 24,497 43,296 23,692 3,369 4,261 Structure Men in ,805 9,060 30,384 55,607 31,486 4,536 5,732 Structure /2009 Index Women in ,059 9,477 39,749 47,125 46,638 5,890 7,180 Structure Women in ,620 9,008 40,468 48,496 51,286 7,057 9,305 Structure /2009 Index ,6 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 number of such persons recorded at the end of 2010 was 265,685, up by 9.3% compared to the number recorded at the end of the year before. Therefore, the total number of unemployed persons who had been previously employed significantly increased over the observed period. The number of unemployed persons grew across all larger activity groups. For example, the number of unemployed persons who had been previously employed in construction increased by almost 23%, thus also significantly increasing their share in the total number of unemployed persons. The number of unemployed persons who had previously been employed in accommodation and food service increased by 11.5%, the number of those who had previously been employed in trade increased by 5.6%, whereas the number of unemployed persons who had previously been employed in manufacturing grew by 1.2%. The largest percentage increase in unemployment (47.6%) was recorded among those persons who had previously been employed in the activity group encompassing public administration, defence and compulsory social security. 14

17 Yearbook 2010 Unemployed Persons by Previous Employment Activity (as of December 31, 2009 and 2010) Activity (2007 National Classification of Activities) A. Agriculture, forestry and fishing B. Mining and quarrying C. Manufacturing D. Electricity, gas, steam and air-conditioning supply E. Water supply; sewerage, waste management and remediation activities F. Construction G. Wholesale and retail trade; repair of motor vehicles and motorcycles H. Transportation and storage I. Accommodation and food service activities J. Information and communication K. Financial and insurance activities L. Real estate activities M. Professional, scientific and technical activities N. Administrative and support service activities O. Public administration and defence; compulsory social security P. Education Q. Human health and social work activities R. Arts, entertainment and recreation S. Other service activities T. Activities of households as employers; undifferentiated goods- and services-producing activities of households for own use U. Activities of extraterritorial organisations and bodies TOTAL Number Share Number Share 2010/2009 Index 10, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,0 265, , Unemployment Structure and Trends by Counties and Particular Features As it has been stressed before, the average number of unemployed persons in 2010 increased by 14.9% compared to However, the unemployment trend analysis showed significant differences in the extent of that increase among particular counties. The most significant percentage increase in average unemployment was recorded in the following counties: Krapina- Zagorje (30.2%), Zagreb (28.3%), City of Zagreb (24.9%), Međimurje (20.3%), Primorje-Gorski Kotar (19.9%), Varaždin (19.4%), Koprivnica-Križevci (18.1%) and Istria (17.9%). The County of Split-Dalmatia and the City of Zagreb accounted for the largest share in the total number of unemployed persons in 2010 (12.5%), up by 1 pp, followed closely by the County of Osijek-Baranja (10.8%). 15

18 Average Number of Unemployed Persons by Counties in 2009 and 2010 County Zagreb Krapina - Zagorje Sisak - Moslavina Karlovac Varaždin Koprivnica - Križevci Bjelovar - Bilogora Primorje - Gorski Kotar Lika - Senj Virovitica - Podravina Požega - Slavonia Brod - Posavina Zadar Osijek - Baranja Šibenik - Knin Vukovar - Srijem Split - Dalmatia Istria Dubrovnik - Neretva Međimurje City of Zagreb Total Number Share Number Share 2010/2009 Index 11, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , As far as unemployment by gender is concerned, the greatest share of women in the total number of unemployed persons at the end of 2010 was recorded in the following counties: Split-Dalmatia (57.9%), Zadar (57.1%) and Primorje-Gorski Kotar (56.8%), i.e. mainly coastal counties offering a great number of seasonal jobs in the field of accommodation and food service. The largest number of young unemployed persons up to 24 years of age in the total number of unemployed persons was recorded in the following counties: Požega-Slavonia (24.4%), Međimurje (23.8%), Koprivnica-Križevci (23.4%), Brod-Posavina (23.0%) and Bjelovar-Bilogora (22.6%). Finally, the largest number of qualified unemployed persons (with secondary; non-university; or university and postgraduate degrees) was recorded in the following counties: Split-Dalmatia (82.1%), Dubrovnik-Neretva (81.6%), Primorje-Gorski Kotar (77.6%), and the City of Zagreb (78.6%) 16

19 Yearbook 2010 Structure of Unemployed Persons by Counties (Dec. 31, 2010) County Zagreb Krapina - Zagorje Sisak - Moslavina Karlovac Varaždin Koprivnica - Križevci Bjelovar - Bilogora Primorje - Gorski Kotar Lika - Senj Virovitica - Podravina Požega - Slavonia Brod - Posavina Zadar Osijek - Baranja Šibenik - Knin Vukovar - Srijem Split - Dalmatia Istria Dubrovnik - Neretva Međimurje City of Zagreb Total Total Men Women Up to 24 Years of Age Qualified Persons Number Share Number Share Number Share Number Share 16,022 7, , , , ,262 3, , , , ,061 8, , , , ,871 5, , , , ,206 5, , , , ,700 3, , , , ,408 6, , , , ,614 8, , , , ,540 1, , , ,864 4, , , , ,092 2, , , , ,996 7, , , , ,497 4, , , , ,211 15, , , , ,424 3, , , , ,490 9, , , , ,777 17, , , , ,270 4, , , , ,359 3, , , , ,281 3, , , , ,900 19, , , , , , , , , Croatian War Veterans Unemployment Structure and Trends At the end of 2010, there were 27,209 unemployed Croatian war veterans in the CES register of unemployed persons, out of which 37.8% with completed or uncompleted basic school and 38.3% with completed 1 to 3-year vocational secondary school. The share of unemployment benefit recipients in the total number of unemployed Croatian war veterans was negligible. In terms of their age structure, 44.2% of unemployed Croatian war veterans were aged from 50 to 65. 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 2010, 38.9% of the total number of unemployed persons waited for employment for up to 6 months and 45.8% for more than one year. Compared to the year before, the number of unemployed persons who had been waiting for employment from 9 to 12 months grew by 22.6%, of those who had been waiting for employment for 1 to 2 years by 51.6% and those who had been waiting for employment for 2 to 3 years by 27.7%. The number of unemployed persons who had been waiting for employment for more than 3 years decreased by 11.5%. 17

20 Unemployed Persons by Duration of Unemployment (Dec. 31, 2009 and 2010) Duration of Unemployment 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 /2009 Number Share Number Share Indeks 72, , , , , , , , , , , , , , , , As far as duration of unemployment by gender is concerned, the share of unemployed persons who had been waiting for employment for more than 1 year in the total number of unemployed men was 41.6% and in the total number of unemployed women 49.4%. Hence, the share of long-term unemployed persons in the total number of unemployed persons was greater in the case of women than in the case of men. Unemployed Persons by Duration of Unemployment and Gender (Dec. 31, 2010) Duration of Unemployment Total Men Share Women Share Up to 3 months 78,818 38, , From 3 to 6 months 45,721 21, , From 6 to 9 months 23,247 11, , From 9 to 12 months 25,426 13, , From 1 to 2 years 55,900 28, , From 2 to 3 years 21,908 8, , More than 3 years 68,825 24, , TOTAL 319, , , Finally, if we observe duration of unemployment in terms of educational levels, the lower the educational level, the greater the share of long-term unemployed persons. Thus, the share of longterm unemployed persons (waiting for 1 year or more) in the total number of unemployed persons with no schooling or uncompleted basic school amounted to 67.9% and 54.7% in the case of unemployed persons with basic school, which is considerably less. The share of long-term unemployed persons was even smaller in the groups of persons with three- or four-year vocational secondary school (43.2% and 41.7%) and non-university and university and postgraduate degrees (36.7% and 31.3%). Although the number of unemployed persons with non-university and university and postgraduate degrees grew significantly, it can still be concluded that the level of education has a significant influence on the duration of unemployment. 18

21 Yearbook 2010 Structure of Unemployed Persons by Duration of Unemployment and Educational Level (Dec. 31, 2010) Duration of Unemployment Total No schooling and uncompleted basic school Basic school 1 to 3-year vocational secondary school 4 (or more)- year vocational secondary school and grammar school Postsecondary, nonuniversity degree University level and postgraduate degree 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 Labour Force Demand and Employment Reported Job Vacancies In 2010, employers reported a total of 104,739 job vacancies to the CES, which represents an increase of 2.3% or 2,312 job vacancies compared to According to the National Classification of Activities, the largest number of reported job vacancies came from the following fields of activity: accommodation and food service (16,855 or 16.1 %), manufacturing (16,454 or 15.7%), education (14,435 or 13.8%), and wholesale and retail trade (14,135 or 13.5%). Compared to the year before, the largest increase in labour force demand was recorded in public administration, defence and compulsory social security (by 2,075 or 60.6%), manufacturing (by 818 or 5.2%), healthcare and social welfare (811 or 13.4%), transportation and storage (by 724 or 44.9%), and other service activities (by 658 or 28.5%), whereas the largest absolute decrease was recorded in construction (by 1,162 or 14.6%), education (by 1,032 or 6.7%), trade (by 1,030 or 6.8%), agriculture, forestry and fishery (by 577 or 15.1%), and administrative and auxiliary service activities (by 400 or 6.4%). Appendix 2, p. 23. As far as regional organisation is concerned, most job vacancies were reported in the City of Zagreb (15,178 or 14.5%) and the following counties: Split-Dalmatia (9,179 or 8.8%), Primorje- Gorski Kotar (8,774 or 8.4%) and Osijek-Baranja (8,064 or 7.7%); and least in the County of Lika- Senj (1,601 or 1.5%). Compared to the year before, the volume of registered demand for workers increased in thirteen counties, however mainly in the following counties: Osijek-Baranja (by 1,186 or 17.2%), Šibenik-Knin (by 1,103 or 27.8%), Bjelovar-Bilogora (by 758 or 23.9%), Dubrovnik- Neretva (by 745 or 27.3%) and Brod-Posavina (by 549 or 19.5%). The volume of registered demand for workers decreased in eight counties, however mainly in the following counties: Zagreb (by 1,050 workers or 20.1%), Istria (by 785 workers or 10.3%), Požega-Slavonia (by 537 workers or 20.1%) and Zadar (by 480 workers or 10.3%). In 2010, employers mostly looked for service workers and shop and market sales workers (25,101 or 24.0%) as well as workers engaged in elementary occupations such as cleaners, deliverers, transport workers, workers without occupational qualifications and similar (24,979 or 23.8%). A significant share in the total number of labour force demand referred to professionals (15,938 persons or 15.2%), craft and related trade workers (13,857 or 13.2%), and technicians and associated occupations (12,504 or 11.9%). Reported Job Vacancies by Group of Occupations in 2010 Group of Occupations 2009 % 2010 (1) Legislators, senior officials and managers (2) Professionals (3) Technicians and associated professionals (4) Clerks (office and desk clerks) (5) Service workers and shop and market sales workers (6) Skilled agricultural, hunting, forestry and fishery workers (7) Craft and related trade workers (8) Plant and machine operators and assemblers (9) Elementary occupations Total % 2010/2009 Index , , , , , , , , , , , , , , , ,

23 Yearbook 2010 Employment of Persons from the CES Register In 2010, a total of 141,105 persons from the register of unemployed persons of the Croatian Employment Service were employed on a work contract basis (by 22,819 persons or 19.3% more than in 2009), whereas 5,522 were employed on the basis of other business activities (starting a company or craft business; signing up for agricultural insurance; employment based on special regulations, and other). From the total number of persons employed on a work contract basis, 76,260 were women, making up a share of 54.0% in the total number of employed persons compared to a share of 58.8% recorded in Educational Level and Groups of Occupations. The largest number of registered employed persons refers to persons with secondary school education, including those who completed 1 to 3- year vocational secondary school (37.5%) and those who completed 4-year vocational secondary school or grammar school (29.7%), followed by those with basic school education (16.1%), university and postgraduate degrees (8.7%), non-university education (6.1%), and persons with no schooling or uncompleted basic school education (1.9%). Compared to the year before, an increase in registered employment was recorded across all educational levels. The largest increase was recorded in the groups of persons with university and postgraduate degrees (30.2%). Number of Persons from the CES Register Employed on a Work Contract Basis in 2009 and 2010 by Educational Level Year TOTAL No schooling and uncompleted basic school Basic school 1 to 3-year vocational secondary school 4 (or more)- year vocational secondary school and grammar school Postsecondary, nonuniversity degree University level and postgraduate degree 2009 Share 2010 Share 2010/2009 Index 118,286 2,389 19,710 43,970 35,538 7,268 9, ,105 2,612 22,688 52,963 41,915 8,673 12, Different groups of occupations (in accordance with the National Classification of Occupations) accounted for the following shares in the total registered employment: Service workers and shop and market sales workers (32,747 or 31.5%); Elementary occupations (24,330 or 17.2%); Craft and related trades workers (23,144 or 16.4%); Technicians and associated professionals (21,867 or 15.5%); Clerks (16,004 or 11.3%); Professionals (12,130 or 8.6%); Plant and machine operators and assemblers (9,831 or 7.0%); Skilled agricultural, hunting, forestry and fishery workers (1,043 or 0.7%); Legislators, senior officials and managers (29 or 0.02%); and Armed forces (10 or 0.007%). 21

24 Work Experience. From the total number of employed persons, 123,998 persons (87.9%) had prior work experience, whereas 17,107 (12.1%) were employed for the first time. Duration of Employment. 126,802 persons (89.9%) were employed on a temporary basis, whereas 14,303 persons (10.1%) were employed on a permanent basis. Compared to 2009, the share of temporary employment increased, while the share of permanent employment decreased (by 4.4 pp). Employment Activity. It is common that the register of unemployed persons with prior work experience primarily includes persons from manufacturing, trade, accommodation and food service, and construction, and that these four areas of activity are also the ones in which most persons are consequently employed. In 2010, the total number of persons from the CES register employed on a work contract basis included: Wholesale and retail trade: 24,619 persons or 17.4 %, Accommodation and food service: 23,914 persons or 16.9 %, Manufacturing: 23,653 persons or 16.8 %, Construction: 12,316 persons or 8.7 %; Education: 9,854 persons or 7.0 %, Administrative and auxiliary service activities: 9,179 persons or 6.5 %; Agriculture, hunting, forestry and fishing: 6,265 persons or 4.4%, etc. 22

25 Yearbook 2010 Appendix 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 2009 and 2010 Activity (2007 National Classification of Activities) Agriculture, forestry and fishing Mining and quarrying Manufacturing Electricity, gas, steam and air-conditioning supply Water supply; sewerage, waste management and remediation activities Construction Wholesale and retail trade; repair of motor vehicles and motorcycles Transportation and storage Accommodation and food service activities Information and communication Financial and insurance activities Real estate activities Professional, scientific and technical activities Reported Job Vacancies , , ,275 7,986 15,165 1,613 16,543 1,366 1, ,283 3, , ,681 6,824 14,135 2,337 16,855 1,111 1, , Share Index 2010/ Employed from the CES Register on a Work Contract Basis , , ,491 9,456 22,219 2,921 20,610 1,081 1, ,679 6, , ,285 12,316 24,619 4,085 23,914 1,268 1, , Share Index 2010/ Administrative and support service activities 6,261 5, ,056 9, Public administration and defence; compulsory social security 3,426 5, ,026 3, Education 15,467 14, ,736 9, Human health and social work activities 6,041 6, ,252 5, Arts, entertainment and recreation 1,136 1, ,671 1, Other service activities 2,308 2, ,195 4, Activities of households as employers; undifferentiated goods- and services-producing activities of households for own use Activities of extraterritorial organisations and bodies TOTAL 102, , , ,

26 Appendix 3 Reported Job Vacancies and Persons from the CES Register Employed on a Work Contract Basis by Counties in 2010 Reported Job Vacancies Employed from the CES Register on a Work Contract Basis County Share Index 2010/ Share Index 2010/ 2009 Zagreb 5,223 4, ,073 6, Krapina - Zagorje 2,406 2, ,588 3, Sisak - Moslavina 3,256 3, ,932 6, Karlovac 2,255 2, ,744 4, Varaždin 5,022 5, ,648 5, Koprivnica - Križevci 2,899 3, ,833 3, Bjelovar - Bilogora 3,168 3, ,998 5, Primorje - Gorski Kotar 8,989 8, ,634 9, Lika - Senj 1,550 1, ,382 1, Virovitica - Podravina 2,657 3, ,014 4, Požega - Slavonia 2,669 2, ,872 3, Brod - Posavina 2,822 3, ,849 6, Zadar 4,655 4, ,966 5, Osijek - Baranja 6,878 8, ,071 13, Šibenik - Knin 3,974 5, ,068 4, Vukovar - Srijem 4,348 4, ,939 8, Split - Dalmatia 9,516 9, ,852 17, Istria 7,654 6, ,910 7, Dubrovnik - Neretva 2,733 3, ,980 4, Međimurje 4,208 4, ,093 4, City of Zagreb 15,545 15, ,840 14, Total 102, , , ,

27 Yearbook 2010 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). In 2010, the employment rate amounted to 24.3%, i.e. less than one fourth of unemployed persons who looked for employment during the year actually found it. Significant differences were recorded in the employment rate among groups of unemployed persons distinguished by educational level. In the case of persons with no schooling or uncompleted basic school, the employment rate equalled 9.6%. It equalled 18.3% in the case of those with basic school, 25.9% in the case of those with vocational secondary school in the duration of up to three years, 25.4% in the case of those with four-year vocational secondary school or grammar school, 34.6% in the case of those with non-university education and 35.1% in the case of those with university and postgraduate degrees. It is evident that the higher educational level is always associated with the higher employment rate. 50 Employment Rate by Educational Level in 2010 (%) Employment Rate (%) A B C D E F Educational Levels: A no schooling and uncompleted basic school, B basic school, C 1- to 3-year vocational secondary school, D 4 (or more)-year vocational secondary school and grammar school, E non-university education, F university and postgraduate degrees. Within the same educational groups, there are considerably large differences in the 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. 25

28 Employment Rate by Occupation at Secondary School Level Occupation % Occupation % Gardener 35.3 Print Graphic Designer 20.5 Automated Construction Equipment Operator 33.7 Lower Elementary Teaching Associate 20.1 Cook 33.1 Room Painter 20.0 Forest Technician 33.1 Administrative Personnel Clerk 19.9 Expert Textile Worker 32.8 Iron Worker 19.8 Air Traffic Controller 32.5 Maritime Sailor 19.8 Freight Motor Vehicle Driver 32.4 Milling Machine Operator 19.8 Medical Nurse/Medical Technician 32.0 Knitter 19.8 Central Heating and Air Conditioning Assembler 32.0 Ceramic Product Maker 19.7 Pharmaceutical Technician 31.6 Indok Service Associate 19.5 Electrical Engineering Technician 30.8 Weaver 19.0 Midwife 30.7 Fine Art and Design 18.3 Textile Technician 30.6 Typist 18.2 Road Motor Vehicle Driver 30.4 Electrical Engineer (Radio-Television Technology) 18.1 Waiter 30.4 Mathematician Computer Scientist 18.1 Agricultural Technician 30.3 Spinner 17.3 Hotel and Tourism Technician 30.2 Technical Designer 17.0 Turner 30.0 Shorthand Typist 16.1 Hair-dresser 29.9 Scenographic Designer 14.9 Hotelier 29.9 Power Electrician 14.5 The following table shows ten occupations with the highest and ten with the lowest rate of employment at non-university and university and postgraduate degree level. Employment Rate by Occupation/Major at Non-university and University and Postgraduate Degree Level Occupation/Major % Occupation/Major % Teaching 65.5 Philosophy 22.3 Croatian and English Language 61.6 Textile and Chemical Technology 22.3 Biology and Chemistry 59.5 Building Construction 22.2 Croatian and Italian Language 57.3 Cattle Breeding 22.1 General Medicine 56.6 Economy 20.8 Librarianism, Croatian Language and Literature 55.5 Painting 20.5 Physical Therapy 55.2 Marine Engineering 19.1 Senior Medical Nurse / Medical Technician 54.0 Political Sciences 18.9 German Language 53.8 Textile and Clothing Engineer 18.1 English Language 53.4 Graphic Artist

29 Yearbook 2010 Seasonal Employment in Tourism Provision of employment mediation services with regards to seasonal employment in tourism is one of important business activities of the. Continuing the practice pursued over the previous years, at the beginning of 2010 the CES organised regular regional meetings with representatives of larger hotels and tourism companies for the purpose of reaching concrete agreements concerning the planning (forecasting) and meeting the demand for seasonal workers. The meetings were held in coastal counties of Croatia (Istria, Primorje-Gorski Kotar, Zadar, Šibenik-Knin, Split-Dalmatia and Dubrovnik-Neretva) which were getting ready for the then upcoming tourist season. After preparing the demand forecasts and selecting seasonal workers from unemployed domicile population, the representatives of the afore-mentioned companies also conducted informative interviews with candidates interested in seasonal employment and selected the most appropriate ones in cooperation with regional offices of the based in continental counties (Osijek, Vinkovci, Bjelovar, Sisak, etc.) and referred them to the agreed job positions. During the tourist season, a total of 18,151 workers were employed, mostly waiters (2,015 persons or 11.1%), cooks (1,862 persons or 10.3%), salespersons (1,860 persons or 10.2%), chambermaids (1,465 persons or 8.1%), kitchen help (1,098 persons or 6.0%), assistant cooks (822 persons or 4.5%), cleaning ladies (745 persons or 4.1%), administrative clerks (465 persons or 2.6%), and receptionists (411 persons or 2.3%). At the county level, most seasonal workers were employed from the following counties: Split- Dalmatia 2,928 (16.1%), Istria 2,103 (11.6%), Dubrovnik-Neretva 1,869 (10.3%), Primorje-Gorski Kotar 1,684 (9.3%), Zadar 1,463 (8.1%), Osijek-Baranja 1,456 (8.0%) and Šibenik-Knin 1,300 (7.2%). Through interregional employment mediation services provided by the regional offices of the CES situated in continental regions of Croatia, a total of 6,632 seasonal workers were employed in coastal regions during the tourism season. The largest number of seasonal workers was employed from the following counties: Osijek-Baranja (2,684 persons), Vukovar-Srijem (2,522 persons), Sisak-Moslavina (2,224 persons), Brod-Posavina (1,753 persons) and Bjelovar- Bilogora (1,510 persons). Interregional Employment Mediation Services Interregional employment mediation services are 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. Through these services, the CES also strives to encourage migration of workers and ensure their employment, especially 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 worker from its own county, the relevant request is then forwarded to other regional offices with registered labour force meeting the job-specific requirements. Interregional employment mediation 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 employment mediation services, a total of 23,035 workers registered with the CES as unemployed were employed in 2010 in the place outside of the territorial scope of the regional or local office where the request had originally been received, among which mainly salespersons (1,836 persons or 8.0%), cooks (1,198 persons or 5.2%), waiters (1,003 persons or 4.4%), cleaning ladies (638 persons or 2.8%), economic clerks (593 persons or 2.6%), administrative clerks (582 persons or 2.5%), freight car drivers (546 persons or 2.4%), kitchen help (529 persons or 2.3%), assistant cooks (452 persons or 2.0%) and chambermaids (421 persons or 1.8%). 27

30 In terms of counties, most workers who were employed in the place outside the territorial scope of the regional or local office where the request had originally been received came from the following counties: Osijek-Baranja (2,684 or 11.7%), Vukovar-Srijem (2,522 or 10.9%), Sisak-Moslavina (2,224 or 9.7%), Brod-Posavina (1,753 or 7.6%) and Bjelovar-Bilogora (1,510 or 6.6%). As far as the employment activity is concerned, most seasonal workers employed through interregional employment mediation services found employment in the following activities: accommodation and food service (6,632 or 28.8%), wholesale and retail trade (3,812 or 16.5%), construction (2,851 or 12.4%), manufacturing (2,774 or 12%), and administrative and auxiliary service activities (2,100 or 9.1%). Employment of Persons Abroad and their Return from Abroad In the scope of international employment mediation services, the CES is in charge of implementation of two bilateral employment agreements 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 work permit issued by the relevant state for a specific period of time. A person must be granted a residence permit prior to applying for a work permit. In 2010, the provided employment mediation 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 employment mediation activities carried out by the CES, a total of 5,544 Croatian citizens were employed abroad during 2010, which is 858 workers or 18.3% more compared to the year before. Employment in the Federal Republic of Germany is mainly seasonal in character, so that, on the basis of the bilateral agreements in force, most workers found employment in the following fields of activity: agriculture (3,304 persons or 67.5%) and accommodation and food service (1,736 persons or 32.5%) for a period of 6 months; and amusement parks for up to 9 months (86 persons), i.e. 5,349 persons from the total number of persons engaged in seasonal employment. Throughout the year, employers from the Federal Republic of Germany report their need for seasonal workers to the. 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 work contracts for the same workers through the Central Employment Intermediation Office in Bonn each year. Pursuant to German law, seasonal workers in agriculture and accommodation and food service had been permitted until 2009 to work in the Federal Republic of Germany for no longer than 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. They are made out to a specific unemployed person (first and last name, 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 based on 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 requirements (the so-called 'anonymous agreements'), the Central Office then provides its employment mediation services and organises a selection of workers. 28

31 Yearbook 2010 From the total number of employment agreements received, 38 persons were employed on the basis of anonymous offers. Most seasonal workers were employed from the following counties: Brod-Posavina, Vukovar-Srijem and Osijek-Baranja. The majority of seasonal workers employed (2,875 or 58.1%) were women. Pursuant to the Agreement made by and between the Croatian Government and the Government of the Federal Republic of Germany on Employment of Workers for Professional Advancement and Language Improvement Purposes (Agreement on Temporary Employment, Official Gazette International Agreements 14/2002), 150 persons of up to 40 years of age engaged in various occupations were employed for a period of 18 months, while 45 medical nurses and technicians who passed the qualifying exam were employed for a longer or indefinite period of time. In 2010, in cooperation with the Central Employment Intermediation Office in Bonn, the CES organised two selections/interview sessions for candidates seeking to find employment in the Federal Republic of Germany as 'guest workers' and medical nurses/medical technicians. These sessions were attended by 116 candidates. Number of Workers Employed Abroad in 2009 and 2010 Year Total Seasonal Workers Medical Technicians Guest Workers Students Sailors on foreign ships /2009 Index 4,686 4, ,544 5, During summer vacations, 9 student applications for spending up to 3 months in the Federal Republic of Germany were received. All activities concerning the employment mediation of sailors on foreign ships were carried out by the Rijeka and Split Regional Offices onto which the CES transferred its employment mediation duties in this matter. In 2010, a total of 107 sailors registered with the Croatian Employment Service were employed on foreign ships. The has so far carried out a number of activities such as the preparation for active participation in the EURES network after the admission of the Republic of Croatia to the European Union. One of such activities was also the establishment of two Migrant Information Centres (MICs) in the Osijek and Rijeka Regional Offices. 29

32 Preparation for Employment The Preparation for Employment run by the is based on the principles of lifelong learning, importance of early intervention and enhancement of competencies related to the management of personal vocational development. In 2010, in the light of the global crisis, the CES placed emphasis on the Preparation for Employment activities encompassing the assessment and development of competencies, vocational and additional training of unemployed persons for the purpose of improving their competitiveness in the labour market, vocational guidance and selection services, as well as on development of services in the field of vocational rehabilitation and employment of persons with disabilities and other aggravated employability factors. The CES primarily focused on group activities (group informing, group counselling and similar) in order to provide an opportunity for as many of its users as possible to participate in the said activities. The influence of the CES on educational policy in accordance with the labour market demand was significant. The CES participated in the drafting of the Enterprise Learning Strategy, activities related to the implementation of the Croatian Qualification Framework, activities carried out by Professional Councils, etc. Vocational Guidance, Selection and Enhancement of Competencies in Accordance with Labour Market Demand Vocational guidance activities carried out in 2010 included various types of vocational informing and counselling sessions for unemployed persons and other target groups, encompassing prevention activities and work with pupils and students in the process of selecting an adequate educational programme. For the purpose of ensuring professional informing of pupils, the CES printed 12,750 brochures and made 27,440 copies of the CD containing five regional secondary school enrolment brochures. In addition, for the purpose of ensuring professional informing of final-year pupils of primary and secondary schools, the CES purchased 2,500 informative brochures entitled A Guide for Future Students and 5,000 copies of the CD containing the brochure entitled 2010 Secondary School Enrolment Guide from the Ministry of Science, Education and Sports. In 2010, the CES significantly increased the number of activities intended for unemployed persons and job-seekers by conducting individual and group informing sessions on various issues concerning the management of personal vocational development. Professional vocational and psychological counselling services along with work competencies assessment services, i.e. psychological testing, interview and examination by an occupational medical specialist were provided to 7,603 unemployed persons estimated to have extreme difficulties in the process of (re)integration into the labour market. With the aim of improving the active job search skills, the CES organised 3,679 various types of workshops involving 33,633 persons, i.e. 21% more compared to the year before. In addition, a total of 1,135 psychological vocational selections were carried out involving 11,508 candidates, out of which 343 selections were carried out for the purpose of re-employment (2,908 persons), and 792 for the purpose of including unemployed persons in educational activities (8,600 persons). Apart from referring unemployed persons to attend various educational activities, the CES continued its cooperation with the local and regional self-government units pursuant to the National Employment Incentive Programme (119 unemployed persons were referred to participate in an educational process with 15 different programmes). Vocational guidance intended for pupils includes the application of a Vocational Interest Questionnaire on the basis of which priority groups of pupils in need of vocational counselling concerning the selection of the most appropriate educational programme or occupation are identified. During 2010, a total of 57,367 pupils participated in the survey, of which 40,449 primary school pupils and 17,241 secondary school pupils, representing 84% of the total number of finalyear pupils of primary schools and 37% of the total number of final-year pupils of secondary 30

33 Yearbook 2010 schools. The survey analysis showed that about 30% of the pupils had the need for professional help in the selection of the appropriate educational programme or occupation. Vocational guidance counsellors provide vocational informing and counselling services to the pupils depending on their needs and identified difficulties. This sort of help is especially required by pupils with developmental difficulties and more serious health problems limiting their possibilities in the process of selecting an educational programme or occupation. The priority group to be included in the process of vocational counselling also includes the pupils displaying various types of behaviour disorders, i.e. learning difficulties, and those leaving secondary school at their own discretion. In 2010, a total of 39,470 final-year pupils (42% of the total population) participated in vocational informing and counselling activities. Also, for the purpose of promoting occupations in demand, in cooperation with regional chambers of crafts and trade, the Croatian Employment Service carries out the activities related to promotion of craft and trade occupations intended for pupils as well as finances medical examinations required for their enrolment in the programmes preparing them for such occupations. In 2010, a total of 1,288 prior medical examinations of pupils were financed for the purpose of their enrolment in programmes preparing them for occupations in demand. With the aim of developing and enhancing the pupil and student standard in the Republic of Croatia, the cooperated with the National Foundation for the Support to the Pupil and Student Standard in the process of determining the criteria for the Competition to Win a Scholarship for Occupations/Study Programmes in Demand for Academic Year 2010/2011. In 2010, the vocational guidance computer programme entitled My Choice was used in 88 licensed locations, i.e. in all regional offices of the, in primary and secondary schools, adult education institutions, and other institutions associated with the labour market. A total of 8,356 users used the programme at regional offices of the CES, of which 6,769 pupils. The results of the evaluation carried out in 2010 showed that the users were very satisfied with this service. During 2010, the CES continued its activities under a project entitled Labour Market Oriented Vocational Education in the Republic of Croatia. In the framework of this project, the CES prepared a report on vocational education and labour market for the County of Zadar and carried out other activities envisaged under the 2010 Project Plan. With the aim of improving lifelong vocational guidance, the CES carried out, under the IPA Project entitled CES Client Services: Improvement of Lifelong Vocational Guidance and ICT Support, preparation activities for a project whose purpose is to establish a National Vocational Guidance Forum, determine the legal framework that would regulate the vocational guidance system in the field of employment and education, and establish seven pilot career development centres. The purpose of the project is also to enhance the CES ICT system based on the model of integration and exchange of information between the key labour market stakeholders for the purpose of ensuring better services to clients. The European Lifelong Guidance Policy Network (ELGPN) has been established in order to harmonise the lifelong vocational guidance policies in the field of employment and education among the EU member and candidate countries. The Ministers of the two competent Ministries, i.e. the Ministry of the Economy, Labour and Entrepreneurship and the Ministry of Science, Education and Sports, have named the CES the national representative and operative partner within the ELGPN. The Network supports the development of a system of national lifelong vocational guidance policies, association with employment, lifelong learning and social inclusion policies, and exchange of experiences and knowledge among its members. An ELGPN brochure containing the most important information related to the activities of the Network and a report on activities carried out in 2009/2010 has been translated and printed. The is one of the partners in a project called Leonardo da Vinci INTRADA implemented by the Social Research Institute from Vienna and the Austrian Public Employment Service. The purpose of the project is dissemination of innovations and curricula for 31

34 group vocational guidance services intended for various target groups, including the creation of a database and methodological manuals. The representatives of the also participate in managing boards, commissions, working groups and other activities carried out under several educational projects: Further Development of the Croatian Qualifications Framework, Higher Learning Institutions Network, Local Educational Institutions Network, etc. The Enterprise Learning Strategy called Entrepreneurial Croatia was adopted by the Government of the Republic of Croatia in June 2010 and, in the second half of the year, the CES participated in the implementation of measures from the related Action Plan. Vocational Rehabilitation and Employment of Persons with Disabilities and Other Aggravated Employability Factors On December 31, 2010 there were 6,255 persons with disabilities in the register of the Croatian Employment Service. During the year, 1,080 persons with disabilities registered with the CES as unemployed were employed. Pursuant to the Act on Vocational Rehabilitation and Employment of Persons with Disabilities (Official Gazette No. 43/02 and 33/05) and the implementation of measures prescribed under the National Strategy for Equalization of the Possibilities of Persons with Disabilities , 1,471 persons with disabilities participated in vocational informing and counselling activities carried out by the in 2010, of which 458 persons attended the counselling workshops. In total, 48 workshops adjusted to the needs of persons with disabilities were conducted, among which it is important to highlight the active job search workshops for unemployed hearing-impaired persons organised by the CES in cooperation with the Federation of Deaf and Hard-of-Hearing Persons of the City of Zagreb. Some of the active policy measures concerning the co-financing of employment implemented by the refer to promoting integration of unfavourably positioned persons into the labour market, i.e. special groups of unemployed persons such as persons with disabilities (Measure 4 Co-financing of employment of special groups of unemployed persons). Apart from the employment co-financing measures, the CES also encourages employment through education co-financing and financing measures, as well as measures through which unemployed persons participate in public works. In 2010, the active policy measures implemented by the involved 349 persons with disabilities, whereas in 2009 the number of persons benefiting from the mentioned incentives was considerably smaller (146). In 2010, the participated in the activities of the Cross-Sector Working Group carried out in the process of drafting a proposal for a uniform list of impairments and functional abilities for all categories of persons with disabilities. Pursuant to the decision passed by the Government of the Republic of Croatia in September 2010, the Proposal for a Uniform List of Impairments and Functional Abilities will experimentally be applied for a period of one year in order to evaluate the same and create the foundation for establishing a uniform medical examination authority. Representatives of four regional offices of the Croatian Employment Service participated in the related training and experimental application of the Proposal for a Uniform List of Impairments and Functional Abilities created in accordance with the International Classification of Functioning, Disability and Health (WHO, 2001). In 2010, female representatives of the CES participated in the activities of the Coordinating Committee for Helping People Injured by Landmines and Unexploded Ordnance in the process of drafting the Croatian Action Plan for Helping People Injured by Landmines and Unexploded Ordnance In 2010, the CES also participated, as one of the partners, in a project implemented by the Zagreb Work Centre, a new model of vocational rehabilitation and employment of long-term unemployed persons with disabilities, along with the City of Zagreb, URIHO and the Fund for Vocational 32

35 Yearbook 2010 Rehabilitation and Employment of Persons with Disabilities. The purpose of the Work Centre is to provide opportunities for renewal of knowledge and skills and enhancement of work and social competencies to long-term unemployed persons with disabilities, thus increasing their possibilities of entering the labour market. With the aim of informing the employers and the public concerning employment and working potential of persons with disabilities as well as making them more sensitive in this regard, the also participated, as a partner institution, in a project called Employer of the Year of Persons with Disabilities. On the basis of this project, employers recording the best results concerning employment and treatment of persons with disabilities are selected. During 2010, the was also implementing a project called Promoting Greater Inclusion of Persons with Disabilities in the Labour Market under the Instrument for Pre- Accession Assistance Programme Under the said project, a study called The Position and Needs of Persons with Disabilities in the Labour Market was made. The conclusions and recommendations of the study ensured guidelines for the creation of action plans for employment of such persons in eight selected counties. 89 employment mediation counsellors in the labour market were educated in the field of employment of persons with disabilities. A manual for labour market counsellors, a manual for persons with disabilities and a manual for employers providing employment opportunities to persons with disabilities were created. Under Component 3 of the project implemented by the Fund for Vocational Rehabilitation and Employment of Persons with Disabilities, a unique web portal containing all relevant information on employment and education of persons with disabilities was created as well. Apart from additional types of services intended for unemployed persons with disabilities, during 2010, the CES was continuously carrying out various support measures and activities intended for other socially sensitive groups, e.g. measures for promoting education and employment of treated drug addicts under a project called Re-socialisation of Treated Drug Addicts. 33

36 2010 National Employment Incentive Plan 34 The active policy measures falling under the responsibility of the include: 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 co-financing and financing of employment in public work programmes. The mentioned measures form integral parts of the National Employment Incentive Plan for 2009 and The implementation measures falling under the responsibility of the include subsidies for employment, subsidies for personal advancement, financing of education, and other measures performed by the CES in accordance with Articles of the Act on Employment Mediation and Unemployment Rights (Official Gazette No. 80/08). The subsidies for employment and personal advancement have been adjusted to the State Subsidies Act (Official Gazette No. 140/05) and mainly refer to horizontal subsidies for all entrepreneurs, excluding however the entrepreneurs in financial difficulties. The subsidies for employment and personal advancement falling under the responsibility of the have been adjusted to the definitions from Articles 38, 39 and 40 of the Decision on the Announcement of General Block Exemption Regulations with regards to State Subsidies contained in the Directive of the European Commission (EC) No. 800/2008. The National Employment Incentive Plan pays special attention to increasing the employability of employed and unemployed persons through further education. On one hand, additional education increases employability and provides opportunities for acquisition of new skills and, on the other, it reduces the imbalance between the supply and demand for particular skills and occupations in the labour market. Public work programmes were organised in cooperation with the local community. Their purpose is to activate and engage in work the groups with the lowest level of employability in the labour market. Such programmes are intended for long-term unemployed persons who have been registered with the CES for over one year in the case of which local authorities co-finance the cost of employment, and for long-term unemployed persons who have been listed in the register for more than 3 years in the case of which employment is financed fully. In 2010, a new measure called On-the-job Training without a Work Contract, part of the National Employment Incentive Plan for 2011 and 2012, was introduced. It is contained in Chapter 7 of the Economic Recovery Programme of the Government of the Republic of Croatia. A measure called Introducing a Volunteering, Internship, Work Practice and Traineeship System to Help Young Persons Acquire Work Experience was introduced to activate the labour market. Its purpose is to ensure entrance to the labour market to young unemployed persons with no work experience or employment record through vocational training. Vocational training helps young long-term unemployed persons with secondary or post-secondary education acquire work experience without which finding first employment and taking qualifying and master exams is quite difficult. The employment, education co-financing and education financing measures are intended for the following groups of unemployed and employed persons: young persons up to 25 or 29 years of age with no work experience; long-term unemployed persons up to 25 years of age under the condition that they have been registered as unemployed for at least 6 months or over 25 under the condition that they have been registered as unemployed for at least 12 months; unemployed persons over 50 years of age 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; special groups of unemployed persons including persons with disabilities, single parents, victims of domestic violence, 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. In 2010, the measures involved a total of 13,088 persons from the register of unemployed persons, of which 2,139 persons were employed through subsidies for employment, 284 persons through

37 Yearbook 2010 subsidies for self-employment, 614 persons received education for employment with a known employer (subsidies for personal advancement), 4,566 persons received labour-market oriented education, 448 persons received on-the-job training without a work contract and 5,037 persons were employed in public work programmes. In 2010, the total number of persons covered by the measures included 6,468 women (or 49.4%). Since the commencement of the implementation of the afore-mentioned measures until December 31, 2010, a total of HRK 195,479, was paid out. The data show that the largest share of the total number of persons covered by the measures refers to the persons who acquired occupational qualifications through secondary school programmes (63.7%), which is a reflection of their share in the total number of unemployed persons. As far as persons with low educational qualifications are concerned, a positive effect was achieved through the following two measures: Public Works (57.2%) and Financing of Labour Market-Oriented Education (30.8%), i.e. active policy measures intended for persons with low educational qualifications and persons threatened by social exclusion. Most persons with university and postgraduate degrees were covered by the measure ensuring Cofinancing of First Employment of Young Persons with no Work Experience (24.5%), which was expected on the basis of the related incentive. As far as age structure is concerned, young persons from 20 to 24 years of age accounted for the greatest share, followed by the group from 25 to 29 years of age and the group from 40 to 44 years of age. Number of Persons Covered by the Measures Implemented in 2010 under the National Employment Incentive Plan by Gender Measure Total Employed/Educated Women Share of Women Co-financing of first employment of young persons with no work experience Co-financing of employment of long-term unemployed persons Co-financing of persons over Co-financing of employment of special groups of unemployed persons Co-financing of self-employment of long-term unemployed persons Co-financing of education for employment with a known employer Financing of education 4, On-the-job training without a work contract Public works 5,037 2, TOTAL 13,088 6, The also implemented the measures related to preparation for employment and self-employment, and co-financing of employment of unemployed persons of Roma nationality pursuant to the National Programme for the Roma and the Action Plan for the Decade of Roma Inclusion In 2010, the measures dedicated to providing persons of Roma nationality opportunities for employment and education covered 304 persons from the register of unemployed persons, of which 272 were employed and 11 received education for employment with an unknown employer. The greatest share of persons of Roma nationality was covered by the measure providing employment in public work programmes. Until December 31, 2010, a total of HRK 4,898, was disbursed for co-financing of employment and education of unemployed persons of Roma nationality. 35

38 36 Employed/Educated Persons in 2010 by Active Policy Measures under the National Employment Incentive Plan for 2009 and 2010 by Counties TOTAL On-the-job training without a work contract Public works Education for an unknown employer Education for a known employer Co-financing of employment County Total Women Total Women Total Women Total Women Total Women Total Women Zagreb Bjelovar-Bilogora Međimurje Dubrovnik-Neretva Lika-Senj Karlovac Krapina-Zagorje Koprivnica-Križevci Sisak-Moslavina Osijek-Baranja , Požega-Slavonia Istria Primorje-Gorski Kotar Brod-Posavina Split-Dalmatia , Šibenik-Knin Varaždin Vukovar-Srijem Virovitica-Podravina Zadar City of Zagreb , Total 2,423 1, ,566 2,021 5,037 2, ,088 6,468 Appendix 4a

39 Yearbook 2010 Appendix 4b. Employed/Educated Persons in 2010 by Measures under the National Programme for the Roma and the Action Plan for the Decade of Roma Inclusion by Counties County Co-financing and financing of education of persons of Roma nationality Co-financing of employment of persons of Roma nationality in the duration of 24 months Co-financing of employment of persons of Roma nationality in public work programmes Total Total Women Total Women Total Women Total Women Bjelovar-Bilogora Međimurje Koprivnica-Križevci Sisak-Moslavina Osijek-Baranja Brod-Posavina Šibenik-Knin Varaždin Virovitica-Podravina 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 is, pursuant to the provisions of Article 120, Section 1 of the Labour Act, obligated to draft a Redeployment Programme. During the process of drafting the programme, employers must consult with the competent public employment office (regional office of the 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. Namely, a situation where a large number of layoffs happens at the same time or within a short period of time has substantially different social, economic and other consequences compared to individual layoffs. The actively participates in solving the so-arisen problem. Already during the counselling activities, the CES tries to help the redundant employees or those facing the threat of layoff by providing employment mediation services during the notice period with the aim of securing other employment for them, referring such employees to retraining or upgrading programmes for the purpose of obtaining some other position in the same company or somewhere else. 1 Labour Act (Official Gazette No. 149/09) 37

40 In the implementation of the said activities concerning the handling of 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 layoff 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. As far as structure is concerned, redundant employees are usually persons who are almost entirely unneeded in the labour market, i.e. persons with aggravated employability factors such as women, older persons and persons with disabilities. In 2010, the CES received 89 redeployment programmes involving 5,637 persons, of which 1,925 women (a share of 34.1%) and 3,712 men (a share of 65.9%). As far as the structure of workers covered by redeployment programmes by educational level is concerned, workers with secondary school education (40.5%) accounted for the largest share, followed by skilled and highly-skilled workers (23.2%), employees with non-university education (11.5%) and workers with low educational qualifications (10.8%). As far as age structure is concerned, most workers belonged to the group from 55 to 59 years of age (20.7%), followed by those in the group over 60 (19.6%), from 50 to 54 (14.4%) and from 45 to 49 years of age (11.1%). The persons covered by redeployment programmes mainly came from manufacturing (32.2%), agriculture, forestry and fishing (25.8%) construction (14.4%), and information and communications (6.0%). In 2010, there were in the register of unemployed persons 65,087 workers whose employment was terminated for economic, technical or organisational reasons. It is therefore evident that only a small number of such workers were covered by redeployment programmes. Number of Programmes and Persons Covered by Redeployment Programmes and Number of Newly-Registered Persons whose Employment was Terminated for Economic Reasons, 2006 to 2010 Year Number of programmes received Number of persons involved in the programmes Number of newlyregistered persons whose employment was terminated for economic reasons ,394 31, ,504 26, ,642 29, ,199 64, ,637 65,087 Compared to 2009, the number of programmes received was the same (89), whereas the number of persons covered by the programmes decreased by 562 workers or 9.1%. 38

41 Yearbook 2010 Mobile Teams For the purpose of ensuring support to workers covered by redeployment programmes, regardless of whether their employment was terminated for restructuring, organisational or economic reasons, mobile teams were formed within the. They are composed of professionals from the field of career development: employment counsellors, psychologists, legal advisers, and other professionals, if necessary. The purpose of mobile teams is to prepare the redundant 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 declared 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 workshops through which the workers acquire jobsearch skills, education in acquiring professional skills, assistance in self-employment and starting a business, organisation of an internal employment service within the company where job vacancies can be posted, employment mediation services in the open labour market, and cofinancing of employment with other employers in the case of workers over 50 years of age. In 2010, mobile team counsellors conducted individual informing sessions for 1,272 workers, and group informing sessions for 1,077 workers. 792 workers facing the threat of layoff participated in individual counselling sessions. 39

42 Unemployment Entitlements Pursuant to the provisions of the Act on Employment Mediation and Unemployment Rights 2, unemployment entitlements include: unemployment benefit, pension insurance, financial assistance and reimbursement for education-related expenses, one-off financial assistance and reimbursement for travel and relocation expenses. 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. The person whose employment is terminated through his/her own fault or by consent is not eligible for unemployment benefit. An unemployed person, depending on the total years of service, acquires the right to unemployment benefit for the period of 90 to 450 days. The exception to this rule are unemployed persons with 32 years of service who may claim unemployment benefit until reemployment, i.e. until one of the cases prescribed by the afore-mentioned Act resulting in termination of the right to unemployment benefit arises. Pursuant to the Act on Amendments to the 3 Act on Employment Mediation and Unemployment Rights that came into force on November 1, 2010, an unemployed person with more than 32 years of service missing up to 5 years to be eligible for age-based retirement has the right to unemployment benefit. 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 4 Decision on the One-off Payment of the Unemployment Benefit. The one-off payment of the unemployment benefit may be granted for opening a craft business, i.e. 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 on-the-job training without a work contract. 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. Prior to entry into force of the Act on Amendments to the Act on Employment Mediation and Unemployment Rights, i.e. November 1, 2010, unemployment benefit during the first 90 days amounted to 70% of the base amount and 50% during the rest of the period. The persons granted right to unemployment benefit until reemployment or until one of the cases resulting in termination of the right to unemployment benefit arises were, after the period of 12 months, entitled to 40% of the base amount. During the first 90 days, unemployment benefit could not be higher than 100% of the base amount, whereas during the rest of the period it could not exceed 80% of the base amount. As far as persons granted right to unemployment benefit until reemployment or until one of the cases resulting in termination of the right to unemployment benefit arises are concerned, unemployment benefit could not, after the period of 12 months, exceed 60% of the minimum salary determined pursuant to special regulations reduced by statutory contributions. After entry into force of the Act 40 2 Official Gazette No. 80/08 and 121/10. 3 Official Gazette No. 121/10. 4 Official Gazette No.32/09.

43 Yearbook 2010 on Amendments to the Act on Employment Mediation and Unemployment Rights, unemployment benefit now equals 70% of the base amount during the first 90 days and 35% during the rest of the period. The highest unemployment benefit during the first 90 days may not amount to more than 70% and during the rest of the period more than 35% of the average salary paid in the Republic of Croatia in the previous year according to the latest officially published data. The highest unemployment benefit paid out in the period from January 1 to October 31, 2010 was HRK 2,251.20, and after November 1, 2010, i.e. after entry into force of the Act on Amendments to the Act on Employment mediation and Unemployment Rights, HRK 3, The average unemployment benefit in 2010 amounted to HRK 1, Pursuant to the Act on Amendments to the Act on Employment Mediation and Unemployment 5 Rights, 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 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. 136,187 requests for unemployment benefit (initial requests, continuation of payments, and requests for extension) were submitted in 2010, of which 131,574 were approved. 404 complaints over the resolution of requests for unemployment benefit were submitted, of which 307 were dismissed and 35 approved. In 2010, 54 complaints were filed with the Administrative Court of the Republic of Croatia. In 2010, 856 requests for a one-off payment of the unemployment benefit were received, and 737 approved. Deletion from the Register of Unemployed Persons The Act on Employment Mediation and Unemployment Rights prescribes the situations when an unemployed person is to be deleted from the register of unemployed persons. In 2010, 26,360 first instance resolutions on deletion of persons from the register of unemployed persons were reached. 427 appeals were submitted over the resolutions on deletion, of which 410 were dismissed and 16 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 entitlements or a country in which he/she had not been secured 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 for at least 9 out of 24 months preceding the termination of employment abroad. In the process of determining the right to unemployment entitlements, 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 have been 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, Serbia and Montenegro, Bulgaria and Italy, and are currently in force. Based on Section III of the Constitutional Decision on the Sovereignty and Independence of the 5 Official Gazette No. 121/10. 41

44 Republic of Croatia, the Unemployment Insurance Agreement signed between the Former Federal Republic of Yugoslavia and the Federal Republic of Germany still applies. This agreement regulates the financial and legal protection of workers who had lost employment in Germany and consequently returned to Croatia. This is the only agreement on the basis of which an unemployed person that had stopped working abroad can, if meeting the requirements prescribed by the said agreement and the Act on Employment Mediation and Unemployment Rights, claim the right to unemployment benefit, regardless of the fact that their employment had been terminated outside of Croatia. The mentioned 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. 23 such requests were submitted in 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 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). 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. Financial Assistance and Reimbursement for Education-related Expenses An unemployed person referred to educational programmes by the CES is eligible to receive, for the duration of such activities, financial assistance in the amount of the non-taxable tuition determined pursuant to special regulations, 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, and reimbursement for the cost of food outside the place of permanent or temporary residence. In 2010, 5,101 persons claimed the right to financial assistance for educational purposes. 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 employment mediation 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, 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 6 for Travel and Relocation Expenses. In 2010, 6,417 persons claimed the right to reimbursement for travel and relocation expenses and 59 persons claimed the right to the one-off financial assistance. Pension Insurance The right to pension insurance is granted to an unemployed person who has been granted right to unemployment benefit and is of a certain age, i.e. missing up to a maximum of 5 years of service to meet the requirements for age-based retirement. The following table gives an overview of the average number of financial insurance beneficiaries in 2009 and Official Gazette No. 74/09. 42

45 Yearbook 2010 Unemployment Entitlement Beneficiaries in 2009 and 2010 Unemployment benefit Total Unemployment benefit Croatian war veterans Pension insurance Average Number of Beneficiaries Per Month Number of Beneficiaries Receiving One-off Payments 2010/2009 Index 68,967 78, One-off Bonus One-off Payment of Unemployment Benefit

46 Projects Supported by the International Community Instrument for Pre-accession Assistance (IPA) The IPA Programme is a unique programme for the period that has replaced previous pre-accession programmes, namely CARDS, PHARE, ISPA and SAPARD, as well as consolidated the components of the same. The main purpose of the IPA Programme is the provision of support to candidate countries in the process of harmonising their national legislation with the acquis communautaire and preparation for using the structural and cohesion developmental funds after the accession to the EU. The financial funds allocated to the Republic of Croatia under components of the IPA Programme for the period amount to EUR million. To ensure a more efficient implementation of the main objectives, 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, and 5. Rural Development. The takes part in the implementation of three components of the Programme: Transition Assistance and Institution Building, Cross-Border Cooperation, and Human Resources Development. Implementation of the following projects has started within the scope of Component 1: Transition Assistance and Institution Building: Labour Market Centre The value of the service contract is 1,000,000. The main objective of the project is to strengthen the capacities of the and other labour market institutions/organisations for the purpose of developing a more effective and efficient labour market. The purpose of the project is to support the establishment of the Croatian Employment Service Labour Market Centre ensuring education to employees of the CES and other key labour market stakeholders. The service contract was signed in August 2010, and the implementation of the project commenced in October Activities falling within the scope of Component 1: Defining and Enhancing the Key Competencies and Quality Standards Concerning the Core and Additional Business Processes of the, are also being carried out. These activities will help produce a report on the key competencies and quality standards concerning the core and additional business processes of the on the basis of which training programmes to be conducted in the later project phases will be elaborated. Preparation of the for Joining the EURES Network The value of the project is 230,000. The main objective of the project is to support the mobility and free movement of workers within the European Economic Area markets pursuant to the requirements contained in Chapter 2: Free Movement of Workers. The purpose of the project is to support the in the implementation and promotion of the EURES Network in Croatia. The implementation of a project entitled Twinning Light started on September 13, The contract was awarded to the German Federal Employment Agency. During September and at the 44

47 Yearbook 2010 beginning of October, specialised consultations were held between the German experts and the relevant participants within the CES, which served as the foundation for drafting the Recommendations concerning the adjustments to the CES business processes required for a successful integration into the EURES Network. An analysis of the existing applications for data exchange used by the CES was made in November, and the training programme for the CES counsellors developed. Under Component 2, i.e. Cross-Border Cooperation (IPA CBC), the regional offices of the CES participate in projects of cross-border cooperation between the border regions of Croatia and Hungary. Seven regional offices participate in the implementation of the mentioned cross-border projects. The following regional offices are involved in the implementation of a project entitled Borderless Cooperation: Hungarian/Croatian Professional Employment Academy, namely Čakovec, Osijek, Vinkovci and Križevci. The Osijek, Bjelovar and Vukovar Regional Offices participate in a project called Learning and Work, whereas the Čakovec and Varaždin Regional Offices are involved in a project called Strengthening of Cross-Border Labour Market Competition Mobile Region. Under Component 4, i.e. Human Resources Development (IPA HRD), 4 projects were implemented in 2010: Local Partnerships for Employment Phase 3 The project entitled Local Partnerships for Employment Phase 3 includes two components: a service contract and a grant scheme. The value of the project is 4,500,000 (service contract: 1,900,000, grant scheme: 2,600,000). The main objective of the project is to reduce unemployment and the threat of new unemployment by designing and implementing active and prevention labour market policy measures. The purpose of the project is to enhance and develop an institutional framework (based on partnerships) for human resources development and strengthen the capacities of local stakeholders for development and implementation of active labour market policy measures. The implementation of the service contract started in November All activities envisaged under Component 3 (Strengthening of local stakeholders' capacities for planning, development and implementation of active measures in the labour market by applying a partnership-based approach) were carried out. The planned workshops intended for potential beneficiaries of grants and project clinics, the purpose of which is provision of education in the preparation and implementation of projects and development of capacities, were also held. The implementation of activities under Component 1 (To include the concept of local partnerships for employment more in the process of designing policies, strategies and measures in regional labour markets in Croatia) and Component 2 (To encourage human resources development at the regional level by applying a partnership-based approach and the European Social Fund standards). Component 1: analyses of situations in the existing local partnerships for employment were carried out and served as a foundation for drafting a proposal of a model for sustainable activity of local partnerships for employment in Croatia. On the basis of the afore-mentioned documents, a proposal of activities and organisational structure of such partnerships was made in which the procedures concerning the functioning and application of the proposed models were elaborated in more detail. Component 2: the establishment of new local partnerships for employment started in December By the end of February 2011, local partnerships for employment had been officially established in all Croatian counties. The call for proposals for grant scheme was open until February 11, The evaluation procedure is finished, and the signing of the grant contract was held on January 26, A total of 26 projects will be financed under the grant scheme. 45

48 Youth in the Labour Market The project entitled Youth in the Labour Market consists of two components: a service contract and a grant scheme. The total value of the project is 2,946,000 (service contract: 1,100,000, grant scheme: 1,846,000). The main objective of the project is to reduce unemployment of young persons at the regional level. The purpose of the project is to promote and encourage employment of young persons at the regional level (applying a partnership-based approach) by developing and implementing the active labour market policy. The purpose of the call for proposals for grant schemes is to promote and encourage employment of young persons (applying a partnership-based approach) on the basis of the measures and methods ensuring them easier access to the labour market. The implementation of the service contract started in January Component 1: a study based on investigating the attitudes of young unemployed persons and employers in 8 counties was made. A two-day workshop for potential applicants to the grant scheme entitled Youth in the Labour Market was conducted. The process of drafting Action Plans for employment of young persons in 8 counties with the largest number of unemployed young persons is under way. Component 2: a survey was carried out on the basis of which a report on the existing services provided by the to unemployed persons, especially young unemployed persons, and potential new services was also drafted. On the basis of the said report, a number of new services and mechanisms for the provision of services to young persons in the process of employment were proposed. The call for proposals for grant schemes was open until March The evaluation process is in progress. The signing of contracts under the grant scheme started in February Fostering Effective Inclusion of the Persons with Disabilities into the Labour Market The project consists of two components: a service contract and a grant scheme. The total value of the project is 2,235,000 (service contract: 1,100,000, grant scheme: 1,235,000). The main objective of the project is to promote social inclusion of persons with disabilities in the labour process. The purpose of the project is to increase the level of employability of persons with disabilities and help them access the labour market through development and implementation of active employment measures at the regional level. The grant programme is aimed at developing projects adjusted to the specific needs of persons with disabilities for the purpose of their integration in the labour market and increasing their employability. In addition, projects the aim of which is to raise the awareness of the wider public, and especially employers, of the possibilities and advantages of employing persons with disabilities will also be supported. The implementation of the service contract started in January Most activities envisaged under the agreement were also carried out in The capacities of local stakeholders, i.e. potential applicants to the grant schemes, with respect to solving the problems of persons with disabilities related to their access to the labour market were strengthened. A research was carried out and a study made concerning the problems and needs of persons with disabilities in the labour market. On the basis of the research results, eight counties were selected in which working groups consisting of relevant local stakeholders were formed. Their task is to create action plans for employment of persons with disabilities. In 2010, the members of the mentioned working groups produced such action plans in cooperation with local experts. Final versions of those plans were made at the end of January The capacities of labour market stakeholders for promoting and emphasizing the advantages of employing persons with disabilities were strengthened as well, and a manual for employment counsellors created. Two more manuals were created, of which one is intended for employers providing guidelines for the selection, employment, workplace adjustment and adequate supervision of persons with disabilities, and the other for persons with 46

49 Yearbook 2010 disabilities providing guidelines for active job search. A national web portal (the so-called 'onestop-shop') providing information and other services to unemployed persons with disabilities and employers was also designed. The promotion and official opening of the portal were held at the presentation of the Employer of the Year for Persons with Disabilities award which took place at the end of January The implementation of the grant scheme started in December 2010 when 14 grant contracts were also signed. Women in the Labour Market The project entitled Women in the Labour Market consists of two components: a service contract and a grant scheme. The value of the project is 3,000,000 (service contract: 1,000,000, grant scheme: 2,000,000). The main objective of the project is to increase the level of employability of unfavourably positioned women and support their access to the labour market. The purpose of the project is 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 purpose of the call for proposals for grant schemes is the promotion of development and implementation of more efficient active employment policy measures and specially designed work methods for the groups of women unfavourably positioned in the labour market, respecting the principles of the gender aware policy. The implementation of the service contract started in September The first project activity, i.e. A Comprehensive Analysis of the Position of Women in the Labour Market, is in progress. Through this activity, a clear picture on the participation of women and their possibilities in the labour market will be obtained. Especially sensitive groups of women will be defined and analysed as well. A labour market active policy adjusted to the needs of target groups will be based, among other, on this analysis as well. 18 contracts were signed under the grant scheme. CES Services to Clients: Improving Lifelong Career Guidance and ICT Support The project consists of two components: a service contract and a supply contract. The total value of the project is 3,730,000 (service contract: 2,430,000, supply contract: 1,300,000). The main objective of the project is to support the development of the capacities of Croatian public institutions and relevant non-government partners from the field of employment. The purpose of the project is: 1. To enhance the ICT system of the based on the model of integration and exchange of data among the key labour market stakeholders for the purpose of providing better services to clients. 2. To support the development of the lifelong vocational guidance system, the services of which would be available to all citizens of the Republic of Croatia, and which would be based on their needs in the field of education and choice of occupation in accordance with the employment policy and good practices of the European Union. The tender procedure for winning the service contract was cancelled in July 2010, while the repeated procedure is still in progress. The expected commencement of the implementation of the service contract is June The tender procedure for the supply contract is in progress as well. PROGRESS The EU Community Programme for Employment and Social Solidarity (PROGRESS) is designed for the period for the purpose of providing support to the realisation of EU goals in the field of social inclusion and social protection, working conditions, gender equality and fight against discrimination. The value of the programme is million. 47

50 Promoting Equality in the Croatian Labour Market The commenced on December 30, 2009 the implementation of a 12-month project under the PROGRESS Programme. The CES is the holder of the project and the partners include: 1. Office of Human Rights, 2. L&R Social Research, 3. Ivo Pilar Institute of Social Sciences, 4. Centre for Education, Counselling and Research, and 5. Selectio. The main objective of the project is to contribute to the development and implementation of the national policy aimed at curbing discrimination in the Croatian labour market based on gender, age, disability, religion or ethnicity. The results of this project will contribute to the development of the national policy aimed at curbing discrimination in the Croatian labour market, as well as help all labour market stakeholders get successfully involved in the measures aimed at curbing discrimination and promotion of diversity among employers in Croatia. The project target group were the labour market stakeholders at the national and regional levels, such as: unions, chambers, employers' associations, non-governmental organizations, counties, and cities. The main project activities are defined on the basis of the following components: COMPONENT 1 Identification of the most important features of discrimination based on disability, gender, race, nationality, age, sexual orientation and religion in the Croatian labour market The main goal of this component was to collect quantitative data, i.e. scientific (empirical) evidence, on the scope, nature and causes of discrimination in the field of employment in Croatia. The activity included 3 types of research: data analysis, a survey of unemployed persons, and a survey of employers regarding the scope, nature and causes of discrimination. The results of the research were revealed in May at a round table organised in the Ivo Pilar Institute in the form of a report delivered to all the key stakeholders and published on the CES website. COMPONENT 2 Providing support to labour market stakeholders to ensure a more successful inclusion of anti-discrimination topics in the process of designing labour market policies and activities Through this activity, the examples of good practice in the implementation of anti-discrimination measures in the labour market in the EU were identified, presented and discussed. The working group developed a Collection of Good Practices aimed at curbing discrimination and promoting diversity in the labour market. The Collection consists of examples of good practice that the working group selected as the most appropriate to be applied in Croatia. Within the scope of this activity, the Guidelines for the Promotion of Diversity and Curbing Discrimination in the Labour Market were developed as well. These guidelines will contribute to the raising of awareness about the importance of curbing discrimination among all stakeholders in the process of designing labour market policies, strategies and activities. This document gives concrete recommendations for improvement and more successful inclusion of anti-discrimination policy in the programming and implementation of labour market policies, strategies and activities. COMPONENT 3 Promotion of diversity among employers in Croatia Within the scope of this component, the tools for the implementation of anti-discrimination measures and the diversity policy for employers were developed. The trainers received education in how to apply the said tools. The trainers further educated the employers in the practical application of the mentioned tools through 8 workshops conducted across Croatia. A Help Desk was formed within the providing help to employers in the 48

51 Yearbook 2010 implementation of the principles of diversity and anti-discrimination measures. It will serve as a model of permanent support to employers. The services provided by the Help Desk will be enhanced in accordance with the needs, concrete demands and problems of employers. Different Experiences New Solutions The project entitled Different Experiences New Solutions was implemented from April 2010 until March Project partners include: Maribor Economic Institute as the main partner, AOF Nord from Denmark, the European Development Agency from the Czech Republic and the Croatian Employment Service. The main project objectives include: Initiating a discussion on general guidelines and methods for a successful approach to solving the current crisis in the labour market. Raising awareness of the importance of attaining the objectives of the European Employment Strategy and the Lisbon Strategy. Exchange of experiences, practices and ideas concerning a successful and efficient policy on increasing the labour force supply in order to maintain the balance between active and non-active population, and promotion flexicurity. Inclusion of social partners and other important local stakeholders in the creation of efficient structures for a successful implementation of active employment and social policies. The aim of the project is to initiate discussions, raise awareness, exchange good practices and network through workshops at the national level, international forums, conferences and web forums. In the framework of the first project package called Networking of the Key Stakeholders and Exchange of Good Practices, the CES formed a working group composed of the most relevant stakeholders in the field of employment and social policy. At a workshop conducted at the national level, the working group discussed the situation in the labour market, the implementation of the employment policy, and especially the active ageing policy and the concept of flexicurity. The most contemporary Report on Active Ageing and Flexicurity Policy was created. In the framework of this work package, two transnational fora were held, one in Aalborg (Denmark) and one in Prague (Checz Republic), at which representatives of the relevant stakeholders from all countries discussed the concept of flexicurity and active ageing, the so-called 'job-rotation' scheme presented in Aalborg, as well as the active labour market policy measures currently being implemented in partner countries, which could serve as the foundation for introducing the 'jobrotation' measure. In February 2011, in the framework of the second work package, the final international conference was held in Slovenia (Maribor) the purpose of which was the exchange of solutions, initiatives and approaches to employment with regards to the implementation of the flexicurity and active ageing policy. The promotion of the results, informing of the media and evaluation are being carried out continuously in the framework of the third and fourth work packages. Partnership for Social Inclusion The Institute of Public Finance (Project Holder) and its partners (, Croatian Trade Union Association, ZaMirNET Association, Forum for European Journalism Students Croatia, Most Association, SJAJ Association for Social Affirmation of Persons with Mental Disabilities, Croatian Women's Network, Association for Persons with Physical Disabilities and Trade Union Associations of Slovenia and Austria) commenced on January 1, 2009 a project entitled Partnership for Social Inclusion which lasted until the end of The project results helped: 49

52 1. Improve coordination and cooperation among all stakeholders in the field of social welfare; 2. Improve employability as a precondition for improving social inclusion; 3. Improve provision of information concerning the rights and availability of rights in the system of social security and welfare; 4. Mitigate and prevent over-indebtedness of citizens and harmonise the supply and demand in the social welfare system through social planning at lower authority levels. The implementation of the project activities resulted in a strengthened communication between the representatives of different groups exposed to the risk of social exclusion, development of institutional mechanisms for proposing and implementation of relevant documents, and greater sensitivity to the risk of social exclusion and poverty. IPA The preparation of project documents for the following 5 projects envisaged under the IPA Programme is currently in progress: 1. New Approaches Applied by the CES in Delivering Services to Employers (Service Contract). 2. Training for Employment of Workers Threatened with Unemployment and Long-term Unemployed Persons (Direct Grant). 3. Improvement of Access to the Labour Market for Threatened Groups (Grant Scheme). 4. Improvement of Access to the Labour Market for Highly Educated and Long-term Unemployed Persons (Grant Scheme). 5. Local Employment Initiatives (Grant Schemes). Five forms for the identification of activities approved by the EU delegation were created. The instructions for applicants to the three grant schemes mentioned above, the application form for winning a direct scholarship, and the job description for the service contract are currently being prepared. ESF In cooperation with the consultants working on the PHARE 2006 project called Project Pipeline for IPA/EU Structural Funds, preliminary project documents for ESF projects have been prepared (3 grant schemes and 1 direct grant). In 2010, the staff of the Project Implementation Department worked on the preparation of the ESF Human Resources Development Operational Programme. Financial Management of EU Projects Pursuant to the modified Human Resources Development Operational Programme, which includes the allocations under the IPA Programme, a new Component 4 (Human Resources Development) Financing Agreement was signed at the end of The ratification of the Financing Agreement enables the Department for Financing and Contracting of EU Projects, which functions within the as an implementation body of the operational structure for the implementation of Component 4 of the IPA Programme, to contract, implement and finance activities from the field of employment, social inclusion and technical support on the basis of the mentioned allocations. The Republic of Croatia will thus be allocated additional 37,294,129, which makes, together with the existing allocations granted under the Operational Programme , a total of From the total amount allocated for the Human Resources Management Operational Programme in the period , the implementation body of the will be in charge of operations in the value of 44,230,801 instead of the former 23,914,

53 Yearbook 2010 In 2010, on the basis of the afore-mentioned available allocations, one procurement notice and two tenders for service contracts were published. The evaluation of the tenders received commenced. The evaluation process regarding four tenders announced in 2009 is completed and the following projects are now being implemented: Establishing Support for Social Inclusion and Employment of Socially Threatened and Marginalised Groups, Promoting Greater Inclusion of Persons with Disabilities in the Labour Market, Young Persons in the Labour Market and Women in the Labour Market. The implementation of a service contract signed in 2009 under the project called Local Partnership for Employment Phase 3 continued. The tender procedure for winning a service contract, for which the tender was published in 2009, was cancelled and two procurement notices concerning 2 service contracts were cancelled. In mid-2010 a tender for one supply contract was published. The contract was not signed because the tender procedure was stopped. In order to inform the public on the situation in the sector, the tender conditions and the manner of completing the application forms, additional informative workshops were held for the call for proposals for each grant scheme published in 2009 and At the beginning of 2010, a total of 9 one-day and 7 two-day workshops were organised, out of which 4 with regards to the Young Persons in the Labour Market tender, 3 with regards to the Promoting Greater Inclusion of Persons with Disabilities in the Labour Market tender and 9 for the Local Partnerships for Employment Phase 3 tender. At the end of 2010, 50 contracts on allocation of grant schemes were signed, i.e. 18 under the Women in the Labour Market programme, 18 under the Establishing Support for Social Inclusion and Employment of Socially Threatened and Marginalised Groups programme and 14 under the Promoting Greater Inclusion of Persons with Disabilities in the Labour Market programme. By the end of 2010, from the total amount of currently available funds allocated to the implementation body of the CES, activities in the value of 11,828,289 or 49.46% had been contracted, and 26.33% of the agreed funds disbursed to contractors in accordance with contractual obligations. System for Curbing Incidents of Irregularities and Frauds in Using EU Funds After the system for curbing incidents of irregularities and frauds within the CES had been established and the persons in charge of curbing incidents of irregularities and frauds in using EU funds appointed, further development of the same was continued throughout The persons in charge of curbing irregularities within the CES were educated on the basis of the methodology of the Ministry of Finance. Later, the educated persons organised 3 regular educational seminars on the system for curbing incidents of irregularities and frauds for employees of the CES involved in the EU-financed programmes. In 2010, 4 quarterly reports on irregularities concerning the implementation of Component 1 of the IPA Programme were submitted to the Central Agency for Financing and Contracting, and 4 quarterly reports were submitted to the Ministry of the Economy, Labour and Entrepreneurship regarding the irregularities concerning the implementation of Component 4 of the IPA Programme. An analysis of the risk of appearance of incidents of irregularities and frauds, and the needs analysis concerning the education of employees working on EU-financed projects within the CES were carried out in accordance with the methodology determined by the Ministry of Finance, Independent Department for Curbing Incidents of Irregularities and Frauds. 51

54 Organisational Structure and Operations of the CES 52

55 Yearbook 2010 Main Responsibilities and Development Strategy of the The (CES) is a public institution of special significance to the Republic of Croatia, its citizens, business entities and institutions. The main responsibilities include: Employment mediation services provided to job seekers in the country and abroad; Ensuring unemployment entitlements to unemployed persons; Vocational counselling of unemployed and other persons in making career and occupational choices; Organisation of vocational education, additional training 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. Who are the users of our services? 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. What services do we offer to employers? 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 reemployment 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. 53

56 What do we offer to unemployed persons and job-seekers? 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 employment mediation services, feedback on activities carried out and the results achieved; Group informing provision of information about the situation in the labour market in the concrete 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 sessions 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 concrete job position. 54 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 for the period 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 employment mediation 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 with the aim of increasing labour force 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 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 strives to continuously enhance its services and invests in the technological development and business process organisation and design. The CES pays attention to the quality of its services and strives to raise the standard of its client services. In order to monitor the realisation of the abovementioned goals, indicators for monitoring the business processes related to employment mediation, vocational guidance and financial and legal protection have been defined.

57 Yearbook 2010 Organisational Structure and Employees The is a public institution established pursuant to the Act on 7 Employment Mediation and Unemployment Rights. The CES operates through the following organisational units: Central Office, 22 regional offices and and 96 local offices; thus making its services available across the Republic of Croatia. The Central Office includes: 1. Director General's Office, 2. Employment Mediation and Preparation for Employment Sector, 3. Legal and General Affairs, Unemployment Insurance and Human Resources Management Sector, 4. Economic, Financial and Accounting Affairs and Asset Management Sector, 5. Organisational Development and Project Implementation Sector, 6. PR and International Cooperation Department, Internal Audit Department, Department for Financing and Contracting of EU Projects. The sectors are divided in departments, and departments in divisions. The regional offices of the CES are differently organised depending on the regions they cover and the volume of business. The regional offices in Zagreb, Split, Osijek and Rijeka include the following departments: Employment Mediation and Employment Preparation Department; Analysis and Statistics Department; IT Department; Legal, Personnel and General Affairs Department; Finance and Accounting Department; and Project Implementation Department. Other regional offices also include the Employment Mediation and Employment Preparation Department; Analysis, Statistics and IT Department; Legal Affairs, Personnel and General Affairs Department; Finance and Accounting Department; and Project Implementation Department. The departments of regional offices are further divided in divisions. The CES is governed by the Managing Board composed of eleven 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. The scope, authorities and responsibilities of the Managing Board, Director General and Assistant Director General are defined under the CES Ordinance. On December 31, 2010, the employed a total of 1,257 workers: 682 (54.3%) employees had university and postgraduate degree, 206 (16.4%) had non-university degree and 292 (23.2%) employees completed a 4-year secondary school. 24 employees (1.9%) completed a three-year vocational school and 53 employees (4.2%) had basic school education only. Employees with non-university and university and postgraduate degrees make the absolute majority (54%). 7 Official Gazette No. 80/2008 and 94/09. 55

58 Employees of the CES by Educational Level as of December 31, Percentage University level and postgraduate degree 4 (or more)- year vocational secondary school and grammar school Postsecondary, nonuniversity degree 4.2 Basic school to 3-year vocational secondary school Employee Education Under the Strategic Development Framework adopted by the Government of the Republic of Croatia at its session held on August 4, 2006 and the Strategic Plan of the Croatian Employment Service adopted in February 2008, the activities related to the development and education of employees of the CES are primarily associated with the realisation of 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 implementation of the project called the Labour Market Training Centre that commenced on October 11, 2010 contributes to the realisation of the mentioned goal on a long-term basis. The purpose of the project is to support the establishment of the Labour Market Training Centre for the purpose of providing education to employees of the CES and other key labour market stakeholders, i.e. ensure support in the process of designing a system for employee education and development in the field of labour market, as well as active and passive employment policies. The Centre will ensure continuous improvement of the knowledge and skills of employees of the CES and other institutions/organisations labour market stakeholders in accordance with their needs and the needs of the users of the services provided by those institutions/organisations. The project strives to improve the labour market incentive structures and flexibility through active participation of all labour market stakeholders (representatives of state institutions, employers, trade unions and the civil society) in the implementation of the project. Educational programmes will be designed and implemented jointly, using the knowledge and best experiences from the practice of all project participants. In this regard, the Department for Staff Development and Training of the CES participated together with the project team in numerous activities in order to determine the current condition of the CES educational system, as well as the potential for cooperation with other labour market related institutions. 56

59 Yearbook 2010 In 2010, the practice of conducting educational activities at three core levels was continued: education of unemployed persons as clients (vocational guidance and education of unemployed persons), education of all labour market stakeholders (educational activities designed and implemented under international projects of the ) and internal education (activities related to human resources development and education of employees of the CES). Within the scope of the employee development and education programme, the employees of the CES participated had an opportunity to acquire or improve the specific knowledge and skills by participating in professional conferences, seminars and workshops. Some of the mentioned activities were organised within and some outside the system (other labour market stakeholders, partner institutions and organisations from the country and abroad) or through outsourcing (contracts with third parties). All regional offices and departments of the CES participated in the implementation of the educational activities related to human resources development and strengthening of the institutional capacity of the CES through interactive team work (including in the first place the following departments: Department for Staff Development and Training; Human Resources Development, Personnel and General Affairs; Employment Mediation and Active Employment Policy; Unemployment Insurance; and Project Implementation) and direct cooperation with key labour market stakeholders. 3,589 employees from regional offices and the Central Office of the CES participated in a series of educational activities, including various types of training, seminars, workshops, professional conferences and internal educational modules based on specific individual and group needs. From those 3,589 participants in various educational activities, 37.5% participated in workshops, 14.4% in internal educational activities (individual training, presentation activities, and similar), 11% in seminars and lectures, 8% in conferences and congresses, and 3.9% in other training activities. The CES team of trainers conducted 102 educational activities (involving a total of 597 persons). From the total number of educational activities conducted, seven refer to standard types of training (training in acquiring counselling skills, training in acquiring marketing skills, training in acquiring skills for handling difficult situations, training for Info Desk clerks), involving 77 persons. Internal education conducted within the CES primarily includes five-day standard types of training aimed at educating employees working in direct contact with the users of CES services (about 500 counsellors from all regional and local offices of the CES). Through such trainings, continuous acquisition of counselling and marketing skills as well as skills for handling difficult situations is ensured. Apart from the mentioned trainings, seminars aimed at improving the knowledge and skills required for implementing specific business processes and applications of the CES were organised as well. A whole series of one-day seminars aimed at improving the work activities associated with specific business processes of the CES and personal development of employees working in various positions, including those who are not engaged in direct work with the users of services provided by the CES, were designed and conducted as well. Several new workshops were designed as a response to the novelties in the work methodology, and conducted in particular regional offices, e.g. online CES service called Labour Market Portal: Registration of Unemployed Persons, Job Seekers and Employers. In cooperation with the Unemployment Entitlements Department, several workshops for counsellors on the topic of unemployment entitlements and Amendments to the Act on Employment Mediation and Unemployment Rights were designed and conducted at the Zagreb Regional Office. In order to ensure adequate education to the employees of the CES, it is necessary to continuously monitor and analyse their needs. Therefore, an educational needs assessment questionnaire was designed at the Rijeka Regional Office. 58 employees participated in the survey. On the basis of the analysis of the collected data, 7 new workshops were designed for the employees of the mentioned office. 57

60 A testing of the knowledge of foreign languages was carried out at the level of the entire CES in order to assess the need for educational activities. The data were collected on the basis of self-assessment of the level of knowledge of foreign languages of all employees of the CES in accordance with the Common European Framework of Reference for Languages. Furthermore, the work on a comprehensive programme for introducing new employees to the work activities of the CES was continued. In addition to a five-day educational programme referring to the general part of the introduction to work activities intended for all new employees, including those with secondary, non-university and university degrees, which was designed in 2009, the work on designing a special part of the introduction to work activities programme and the Regulations on Internship and the Qualifying Exam Procedure, Method and Programme was continued in The idea is to check the knowledge and skills acquired by the new employees after internship by submitting them to the qualifying exam at the CES, depending on their educational background and the specificity of the work activities they are to perform. 58

61 Yearbook 2010 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. Under the Budget Act, the 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. Total expenditures of the CES for 2010 are thus also included in the state budget expenditures. The total planned income of the CES for 2010 amounted to HRK 2,042,215,348, out of which HRK 1,955,991,903 from the state budget and HRK 86,223,445 from pre-accession EU funds. The total realised income amounted to HRK 1,925,334,859, i.e % of the annual plan. The realised income from the state budget amounted to HRK 1,899,234,680, i.e. 97.1% of the planned figure, while the realised income from international assistance amounted to HRK 25,684,682, i.e % compared to the planned figure. In addition, in 2010 the CES realised income from financial aid and donations in the total amount of HRK 392,698, and other income in the amount of HRK 22,799. 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 2010, the CES Income and Expenditure Plan for 2010, and the laws and regulations applicable to the operations of the CES. In 2010, total expenditures amounted to HRK 1,922,278,404, i.e. 5.87% less than planned. A total of HRK 1,505,388,828 (78.31% of total expenditures) was disbursed for unemployment insurance. The largest portion of the funds, i.e. HRK 1,486,124,319, refers to the payment of the unemployment benefit to unemployed persons, also including one-off payments of the unemployment benefit and the one-off bonus payment granted to unemployed persons who had spent 25, 30 or more years working for their last employer. HRK 14,133 was spent on pension insurance contributions for unemployed persons, whereas a total of HRK 19,250,376 was used to cover other expenses (unemployment insurance such as the financial assistance and reimbursement for education-related expenses, reimbursement for travel and relocation expenses and other). In 2010, the CES spent a total of HRK 200,404,808 (10.42% of total expenditures) on active labour market policy measures, out of which HRK 195,479,411 was spent on the measures covered by the 2010 National Employment Incentive Plan, HRK 4,898,988 on the measures covered by the Action Plan for the Decade of Roma Inclusion , and HRK 26,409 on the measures aimed at providing assistance for retention of employment. A total of HRK 1,784,592 (89.23% of the planned figure and 0.09% of total expenditures) was spent on activities provided under the Preparation for Employment Programme (vocational guidance and rehabilitation, medical examinations and informing of unemployed persons for the purpose of finding employment). Employee-related expenditures amounted to HRK 137,152,055 (99.18% of the planned amount), accounting for 7.13% of total expenditures. Employee salaries and benefits are paid in accordance with the CES Regulations on Employee Salaries, Collective Employment Agreement for Public Service Employees and Officers, and other legislation regulating the payment of salaries in public services. Material and financial expenditures of the CES accounted for a total of HRK 46,813,339 (98.48% of the planned amount), i.e. 2.43% of total expenditures. A portion of material expenditures in the amount of 59

62 HRK 297,837 was financed through financial aid and donations, and additional HRK 22,266 through other income. In 2010, a total of HRK 3,715,200, i.e. 0.19% of total expenditures, was spent on capital investments. These expenditures were covered partly through income from the State Budget of the Republic of Croatia in the amount of HRK 3,701,637 (99.5% of the planned amount), and partly through financial aid and donations in the amount of HRK 13,563. The expenditures related to the projects co-financed through pre-accession EU funds (CARDS, PHARE and IPA Programmes) amounted to a total of HRK 27,019,582. HRK 3,319,564 was spent on the implementation of projects under Component 1 of the IPA Programme: Transition Assistance and Institution Building, of which HRK 1,977,906 was spent on the project called Labour Market Centre and HRK 1,341,658 on the project called Preparation of the for Joining the EURES Network. HRK 473,379 was spent on the projects under the PROGRESS Programme (The Community Programme for Employment and Social Solidarity), of which HRK 429,887 on the project called Promoting Equality in the Croatian Labour Market and HRK 43,492 on the project called Different Experiences New Solutions (DENS). A total of HRK 345,794 was spent on the projects financed through the budget allocated for Component 2 of the IPA Programme: Cross-Border Cooperation and run by the regional offices of the CES. The expenditures of the for 2010 include the expenditures related to the implementation of Component 4 of the IPA Programme: Human Resources Development in the total realised amount of HRK 22,880,845. Surplus income recorded in 2010 was 3,056,455. Together with the surplus income from the year before, the total surplus income amounted to HRK 3,489,567. It was allocated to 2011 and will be used to finance the operations of the CES. Public Procurement The is an institution obligated to apply the Public Procurement Act pursuant to the Public Procurement Act (Official Gazette No. 110/07 and 125/08) and the Regulations on the List of Entities Obligated to Apply the Public Procurement Act (Official Gazette No. 83/09). In accordance with the Public Procurement Act and amendments to the said Act effective as of January 1, 2009, the adopted at the beginning of the year the Procurement Plan for It was revised in the course of the year due to a re-allocation of budget funds. The procurement operations are planned for the purpose of ensuring coordinated implementation of procurement operations in regional offices and the Central Office, respecting the principles of public procurement and ensuring transparent participation and equal treatment of all economic entities in the process, while also encouraging market competition. In accordance with the Procurement Plan, the CES executed in 2010 a total of 114 low-value procurement operations (up to HRK 300,000.00/500,000.00), and 20 high-value procurement operations (over HRK 300,000.00/500,000.00). It also prepared 6 decisions on the commencement of procurement operations and agreements on procurement operations in the value of up to HRK 70, which are not covered by the clause on mandatory application of the mentioned Act. As far as high-value procurement operations are concerned, the CES concluded 4 master agreements in The Public Procurement Act stipulates that all procurement operations (low- and high- value operations and concluded agreements) must be announced in the Electronic Public Procurement Bulletin. In 2010, the CES published a total of 271 invitations to tender, notifications of commencement of a public procurement operation, notifications on concluded agreements, etc. The CES keeps a record of its procurement operations and the signed procurement contracts. In 2010, it also prepared a statistical report concerning the signed procurement agreements for 2009 and delivered it to the Public Procurement System Management by March 31,

63 Yearbook 2010 Appendix 5 Income Statement - January 1 December 31, 2010 (HRK) No. Account Name of Account Planned Realised Index (5:4) INCOME Income from the State Budget 1,955,991,903 1,899,234, , 632 Assistance from International Organizations 86,223,445 25,684, Other Income Income Claimed Pursuant to Special Regulations 22, ,663 Income from Financial Aid and Donations 392, ,497 Total Income (1+2+3) 2,042,215,348 1,925,334, EXPENDITURES Unemployment Insurance Unemployment Benefit 1,486,124,319 Pension Insurance Contribution for Unemployed Persons 14,133 Other Expenditures (Employment Related Transportation and Relocation Expenditures, 19,250,376 etc.) 1,547,256,000 1,505,388, Vocational Guidance, Informing and Rehabilitation 2,000,000 1,784, ,3722 National Employment Incentive Plan 195,579, ,479, Action Plan for the Decade of Roma Inclusion 4,900,000 4,898, Subsidies for retention of employment 800,000 26, , 36, Component 4 of the IPA Programme: Human 38, 4 Resources Development 97,211,771 22,880, Labour Market Training Centre 2,960,000 1,977, Preparation of the Croatian Employment Service for Joining the EURES Network 1,361,600 1,341, Projects under the IPA Programme: Crossborder Cooperation 600, , , 34 Projects under the PROGRESS Programme 473, Employee-related Expenditures 138,278, ,152, , 34 Material and Financial Operational Expenditures 47,531,171 46,813, Expenditures for Procurement of Nonfinancial Assets 3,737,000 3,715, Total Expenditures 2,042,215,348 1,922,278, Total Income 2,042,215,348 1,925,334, Total Expenditures 2,042,215,348 1,922,278, Income/Expenditures Balance 3,056,455 Surplus Income from Previous Period 433,112 Surplus Income 3,489,567 61

64 Internal Financial Control System Internal Audit Pursuant to legal regulations, internal audits are conducted within the CES for the purpose of improving its business operations. The Internal Audit Department provides support to the budget user in the realisation of his 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, assessment of adequacy and efficiency of the financial management and control system, as well as by giving recommendations related to the improvement of his business operations. Seven audits were conducted in 2010, out of which 6 under the Annual Internal Audit Plan and one additional, ad hoc audit. An action plan was drafted on the basis of the fourteen accepted recommendations and steps to be taken. Its implementation 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 the relevant audit reports, the existing internal control system, integrated into the processes, designed and implemented by the management in the revised process, was 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 certificate 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. The employees of the Internal Audit Department thus participated during 2010, for the purpose of advancing their knowledge, skills and competencies, in additional educational activities, optional modules, as well as annual and periodic seminars and workshops. Cooperation between internal audit units and 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 mutual communication between internal auditors for the purpose of exchange of professional experiences and discussing possible problems. 62

65 Yearbook 2010 ICT Support to the Operations of the CES In 2010, the CES worked on the development and improvement of the ICT support to its business processes related to working with unemployed persons. A new software support program was created to respond to the changes in the Act in the field of unemployment entitlements. A new software support program was also designed for the purpose of monitoring the incentive measures related to employment and education in accordance with the Annual Programme of the Government of Croatia and in cooperation with the local community and other sources of financing. The initiative for joining the PIN system was commenced and the application support designed, so that in 2011 the agreements with the Ministry of Interior, Ministry of Justice and Ministry of Public Administration will be signed. The preliminary agreements have been sent for review. The employment mediation business process software support system now includes new application modules enabling a new approach to the categorisation of unemployed persons and job seekers, as well as creation of a professional plan and monitoring of its implementation in accordance with the commitments of the unemployed person/job seeker and the counsellor in charge. The full implementation of this module is expected in the first half of The application module supporting the processes related to working with employers now includes new features, such as vocational counselling and monitoring of redeployment programmes. The module for the application of indicators for monitoring the activities within the scope of business processes related to preparation for employment, employment mediation and unemployment insurance was improved. On the basis of the advanced module, development of procedures for regular monitoring of data concerning the indicators, as the basis for creating new blocks in the data warehouse, was initiated as well. A data warehouse concerning unemployment insurance and employment incentive measures was created and activated. With the aim of improving the informing services, new channels of communication with internal and external users were introduced (Intranet portal, SMS system for external users). Upgrades for both services were developed during 2010 as well. The ICT Consolidation Project (including the implementation of the following systems: a new technological production database system based on the virtual 64-bit technology; a new system for data warehousing, archiving and backup; a system for development and testing; a system for operational monitoring and management of the client environment; and a spare system for maintaining the ICT system at minimum functionality level in a spare location) was completed in the process of developing and upgrading the system/technology platform supporting the entire ICT system. Within the scope of the business information system, documents required pursuant to ICT safety policies were amended in accordance with the adopted safety policy. A document called Operational Plan for ICT Support Development was drafted in It contains an analysis of the achieved ICT development level and the coverage of business processes of the CES with software support. On the basis of this document, the ICT Support Development Strategy for a period of five years containing implementation priorities was prepared. 63

66 Publicity of the CES and International Cooperation The works continuously on the public perception of its services, both in terms of the unemployed and in terms of the employers and the general public. 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 the mentioned activities, the public was timely informed on the conditions and changes in the labour market at both the regional and national levels, as well as on the novelties in the labour market and the CES. Responding to the demands and needs of its users, the designed and created a new CES Web Portal section related to the supply and demand of job vacancies called the Job Market ( The new section of the portal allows the job seekers to browse job vacancies in a simpler, faster and better way, and the employers to browse the supply of available workers and CVs. A system of internal instructions was set up as a unique place for transparent establishment of a business procedure applied to the entire system and a flow of information related to business processes, providing the possibility to register, explain and define each change with the aim of simplifying the process of business process monitoring, conforming the activities of all organisational units belonging to the system, and ensuring availability of information, facilitated learning and monitoring of business flows. With the aim of improving internal communications and collecting all information required for the proper functioning and activities of the CES in one place, at the end of 2010 Intranet Website was activated. It enables better horizontal and vertical linking of divisions, departments, local and regional offices, easier flow of information, and posting of inquiries to and receiving answers from authorised departments. International cooperation between the CES and its bilateral and multilateral partners was continued in 2010 as well. Bilateral international cooperation involved a series of projects, seminars, workshops and study visits to employment services in Austria, Bosnia and Herzegovina, Finland, Kosovo and Germany. Pursuant to an agreement made by and between the Ministry of the Economy, Labour and Entrepreneurship of the Republic of Croatia and the Federal Ministry of Economics and Labour of the Republic of Austria on further labour market development, the CES successfully cooperated with the L&R Institute for Social Research. In cooperation with the said institute and the Berufsförderungsinstitut Österreich, a training institution from Gradišće, it organised on May 26, th 2010 the 4 the Croatian Austrian Conference called Labour Market Development through Cross- Border Cooperation: Experiences and Examples. The conference was organised under the joint auspices of the Ministry of the Economy, Labour and Entrepreneurship of the Republic of Croatia and the Federal Ministry of Labour, Social Affairs and Consumer Protection of the Republic of Austria. The technical organisers of the conference were the, the L&R Social Research from Vienna and the WIFI Croatia Institute. At the conference, successful models of cross-border cooperation related to labour markets of EU member countries were presented after the drafting of bilateral programmes of cooperation between Croatia as one of the beneficiaries of the IPA Programme and its neighbouring countries was made possible under Component 2 of the IPA Programme, i.e. Cross-Border Cooperation. Under the agreement on cooperation between the and the Labour and Employment Agency of Bosnia and Herzegovina, the Agency organised a conference entitled Preparing and Designing Projects for Using the IPA Funds Allocated for Cross-Border Cooperation Examples of Good Practice held in Sarajevo on September 22, The main conference objective was the exchange of knowledge and experiences between participants with the emphasis 64

67 Yearbook 2010 on preparing and designing projects for using the IPA funds allocated for cross-border cooperation. Apart from directors general of the and the Labour and Employment Agency of Bosnia and Herzegovina, directors of regional employment offices from both countries also attended the conference. It produced conclusions supporting further cooperation between the CES and the Agency and the regional offices in the process of preparing and designing joint IPA Programmes. After a study visit to the Office of Employment and Economic Development of the Oulu Region in the Republic of Finland, the CES was visited by Finnish experts. They were introduced to the operations of the Central Office of the, the employment mediation services and active employment policy, the preparation for employment programme and the projects in which the CES participates. They were also made familiar with the operations of the Zagreb Regional Office where they had the opportunity to see how the CES operates in practice. In March 2010, the CES was visited by the representatives of the Ministry of Labour and Social Policy of the Republic of Kosovo and the Kosovar Employment Promotion Agency. The purpose of the study visit was to introduce the delegation with the operations of the CES and exchange experiences and methodologies between the CES and the Kosovar Ministry of Labour and Social Policy and Employment Promotion Agency for the purpose of establishing and modernising the Kosovar National Employment Promotion Agency. Apart from the Central Office, the Kosovar delegation also visited the Zagreb, Split and Dubrovnik Regional Offices. The CES continued its cooperation with the Public Employment Service of the Federal Republic of Germany on the basis of the previously signed agreement on cooperation. At the end of October 2010, the CES was visited by the representatives of the Federal Labour Office, and the purpose of the meeting was an exchange of information between the representatives of the Federal Office and the CES related to international and professional employment mediation. The representatives of the Federal Office also visited the Zagreb, Osijek, Slavonski Brod and Varaždin Regional Offices. Multilateral international cooperation was continued through the membership in the WAPES Managing Board (World Association of Public Employment Services - WAPES). As one of the 16 members of the WAPES Managing Board, the CES actively participated in the preparation of the work strategy and the implementation of the WAPES Annual Action Plan. It also participated in drafting and amending the WAPES Rulebook published in Direct cooperation with the WAPES Management (Pole Emploi, France) and Executive Secretariat (VDAB, Belgium) was continued as well. A WAPES Communication Team (the so-called 'Newsflash Team') was formed and the CES employees participated in its activities. Under the Stability Pact and the regional cooperation process, the CES is one of the members of the Centre of Public Employment Services of Southeast European Countries (CPESSEC). It participated in the activities of the said centre in accordance with the Operating Guidelines for the Centre of Public Employment Services of Southeast European Countries on the basis of which Croatia, Bosnia and Herzegovina, Bulgaria, Macedonia, Montenegro, Romania, Serbia, Slovenia and Turkey operate jointly in the regional labour market. The CES participated in the Sixth Managerial Conference and Fifth Expert Conference of the CPESSEC organised by the Bulgarian National Employment Agency on May 27/28, In October 2010, the CES was visited by UNDP representatives and a delegation from Macedonia for the purpose of introducing the representatives of the Ministry of Labour and Social Policy of the Republic of Macedonia with the operations and procedures of the CES, as well as the type of data the CES publishes and delivers to the ministries in accordance with the Joint Memorandum on Social Inclusion and the National Social Inclusion Implementation Plan. The representatives of the CES attended a number of professional conferences and seminars in the country and abroad, responding to invitations from international bodies, organisations and associations (governments of EU Member States, European Council, Union for the Mediterranean, ETF, ILO, IOM, UNECE, UNDP, CEI, WAPES, and similar) received through the Ministry of the the Economy, Labour and Entrepreneurship, Ministry of Foreign Affairs and European Integration or direct invitations to participate as moderators and presenters. 65

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