2013 Yearbook 2013 Yearbook

Croatian Employment Service Croatian Employment Service

Zagreb, May2014 ISSN 1849-4420 Yearbook 2013

Croatian Employment Service Croatian Employment Service

Impressum

Publisher: Croatian Employment Service, Zagreb, Radnička cesta 1 Phone: 00385 1 61 26 000 Fax: 00385 1 61 26 038 E-mail – Editorial Office: [email protected] Website: http://www.hzz.hr

On Behalf of the Publisher: Ankica Paun Jarallah Director General of the Croatian Employment Service

Editor: Marica Barić

English Translation: Abis d.o.o., Zagreb

Graphic Design and Print: Intergrafika TTŽ d.o.o., Zagreb

Circulation: 150 copies

2 2013 Yearbook

Table of Contents

Economy and Labour Force 7

Unemployment 12

Labour Force Demand and Employment 20

Active Labour Market Policy 31

Unemployment Insurance 36

Projects Supported by the International Community 40

Organisation and Operations of the CES

Organisational Structure and Employees 48

Main Responsibilities and Development Strategy of the Croatian Employment Service 45

Job Placement and Preparation for Employment 50

Sources of Financing and Structure of Expenditures 56

Internal Financial Control System 60

ICT Support for CES Operations 62

Publicity and International Cooperation 63

3 Croatian Employment Service

Geographic Locations of Regional and Local Offices of the Croatian Employment Service by County

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

4 2013 Yearbook

Map of Regional and Local Offices of the Croatian Employment Service by County

Centarl office Regional office Local office

5 Croatian Employment Service

6 2013 Yearbook

Economy and Labour Force

Basic Economic Trends In 2013, Croatia once again recorded a decrease in Gross Domestic Product (GDP), with the real rate of decrease at the level of 1.0%. A decline in economic activity was recorded in all four quarters (-1.5% in Q1, -0.7% in Q2, -0.6% in Q3 and -1.2% in Q4 compared to the same quarters of 2012). The lowest rate of decrease was recorded in the third quarter of the year as a result of a successful tourist season. Further decline in GDP was caused by the continued decrease in domestic demand, primarily personal consumption, but also the real decrease in the total value of exports of goods and services caused by the negative trend recorded in exports of goods.

Basic Economic Indicators in 2012 and 2013, Growth Rates (%) 2012 2013 Gross Domestic Product -1.9 -1.0 Physical Volume of Industrial Production -5.5 -1.8 Physical Volume of Construction Works -11.8 -4.1 Nominal Retail Trade Turnover -0.9 1.7 Real Retail Trade Turnover -4.1 -0.6 Tourist Overnights 4.0 3.3 Exports – Total (HRK) 1.4 -6.1 Imports – Total (HRK) 0.4 -1.9 Average Monthly Net Salaries 0.7 0.7 Real Net Salaries -2.6 -1.5 Consumer Price Indices 3.4 2.2 Total Number of Employed Persons -1.1 -2.2 Total Number of Unemployed Persons 6.2 6.4 Registered Unemployment Rate 18.9 20.2 LFS Unemployment Rate 15.9 17.2

Source: Croatian Bureau of Statistics

In 2013, industrial production decreased by 1.8% compared to 2012, thus showing a continued declining trend. The rate of decrease was relatively slower compared to the year before however. Negative trends were recorded in manufacturing (-4.0%) and mining and quarrying (-2.7%). 2013 however brought an increase of 10.6% in electricity, gas, steam and air-conditioning supply. In 2013, a slower rate of decrease was recorded in total construction activity as well. This slowdown was a result of the recovery recorded in construction works on infrastructural buildings. The annual rate of decrease in the physical volume of construction works was 4.1%, which is a significantly lower rate of decrease compared to last year’s 11.8%. Compared to 2012, 2013 also brought a slight recovery in retail trade. In 2013, nominal turnover increased by 1.7%, compared to a decrease of 0.9% recorded in 2012. In spite of the mentioned increase in nominal turnover, real retail trade turnover fell by 0.6% in 2013. This is however a considerably lower rate of decrease compared to -4.1% recorded in 2012.

7 Croatian Employment Service

Tourism is the only economic activity in which positive results are recorded on a continuous basis. In 2013, tourist arrivals and tourist overnights increased by 5.1% and 3.3% respectively. This increase was primarily a reflection of the positive trend in foreign tourist overnights, while domestic tourist overnights have been mainly showing a declining trend during the past two years. In 2013, the share of foreign tourists in the total number of arrivals was 88.1% and in the total number of overnights 92.1%, while domestic tourists accounted for 11.9% of total arrivals and 7.9% of total overnights. In 2013, Croatia recorded negative trends in foreign trade exchange. Exports decreased by 6.1% and imports by 1.9%. The Export Import Coverage Ratio fell from 59.4% recorded in 2012 to 56.9% in 2013. The annual rate of inflation, measured on the basis of the Consumer Price Index, fell from 3.4% recorded in 2012 to 2.2% in 2013. A nominal increase of 0.7% in average net salaries paid out to employed persons was recorded in 2013. However, due to inflation, the rate of change in real net salaries was -1.5%.

Labour Force in Croatia In 2013, the labour market continued recording negative trends. The average number of employed persons further decreased, while the number of unemployed persons increased. Consequently, the average unemployment rate increased as well.

Registered Employment and Unemployment According to the data of the Croatian Bureau of Statistics based on administrative sources, total economically active population of the Republic of Croatia decreased in 2013 by 0.6%. This decrease was caused by a decrease of 2.2% in the number of employed persons and an increase of 6.4% in the number of unemployed persons.

Economically Active Population Based on Administrative Sources, Annual Average, 2011-2013 2012/2011 2013/2012 2011 2012 2013 Index Index Active Population 1,716,571 1,719,440 1,709,410 100.2 99.4 Employed 1,411,238 1,395,116 1,364,298 98.9 97.8 - employed in legal entities 1,159,657 1,153,497 1,132,246 99.5 98.2 - employed in crafts, trades and 220,637 212, 851 206,658 96.5 97.1 free professions - insured persons (farmers) 30,944 28,768 25,394 93.0 88.3 Unemployed 305,333 324,324 345,112 106.2 106.4 Registered Unemployment Rate 17.8 18.9 20.2 - -

Source: Croatian Bureau of Statistics The number of employed persons continued to decrease in 2013 as well. The annual average registered employment amounted to 1,364,298, which represents a decrease by 30,818 persons or 2.2% compared to 2012 when the rate of decrease in total employment amounted to 1.1%. In 2013, the greatest relative decrease in employment was recorded in the sector of “individual” farmers (by 11.7%), the sector of crafts, trades and free professions (by 2.9%) and the sector of legal entities (by 1.8%). According to the National Classification of Activities (Schedule 1, page 11), the greatest number of employed persons was recorded in manufacturing (233,334 or 17.1%), wholesale and retail trade, repair of motor vehicles and motorcycles (207,153 or 15.2%), public administration, defence and compulsory social insurance (116,090 or 8.5%) and education (109,765 or 8.0%). 8 2013 Yearbook

Compared to 2012, the number of employed persons decreased in sixteen areas of activity. The most significant percentage decrease was recorded in the following areas of activity: wholesale and retail trade (by 4.1%), agriculture, forestry and fishing (by 6.3%), construction (by 6.4%), electricity, gas, steam and air-conditioning supply (by 8.2%) and household activities (by 11.3%). At the same time, the number of employed persons grew in five areas of activity: real estate activities (by 17.9%), education (by 1.3%), other service activities (by 1.0%), accommodation and food service activities (by 0.9%) and human health and social work activities (by 0.5%). In terms of economic sectors (agricultural, non-agricultural and service sector), the structure of employed persons in 2013 shows that 68.5% of workers were employed in service, 27.2% in non-agricultural and 4.2% in agricultural activities. Compared to 2012, the share of service activities increased (by 0.9 percentage points), while the share of non-agricultural and agricultural activities decreased (by 0.6 and 0.3 percentage points respectively). Unemployment trends recorded in 2013 were more unfavourable compared to the year before. The average annual registered unemployment increased by 20,788 persons or 6.4%, i.e. from 324,324 persons registered in 2012 to 345,112 in 2013.

Unemployment Rate Based on Administrative Sources The simultaneous increase in the number of unemployed persons and decrease in the number of employed persons recorded in the Republic of Croatia brought about an increase in the average annual rate of registered unemployment from 18.9% recorded in 2012 to 20.3% in 2013 (according to the Croatian Bureau of Statistics). Unemployment Rates by County – In order to present unemployment rates by county, the data on pension insurance beneficiaries registered with the Croatian Pension Insurance Institute as employed persons and the data on unemployed persons registered with the Croatian Employment Service were used. According to the afore-mentioned data, the average unemployment rate at the state level was 19.3%. In seven counties it was lower and in fourteen higher than the national level.

Unemployment Rates by County, Annual Average 2012 and 2013

9 Croatian Employment Service

Unemployment rates differed significantly across particular counties. The lowest unemployment rates were recorded in the City of Zagreb (9.5%) and the County of Istria (9.8%). Unemployment rates below the average state level were also recorded in the Counties of Primorje-Gorski Kotar (14.7%), Varaždin (15.5%), Dubrovnik-Neretva (16.1%), Međimurje (17.2%) and Zadar (18.7%). The highest unemployment rates were on the other hand recorded in the Counties of Vukovar- Srijem (34.7%), Virovitica-Podravina (34.3%), Sisak-Moslavina (34.0%) and Brod-Posavina (33.9%). Compared to the year before, unemployment rate increased across all counties. The greatest increase was recorded in the County of Vukovar-Srijem (by 2.7 percentage points), followed by the Counties of Koprivnica-Križevci (by 2.4 percentage points), Zagreb (by 2.2 percentage points) and Osijek-Baranja (by 2 percentage points), while the smallest increase was recorded in the Counties of Karlovac (by 0.5 percentage points), Zadar (by 0.6 percentage points) and Krapina-Zagorje and Šibenik-Knin (by 0.7 percentage points each).

Employment and Unemployment Based on the Labour Force Survey The Labour Force Survey is carried out by the Croatian Bureau of Statistics in accordance with the methodological rules and principles of the International Labour Organization (ILO) and the Statistical Office of the European Communities (Eurostat). This source of data is therefore internationally comparable. According to the Labour Force Survey, the average economically active population recorded in Croatia in 2013 was 1,678,000 (40,000 persons or 2.3% less than in 2012), of which 1,390,000 employed and 288,000 unemployed persons. Compared to the year before, the number of employed persons decreased by 56,000 persons or 3.9%. The employment rate (15-64) decreased accordingly, from 50.7% recorded in 2012 to 49.2% in 2013. The average number of unemployed persons grew by 16,000 persons or 5.9% compared to 2012.

Unemployment Rate Based on the Labour Force Survey In 2013, the LFS average unemployment rate amounted to 17.2%, which represents an increase by 1.3 percentage points compared to 2012 when the increase in unemployment rate was 2.4 percentage points.

Economically Active Population Based on the Labour Force Survey, Annual Average, 2011-2013

2012/2011 2013/2012 2011 2012 2013 Index Index

Active Population 1,725,000 1,718,000 1,678,000 99.6 97.7 Employed 1,493,000 1,446,000 1,390,000 96.9 96.1 Employment Rate (15-64) 52.4 50.7 49.2 - - Unemployed 232,000 272,000 288,000 117.2 105.9 LFS Unemployment Rate 13.5 15.9 17.2 - -

Source: Croatian Bureau of Statistics

In conclusion, the data concerning the 2013 labour market trends based on the Labour Force Survey show more or less similar labour market developments as do the administrative data. The survey-based data show slightly more intensive changes in employment and activity of Croatian population however.

10 2013 Yearbook

Schedule 1 Employed Persons by Activity According to the National Classification of Activities, 2013 Annual Average Craft, Trade and TOTAL Legal Entities Activity Free Professions (National Classification 2013/ 2013/ 2013/ of Activities) Number % 2012 Number 2012 Number 2012 Index Index Index Agriculture, forestry and fishing 32,315 2.4 93.7 23,163 91.2 9,152 100.5 Individual farming 25,394 1.9 88.3 - - - - Agricultural Activities 57,709 4.2 91.2 23,163 91.2 9,152 100.5 Mining and quarrying 5,593 0.4 96.1 5,356 96.1 237 97.7 Manufacturing 233,334 17.1 97.0 201,950 97.4 31,384 94.6 Electricity, gas, steam and air- 15,174 1.1 91.8 15,174 91.8 0 - conditioning supply Water supply; sewerage, waste management and remediation 21,861 1.6 96.2 21,673 96.2 188 96.2 activities Construction 95,655 7.0 93.6 73,832 94.0 21,823 92.3 Non-agricultural activities 371,616 27.2 95.8 317,985 96.2 53,631 93.7 Wholesale and retail trade; repair of 207,153 15.2 95.9 178,084 96.1 29,069 94.3 motor vehicles and motorcycles Transportation and storage 74,055 5.4 97.5 60,581 96.8 13,474 100.8 Accommodation and food service 85,352 6.3 100.9 50,707 102.4 34,645 99.0 activities Information and communication 33,709 2.5 98.8 32,317 98.6 1,392 105.8

Financial and insurance activities 37,889 2.8 99.2 36,894 99.2 995 97.4

Real estate activities 7,676 0.6 117.9 7,129 119.5 547 100.5 Professional, scientific and technical 67,880 5.0 99.3 51,772 98.9 16,108 100.3 activities Administrative and support service 40,053 2.9 98.7 36,057 97.9 3,996 106.9 activities Public administration and defence; 116,090 8.5 100.0 106,582 100.2 9,508 97.1 compulsory social insurance Education 109,765 8.0 101.3 109,294 101.3 471 102.0 Human health and social work 97,356 7.1 100.5 85,298 100.8 12,058 98.8 activities Arts, entertainment and recreation 23,690 1.7 99.9 20,902 100.0 2,788 99.0

Other service activities 29,778 2.2 101.0 15,481 101.0 14,297 101.1 Activities of households as employers; undifferentiated goods- 3,849 0.3 88.7 0 - 3,849 88.7 and services-producing activities of households for own use Service Activities 934,293 68.5 99.1 791,098 99.2 143,195 98.3

TOTAL 1,364,298 100.0 97.8 1,132,246 98.2 206,658 97.1

Source: Croatian Bureau of Statistics, First Releases No. 9.2.6, 2013 and 2014

11 Croatian Employment Service

Unemployment

Total Unemployment Trends In December 2013, the number of unemployed persons registered with the CES amounted to 363,411, which represents an increase of 1.5% compared to the same month the year before. The total number of newly registered unemployed persons (338,278) was somewhat greater than the number of registered unemployed persons who were employed or deleted from the register for other reasons (333,081), which resulted in an increase in unemployment. The rate of increase in unemployment was slowing down throughout 2013. During the first months of 2013, the number of unemployed persons grew by as many as 30,000 persons compared to the same months of 2012. The year-over-year difference was however continuously decreasing towards the end of the year, so that the number of unemployed persons recorded in the last quarter of 2013 was only negligibly higher than in the same period of 2012.

Number of Unemployed Persons in 2012 and 2013

Like every year, seasonal factors influenced the trends in the number of unemployed persons registered with the Croatian Employment Service in 2013 as well. The number of unemployed persons grew in January and February. It significantly decreased during spring and summer months and then started increasing again in September, continuing so until the end of the year. The greatest number of unemployed persons was thus recorded in February (375,400) and the smallest in August (313,675).

Unemployment Structure and Trends by Gender, Age and Level of Education The average number of unemployed persons grew from 324,324 recorded in 2012 to 345,112 in 2013, which is an increase of 6.4%. The average number of unemployed men and women also increased, although the increase in the number of unemployed men was somewhat greater than the increase in the number of unemployed women. Consequently, a slight increase in the share of unemployed men in the total number of unemployed persons was recorded as well.

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Average Number of Unemployed Persons by Gender, 2012 and 2013

2012 2013 2013/2012 Gender Number % Number % Index Men 152,079 46.9 163,070 47.3 107.2 Women 172,245 53.1 182,042 52.7 105.7 TOTAL 324,324 100.0 345,112 100.0 106.4

As far as unemployment trends by age are concerned, the average number of unemployed persons grew across all age groups. The most significant percentage increase in the average number of unemployed persons was recorded in the oldest age group. The average number of unemployed persons in the 60+ group increased by 15.5%, thus causing an increase in the share of the oldest age group in the total number of unemployed persons as well. However, a significant increase was also recorded in the youngest age groups as well. The average number of unemployed persons aged 15 to 19 grew by 5.6%, and the average number of persons aged 20 to 24 by 6.1%. The smallest increase in the average number of unemployed persons was recorded in the group of persons aged 50 to 54 (by only 3%).

Average Number of Unemployed Persons by Age, 2012 and 2013

2012 2013 2013/2012 Age Number % Number % Index From 15 to 19 17,186 5.3 18,140 5.3 105.6 From 20 to 24 44,877 13.8 47,619 13.8 106.1 From 25 to 29 45,445 14.0 47,441 13.7 104.4 From 30 to 34 37,031 11.4 39,361 11.4 106.3 From 35 to 39 32,146 9.9 35,013 10.1 108.9 From 40 to 44 31,009 9.6 32,949 9.5 106.3 From 45 to 49 33,204 10.2 35,584 10.3 107.2 From 50 to 54 36,553 11.3 37,653 10.9 103.0 From 55 to 59 35,057 10.8 37,708 10.9 107.6 60 + 11,816 3.6 13,644 4.0 115.5 TOTAL 324,324 100.0 345,112 100.0 106.4

In 2013, the average number of unemployed persons grew across all groups distinguished by the level of education. The smallest increase was however recorded in the group with the lowest level of education, while the greatest increase was recorded in the groups with secondary, post-secondary non-university and university education. The average number of unemployed persons with no schooling or uncompleted primary school thus increased by as little as 1.2%, the average number of unemployed persons with 4-year secondary education increased by 8.7%, while the average number of unemployed persons with undergraduate university or post- secondary non-university education increased by as many as 14.9%.

13 Croatian Employment Service

Average Number of Unemployed Persons by Level of Education, 2012 and 2013

2012 2013 2013/2012 Level of Education Number % Number % Index No schooling and uncompleted basic school 18,136 5.6 18,357 5.3 101.2 Basic school 68,829 21.2 71,326 20.7 103.6 1 to 3-year vocational secondary school and 110,986 34.2 117,244 34.0 105.6 school for skilled and highly skilled workers 4 (or more)-year vocational secondary 90,646 27.9 98,522 28.5 108.7 school and grammar school Undergraduate university and post- 15,271 4.7 17,549 5.1 114.9 secondary non-university degree University and post-graduate degree 20,456 6.3 22,114 6.4 108.1 TOTAL 324,324 100.0 345,112 100.0 106.4

Croatian War Veterans Unemployment Structure and Trends In 2013, the average number of unemployed war veterans registered with the Croatian Unemployment Service was 30,265 (up by 7.8% compared to 2012), of which 36.4% with completed or uncompleted primary school and 38.0% with completed 3-year vocational secondary school or training for skilled workers. As far as age structure is concerned, 51.7% of unemployed Croatian war veterans were aged 50 to 65.

Unemployment Structure and Trends by Previous Employment Activity If we exclude from the total number of unemployed persons those who had been previously employed, their structure can be observed by the activity they had been engaged in during previous employment. The average number of such persons recorded in 2013 was 283,670, which represents an increase of 6.2% compared to the year before and is therefore in proportion with the total increase in the average number of unemployed persons. Compared to 2012, 2013 brought an increase in the number of unemployed persons in almost all groups of activities. In many of these groups, the increase was above average, particularly in the public sector. Thus, for example, the number of unemployed persons who had previously been employed in public administration, defence and compulsory social security increased by 33.1%, while the number of persons who had previously been employed in human health and social work activities increased by 16.6%. An increase was also recorded in the number of persons who had previously been employed in education (8.9%) and arts, entertainment and recreation activities (17.6%). As far as the number of unemployed persons who had previously been employed in the private sector is concerned, the number of unemployed persons who had previously been employed in transportation and storage grew significantly (17.3%). A slightly above-average increase was also recorded in information and communication (9.3%) and real estate activities (8.3%). On the other hand, there are sectors in which the increase in the number of unemployed persons was below average: the number of unemployed persons who had previously been employed in construction increased by 1.1%, in manufacturing by 2.1% and trade by 4.1%, while the number of unemployed persons who had been previously employed in service activities even decreased by 0.6%.

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Average Number of Unemployed Persons by Previous Employment Activity in 2012 and 2013

Activity (2007 National Classification 2012 2013 2013/2012 of Activities) Number % Number % Index A Agriculture, forestry and fishing 11,940 4.5 12,511 4.4 104.8 B Mining and quarrying 895 0.3 815 0.3 91.1 C Manufacturing 56,841 21.3 58,047 20.5 102.1 Electricity, gas, steam and air- D 235 0.1 421 0.1 179.1 conditioning supply Water supply; sewerage, waste E 4,442 1.7 4,940 1.7 111.2 management and remediation activities F Construction 31,203 11.7 31,551 11.1 101.1 Wholesale and retail trade; repair of G 49,683 18.6 51,707 18.2 104.1 motor vehicles and motorcycles H Transportation and storage 7,608 2.8 8,922 3.1 117.3 Accommodation and food service I 30,244 11.3 32,399 11.4 107.1 activities J Information and communication 3,594 1.3 3,929 1.4 109.3 K Financial and insurance activities 2,882 1.1 3,067 1.1 106.4 L Real estate activities 1,292 0.5 1,399 0.5 108.3 Professional, scientific and technical M 9,291 3.5 9,757 3.4 105.0 activities Administrative and support service N 11,912 4.5 13,265 4.7 111.4 activities Public administration and defence; O 10,791 4.0 14,367 5.1 133.1 compulsory social security P Education 6,621 2.5 7,211 2.5 108.9 Q Human health and social work activities 6,725 2.5 7,840 2.8 116.6 R Arts, entertainment and recreation 2,985 1.1 3,510 1.2 117.6 S Other service activities 12,958 4.9 12,883 4.5 99.4 Activities of households as employers; undifferentiated goods- and services- T 4,836 1.8 5,074 1.8 104.9 producing activities of households for own use Activities of extraterritorial U 70 0.0 55 0.0 78.6 organisations and bodies TOTAL 267.048 100,0 283,670 100.0 106.2

Unemployment Structure and Trends by County, Gender, Age and Level of Education

Compared to the year before, the average number of unemployed persons grew across all counties in 2013. The greatest percentage increase in the average number of unemployed persons was recorded in the Counties of Zagreb, Koprivnica-Križevci and Istria. A significant increase in unemployment was also recorded in the City of Zagreb and the County of Vukovar- Srijem. In 2013, the average number of unemployed persons in the City of Zagreb was greater than the average number of unemployed persons recorded in the County of Split-Dalmatia. The smallest increase in unemployment was recorded in the Counties of Karlovac and Virovitica- Posavina.

15 Croatian Employment Service

Average Number of Unemployed Persons by County in 2012 and 2013

2012 2013 2013/2012 County Number % Number % Index Zagreb 17,403 5.4 19,583 5.7 112.5 Krapina-Zagorje 8,214 2.5 8,548 2.5 104.1 Sisak-Moslavina 19,739 6.1 20,444 5.9 103.6 Karlovac 11,331 3.5 11,478 3.3 101.3 Varaždin 10,447 3.2 11,035 3.2 105.6 Koprivnica-Križevci 8,156 2.5 9,083 2.6 111.4 Bjelovar-Bilogora 12,027 3.7 12,698 3.7 105.6 Primorje-Gorski Kotar 18,453 5.7 19,321 5.6 104.7 Lika-Senj 3,200 1.0 3,439 1.0 107.5 Virovitica-Podravina 10,180 3.1 10,470 3.0 102.8 Požega-Slavonia 6,435 2.0 6,953 2.0 108.0 Brod-Posavina 17,197 5.3 17,912 5.2 104.2 Zadar 10,700 3.3 11,160 3.2 104.3 Osijek-Baranja 34,438 10.6 36,627 10.6 106.4 Šibenik-Knin 7,827 2.4 8,129 2.4 103.9 Vukovar-Srijem 19,768 6.1 21,404 6.2 108.3 Split-Dalmatia 43,523 13.4 45,893 13.3 105.4 Istria 8,185 2.5 9,071 2.6 110.8 Dubrovnik-Neretva 7,579 2.3 8,025 2.3 105.9 Međimurje 7,528 2.3 7,923 2.3 105.2 City of Zagreb 41,994 12.9 45,916 13.3 109.3 TOTAL 324,324 100.0 345,112 100.0 106.4

As far as the structure of unemployed persons by gender is concerned, the greatest share of women in the total number of unemployed persons at the end of 2013 was recorded in the Counties of Karlovac and Brod-Posavina, followed by the Counties of Zadar, Primorje-Gorski Kotar, Split-Dalmatia and Osijek-Baranja (54.4% - 56.5%). The number of unemployed men was greater than the number of unemployed women in four counties: Varaždin, Krapina-Zagorje, Bjelovar-Bilogora and Koprivnica-Križevci. In terms of age, the greatest number of young persons aged up to 24 in the total number of unemployed persons was recorded in the Counties of Požega-Slavonia (24.8%) and Krapina-Zagorje (23.5%), and the smallest in the Counties of Karlovac (15.8%) and Primorje-Gorski Kotar (16.1%). Finally, if we look at the level of education, the greatest share of qualified persons, i.e. persons with completed secondary, post-secondary non-university or university education, was recorded in the Counties of Split-Dalmatia (84.2%) and Dubrovnik-Neretva (83.8%), and the smallest in the Counties of Sisak-Moslavina (64.2%) and Međimurje (64.9%).

16 2013 Yearbook

Structure of Unemployed Persons by County (31 December 2013)

Persons up to 24 Women Qualified Persons County TOTAL years of age Number Share Number Share Number Share Zagreb 19,703 10,113 51.3 4,343 22.0 14,814 75.2 Krapina-Zagorje 8,615 4,060 47.1 2,022 23.5 6,188 71.8 Sisak-Moslavina 21,010 11,278 53.7 4,031 19.2 13,497 64.2 Karlovac 11,629 6,575 56.5 1,837 15.8 7,870 67.7 Varaždin 11,002 5,109 46.4 2,175 19.8 7,932 72.1 Koprivnica-Križevci 9,428 4,646 49.3 2,106 22.3 6,187 65.6 Bjelovar-Bilogora 13,466 6,431 47.8 3,053 22.7 8,857 65.8 Primorje-Gorski Kotar 20,966 11,574 55.2 3,372 16.1 16,511 78.8 Lika-Senj 3,846 1,942 50.5 865 22.5 2,700 70.2 Virovitica-Podravina 10,937 5,691 52.0 2,438 22.3 7,215 66.0 Požega-Slavonia 7,282 3,757 51.6 1,807 24.8 5,344 73.4 Brod-Posavina 18,619 10,353 55.6 4,226 22.7 13,085 70.3 Zadar 12,424 6,871 55.3 2,277 18.3 9,478 76.3 Osijek-Baranja 38,309 20,847 54.4 7,825 20.4 26,979 70.4 Šibenik-Knin 8,974 4,723 52.6 1,770 19.7 6,908 77.0 Vukovar-Srijem 22,629 11,957 52.8 5,055 22.3 16,327 72.2 Split-Dalmatia 49,821 27,385 55.0 8,965 18.0 41,965 84.2 Istria 10,826 5,826 53.8 1,766 16.3 8,086 74.7 Dubrovnik-Neretva 9,504 5,108 53.7 1,810 19.0 7,969 83.8 Međimurje 7,833 4,003 51.1 1,772 22.6 5,083 64.9 City of Zagreb 46,588 23,857 51.2 7,560 16.2 37,867 81.3 Total 363,411 192,106 52.9 71,075 19.6 270,862 74.5

Unemployment Structure and Trends by Duration, Gender and Level of Education Registered unemployed persons can also be classified according to the duration of unemployment. At the end of 2013, 41.3% of the total number of unemployed persons had been unemployed for up to 6 months and 45.5% for more than one year. Compared to the end of 2012, the number of unemployed persons who had been unemployed for a period of 3-12 months decreased, while the number of those who had been unemployed for a period of more than one year increased. Consequently, both the number and share of long-term unemployed persons grew significantly in 2013.

17 Croatian Employment Service

Unemployed Persons by Duration of Unemployment (31 December 2012 and 2013)

Duration of 2012 2013 2013/2012 Unemployment Number % Number % Index Up to 3 months 93,606 26.1 94,379 26.0 100.8 From 3 to 6 months 60,250 16.8 55,538 15.3 92.2 From 6 to 9 months 26,733 7.5 25,064 6.9 93.8 From 9 to 12 months 26,645 7.4 22,952 6.3 86.1 From 1 to 2 years 61,009 17.0 66,272 18.2 108.6 From 2 to 3 years 29,483 8.2 33,500 9.2 113.6 More than 3 years 60,488 16.9 65,706 18.1 108.6 TOTAL 358,214 100.0 363,411 100.0 101.5

As far as duration of unemployment by gender is concerned, the share of long-term unemployed persons (more than one year) in the total number of unemployed men was 44.2% and in the total number of unemployed women 46.7%. It is evident that long-term unemployment is more frequent in the case of women than in the case of men. This difference in the share of men and women in long-term unemployment is particularly evident in the segment of long-term unemployed persons who had been unemployed for up to three months (more men) and more than three years (more women).

Unemployed Persons by Duration of Unemployment and Gender (31 December 2013) Duration of Unemployment Total Men % Women % Up to 3 months 94,379 46,008 26.9 48,371 25.2 From 3 to 6 months 55,538 26,321 15.4 29,217 15.2 From 6 to 9 months 25,064 11,841 6.9 13,223 6.9 From 9 to 12 months 22,952 11,352 6.6 11,600 6.0 From 1 to 2 years 66,272 31,586 18.4 34,686 18.1 From 2 to 3 years 33,500 15,433 9.0 18,067 9.4 More than 3 years 65,706 28,764 16.8 36,942 19.2 TOTAL 363,411 171,305 100.0 192,106 100.0

Finally, if we consider duration of unemployment in terms of the level of education, it is evident that persons with lower levels of education account for by far the greater share of long-term unemployed persons. The share of long-term unemployed persons (1 year or more) in the total number of unemployed persons with no schooling or uncompleted primary school was 66.8%, while those with primary education accounted for 55.5%. The share of long-term unemployed persons was significantly smaller in the groups of persons with three- or four-year secondary education (45.1% and 40.8%). The smallest share of long-term unemployed persons was recorded in the groups of unemployed persons with undergraduate university and post-secondary non-university education (34.6%) and graduate and post-graduate education (29.3%). It can be concluded that even though the number of unemployed persons with post-secondary non- university and university education increased considerably, the level of education still significantly influences the duration of unemployment.

18 2013 Yearbook

Structure of Unemployed Persons by Duration of Unemployment and Level of Education (31 December 2013) 1 to 3-year 4 (or vocational more)-year Undergraduate No schooling secondary University vocational university and Duration of and Basic school and and post- Total secondary post-secondary Unemployment uncompleted school school for graduate school and non-university basic school skilled and degree grammar degree highly skilled school workers Up to 3 months 26.0 12.9 20.9 26.2 27.6 33.8 37.2 From 3 to 6 15.3 8.3 11.0 15.5 18.1 17.3 19.2 months From 6 to 9 6.9 5.9 6.2 6.9 7.1 7.6 8.1 months From 9 to 12 6.3 6.1 6.3 6.3 6.3 6.7 6.1 months From 1 to 2 18.2 18.8 19.0 18.7 18.1 17.1 14.4 years From 2 to 3 9.2 10.7 10.3 9.1 9.2 8.0 6.3 years More than 3 18.1 37.2 26.2 17.4 13.5 9.5 8.5 years TOTAL 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Short-term 54.5 33.2 44.5 54.9 59.2 65.4 70.7 Unemployment Long-term 45.5 66.8 55.5 45.1 40.8 34.6 29.3 Unemployment

19 Croatian Employment Service

Labour Force Demand and Employment

Registered Job Vacancies In 2013, employers reported a total of 143,340 job vacancies to the CES. Compared to 2012, the number of reported job vacancies increased by 11,413 or 8.7%. The number of reported job vacancies has therefore continued to increase for the fourth year in a row (2010 – by 2.3%, 2011 – by 19.9%, 2012 – by 5.1% and 2013 – by 8.7%). According to the National Classification of Activities, an increase in the number of reported job vacancies (Schedule 2, page 28) was recorded in fifteen areas of activity, while a decrease was recorded in only six. The greatest relative increase in workforce demand was recorded in: human health and social work activities (52.8%; 5,027 persons), information and communication (49.9%; 645 persons), other service activities (28.5%; 1,163 persons), professional, scientific and technical activities (24.5%; 1,512 persons), public administration and defence (23%; 3,313 persons) and education (16%; 2,960 persons). At the same time, workforce demand declined in the following areas of activity: water supply, sewerage, waste management and remediation activities (63.2%; 2,245 persons), agriculture, forestry and fishing (23.2%; 783 persons), financial and insurance activities (11.6%; 280 persons), manufacturing (3.7%; 585 persons) and accommodation and food service activities (2.9%; 499 persons). As far as regional organisation is concerned, an increase in the number of reported job vacancies (Schedule 3, page 29) was recorded in twelve counties, and particularly in the following: Osijek- Baranja (31.8%; 3,282 persons), City of Zagreb (24.6%; 5,532 persons), Istria (23.3%; 1,958 persons), Krapina-Zagorje (22.4%; 687 persons), Zadar (22.3%; 1,110 persons) and Lika-Senj (21.8%; 407 persons). A decline in the number of reported job vacancies was recorded in six counties. The greatest decline in workforce demand was recorded in the Counties of Virovitica- Podravina (22.1%; 833 persons), Dubrovnik-Neretva (13.6%; 692 persons) and Šibenik-Knin (13.4%; 786 persons). In 2013, employers largely looked for professionals (29,314 or 20.5%) and technicians and associated professionals (25,237 or 17.6%). The demand for the mentioned workers significantly increased compared to 2012 (demand for professionals by 24.5%; demand for technicians and associated professionals by 37.6%). Service and sales workers accounted for a significant share in the total workforce demand (28,896 or 20.2%), recording an increase of 2.5%, followed by workers engaged in elementary occupations such as cleaners, deliverers, workers without occupation and similar (27,635 or 19.3%) in the case of which the demand in fact decreased compared to 2012 by 11.2%. An increase in workforce demand was also recorded in the group of clerical support workers (by 12.5%) and craft and related trade workers (by 8.4%).

Reported Job Vacancies by Group of Occupations in 2012 and 2013

2012 2013 2013/2012 Group of Occupations Number % Number % Index Managers (chief executives, senior officials and legislators) 255 0.2 173 0.1 67.8 Professionals 23,537 17.8 29,314 20.5 124.5 Technicians and associated professionals 18,345 13.9 25,237 17.6 137.6 Clerical support workers 9,499 7.2 10,690 7.5 112.5 Service and sales workers 28,197 21.4 28,896 20.2 102.5 Skilled agricultural, forestry and fishery workers 746 0.6 702 0.5 94.1 Craft and related trades workers 14,662 11.1 15,888 11.1 108.4 Plant and machine operators and assemblers 5,558 4.2 4,805 3.4 86.5 Elementary occupations 31,128 23.6 27,635 19.3 88.8 TOTAL 131,927 100.0 143,340 100.0 108.7 20 2013 Yearbook

Employment of Persons from the CES Register The total number of employed persons from the CES register has been continuously increasing for the past four years. After high rates of increase recorded in 2010 and 2011 (19.4% and 26.4%) and a low increase recorded in 2012 (0.5%), 2013 once again brought a relatively high rate of increase in employment of persons from the CES register of unemployed persons (16.7%). In 2013, a total of 217,179 persons registered with the CES as unemployed found employment (31,023 more than in 2012), of which 193,520 persons (89.1%) were employed on the basis of a work contract and 23,659 persons (10.9%) on the basis of other business activities (workplace training without a work contract, registering a company or trade, temporary service contract, etc.). From the total number of employed persons, 114,507 were women (accounting for a share of 52.7% in the total number) and 102,672 were men (accounting for 47.3%). Compared to 2012, the dynamics of increase in the number of employed men and women was almost identical (men - 17.0%, women – 16.3%). As we have already mentioned, most of registered employment included signing a work contract – 193,520 persons, which is 17,985 persons or 10.2% more than in 2012. The structure of employment according to particular features was as follows: Employment Activity – The persons from the CES register of unemployed persons employed on the basis of a work contract (Schedule 2, page 28) found employment in the four main areas of activity in which the greatest fluctuation of workers is recorded during a year (entering a work relationship and terminating a work relationship): accommodation and food service activities, manufacturing, wholesale and retail trade, and construction. In total, 113,718 persons or 58.8% from the total number of persons from the CES register who were employed in 2013 found employment in the mentioned areas of activity. Compared to 2012, an increase was recorded in most of areas of activity (in seventeen of them, to be exact), while a decrease in the number of persons from the CES register of unemployed persons who were employed in 2013 was recorded in only four. A significant decrease was recorded only in the area of water supply, sewerage, waste management and remediation activities (56.5%; 2,144 persons). Compared to 2012, the greatest percentage increase in registered employment was recorded in the following areas of activity: information and communication (34.1%), real estate activities (27.4%), accommodation and food service activities (19.6%), other service activities (18.0%), and human health and social work activities (17.3%). Regional Employment Structure – The structure of registered employment by county (Schedule 3, page 29) shows that most persons who were employed on the basis of a work contract were recorded in the County of Split-Dalmatia (24,691 persons or 12.8%), the City of Zagreb (21,781 persons or 11.3%) and the County of Osijek-Baranja (18,546 persons or 9.6%). Compared to 2012, employment of persons from the CES register of unemployed persons grew across all counties. The greatest percentage increase in employment was recorded in the Counties of Krapina-Zagorje (20.2%), Istria (17.4%) and Zagreb (17.3%). Significant rates of increase were recorded also in the City of Zagreb (15.9%) and the following counties: Zadar (14.3%), Lika-Senj (14.0%), Varaždin (13.7%), Koprivnica-Križevci (12.1%) and Split-Dalmatia (11.9%). The lowest rate of increase in registered employment was recorded in the Counties of Sisak-Moslavina (1.8%), Karlovac (3.0%) and Vukovar-Srijem (3.9%). Work Experience – From the total number of persons from the CES register employed on a work contract basis, 170,176 persons (87.9%) had prior work experience and 23,344 persons (12.1%) were employed for the first time. Compared to 2012, employment of persons with work experience increased by 9.8% and of those with no work experience by 13.3%. Duration of Employment – 12,348 persons (6.4%) were employed on a permanent basis and 181,172 (93.6%) were employed on a temporary basis. Compared to 2012, permanent employment declined and temporary employment increased by 1 percentage point. Level of Education and Group of Occupations – Persons with secondary education accounted for the greatest share of the total number of persons from the CES register employed on a work contract basis, including both the persons who completed a 3-year vocational school or school 21 Croatian Employment Service

for skilled and highly skilled workers (37.5%) and persons who completed a four-year vocational school or grammar school (30.7%). The mentioned groups are followed by persons with lower levels of education, i.e. persons who completed basic school (14.2%) and persons with no schooling (1.8%), and persons with a high level of education: persons with graduate and post-graduate education (9.5%) and undergraduate university or post-secondary non-university education (6.4%). Compared to 2012, registered employment increased across all groups distinguished by the level of education, except in the group of persons with no schooling and uncompleted primary school in which the number of persons employed declined by 6.6%. The greatest increase in employment was recorded in the group of persons with undergraduate university education (17.7%) and four- year vocational secondary school or grammar school (14.7%).

Persons from the CES Register Employed on a Work Contract Basis in 2012 and 2013 by Level of Education

2012 2013 2013/2012 Level of Education Number % Number % Index No schooling and uncompleted basic school 3,677 2.1 3,434 1.8 93.4 Basic school 27,167 15.5 27,488 14.2 101.2 1 to 3-year vocational secondary school and 65,821 37.5 72,541 37.5 110.2 school for skilled and highly skilled workers 4 (or more)-year vocational secondary 51,772 29.5 59,394 30.7 114.7 school and grammar school Undergraduate university and post-secondary 10,516 6.0 12,375 6.4 117.7 non-university degree University and post-graduate degree 16,582 9.4 18,288 9.5 110.3 TOTAL 175,535 100.0 193,520 100.0 110.2

Different groups of occupations (defined in accordance with the National Classification of Occupations) accounted for the following shares in the total registered employment recorded in 2013:

Persons from the CES Register Employed on a Work Contract Basis in 2012 and 2013 by Group of Occupations

2012 2013 2013/2012 Group of Occupations Number % Number % Index Professionals 16,100 9.2 17,627 9.1 109.5 Technicians and associated professionals 27,546 15.7 32,324 16.7 117.3 Clerical support workers 19,411 11.1 22,306 11.5 114.9 Service and sales workers 40,503 23.1 45,960 23.7 113.5 Skilled agricultural, forestry and fishery workers 1,374 0.8 1,421 0.7 103.4 Craft and related trades workers 30,194 17.2 32,951 17.0 109.1 Plant and machine operators and assemblers 11,455 6.5 12,151 6.3 106.1 Elementary occupations 28,914 16.5 28,703 14.8 99.3 TOTAL 175,535 100.0 193,520 100.0 110.2

Compared to 2012, the greatest increase in employment was recorded in the group of technicians and other associated professionals (17.3%), clerical support workers (14.9%) and service and sales workers (13.5%), whereas employment declined only in the group of elementary occupations (0.7%). 22 2013 Yearbook

Employment Rates by Level of Education and Occupation The annual employment rate shows how many persons from the total number of unemployed persons who looked for employment during the year were employed on a work contract basis. The total number of persons looking for employment includes persons registered as unemployed at the beginning of the year and the persons registered as unemployed in the course of the year. In 2013, the employment rate was 27.8%, which means that more than one fourth of unemployed persons who looked for employment during the year were employed. Significant differences were recorded in the employment rate among the groups of unemployed persons distinguished by the level of education. In the case of persons with no schooling or uncompleted basic school, the employment rate was 12.4%. It was 21.7% in the case of those who completed basic school, 30.4% in the case of those who completed vocational secondary school in the duration of up to three years or school for skilled workers, 28.8% in the case of those who completed a four-year vocational secondary school or grammar school, 30.8% in the case of those with undergraduate university and post-secondary non-university degree and 32.3% in the case of those with university and post-graduate degree. Persons with secondary education recorded a significantly lower employment rate, while the differences among other groups were relatively small. This pattern differs from the pattern recorded during the previous years when the rate of employment typically increased with the level of education.

Employment Rate by Level of Education in 2013 (%)

Levels of Education: A – no schooling and uncompleted basic school, B – basic school, C – 1- to 3-year vocational secondary school and school for skilled and highly skilled workers, D – 4(or more)-year vocational secondary school and grammar school, E – undergraduate university and post-secondary non-university degree, F – university and post-graduate degree.

Within the same groups distinguished by the level of education, there are considerably large differences in employment rate between persons engaged in different occupations. The following table shows twenty occupations with the highest and twenty with the lowest rate of employment within the most frequent groups at secondary school level.

23 Croatian Employment Service

Employment Rate by Occupation at Secondary School Level

Occupation % Occupation % Fire-fighter Technician 43.4 Educational Process Associate 22.8 Cook 41.5 Spinner 22.6 Water 40.1 Radio and TV Electronic Mechanic 22.5 Confectioner/Pastry Maker 39.7 Chemical Technology Professional 21.9 Clothing Professional 39.1 Storage Keeper 21.8 Forest Technician 38.3 Chemical Worker 21.6 Plumber and Gas Fitter 37.2 Technical Drawer 21.2 Multimedia Graphic Designer 37.1 Fine Arts and Design 20.4 Automatic Construction Machinery Operator 37.1 Shoemaker 20.1 Railway Traffic Technician 36.8 Plant Electrician 19.4 Gas Fitter 36.4 Administrative/Personnel Clerk 17.7 Hotel Owner 36.3 Typist 16.9 Carpenter 36.2 Assistant Tailor 16.7 Assistant Cook and Confectioner/ 35.9 Assistant Car Painter 15.4 Pastry Maker Freight Vehicle Driver 35.9 Car Painter 14.3 Room Painter 35.8 Assistant Bookbinder 13.9 Electrical Engineering Technician 35.3 Assistant Florist 13.6 Tourism/Hotel Commercialist 35.2 Commercialist 13.4 Joiner 34.7 Assistant Gardener 13.3 Electronic Mechanic 34.3 Salesperson 7.5

Note: the selection includes the groups in which the number of unemployed persons at the beginning of the year and the number of newly registered unemployed persons throughout the year was 200 or more.

The following table shows ten occupations with the highest and ten with the lowest rate of employment at post-secondary non-university and university levels.

Employment Rate by Occupation/Major at Post-secondary Non-university and University Level

Occupation/Major % Occupation/Major % Biology and Chemistry 67.6 Journalism 21.2 Teaching Academy 62.0 Cattle Breeding 21.2 Croatian and English Language 57.7 Graphic Design 19.7 Croatian and Italian Language 56.4 Geology 19.1 History and Croatian Language 51.7 Political Sciences 19.0 Geography 51.5 Business Economy 18.9 Preschool Education 49.3 Transport and Traffic Engineer – Postal 18.2 Dental Medicine 46.8 Textile and Clothing Engineer 17.5 General Medicine 46.6 Arts 12.6 Nursing 46.1 Administrative Studies 12.5

Note: the selection includes the groups in which the number of unemployed persons at the beginning of the year and the number of newly registered unemployed persons throughout the year was 100 or more. 24 2013 Yearbook

Seasonal Employment Seasonal employment accounts for a significant share of the total number of persons employed from the CES register of unemployed persons. Seasonal employment mainly refers to tourism-related activities which, in addition to accommodation and food service activities, also include other associated activities (trade, transportation, administrative and support service activities). Furthermore, seasonal employment is also typical in agriculture, forestry and fishing, as well as some of the manufacturing activities. Provision of job matching and placement services with regards to seasonal employment in tourism is one of the more important business activities of the Croatian Employment Service. At the beginning of each year, the CES regularly organises regional meetings with the representatives of large hotel and tourism companies for the purpose of reaching concrete agreements concerning the planning (forecasting) and meeting the demand for seasonal workers. The meetings are held in coastal counties of Croatia (Istria, Primorje-Gorski Kotar, Zadar, Šibenik-Knin, Split-Dalmatia and Dubrovnik-Neretva) which are getting ready for the upcoming tourist season. After preparing the demand forecasts and selecting seasonal workers from unemployed domicile population, the representatives of the afore- mentioned companies conduct, in cooperation with regional offices of the Croatian Employment Service based in continental counties (Osijek, Vinkovci, Bjelovar, Sisak, etc.), informative interviews with the interested candidates from those counties and then select the most appropriate ones and refer them to the agreed job positions. In 2013, a total of 40,767 workers were seasonally employed, accounting for 21.1% of the total number of persons from the CES register of unemployed persons employed on a work contract basis. Compared to the year before, the number of seasonally employed workers increased by 1,329 persons or 3.4%. Seasonal employment was most significant in accommodation and food service activities (20,444 workers accounting for a share of 50.1%), wholesale and retail trade (5,018 workers or 12.3%), administrative and support service activities (3,501 workers or 8.6%), agriculture, forestry and fishing (2,462 workers or 6.2%) and manufacturing (1,949 workers or 4.8%). In 2013, most seasonal workers were employed from the coastal (a total of 56.4%) and Slavonian (30.6%) counties (Schedule 4, page 30). We are referring to coastal areas in which tourism represents the most significant activity and continental areas which typically provide a significant number of workers for employment in coastal areas as well as seasonal agricultural and manufacturing activities. North- western Croatia and the greater Zagreb area record relatively low seasonal employment rates (13.0%). As far as occupation is concerned, most seasonal workers were: salespersons (4,200 persons or 10.3%), waiters (3,444 or 8.4%), cooks (3,331 persons 8.2%), chambermaids (1,916 persons or 4.7%), cleaning ladies (1,652 or 4.1%), and kitchen help and assistant cooks (1,362 or 3.3%).

Interregional Employment Interregional job placement 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, as well as encourage migration of workers and ensure their employment, particularly in areas recording high unemployment rates. Therefore, if a certain regional office is not in the position to fill a job vacancy by referring to it a registered worker from its own county, the relevant request is then forwarded to other regional offices with registered workforce meeting the job-specific requirements. Interregional job placement services are especially important in the process of meeting the demand for seasonal workers during the tourist season and meeting the demand for workers in occupations in demand. Through interregional job placement services, a total of 35,803 workers registered with the CES as unemployed were employed in 2013 in the place outside of the territorial scope of the regional or local office to which the request had originally been submitted. In terms of counties Schedule( 4, page 28), most workers who were employed in the place outside the territorial scope of the regional or local office to which the request had originally been submitted came from the following counties: Osijek- Baranja (4,080 persons or 11.4%), Vukovar-Srijem (3,847 persons or 10.7%), Sisak-Moslavina (3,134 or 8.8%) and Brod-Posavina (2,848 or 8.0%). In terms of the employment activity, most such 25 Croatian Employment Service

workers were employed in: accommodation and food service activities (10,740 or 30.0%), wholesale and retail trade (5,553 or 15.5%), construction (4,499 or 12.6%), manufacturing (4,220 or 11.8%) and administrative and support service activities (3,171 or 8.9%). The workers employed outside the territorial scope of the regional or local office to which their request had originally been submitted were mainly engaged in the following occupations: salespersons (2,938 or 8.2%), cooks (2,069 or 5.8%), waiters (1,737 or 4.9%), economists (937 or 2.6%), cleaning ladies (865 or 2.4%) and administrative clerks (842 or 2.4%).

International Job Placement Services and Employment Abroad In the period until 30 June 2013, i.e. until Croatia’s accession to the European Union, the CES was responsible for the implementation of two bilateral agreements on employment of seasonal workers and medical technicians as well as guest workers and students during summer vacations in the Federal Republic of Germany. Since 1 July 2013, when Croatia became a full member of the EU, Croatian citizens are free to look for and get employment in EU member states without any special approvals or work permits, except in such states that have adopted decisions enforcing a temporary 2-year transition period for Croatian citizens. In the period from January to June 2013, the CES helped employ a total of 5,600 Croatian citizens in the Federal Republic of Germany. Most such workers were employed in seasonal activities in agriculture (3,193 persons or 60.2%) and accommodation and food service activities (2,036 persons or 38.4%) for a period of up to 6 months, and arts, entertainment and recreation activities (amusement parks) for a period of up to 9 months during a year (75 persons or 1.4%), accounting for 5,304 of the total number of seasonally employed persons. Most seasonal workers (2,938 or 55.4%) were women. Furthermore, pursuant to the Agreement on Employment of Workers for the Purpose of their Professional Advancement and Language Improvement signed between the Croatian Government and the Government of the Federal Republic of Germany, 130 persons aged under 40 engaged in various occupations were employed for a period of 18 months, while 66 medical nurses and technicians who passed the qualifying exam were employed for a longer or indefinite period of time. During summer vacations, 100 students were employed in the Federal Republic of Germany for a period of up to 3 months. In 2013, the CES helped employ 166 sailors on ships owned by foreign companies. All activities concerning the placement of sailors on foreign ships were carried out by the regional offices in Rijeka and Split.

Number of Persons Employed Abroad through CES Placement Services in 2012 and 2013

2012 2013 2013/2012

Number % Number % Index Seasonal workers 6,198 90.7 5,304 92.0 85.6 Medical technicians 94 1.4 66 1.1 70.2 Guest workers 293 4.3 130 2.3 44.4 Students 79 1.2 100 1.7 126.6 Total in the Federal Republic of Germany 6,664 97.5 5,600 97.1 84.0 Sailors on foreign ships 173 2.5 166 2.9 96.0 TOTAL 6,837 100.0 5,766 100.0 84.3

26 2013 Yearbook

EURES – European Commission’s Network of Public Employment Services After the accession of the Republic of Croatia to the European Union, the Croatian Employment Service became a member of the EURES network. EURES represents a network of European public employment services which serves to facilitate free workforce mobility through provision of information, advice and assistance in employment at the European level. Within the EURES network, EURES counsellors provide information as well as advisory and job matching and placement services to jobseekers and persons looking to change their job, as well as employers and other persons interested in workforce mobility issues. More than 900 EURES counsellors are ready to provide information to employers and offer them their assistance in matters related to the labour market of the European Economic Area. On the territory of the Republic of Croatia, EURES activities are carried out by 4 certified EURES counsellors working in the regional offices in Osijek, Rijeka, Split and Zagreb. After Croatia’s accession to the EU, numerous other requirements concerning the treatment of jobseekers from the EU were introduced with regards to social security and unemployment benefit coordination, and EURES assistant counsellors, whose responsibilities include provision of basic information about the possibilities of employment in other EU member states to persons seeking employment in the EU and about the rights arising from the social security and unemployment benefit coordination regulations to employers, were appointed in all regional offices of the CES. In 2013, 2,069 persons were deleted from the CES register on the basis of finding employment in one of the EU member states. By the end of 2013, EURES counsellors carried out over 7,500 individual interviews with potential users of CES services, of which 94.3% inquiries came from jobseekers, mainly concerning the provision of information about the EURES network and its role within the Croatian Employment Service, and the possibilities of employment and search for employment in EU member states. Over 1,000 informative interviews were carried out within the CES on the topic of international job placement.

27 Croatian Employment Service

Schedule 2

Reported Job Vacancies and Persons from the CES Register Employed on a Work Contract Basis by Activity in 2012 and 2013 Persons Employed from the CES Reported Job Vacancies Activity Register on a Work Contract Basis (National Classification Share 2013/ Share 2013/ of Activities, 2007) 2012 2013 in 2012 2012 2013 in 2012 2013 Index 2013 Index Agriculture, forestry and A 3,378 2,595 1.8 76.8 7,330 7,193 3.7 98.1 fishing B Mining and quarrying 69 154 0.1 223.2 279 299 0.2 107.2 C Manufacturing 15,712 15,127 10.6 96.3 27,565 30,901 16.0 112.1 Electricity, gas, steam and D 239 260 0.2 108.8 173 204 0.1 117.9 air-conditioning supply Water supply; sewerage, E waste management and 3,552 1,307 0.9 36.8 3,792 1,648 0.9 43.5 remediation activities F Construction 7,916 7,957 5.6 100.5 15,686 17,021 8.8 108.5 Wholesale and retail trade; G repair of motor vehicles and 14,366 14,731 10.3 102.5 26,739 29,815 15.4 111.5 motorcycles H Transportation and storage 3,120 3,273 2.3 104.9 5,686 6,537 3.4 115.0 Accommodation and food I 17,392 16,893 11.8 97.1 30,084 35,981 18.6 119.6 service activities Information and J 1,292 1,937 1.4 149.9 1,541 2,067 1.1 134.1 communication Financial and insurance K 2,421 2,141 1.5 88.4 1,654 1,644 0.8 99.4 activities L Real estate activities 592 641 0.4 108.3 806 1,027 0.5 127.4 Professional, scientific and M 6,175 7,687 5.4 124.5 5,936 6,597 3.4 111.1 technical activities Administrative and support N 6,664 6,899 4.8 103.5 11,675 13,111 6.8 112.3 service activities Public administration and O defence; compulsory social 14,409 17,722 12.4 123.0 9,304 9,387 4.9 100.9 security P Education 18,469 21,456 15.0 116.0 12,340 12,921 6.7 104.7 Human health and social Q 9,512 14,539 10.1 152.8 6,587 7,729 4.0 117.3 work activities Arts, entertainment and R 2,517 2,748 1.9 109.2 2,645 2,881 1.5 108.9 recreation S Other service activities 4,085 5,248 3.7 128.5 4,601 5,431 2.8 118.0 Activities of households as employers; undifferentiated T goods- and services- 17 13 0.0 76.5 1,085 1,104 0.6 101.8 producing activities of households for own use Activities of extraterritorial U 3 12 0.0 400.0 27 22 0.0 81.5 organisations and bodies TOTAL 131,927 143,340 100.0 108.7 175,535 193,520 100.0 110.2

28 2013 Yearbook

Schedule 3

Reported Job Vacancies and Persons from the CES Register Employed on a Work Contract Basis by County in 2012 and 2013

Persons Employed from the CES Reported Job Vacancies Register on a Work Contract Basis County Share 2013/ Share 2013/ 2012 2013 in 2012 2012 2013 in 2012 2013 Index 2013 Index Zagreb 5,191 5,446 3.8 104.9 8,435 9,897 5.1 117.3 Krapina-Zagorje 3,063 3,750 2.6 122.4 4,397 5,283 2.7 120.2 Sisak-Moslavina 4,257 4,222 2.9 99.2 8,254 8,404 4.3 101.8 Karlovac 3,080 3,475 2.4 112.8 5,348 5,506 2.8 103.0 Varaždin 5,873 5,404 3.8 92.0 6,489 7,375 3.8 113.7 Koprivnica-Križevci 3,466 3,639 2.5 105.0 4,636 5,198 2.7 112.1 Bjelovar-Bilogora 3,737 3,718 2.6 99.5 6,718 7,040 3.6 104.8 Primorje-Gorski Kotar 11,535 11,165 7.8 96.8 11,746 12,785 6.6 108.8 Lika-Senj 1,871 2,278 1.6 121.8 2,083 2,375 1.2 114.0 Virovitica-Podravina 3,767 2,934 2.0 77.9 5,545 5,826 3.0 105.1 Požega-Slavonia 2,089 2,379 1.7 113.9 3,836 4,030 2.1 105.1 Brod-Posavina 4,540 4,246 3.0 93.5 7,980 8,363 4.3 104.8 Zadar 4,969 6,079 4.2 122.3 6,914 9,902 4.1 114.3 Osijek-Baranja 10,315 13,597 9.5 131.8 17,016 18,546 9.6 109.0 Šibenik-Knin 5,868 5,082 3.5 86.6 5,447 5,869 3.0 107.7 Vukovar-Srijem 5,110 4,760 3.3 93.2 10,224 10,619 5.5 103.9 Split-Dalmatia 12,872 13,683 9.5 106.3 22,064 24,691 12.8 111.9 Istria 8,386 10,344 7.2 123.3 8,662 10,171 5.3 117.4 Dubrovnik-Neretva 5,089 4,397 3.1 86.4 6,041 6,490 3.4 107.4 Međimurje 4,381 4,542 3.2 103.7 4,900 5,369 2.8 109.6 City of Zagreb 22,468 28,000 19.5 124.6 18,800 21,781 11.3 115.9 T otal - 200 0.1 - - - - - UKUPNO 131,927 143,340 100.0 108.7 175,535 193,520 100.0 110.2

29 Croatian Employment Service

Schedule 4

Seasonal and Interregional Employment of Persons from the CES Register on a Work Contract Basis by County in 2012 and 2013

Seasonal Employment Interregional Employment County Share 2013/ Share 2013/ 2012 2013 in 2012 2012 2013 in 2012 2013 Index 2013 Index Zagreb 382 315 0.8 82.5 843 1,018 2.8 120.8 Krapina-Zagorje 282 414 1.0 146.8 1,380 1,576 4.4 114.2 Sisak-Moslavina 1,555 1,442 3.5 92.7 2,955 3,134 8.8 106.1 Karlovac 936 950 2.3 101.5 1,363 1,396 3.9 102.4 Varaždin 602 480 1.2 79.7 1,155 1,368 3.8 118.4 Koprivnica-Križevcia 503 414 1.0 82.3 1,041 1,331 3.7 127.9 Bjelovar-Bilogora 2,272 1,853 4.5 81.6 1,992 2,254 6.3 113.2 Primorje-Gorski Kotar 2,732 2,904 7.1 106.3 988 1,162 3.2 117.6 Lika-Senj 463 597 1.5 128.9 326 382 1.1 117.2 Virovitica-Podravina 1,844 1,644 4.0 89.2 1,402 1,554 4.3 110.8 Požega-Slavonia 793 835 2.0 105.3 1,247 1,418 4.0 113.7 Brod-Posavina 1,937 1,982 4.9 102.3 2,517 2,848 8.0 113.2 Zadar 2,796 3,188 7.8 114.0 675 743 2.1 110.1 Osijek-Baranja 2,942 3,027 7.4 102.9 3,551 4,080 11.4 114.9 Šibenik-Knin 2,755 2,848 7.0 103.4 742 945 2.6 127.4 Vukovar-Srijem 3,340 3,130 7.7 93.7 3,394 3,847 10.7 110.1 Split-Dalmatia 6,299 6,665 16.3 105.8 1,934 2,415 6.7 124.9 Istria 2,387 3,087 7.6 129.3 403 512 1.4 127.0 Dubrovnik-Neretva 3,510 3,708 9.1 105.6 555 669 1.9 120.5 Međimurje 422 479 1.2 113.5 772 815 2.3 105.6 City of Zagreb 686 805 2.0 117.3 1,894 2,336 6.5 123.3 TOTAL 39,438 40,767 100.0 103.4 31,229 35,803 100.0 114.6

30 2013 Yearbook

Active Labour Market Policy

Pursuant to a decision passed by the Government of the Republic of Croatia, the implementation of the National Employment Incentive Plan for 2011 and 2012 was extended until 31 December 2013. During this period, the Active Labour Market Policy was being implemented in line with the European employment incentive strategies and it included: subsidies for employment and self- employment of unemployed persons, subsidies for advancement of newly employed persons and job retention subsidies; financing of labour-market education intended for unemployed persons and vocational training for employment without a work contract; as well as co-financing of employment in public works and job retention programmes.

In 2013, the Active Labour Market Policy measures were grouped in packages intended for specific target groups of unemployed persons and employed persons threatened by job loss: • young persons up to 29 years of age; • long-term unemployed persons; • persons aged 50+; • persons with disabilities; • special groups of unemployed persons such as: single parents, young persons from children’s homes, family abuse victims, Croatian war veterans, parents of four or 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; • the Roma; and • employers facing difficulties in efforts to preserve jobs.

As of 2013, employers from the field of tourism are also eligible to seek subsidies for employment and permanent seasonal workers are eligible to seek financial assistance during the period of the year when they are unemployed.

In 2013, the Active Labour Market Policy measures were mainly focused on young persons up to 29 years of age, especially after the 1st of July when Croatia became a full member of the European Union and started implementing the activities from the Youth Guarantee initiative. In July 2013, the package of measures intended for young persons was extended to include 11 new measures aimed at improving the competences and preparation of young persons for employment, particularly referring to improvement of entrepreneurial skills and inclusion of young persons in entrepreneurship and development of civil society organisations as increasingly significant labour market stakeholders.

In 2013, the Active Labour Market Policy measures falling under the responsibility of the Croatian Employment Service involved a total of 53,656 participants, of which 10,829 active participants from the previous year and 42,827 new entrants in the course of 2013. Compared to 2012, the number of new entrants increased by 48.7%, while the total number of participants increased by 29.1%.

31 Croatian Employment Service

Participants of Active Labour Market Plicy in 2012 and 2013

According to the type of measures (LMP Classification), most number of new entrants joined the training, including institutional training of the unemployed, institutional training of the employed and workplace training (38.5%), and direct job creation (public works programmes) (32.3%). Although to a smaller degree, the new entrants also took advantage of the employment incentives (14.7%), start-up incentives (11.5%) and out-of-work income maintenance and support (3.1%).

New Entrans into Active Labour Marcet Policy Measures by Type of Classification in 2012 and 2013

Compared to 2012, the greatest relative increase in the number of new entrants was recorded in the segment of out-of-work income maintenance and support (7.7 times greater) and the segment of start-up incentives (5.2 times greater). The number of new entrants also grew significantly in the segment of workplace training (by 164.8%), institutional training ofthe employed (by 137.2%) and employment incentives (by 67.5%). At the same time, the number of new entrants in public works programmes and institutional training of the unemployed decreased (by 13.4% and 26.7% respectively). In 2013, more than half of the new entrants were women (56.8%) and young persons up to 29 years of age (52.7%). In the structure of new entrants, the relative majority included persons 32 with secondary education (49.1%) and long-term unemployed persons (40.2%). 2013 Yearbook

The share of particular groups of new entrants in relation to the total number of unemployed persons within the same group was most significant in the groups of persons with graduate and post-graduate education (31.7%), young persons up to 29 years of age (19.9%), persons unemployed for 6 to 12 months (16.8%) and women (13.4%).

New Entrants into Active Labour Market Policy Measures by Gender, Age, Level of Education and Duration of Unemployment in 2012 and 2013 Share in the Number Structure Average Number of Unemployed Persons 2012 2013 2012 2013 2012 2013 Total 28,807 42,827 100.0 100.0 8.9 12.4 Men 13,484 18,516 46.8 43.2 8.9 11.4

Gender Women 15,323 24,311 53.2 56.8 8.9 13.4 15-29 12,602 22,559 43.7 52.7 11.7 19.9 30-49 10,952 14,680 38.0 34.3 8.2 10.3 Age 50+ 5,253 5,588 18.2 13.0 6.3 6.3 No secondary 7,001 5,859 24.3 13.7 8.1 6.5 education Secondary 15,541 21,032 53.9 49.1 7.7 9.7 education University education 6,251 14,708 21.7 34.3 17.5 37.1 Education Unknown 14 1,228 0.0 2.9 Up to 6 months 7,563 13,277 26.3 31.0 6.1 10.8 6-12 months 5,560 10,515 19.3 24.6 9.5 16.8 More than 12 15,449 17,237 53.6 40.2 10.8 10.8 months Duration of Persons not in Unemployment 235 1,798 0.8 4.2 unemployment

The total share of new entrants of Active Labour Market Policy measures in the average number of unemployed persons in 2013 was 12.4%. At the county level, it was in the range from 21.7% to 8.5% (Schedule 5a, page 34). The greatest share of 21.7% (with the absolute number of new entrants of 1,722 parsons) was recorded in the County of Međimurje. Above-average shares were also recorded in eleven other counties. The most significant shares were recorded in the City of Zagreb (15.9%) and the Counties of Osijek-Baranja (15.8%), Krapina-Zagorje (15.6%) and Primorje-Gorski Kotar (15.5%). The smallest shares of new entrants were recorded in the Counties of Zagreb (6.7%), Vukovar-Srijem (8.5%), Brod-Posavina (9.0%), Split-Dalmatia (9.1%) and Karlovac (9.4%). Total participants in 2013 accounted for 15.5% of the average number of unemployed persons at the state level. In term of counties, the structure of total participants was almost identical to the structure of new entrants. In 2013, 763 persons belonging to the Roma national minority participated in Active Labour Market Policy measures (Schedule 5b, page 35), of which 688 new entrants joined in the course of the year. The greatest number of new entrants of Roma nationality was recorded in the County of Osijek-Baranja (352 or 51.2%), followed by the County of Međimurje (127 or 18.5%) and the City of Zagreb (88 or 12.8%). The Roma beneficiaries mainly participated in the public works programmes (657 or 95.5%). 33 Croatian Employment Service

Schedule 5a 0 0 0 0 1 5 0 0 0 2 4 0 0 7 5 12 28 396 277 156 417 Total Total 1,310 Participants 0 0 0 0 1 5 0 0 0 2 4 0 0 7 5 Support 12 28 277 156 396 417 New 1,310 Maintenance and Entrants Out-of-work Income Out-of-work 474 842 558 353 465 146 514 976 358 265 198 366 105 276 822 817 849 1,127 1,051 3,736 1,107 Total Total 15,405 Participants 99 472 824 494 353 399 137 906 471 905 306 257 186 318 261 744 653 685 Public Works Public New 1,040 3,275 1,035 13,820 Entrants 405 624 695 588 469 660 557 774 508 877 505 229 399 635 339 556 775 Total Total 1,473 1,667 4,923 1,664 19,322 Participants Contract 285 451 537 453 363 502 415 580 339 647 368 186 321 510 263 405 585 New without a Work Work a without 1,117 1,218 3,615 1,286 Entrants 14,446 Workplace Training Training Workplace 0 0 62 87 37 52 19 29 57 45 57 61 80 55 115 230 144 147 448 144 268 Total Total 2,132 Participants 0 0 62 87 37 52 19 29 57 82 45 57 41 47 63 55 87 111 230 366 241 Institutional Unemployed Training of the Training New 1,768 Type of Measure of Type Entrants 0 0 0 0 0 0 2 0 0 0 0 0 3 0 11 88 84 15 20 12 337 102 Total Total Participants 0 0 0 0 1 0 0 0 0 0 2 0 0 0 2 0 11 Employed 88 96 67 20 Institutional 287 Training of the Training New Entrants 87 65 38 98 116 145 220 332 203 125 149 204 175 550 759 237 230 193 525 272 Total Total 5,737 1,014 Participants 75 98 57 36 79 118 185 289 175 109 125 169 138 471 654 208 868 203 176 460 213 New 4,906 Entrants Start-up Incentives 50 183 309 437 368 265 134 277 176 785 212 165 827 144 246 413 287 536 370 Total Total 9,413 2,154 1,075 Participants 99 91 96 40 Incentives 120 219 289 221 152 170 553 141 125 566 178 310 218 330 225 739 Employment Employment New 6,290 ¸1,408 Entrants 8.5 11.4 11.0 13.3 12.6 15.5 19.3 12.0 16.4 15.7 19.6 18.3 10.7 14.0 19.3 15.0 15.7 15.0 18.3 15.2 27.4 21.3 Total Total Participants 6.7 9.4 9.0 8.5 9.1 Persons, % Share in the 11.2 11.0 11.8 10.8 15.6 12.9 12.8 15.5 14.8 15.8 12.5 13.0 14.7 12.6 21.7 15.9 12.4 New of Unemployed Average Number Average Entrants Participants of Active Labour Market Policy by County and Type of Measure in 2013 Active Labour Market Policy by County and Type Participants of TOTAL 515 1217 1,211 2,581 1,668 1,651 1,377 1,813 1,994 3,787 1,912 1,910 1,563 7,052 1,040 1,274 2,438 5,059 1,661 2,174 9,759 Total Total 53,656 Participants Number of 448 819 Participants 2,211 New 1,310 1,335 1,076 1,420 1,014 1,631 2,994 1,550 1,612 1,223 5,774 1,016 1,923 4,180 1,330 1,013 1,722 7,317 42,827 Entrants County Zagreb Krapina-Zagorje Sisak-Moslavina Karlovac Varaždin Koprivnica-Križevci Bjelovar-Bilogora Primorje-Gorski Primorje-Gorski Kotar Lika-Senj Virovitica-Podravina Požega-Slavonia Brod-Posavina Zadar Osijek-Baranja Šibenik-Knin Vukovar-Srijem Split-Dalmatia Istria 34 Dubrovnik-Neretva Međimurje Zagreb of City TOTAL 2013 Yearbook

Schedule 5b 7 4 0 0 0 0 0 0 0 1 1 0 0 1 0 Total Total Participants 7 4 0 0 0 0 0 0 0 1 1 0 0 1 0

New Entrants Start-up Incentives 2 1 0 0 2 1 4 0 0 2 1 0 6 4 23 Total Total Participants 8 0 0 0 0 1 1 1 0 0 0 1 0 3 1 New Entrants Employment Incentives 0 6 6 0 0 1 18 15 15 45 20 97 717 361 133 Total Total Participants 0 6 6 0 0 1 16 15 15 33 20 87 Public Works 657 351 107 New Type of Measure Type Entrants 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 Total Total Participants Contract 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 without a Work without a Work New Workplace training Workplace Entrants 0 0 0 0 0 0 0 0 0 0 0 0 0 15 15 Total Total Participants 0 0 0 0 0 0 0 0 0 0 0 0 0 Unemployed Training of the Training 15 15 New Entrants 2005 – 2015 by County and Type of Measures in 2013 in Measures of Type and County by 2015 – 2005 1 7 1 1 1 24 15 15 47 10 20 763 364 156 101 Total Total Participants 0 7 7 1 1 1 Participants 20 15 15 34 20 88 688 352 127 New Total Number of Total Entrants Participants of Measures from the National Programme for the Roma and the Action Plan for the Decade of Roma Inclusion Inclusion Roma of Decade the for Plan Action the and Roma the for Programme National the from Measures of Participants County Sisak-Moslavina TOTAL Karlovac Varaždin Koprivnica-Križevci Bjelovar-Bilogora Primorje-Gorski Kotar Virovitica-Podravina Brod-Posavina Zadar Osijek-Baranja Vukovar-Srijem Istria Međimurje City of Zagreb 35 Croatian Employment Service

Unemployment Insurance

Pursuant to the provisions of the Job Placement and Unemployment Insurance Act1, unemployment insurance includes: • unemployment benefit, • pension insurance, • financial assistance, reimbursement for education expenses and financial assistance for vocational training for employment without a work contract , • one-off financial assistance and reimbursement for travel and relocation expenses. The unemployment insurance claiming procedure is initiated upon request of an unemployed person. The requests are handled in accordance with the provisions of the Administrative Procedure Act. The first-instance procedure is carried out by the regional offices of the CES, while the appeals over first-instance decisions are resolved by the Ministry of Labour and Pension System.

Unemployment Benefit Unemployed persons acquire the right to unemployment benefit provided they had worked 9 out of 24 months preceding the termination of employment. In order to be eligible for unemployment benefit, an unemployed person must report to the CES and submit a request for unemployment benefit within 30 days from the date of termination of employment or sick or maternity/paternity leave. If an unemployed person fails to report to the CES within the specified deadline of 30 days due to justifiable reasons, he/she may report to the authorised employment service and submit a request for unemployment benefit within 8 days from the date of termination of the reason that caused the failure to meet the deadline, however no later than 60 days from the missed deadline. An unemployed person whose employment was terminated trough his/her own fault or will shall not be eligible for unemployment benefit. Depending on the total years of service, an unemployed person acquires the right to unemployment benefit for the period of 90 to 450 days. The exception to this rule are unemployed persons with 32 or more years of service missing up to 5 years to be eligible for age-based retirement who may claim unemployment benefit until re-employment or until one of the circumstances prescribed by the afore-mentioned law resulting in termination of the right to unemployment benefit arises. At the request of the unemployed person who has been granted right to unemployment benefit, the same may be disbursed as a one-off payment. The terms and the method of payment are determined under the Decision on the One-off Payment of the Unemployment Benefit2. The one-off payment of the unemployment benefit may be granted for opening a craft (trade) or sole business, for employment in a company in which the relevant unemployed person has a share of no more than 25%, as well as for starting a company and employment within the same. The basis for determining the unemployment benefit amount is the average salary earned in the three-month period preceding the termination of employment reduced by statutory contributions. During the first 90 days, unemployment benefit amounts to 70%. During the rest of the period, it equals 35% of the base amount. During the first 90 days, unemployment benefit may not exceed 70% of the base amount, while during the rest of the period it may not exceed 35% of the average salary paid in the Republic of Croatia in the previous year according to the latest officially published data. The highest unemployment benefit paid out in 2013 was HRK 3,834.60. The average unemployment benefit in 2013 amounted to HRK 1,660.35. 129,980 requests for unemployment benefit (initial requests and requests for continuation of payments) were submitted in 2013, of which 125,005 were approved. Furthermore, 25,278 requests for extending the unemployment benefit right to long-term unemployed persons were submitted in

1 Official Gazette No. 80/08, 121/10, 25/12 and 118/12 2 Official Gazette No. 123/12 36 2013 Yearbook

2013 as well, of which 24,748 were approved. Also, 1,850 requests for extending the unemployment benefit right to unemployed women until the prescribed age-based retirement or early age-based retirement requirements are met were submitted, of which 1,624 were approved. 1,872 requests for one-off payment of the unemployment benefit were received and 1,630 approved. In 2013, there were on average 70,479 unemployment benefit recipients per month, which represents a decrease of 5.0% compared to 2012. The majority of persons in the average number of unemployment benefit recipients are women (accounting for a share of 50.5%), persons aged 25-54 (65.0%), persons with secondary education (66.4%) and short-term unemployed persons (69.7%). On average, 20.4% of the total number of unemployed persons received unemployment benefit in 2013. The share of men (21.4%) was somewhat greater than the share of women (19.5%), while persons above 55 years of age accounted for a greater share (40.2%) than other age groups. Unemployment benefit recipients included more persons with secondary education (21.7%) than persons with lower (18.4%) or higher (18.0%) levels of education, as well as more short-term unemployed (26.5%) than long-term unemployed persons (13.4%).

Unemployment Benefit Recipients by Gender, Age, Level of Education and Duration of Unemployment in 2012 and 2013 Share in the Average Number Structure Average Number of 2013/2012 Unemployed Persons Index 2012 2013 2012 2013 2012 2013 Total 74,171 70,479 100.0 100.0 22.9 20.4 95.0 Gender: Men 36,456 34,898 49.2 49.5 24.0 21.4 95.7 Women 37,715 35,581 50.8 50.5 21.9 19.5 94.3 Age: 15-24 5,344 4,036 7.2 5.7 8.6 6.1 75.5 25-54 48,275 45,780 65.1 65.0 22.4 20.1 94.8 50+ 20,552 20,663 27.7 29.3 43.8 40.2 100.5 Education: No secondary education 17,965 16,513 24.2 23.4 20.7 18.4 91.9 Secondary education 47,972 46,825 64.7 66.4 23.8 21.7 97.6 University education 8,234 7,141 11.1 10.1 23.0 18.0 86.7 Duration of Unemployment: Short-term (0-12 months) 50,737 49,139 68.4 69.7 28.0 26.5 96.9 Long-term (12+) 23,434 21,340 31.6 30.3 16.4 13.4 91.1

Claiming Unemployment Insurance on the Basis of Having Worked Abroad The Job Placement and Unemployment Insurance Act prescribes that a Croatian citizen who had worked abroad is eligible for unemployment benefit during the period of unemployment in accordance with the provisions of the international agreement. A Croatian citizen who had worked in a country with which the Republic of Croatia has not signed an agreement regulating unemployment insurance or a country in which he/she had not been insured for the event of unemployment, may claim the right to unemployment benefit according to the provisions of the Job Placement and Unemployment Insurance Act provided he/she had paid the employment contribution to the Croatian Employment Service for at least 9 out of 24 months preceding the termination of employment abroad. 37 Croatian Employment Service

In the process of determining entitlement to unemployment insurance, the Croatian Employment Service applies the agreements on social security the Croatian Government has signed with other countries as well. Social security agreements containing provisions on unemployment signed with Austria, the Netherlands, the Czech Republic, Bosnia and Herzegovina, Macedonia, Slovakia, Slovenia, Luxemburg, Yugoslavia (Serbia and Montenegro), Bulgaria, Italy and Turkey are currently in effect. Under the social security agreements signed with other countries, only the periods during which the person was insured are taken into consideration when applying for unemployment benefit, provided also that the employment had been terminated in Croatia and that the unemployed person had been, prior to submitting the request, employed in Croatia for a certain period of time or insured for the event of unemployment (e.g. pursuant to the agreement signed with Slovenia: 9 months in the last 12 months; pursuant to the agreement signed with Austria: 26 weeks in the last 12 months). The data concerning the duration of unemployment insurance were exchanged with the mentioned countries in 2,127 cases. Apart from the terms set forth in these agreements, an unemployed person must also meet the requirements set forth in the Job Placement and Unemployment Insurance Act. The agreement the Republic of Croatia has signed with the Republic of Italy provides for an exception stipulating that a particular unemployed person may receive unemployment benefit granted in the country where his/her employment was terminated in his/her country of residence. In that case, the country paying the unemployment benefit may request refund of the paid unemployment benefit from the country which granted the unemployment benefit right. Pursuant to the Unemployment Insurance Agreement signed between the Former Federal Republic of Yugoslavia and the Federal Republic of Germany, which was applied in Croatia on the basis of Section III of the Constitutional Decision on the Sovereignty and Independence of the Republic of Croatia until 30 June 2013, an unemployed person was eligible to seek unemployment insurance in the Republic of Croatia after having worked in the Federal Republic of Germany provided he/she met the conditions prescribed under the Agreement and the Job Placement and Unemployment Insurance Act, and the Republic of Croatia was entitled to send out a request for refund of the paid benefits to the Federal Republic of Germany. 38 such requests were submitted in 2013.

Coordination of Social Security System After 1 July 2013, when Croatia became a full member of the European Union, social security agreements that the Republic of Croatia had previously signed with EU member states ceased to be effective and were replaced by EU Regulations on the Coordination of Social Security Systems (EC Regulation No. 883/2004 and EC Regulation No. 987/2009). The Act on the Implementation of EU Regulations on the Coordination of Social Security Systems3 defines the competent liaison authorities, institutions and bodies and their responsibilities in the implementation of EU regulations. The Croatian Employment Service is the competent authority responsible for the provision of unemployment insurance. The EU regulations provide guidelines for coordination of social security systems of EU member states and define the core principles and conditions related to unemployment insurance, in particular to: • export of unemployment benefits, • import of unemployment benefits, • aggregation of periods of insurance realised in different member states, and • entitlement to unemployment benefit of border and non-border workers. By the end of 2013, the CES issued 25 PD U2 forms authorising export of the unemployment benefit to unemployed persons who were granted right to unemployment benefit in the Republic of Croatia and went to another member state in search of employment, while retaining their right to unemployment benefit; 41 forms confirming that an unemployed person who was granted right to unemployment benefit in another member state came to the Republic of Croatia in search for employment and registered with the CES (SED U 009); 114 forms confirming years of insurance,

38 3 Official Gazette No. 54/13 2013 Yearbook the reasons for termination and last received salary in the Republic of Croatia for the purpose of being granted unemployment insurance in another member state (PD U1, SED U 002, SED U 004). At the same time, 198 request for unemployment benefit with the element of coordination were also submitted (border workers and insurance period aggregation).

Pension Insurance The right to pension insurance is granted to an unemployed person who has been granted right to unemployment benefit and meets the age requirements for age-based retirement, until they meet the first requirement regarding pensionable service for age-based retirement, however up to a maximum of 5 years. In 2013, on average 4 pension insurance beneficiaries were registered with the CES per month.

Financial Assistance and Reimbursement for Education and Workplace Training Expenses An unemployed person referred to an educational programme by the CES is eligible to receive financial assistance in the amount of the lowest unemployment benefit, along with reimbursement for travel expenses (public transportation), reimbursement for the cost of prescribed protective clothes, shoes and other aids if receiving training for occupations in demand pursuant to special authorisations and licences, as well as reimbursement for the cost of food outside the place of permanent or temporary residence for the entire duration of such activities. Furthermore, an unemployed person referred by the CES to workplace training without a work contract has the right to financial assistance during such vocational training in the amount of non-taxable scholarship prescribed under special regulations. In 2013, 1,822 persons claimed the right to financial assistance for the duration of a particular educational programme and 14,523 claimed the right to financial assistance for the duration of workplace training without a work contract.

One-off Financial Assistance and Reimbursement for Travel and Relocation Expenses Unemployed persons in the case of which the CES is not in the position to find employment in their place of permanent residence, and who find employment in some other place, either through their own efforts or through the job placement services provided by the CES, have the right to a one- off financial assistance and reimbursement for travel and relocation expenses (from the place of residence to the place of employment) for themselves as well as their spouses and children. The eligibility requirements for receiving this type of unemployment insurance have been determined on the basis of the Decision on the One-off Financial Assistance and Reimbursement for Travel and Relocation Expenses4. In 2013, 9,196 persons claimed the right to reimbursement for travel and relocation expenses and 18 persons claimed the right to one-off financial assistance.

Number of Unemployment Insurance Requests Approved in 2012 and 2013 2013/2012 Type of Financial Insurance 2012 2013 Index Unemployment Benefit 128,263 125,005 97.5 Extended Unemployment Benefit 21,533 26,372 122,5 One-off Unemployment Benefit 659 1,630 247.3 Financial Assistance during Education 2,222 1,822 82,0 Financial Assistance during WorkplaceTraining 4,909 14,523 295.8 One-off Financial Assistance 12 18 150.0 Reimbursement for Travel and Relocation Expenses 8,157 9,196 112.7

4 Official Gazette No. 74/09 39 Croatian Employment Service

Projects Supported by the International Community

In 2013, the Croatian Employment Service, co-financed by the EU, implemented the projects from the IPA Programme, the Community Programme for Employment and Social Solidarity (PROGRESS) and the Lifelong Learning Programme, i.e. the Leonardo da Vinci Sub-programme.

Instrument for Pre-accession Assistance (IPA) The Croatian Employment Service implements or takes part in the implementation of projects falling within the scope of three different components of the IPA Programme: “Transition Assistance and Institution Building”, “Cross-Border Cooperation” and “Human Resources Development”. Most of the project activities performed by the CES fall within the scope of Component 4: “Human Resources Development”. In 2013, the CES implemented the following related projects:

CES Services for Clients: Improving Lifelong Career Guidance and ICT Support The “CES Services for Clients: Improving Lifelong Career Guidance and ICT Support” project consisted of two components: a services agreement (term: 22 months, value: €2,430,000) and a supply of goods agreement (value: €1,300,000). The implementation of the project ended in July 2013. In the scope of the ICT support component, ICT professionals developed 8 new application modules on the basis of proposals and recommendations for the improvement of the CES ICT system, including: Vocational Guidance, CISOK Web Portal, CISOK Web Portal IT Support, CES ICT Upgrades, Info Kiosk, Share Point Surveys, Labour Market Information System and On-line Services. With the aim of improving lifelong vocational and career guidance services, the third project component was devoted to meeting the preconditions for the formal establishment of the National Forum as an independent advisory network and an umbrella institution in the field of lifelong vocational guidance. A draft legal framework and a National Strategy for Lifelong Vocational Guidance in the Republic of Croatia were prepared. Under the fourth component of the project, eight Career Guidance Informing and Counselling Centres (CISOK) were established. The services of the mentioned centres are available to all citizens. The centres were opened in two locations in Zagreb, as well as in Osijek, Koprivnica, Varaždin, Slavonski Brod, Zadar and Šibenik. The funds obtained under the goods supply agreement were used to equip the CISOK centres and establish the CISOK website www.cisok.hr.

Developing the Investment Plan of the Croatian Employment Service In the course of 2013, the Recommendations for the Improvement of CES Business Spaces, 9 Preliminary Designs for 3 types of office space (small, medium-sized and large) and the CES Investment Strategy for 2014-2018 were also prepared. The implementation of this project ended in August 2013.

Training for Employment of Redundant Workers and Long-term Unemployed Persons On 1 January 2013, the CES started awarding direct non-repayable grants in the total value of EUR 4,300,000. The Training for Employment of Redundant Workers and Long-term Unemployed Persons project ensures financing for training and re-training of redundant workers and long- term unemployed persons. The expected project duration is 24 months. By the end of 2013, 569 persons participated in the project and 9 round tables were held in various CES regional offices (Krapina, Varaždin, Požega, Križevci, Čakovec, Zadar, Bjelovar, Kutina and Gospić). As part of the project, a training programme in public procurement was organised for CES employees. In 2013, the CES announced a tender for awarding the project called “New Approaches to Delivering Services to Clients”, the purpose of which is to strengthen and enhance the competence of the CES for providing services to clients.

40 2013 Yearbook

In the course of 2013, the regional offices of the CES participated in the implementation, as well as independently implemented a large number of projects under the grant programmes.

CES Grant Programmes in 2013

Name of the Grant Programme Regional Offices Project Status Improving labour market access of Bjelovar, Gospić, Karlovac, Osijek, Požega, currently being disadvantaged groups Sisak, Slavonski Brod, Varaždin, Zadar implemented Bjelovar, Čakovec, Gospić, Karlovac, Krapina, Križevci, Kutina, Osijek, Požega, Rijeka, currently being Local employment initiatives Sisak, Slavonski Brod, Šibenik, Varaždin, implemented Virovitica, Vukovar, Zadar and Zagreb Improving sustainable employment currently being of highly educated and long-term Karlovac, Osijek, Požega and Vukovar implemented unemployed persons tender Improving labour market access - announced Local employment development tender - initiatives announced

At the end of 2013, the preparation of documentation for two projects in accordance with the Shared National Rules started: Strengthening of the Croatian Employment Service Labour Market Training Centre and External Evaluation of Active Labour Market Policy Measures. In 2013, the tender for awarding the twinning project called Development of Social Networks within the Croatian Employment Service was announced and the received bids were evaluated. At the end of the year, the contracting phase started as well. The purpose of the project is to improve the provision of information to clients and labour market related services by including alternative channels of communication (Facebook, Twitter, LinkedIn, Google +, etc.). Apart from participating in and implementing projects under Component 4, the CES also implements the projects falling within the scope of Component 1 of the IPA Programme: “Transition Assistance and Institution Building”. In the course of 2013, the regional offices in Osijek, Požega and Slavonski Brod thus participated in the IPA INFO project. Under Component 1 of the IPA Programme, the CES continued implementing the project called “EURES Services for Employers”. The activities related to the improvement of procedures and services for employers associated with international intermediation and employment were completed in the course of the year, and regional training for employees on the topic of the EURES network and services was carried out. The implementation of the project ended in February of 2013. Under Component 2: “Cross-border Cooperation” (IPA CBC), the regional offices of the CES participated in cross-border cooperation projects of border regions of Croatia and Slovenia, Croatia and Serbia and the CBC Adriatic Project. Within the scope of the CBC Croatia – Slovenia project, run under Component 2 of the IPA programme, the regional offices in Čakovec, Krapina and Varaždin participated in the implementation of the project called POM – Youth Enterprise Development Network. Within the scope of the CBC Croatia – Serbia project, the regional office in Vinkovci participated in the implementation of the project called Libraries for a New Age, while the regional office in Dubrovnik participated in the project called AdriaHub implemented within the scope of the CBC Adriatic project.

European Social Fund (ESF) In the framework of the European Social Fund programme for the second half of 2013, the CES worked intensively on the preparation of the Operational Programme “Efficient Human Resources” for 2014 – 2020, and also started working on the preparation of project proposals for the mentioned period.

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Community Programmes The regional offices in Krapina and Zagreb participated in the implementation of theCommunity Programme for Employment and Social Solidarity (PROGRESS). Under the Lifelong Learning Programme, the regional offices of the CES participated in 10 projects carried out under the Leonardo da Vinci sub-programme.

Financial Management of EU Projects Pursuant to the Decision of the Commission dated 17 October 2013 (C(213)6842), the Multi- year Human Resources Development Operational Programme for financial period 2007 – 2013 was adopted, thus rendering all the preconditions for using the financial funds allocated from the European Social Fund for the second half of 2013 satisfied. With the coming into effect of the Act on Establishment of Institutional Framework for Utilisation of EU Structural Instruments in the Republic of Croatia (OG 78/12, 143/13) and the Ordinance on the Bodies within the System of Management and Control of Utilisation of EU Structural Instruments in the Republic of Croatia (OG 97/12), the Department for Financing and Contracting of EU Projects of the Croatian Employment Service, which acts as an Operational Structure for the implementation of the European Social Fund, assumed the role of an Intermediate Body Level 2 responsible for the implementation of Priority 1, measures 2.1 and 2.3 within the scope of Priority 2, Priority 4 and measure 5.1 within the scope of Priority 5 of the Operational Programme “Human Resources Development” with regards to the mentioned allocations. From the total allocated funds for the Operational Programme “Human Resources Development” for 2007 – 2013 in the amount of EUR 179,309,591.00, the Intermediate Body Level 2 of the Croatian Employment Service is responsible for operations in the value of EUR 101,621,166.00 or 56.67%. From the total allocated funds for the second half of 2013 in the amount of EUR 70,588,239.00, the CES is responsible for operations in the value of EUR 42,452,942.00 or 60.14%. In 2013, the implementation and financing of 4 services agreements, 105 non-repayable grant award agreements and 2 direct grant award agreements signed in 2012 were continued. 84 new agreements were signed, of which 1 services agreement, 4 supply of goods agreements, 78 non-repayable grant award agreements and 1 direct grant award agreement. In the course of 2013, the Intermediate Body Level 2 of the Croatian Employment Service announced a total of 12 tenders, of which three for the award of non-repayable grants, five for the supply of services, two for the supply of goods and one twinning tender. With the aim of informing the public about the situation in the sector, the terms and conditions of particular tenders, and the manner of completing the tender application forms, informative workshops were held for each particular tender for awarding non-repayable grants announced in 2013. More precisely, a total of 16 such workshops were held involving 357 potential applicants to the tenders for awarding non-repayable grants. In order to ensure successful implementation of projects, additional 25 workshops on the topic of implementation and informing were organised for the beneficiaries. By the end of 2013, from the total available funds allocated to the Intermediate Body Level 2 of the CES for the period 2007 – 2013, contracts in the value of EUR 48,465,304.72 or 47.69% were signed, while EUR 35,006,034.01 were paid out to the contracting parties in accordance with the contractual obligations.

42 2013 Yearbook

System for Curbing Incidents of Irregularities and Frauds in Using EU Funds Further development of the system for curbing incidents of irregularities and frauds in using EU funds applied within the CES was continued in 2013. The persons in charge of curbing irregularities within the CES took part in an educational seminar on the topic of introducing the new rules and procedures for curbing irregularities and frauds in using EU funds. In the course of the year, they also prepared and conducted an educational seminar on the topic of curbing irregularities and fraud for a total of 21 new CES employees. The CES uses the OLAF IMS information system through which reports on irregularities are directly entered into the OLAF information system. The Reports on Irregularities are prepared on a quarterly basis and submitted to the Ministry of Finance, Office for Curbing Incidents of Irregularities and Fraud in accordance with the instructions defining the activities of persons in charge of handling incidents of irregularities.

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Organisation and Operations of the CES

44 2013 Yearbook

Organisational Structure and Employees

The Croatian Employment Service is a public institution established pursuant to the Job Placement and Unemployment Insurance Act (Official Gazette No. 80/2008, 121/2010, 25/2012, 118/2012, 12/13 – cleared text, 153/13). The CES is a legal person with rights, obligations and responsibilities defined by the law, legal documents and the Bylaws passed by the Managing Board. The operations of the CES are public. The CES must report on its work and activities to the Government of the Republic of Croatia, the public and the competent ministry at least once a year. The legitimacy of activities and general documents of the CES are monitored by the Ministry of Labour and Pension System. The CES performs its operations through the following organisational units: • Central Office, • 22 regional offices, and • 98 local offices, thus making its services available on the entire territory of the Republic of Croatia. The CES includes the following organisational units: 1. Director General’s Office, 2. Labour Market and Employment Policy Sector, 3. Financial Management and CES Asset Management Sector, 4. Legal Affairs and Human Resources Management Sector, 5. Organisational Development and Project Implementation Sector, 6. Independent departments. The CES is governed by the Managing Board composed of seven members, i.e. representatives of state institutions, trade unions, employers, workers and associations of unemployed persons. These representatives are appointed by the Government of the Republic of Croatia. The CES is headed by a Director General who has the authority to represent it and is responsible for the legality of its operations. CES Director General is also appointed by the Government and has a deputy and assistants. The scope, authorities and responsibilities of the Managing Board, Director General, Deputy Director General and Assistants are defined under the CES Bylaws. On 31 December 2013, the Croatian Employment Service employed a total of 1,314 workers, of which 1,054 women (80.2%) and 260 men (19.8%). There were also 288 persons carrying out workplace training without a work contract. The structure of CES employees by the level of education was as follows: 19 (1.4%) university professionals or doctors of science, 792 (60.3%) employees with graduate or post-graduate education, 182 (13.9%) with undergraduate university or post-secondary non-university education, 257 (19.6%) workers who completed a 4-year secondary school or grammar school, 29 (2.2%) employees who completed vocational secondary school in the duration of up to three years or school for skilled or highly skilled workers and 35 (2.7%) employees without secondary education. Employees with undergraduate, graduate and post-graduate education account for more than three quarters of the total number of CES employees (75.6%). From the total number of CES employees, 1,143 or 87% were employed in regional offices and 171 or 13% in the Central Office. The greatest number of employees were recorded in regional offices in Zagreb (188), Split (124), Osijek (101) and Rijeka (71), together accounting for 36.8% of the total number of CES employees.

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Structure of CES Employees by Level of Education, 31 December 2013

Employee Education Pursuant to the guidelines defined under Strategic Goal 2 of the CES: To develop human resources and the administrative capacity of the Croatian Employment Service for creating and providing new services in the labour market; Strategy for Organisational Development of the Croatian Employment Service Labour Market Training Centre (CTR); Guidelines for Employee Training and Advancement Procedures Performed within the Training Centre and the CES Employee Development Plan for 2012 – 2015, the CES focused on enhancing the knowledge and skills of trainers educated in the framework of the CTR project, in order to help them convey their knowledge to training participants from the CES and other labour market institutions and organisations by conducting independent training programmes. The Croatian Employment Service Labour Market Training Centre has four regional centres (Osijek, Rijeka, Split and Zagreb) that employ regional coordinators (experienced trainers) responsible for monitoring, coordinating and organisation of workshops conducted by CTR trainers in regional offices. In addition to strengthening the capacities of trainers, developing new training and advancement modules as well as study materials and tools, the CES also defined the related standards and procedures, prepared the related standardised documents and forms, such as questionnaires for the participants and templates for the analysis of the questionnaires, as well as instructions which constitute integral parts of the CTR Manual with standardised forms, procedures and instructions, as the basis of the CTR educational system. For this purpose, the CES had to create a system for storing all types of documents (original, digital or scanned). Hence, a document coding and archiving system was established. The documents were compiled in four groups (by four regional CTR centres), both in digital form and print. A new training and advancement module was also designed in 2013. It includes a preparatory pilot training and workshops for strengthening the capacities of trainers, as well as a specially designed workshop on the topic of Complaint Prevention (based on the development of soft communicational skills), which will be independently conducted in the course of 2014 by the newly educated trainers supported by experienced trainers. A new Manual with study materials and tools was also prepared. 62 workshops on the mentioned topic were held by 24 CTR trainers. 682 participants attended this one-day training seminar.

46 2013 Yearbook

By the end of 2013, the trainers conducted a total of 121 educational activities in total duration of 125 days, according to established procedures and CTR documents, involving 1,633 participants (including both standard educational training and professional presentations). The monitoring of educational activities was divided in two categories. The first referred to the group of standard educational activities (training and workshops in the duration of 1-2 days), and the other to professional presentations intended for various target groups (participants from the CES, stakeholders and other groups). 942 participants attended the standard educational activities (72%) and 691 participants attended professional presentations (28%). In addition to the workshops on the above-mentioned topic, the trainers independently prepared and conducted 14 other workshops involving 145 participants and held 15 professionals presentations involving a total of 465 participants. These presentations were intended and specially designed for stakeholder participants. Furthermore, 18 professional presentations attended by a total of 200 participants from the CES were held for the purpose of obtaining information about the new procedures introduced after Croatia’s accession to the EU, the novelties in the relevant legal framework and CES business processes. Besides CES employees and stakeholder participants, the persons attending vocational training at the CES for employment without a work contract were also included in CTR educational activities, accounting for 11% of total participants. Apart from the mentioned CTR activities, the CES also organised internal educational activities conducted by experienced trainers, including 11 mainly 5-day training seminars at the national level conducted by the Central Office in accordance with the system for monitoring educational needs of regional offices. These needs mainly refer to the enhancement of knowledge and skills in working with the users of CES services, primarily persons employed as counsellors. 11 training seminars in the total duration of 47 days were held for 148 participants. At the regional level, experienced trainers regularly conducted educational activities aimed at improving the business processes performed by the regional offices. In the course of 2013, 34 educational activities were held involving a total of 335 participants. With the aim of professional advancement of CES employees and promotion of lifelong learning, educational activities aimed at enhancing the competences of counsellors were also carried out in the course of 2013. 4 educational seminars for 69 counsellors working in the field of education, employment and social inclusion were held as part of the Naviguide project on the topic of the application and use of new types of group counselling services. As part of the regular advancement programme, professional advancement seminars were organised for counsellors and activities related to the standardisation and introduction of the new psychological measuring instruments were carried out as well. Within the scope of the IPA project called “CES Services to Clients: Improving Lifelong Career Guidance and ICT Support”, counsellors from the Job Placement and Preparation for Employment Division were introduced to new application modules developed under the mentioned project. The counsellors from the Career Informing and Counselling Centres (CISOK) also held a meeting with the aim of exchanging experiences and improving the business processes performed by CISOK centres.

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Main Responsibilities and Development Strategy of the Croatian Employment Service

The Croatian Employment Service (CES) is a public institution of special significance to the Republic of Croatia, its citizens, business entities and institutions. The main responsibilities of the CES include: • job matching and placement services provided to jobseekers in the country and abroad; • provision of unemployment insurance to unemployed persons; • vocational counselling of unemployed and other persons in making career and occupational choices; • organisation of vocational education, personal advancement and retraining programmes; • promotion of employment and education through implementation of Active Employment Policy measures; • monitoring and analysis of labour market conditions and informing the public of the same. The users of our services include: • employers – companies, craft businesses, trades, 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; • jobseekers – persons registered with the CES who are looking for employment but are not claiming unemployment insurance, including employed persons, students and other; • pupils, students and other – the CES is open to all persons who need information concerning employment and labour market. Here is an overview of the services we offer to employers: • by providing insight into the most comprehensive database on unemployed persons and jobseekers, we conduct selection of candidates that, on the basis of their qualifications, fit the needs of employers best; • we advertise the demand for workers free of charge (on our website, in bulletins, on information boards in regional and local offices); • we provide team (psychological, medical and pedagogical) assessment of the candidate’s characteristics, taking into consideration the job and workplace specific requirements; • we conduct the selection procedure (pre-selection, final selection) and refer the agreed number of candidates to employers for particular jobs; • we offer financial assistance for re-employment or further education through our employment incentive programme; • we provide legal assistance in the field of employment as well as professional and organisational help in the process of restructuring and handling of redundant employees; • on the basis of a contractual relationship, we offer the employers the mentioned and other services without involving a lot of administrative work. To unemployed persons we offer informing, counselling and vocational guidance services, organise workshops, provide unemployment insurance, including: • information about job vacancies from various sources, along with information about the labour market demand, economic trends in particular Croatian regions, successful entrepreneurs, and other; • Info Desk services (the place for regular reporting, handling of administrative matters, arranging individual counselling and group informing sessions, obtaining legal advice, etc.); 48 2013 Yearbook

• individual counselling – assistance in assessment of the work, professional and personal potential, assistance in drawing up a job search and employment plan, target job placement services, feedback on activities carried out and the results achieved; • group informing – provision of information about the situation in the labour market in a particular region (unemployment structure, occupations in short or excess supply) as well as about the CES services that can assist in job search and the rights and obligations based on laws and regulations, emphasising the importance of personal engagement in job search; • various workshops the goal of which is the acquisition of knowledge and skills ensuring as successful orientation in the labour market as possible, as well as occasions for exchanging experiences in the search for employment through informal activities and gatherings; • financial and legal protection of unemployed persons pursuant to the valid laws and regulations (unemployment benefit and other types of assistance); • vocational guidance activities – assistance in additional (self)assessment of personal possibilities and characteristics in choosing an adequate educational programme, determining the remaining working ability, and assessment of the working potential for a specific job position.

Strategic Development Plan of the CES The CES performs its activities in accordance with the guidelines and goals prescribed under the Strategic Plan of the Croatian Employment Service adopted in 2007. The Plan defines the vision, mission and strategic goals of the CES as follows:

Vision To be the leading participant in the development of the Croatian labour market, especially in the process of matching the overall labour force demand with supply with the aim of achieving full employment.

Mission To provide efficient job matching and placement services in the labour market through the development of high-quality services adjusted to the needs of clients, development of own knowledge, skills and abilities and promotion of partner relationships with other labour market stakeholders.

Strategic Goals 1. To develop the services of the Croatian Employment Service with the aim of increasing workforce competitiveness and satisfying labour market demand. 2. To develop human resources and the administrative capacity of the Croatian Employment Service for creating and providing new services in the labour market. 3. To attain the leading position of the Croatian Employment Service in the labour market by establishing partner relationships and strengthening the influence of the CES in the process of drafting and implementation of public policies.

The CES continuously strives to enhance its services, invest in the technological development and business process organisation and design. It takes into consideration the needs of the users, adjusts to the constant changes and strives, in cooperation with other labour market stakeholders, to raise the standards concerning the provision of services to all users, primarily unemployed persons and employers, but also other institutions in the related environment. The purpose of these activities is to increase the workforce employability as well as satisfy the eco- nomic demand for competitive workforce.

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Job Placement and Preparation for Employment

Working with Unemployed Persons Job placement services represent the main function of the CES. This function aims to develop new services based on the recognised user needs. Job placement activities are carried out with the aim of increasing employability of unemployed persons, improving their labour market orientation skills and preventing their social exclusion. In the efforts to achieve this goal, individual counselling, group informing and job search plan design activities play a significant role. At the end of 2013, the total number of CES employment counsellors engaged in carrying out the mentioned activities was 490. Through individual counselling services, employment counsellors assist the unemployed recognise their transferable and other skills acquired through employment or education and define their working potential, which is expected to help the unemployed find employment in the open labour market as soon as possible. The counselling procedure is mandatory to all persons entered in the register of unemployed persons, and it is particularly important for persons who had been employed for a long time or young persons coming directly out of school. In 2013, employment counsellors held 845,058 individual counselling sessions with registered unemployed persons, which is on average 1,725 individual counselling sessions per counsellor. All newly registered persons, and particularly those entered in the register of unemployed persons for the first time, must attend group informing activities. These activities are carried out in order to present to the newly registered unemployed persons the services available to them with regards to the preparation for employment and job search, active employment policy measures, possibilities of employment in the open labour market, rights and obligations of unemployed persons, as well as other information relevant for active job search and understanding the situation in the labour market. In the course of 2013, 11,319 group informing sessions were held for 123,543 unemployed persons. On average, every counsellor held 23 group informing sessions. In order to ensure the widest possible availability of CES services to unemployed persons, besides applying to be entered in the register, unemployed persons may use the Info Desk services to submit a request for unemployment benefit, obtain a certificate of unemployment, receive information concerning job vacancies and other information, as well as fulfil their monthly reporting obligation. In 2013, a total of 338,278 requests to be entered in the register of unemployed persons were processed, 129,956 requests for unemployment benefit were received, 718,941 unemployment certificates were issued and 3,828,499 persons fulfilled their monthly reporting obligation through Info Desk services. Besides conducting group informing and individual counselling meetings with unemployed persons, employment counsellors also help the unemployed create a professional employment plan for the purpose of strengthening their competitiveness in the open labour market. The professional plan contains: a plan of activities the relevant person will carry out or participate in in cooperation with the CES in order to increase his/her level of employability and competitiveness in the labour market, a list of occupations in which the relevant unemployed person has best chances of finding employment and for which the employment counsellor will intermediate in the open labour market, and a plan of activities that the counsellor will carry out in order to assist the relevant unemployed person find the desired employment in the shortest period possible. All newly registered persons must create their professional plans within 60 days from being entered in the register of unemployed persons. The plan execution is being monitored and revised, if necessary, and if it does not result in employment within the period of 6 months, the relevant unemployed person must repeat the counselling procedure and create a new professional plan. In the course of 2013, a total of 341,735 professional job search plans were finalised in cooperation with the newly registered persons, which means that, on average, one counsellor prepared and finalised 697 professional plans for unemployed persons. 50 2013 Yearbook

With the aim of ensuring the best possible preparation of unemployed persons for the labour market and developing their career management competences, the CES conducts standardized strengthening workshops intended for the unemployed. These workshops include topics such as improvement of active job search methods and techniques, writing applications and CVs, methods for self-assessment of interests, motivation and abilities, and other. In the course of 2013, a total of 3,522 different workshops were conducted involving 22,183 unemployed persons. A special emphasis in working with the unemployed is placed on the development of services for unemployed persons with low employability, i.e. long-term unemployed persons, the Roma and other groups facing difficulties in accessing the labour market. In order to provide more services to long-term unemployed persons, the CES organised a series of activities adjusted to their needs: activation through counselling, vocational guidance, team assessment for the purpose of defining a new occupation, workshops, training in job-specific skills, job matching and placement services, co-financing of employment and public works. The individual counselling procedures, including multiple meetings with the unemployed, psychological testing and examination by doctors specialised in work medicine, performed by vocational guidance counsellors, involved 8,137 persons with multiple barriers in accessing the labour market. Pursuant to the Act on Professional Rehabilitation and Employment of Persons with Disabilities and the implementation of measures from the National Strategy for Equalisation of Opportunities of Disabled Persons 2007 – 2015, 1,286 persons with disabilities participated in the vocational guidance activities of the CES in the course of 2013, of which 377 participated in workshops. With the aim of increasing their employability and employment rate, 1,076 disabled persons used the benefits of co-financing of education and employment provided under the active employment policy measures or local employment partnerships, which represents an increase of 38.1% compared to the number of disabled persons who participated in active employment policy measures in 2012. In 2013, 1,744 persons with disabilities were employed. With the aim of increasing the sensitivity of the general public concerning the working possibilities of the disabled, the CES organised a conference with international participation called Professional Rehabilitation – Possibilities and Challenges in March 2013. The conference was attended by 122 representatives from various institutions and the civil sector. As part of the project called “Social Reintegration of Drug Addicts”, 141 unemployed persons (former drug addicts) participated in vocational guidance activities, 23 attended educational activities organised by the CES and 74 found employments (12 through subsidies granted through active employment policy measures). For the purpose of ensuring the preconditions for increasing the employability of the Roma, all registered unemployed persons belonging to the Romani national minority were involved in regular activities of the CES, as well as activities intended exclusively for this target group. In this way, the CES tried to speed up the inclusion of the Roma in the labour market. In 2013, a total of 1,319 unemployed persons of Romani nationality participated in group informing activities and 5,101 participated in individual counselling sessions. In addition, group informing meetings on the topic of self-employment were organised for the persons of Romani nationality who had shown interest in self-employment, i.e. registering a company or sole trade business (according to the information from the professional employment plan). In the course of 2013, a total of 71 informing and counselling meetings on the topic of self-employment were held (compared to 40 such informing and counselling meetings held in 2012), involving a total of 60 unemployed persons of Romani nationality (29.5% more compared to the year before). From the total number of persons who participated in informing and counselling meetings on the topic of self-employment, 7 persons registered a legal entity using the benefits provided under the measure: Co-financing of Self-employment of Persons belonging to the Roma National Minority. Special emphasis was also placed on encouraging and assisting the unemployed start their own business. With the aim of ensuring support to persons interested in self-employment, the CES developed self-employment counsellor services. Self-employment counsellors are responsible for assisting unemployed persons who wish to start their own business define a business plan, introducing them to the possibility of applying for co-financing of self-employment 51 Croatian Employment Service

through subsidies, and providing support during the first year of operation. Self-employment counsellors cooperate with all local stakeholders that can in any way help strengthen a new entrepreneur and help him overcome the initial challenges during the first year of operation. In 2013, self-employment counsellors held 11,500 individual counselling meetings with 9,538 persons interested in self-employment, i.e. every self-employment counsellor held, on average, 221 counselling meetings. The CES also carried out intensive preparation activities for the purpose of ensuring support in the field of employment of young persons through the European Commission’s Youth Guarantee initiative. In this regard, the CES offers to young persons various services aimed at raising their competences and qualifications required for employment and helps include them in the field of entrepreneurship. Among other, special attention was paid to the pupils of final grades of primary and secondary schools coming from children’s homes and young persons without adequate parental care. The goal is to include as many children from children’s homes in the activities of the CES aimed at choosing future occupation before they finish regular schooling. In 2013, the CES established cooperation between the regional offices and children’s and youth homes founded by the Republic of Croatia. The standard services provided by the CES: individual counselling services, including assessment of the working potential, active job search plan, active job search workshops, information about the active employment policy and possibilities for employment, have been adjusted to the specific needs of children raised in children’s homes and youth without adequate parental care. Such activities are conducted within the relevant institutions as opposed to activities intended for other children. The aim of this type of support is to prevent unemployment and ensure the right choice of career and the right choice of education for the purpose of ensuring successful completion and acquisition of qualifications, as well as provide assistance in finding suitable employment. With the aim of improving the services intended for young persons, the CES opened two Youth Centres in 2013, in the regional offices in Split and Zagreb. The Youth Centre is established within the CES and provides all services and activities intended for unemployed young persons. The Centre employs youth counsellors who conduct individual and group activities for young persons, as well as hold lectures, forums, workshops, meetings with visitors, employers and the civil sector. After being registered as unemployed, a young person aged up to 29 is directly connected with the Youth Centre and assigned a youth counsellor who will work with the relevant unemployed young person for the purpose of ensuring their access to the labour market. The emphasis is placed on informing and involving as many young persons as possible in active employment policy measures specially designed for this target group. Each month, the Youth Centre organises various events (workshops, seminars, forums, etc.) intended for young persons for the purpose of their activation, preparation for employment and career planning. With the aim of improving and making vocational guidance and career management skills development services available to all, the CES established in 2013 eight Career Informing and Counselling Centres (CISOK) operating outside the CES. The mission of CISOK centres is to provide vocational and career guidance services to all citizens in order to help them improve their personal potential and position in the labour market by opting for further education or acquisition of additional knowledge and skills and thus improving their employability. The activities of the centres are based on the principles of self-help and provision of counselling services in accordance with the needs of the users. The centres provide information about the labour market, occupations, education and other information relevant for career development and improvement. Since their establishment in August 2013 until the end of the year, 10,643 persons used the services of the centres, including jobseekers, unemployed persons and pupils of primary and secondary schools who are also the most frequent users of the services provided by the centres. CISOK centres employ specially trained vocational and career guidance counsellors. The CES plans to open new centres in the future. Since volunteering is an efficient method for acquiring work experience and can also be a simple and effective way of activating young persons in periods when opportunities for employment are meagre, the CES applies the practice of informing unemployed persons about the importance 52 2013 Yearbook and advantages of volunteer work through group informing activities. In 2013, the CES engaged 11 volunteers in its regular activities.

Working with Employers To ensure that services for employers are as effective as possible, the CES has established a system of working with employers which includes clearly defined activities and responsible persons, objectives and measurable implementation indicators. The aim is to develop a business relationship with all employers offering employment to workers from the register of unemployed persons and thus increase the share of employers that use the services of the CES. In this regard, the CES has established departments for working with employers across its regional offices. The goal of activities performed by the counsellors responsible for working with employers is to attract new clients to the CES. The best way to establish business cooperation is to visit the employers and carry out all agreed activities at the agreed time. The goal of the CES is to visit each employer that offers employment to workers from the register of unemployed persons at least once every two years. In the course of 2013, employment counsellors made 25,784 visits to employers. Every counsellor visited, on average, 53 employers. Special attention was devoted to activities associated with working with companies in the process of restructuring and companies that were forced to lay off a significant number of employees. In 2013, mobile team counsellors carried out individual informing activities in 159 companies involving 1,710 workers, while group informing activities were conducted for 1,489 workers. Mobile teams are organised in regional offices in Zagreb, Osijek (Đakovo), Zadar and Rijeka. The activities of mobile teams were aimed at introducing and informing the redundant employees (134 workers) about the procedure for applying to be entered in the register of unemployed persons and the required documentation for submitting a request for unemployment benefit, as well as with the possibility of employment through co-financing of self-employment. A mobile centre was established within Brodosplit, a company forced to lay off a significant number of workers. The services of the centre were used by 857 workers during their notice period. The regional offices of the CES contacted a total of 257 employers from the field of shipping. Mobile team activities were carried out at 142 shipping companies and the CES paid a visit to 115 employers for the purpose of obtaining information concerning possible redundancy. In cooperation with employers, the CES continuously carries out vocational informing and counselling activities as well as vocational selections, including a psychological testing of potential candidates for employment, for the purpose of ensuring competent workforce on the basis of identified competences, knowledge, interests and skills, as well as job-specific requirements. In 2013, 3,442 persons participated in vocational psychological selections for employment purposes.

Redeployment Programmes Drawing up of a redeployment programme is a special measure the goal of which is to remove or mitigate the damage arising from the termination of the work contract for the worker. More precisely, a situation where a large number of lay-offs happens at the same time or within a short period of time has substantially different social, economic and other consequences compared to individual lay-offs. The Croatian Employment Service actively participates in solving the so-arisen problem pursuant to the Labour Law5. Already during the counselling activities, the CES tries to help the redundant employees or those facing the threat of lay-off by providing placement services during the notice period with the aim of securing other employment for them by referring such employees to retraining or advancement programs for the purpose of obtaining some other position in the same company or elsewhere. In the implementation of the said activities associated with the manner of handling situations of employee redundancy, 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.

5 Labor Law (Official Gazette No. 149/09, 73/13) 53 Croatian Employment Service

In 2013, the CES received 107 Redeployment Programmes involving 12,843 persons, of which 4,289 women (with a share of 33.4%) and 8,554 men (with a share of 66.6%). As far as the structure of workers covered by redeployment programmes by the level of education is concerned, workers with secondary school education (44.3%) accounted for the largest share, followed by skilled and highly-skilled workers (20.9%), low-skilled workers (11.6%) and workers with university education (9.0%). As far as the age structure is concerned, the programmes involved mainly older workers. Two fifths (40.5%) belonged to the group of persons above 55 years of age and one quarter (24.5%) to the group of persons between 45 and 55 years of age. Workers aged 35- 44 (18.7%) and younger than 35 (16.0%) accounted for the smallest share of persons covered by redeployment programmes. Most persons covered by redeployment programmes came from manufacturing (a share of 47.3%), electricity, gas, steam and air-conditioning supply (14.5%), wholesale and retail trade, repair of motor vehicles and motorcycles (10.6%), human health and social work activities (8.9%) and transportation and storage (8.8%). Compared to 2012, when the CES received 91 Redeployment Programmes encompassing 5,697 persons, the number of programmes received in 2013 increased by 16 (or 17.6%), while the number of persons encompassed by the same increased by 125.4%. In 2013, the number of newly registered persons following the termination of employment due to economic, technical or organisational reasons was 49,700. The figure shows that slightly more than one quarter of persons registered in 2013 as redundant workers was covered by redeployment programmes, which is a significant increase compared to the previous years.

Number of Programmes, Number of Persons Covered and Share of Persons whose Employment was Terminated for Economic Reasons Covered by Redeployment Programmes, 2009 - 2013 Number of newly Number of Number of registered persons Share of persons Year programmes persons whose employment covered by the received covered was terminated for programmes (3:4) economic reasons 1 2 3 4 5 2009 89 6,199 64,493 9.6 2010 89 5,637 65,087 8.7 2011 44 3,457 49,458 7.0 2012 91 5,697 52,463 10.9 2013 107 12,843 49,700 25.9

Early Intervention and Prevention Activities Intended for Pupils and Students Vocational guidance activities intended for primary and secondary school pupils are an important employment policy tool. They include early interventions and are aimed at preventing (long-term) unemployment. The CES provides vocational guidance informing and counselling services to pupils of final grades of primary and secondary schools. In 2013, there were 94,487 pupils of final grades of primary and secondary schools in Croatia. 17,146 pupils were involved in various types of individual and group informing activities (a share of 18.1%), and 13,160 were involved in individual and group counselling activities (13.9%). The pupils most in need of vocational guidance services were identified in cooperation with schools, particularly the groups of pupils defined in the Decision on Elements and Criteria for Enrolment of Pupils in the First Grade of Secondary School passed by the Ministry of Science, Education and Sports for academic year 2013/2014. Furthermore, in cooperation with the chambers of crafts and trades and with the aim of promoting occupations in demand in the labour market, the regional offices of the CES carried out various activities aimed at promoting occupations in demand and financing of medical examinations for enrolment of pupils 54 2013 Yearbook in educational programmes for occupations in demand. In 2013, 776 pupils were examined for the purpose of enrolment educational programmes for occupations in demand. Just like every year, a vocational interest survey was carried out among the pupils of final grades of primary and secondary schools in 2013 as well. The total number of pupils who participated in the survey was 60,000, of which a sample of 10,206 completed questionnaires was processed for research purposes. The results of the survey are important for the process of planning, implementation and monitoring of vocational guidance activities, providing recommendations for the enrolment policy and the policy concerning scholarships for secondary and post-secondary education, as well as the process of adjusting supply and demand in the labour market. Five regional brochures called “Where to after Elementary School?” (Kamo nakon osnovne škole?), which provide guidelines for the enrolment of pupils in secondary schools in academic year 2013/2014, were prepared in 2013 as well. In cooperation with the University of Zagreb and for the purpose of providing information to pupils of final grades of secondary schools, the CES also prepared “A Guide for Future Students” (Vodič za buduće studente). Self-informing about educational, employment and vocational guidance programmes, possibilities and services was made possible to various groups of users through a computer program called “My Choice” (Moj izbor). The program provides insight into descriptions of 350 occupations, information about educational and employment programmes and possibilities, as well as interest and competence tests based on which the program refers the users to the most adequate occupations or types of jobs. In 2013, the program was used at 42 licensed locations – in all regional CES offices, Career Informing and Counselling Centres, selected primary and secondary schools which had showed interest in the software, and other labour market oriented institutions, adult education institutions and similar.

55 Croatian Employment Service

Sources of Financing and the Structure of Expenditures

Sources of Financing Pursuant to the provisions of the Job Placement and Unemployment Insurance Act, the sources of financing of employment-related activities include the employment contribution and other sources. Pursuant to the Statutory Insurance Contributions Act, employment contribution is paid into the unique state treasury account. Within the meaning of the Budget Act, the Croatian Employment Service is a non-budgetary beneficiary financed through the budget and other sources. Pursuant to the Order of the Ministry of Finance, by cancelling the transfer account of the Croatian Employment Service in 2007, income from other sources is now paid into the state budget account as well. The total expenditures of the CES for 2013 are thus also included in the State Budget expenditure plan. The total planned income for 2013 amounted to HRK 2,324,042,558, and the total realised income amounted to HRK 2,291,377,415, which accounts for 98.6% of the annual plan. The realised income from the State Budget amounted to HRK 2,239,153,694 or 97.8% of the planned amount. The realised income includes funds for financing the regular activities of the CES, funds for national co-financing of EU projects, and funds from the European Social Fund for co-financing of expenditures of ESF projects. Income realised from financial assistance received from international organisations and EU bodies and institutions amounted to HRK 34,080,287 or 101.6% compared to the planned amount. In 2013, the CES also realised income from financial aid and donations in the total amount of HRK 218,800, income from assistance received from budgetary beneficiaries on the basis of a transfer of EU funds in the amount of HRK 16,850.398 (for financing of EU projects involving the regional offices of the CES and financing of the Lifelong Learning Programme run by the Agency for Mobility and EU Programmes) and income for financing of the expenditures related to vocational training for employment without a work contract in the amount of HRK 1,061,748, the CES being the beneficiary of the mentioned measure. These sources of income were not included in the planned budget and were used up to the amount paid into the account pursuant to the provisions of Article 50 of the Budget Act. The income from the sale of non-financial assets amounted to HRK 12,488 and refers to long-term assets disposed of in accordance with the provisions of the Regulation on Budget Accounting and Calculation Plan.

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 2013, the CES Income and Expenditure Plan for 2013, and the laws and legal provisions applicable to the operations of the CES. In 2013, the total expenditures amounted to HRK 2,290,949,784 or 1.4% less than planned. In the structure of realised expenditures, expenditures related to the provision of unemployment insurance accounted for the largest share, i.e. 71.35% or a total of HRK 1,634,794,636, of which HRK 1,402,194,632 was used for the payment of the unemployment benefit to unemployed persons. HRK 230,478,864 was used for the payment of financial assistance and reimbursement for education expenses (if an unemployed person is referred to an educational programme or vocational training for employment without a work contract by the CES), of which HRK 1,806,604 referred to the funds allocated for the project called “Training for Employment of Redundant Workers and Long-term Unemployed Persons”. HRK 2,121,140 was used for the payment of the one-off financial assistance and reimbursement for travel and relocation expenses of unemployed persons employed outside of their place of permanent residence. In 2013, a total of HRK 391,682,000 (17.09% of total expenditures) was spent on active labour market policy measures, of which HRK 362,119,534 on the measures covered by the Annual National Employment Incentive Plan and HRK 9,000,577 on the measures covered by the Action Plan for the Decade of Roma Inclusion 2005 - 2015. Some of the active employment policy measures were financed using the funds allocated for EU projects, namely “Vocational Training for Employment without a Work Contract”, in the amount of HRK 17,079,751 and “Training for Employment of 56 2013 Yearbook

Redundant Workers and Long-term Unemployed Persons” in the amount of HRK 3,482,138. The planned funds for these two projects refer to national co-financing measures, while the income from EU funds was not envisaged under the plan and was used on the basis of the Budget Act pursuant to which the disbursed and transferred financial aid may be used in excess of the amount envisaged under the state budget. A total of HRK 1,199,649 was spent on vocational guidance activities, which represents 0.05% of total expenditures. The expenditures related to the employees of the CES amounted to HRK 132,149,919, accounting for 5.76% of total expenditures. Employee salaries and benefits are paid in accordance with the Basic Collective Employment Agreement for Public Service Employees and Officers, Collective Agreement for the Croatian Employment Service, Regulation on Internal Organisation and Systematisation of Jobs with the Job Complexity Coefficient and other legal regulations pursuant to which the payment of salaries in public services is regulated. Some of the employee-related expenditures were financed using the funds allocated for the project called “Direct Award of Non-repayable Funds to the Human Resources Development Operational Structure” in the amount of HRK 2,112,892. In 2013, the material and financial expenditures of the CES accounted for a total of HRK 45,563,152 (1.98% of total expenditures). Some of these expenditures were financed using the funds obtained through financial aid and donations in the amount of HRK 183,807, some were financed using the income earmarked for financing of expenditures for vocational training for employment without a work contract in the amount of HRK 1,061,748, while the expenditures in the amount of HRK 472,281 were financed using the funds allocated for the “Direct Award of Non-repayable Funds to the Human Resources Development Operational Structure” project. HRK 12,763,478 (0.55% of total expenditures) was spent on the procurement of non-financial assets, of which HRK 5,785,370 using the funds from the state budget, HRK 34,977 using the funds obtained through capital aid and donations, and HRK 6,943,131 from the funds allocated for the project “CES Services for Clients: Improving Lifelong Career Guidance and ICT Support”. The structure of expenditures of the Croatian Employment Service also includes the expenditures allocated under EU pre-accession assistance programmes and other projects run by the European Union and international organisations. The expenditures related to the implementation of Component 4 of the IPA Programme: “Human Resources Development” account for the largest share of the afore-mentioned expenditures, i.e. HRK 70,941,869, as the CES is the implementation authority. The regional offices of the CES carry out projects financed under Component 4 and Component 2 of the IPA programme, namely “Human Resources Development” and “Cross-border Cooperation”. A total of HRK 625,697 was used for projects implemented under Component 4 and a total of HRK 42,102 for projects implemented under Component 2. The expenditures envisaged under the plan for the projects implemented under the PROGRESS programme (Community Programme for Employment and Social Solidarity) amounted to HRK 24,308, while the expenditures related to the Lifelong Learning Programme amounted to HRK 983,395. The total amount used for other projects implemented by the CES was HRK 167,091. Pursuant to the provisions of Article 57 of the Regulation on Budget Accounting and Calculation Plan, the CES ledgers include the expenditures of donated long-term assets in the amount of HRK 12,488. The income/expenditures balance was recorded in the books as a surplus income in the amount of HRK 427,631, which together with the surplus income from previous years makes up a surplus income of HRK 1,643,632 to be used in 2014.

Public Procurement and CES Asset Management Public Procurement - The Croatian Employment Service is an institution obligated to apply the Public Procurement Act (Official Gazette No. 90/11, 83/13, 143/13, 13/14) and related subordinate regulations. In 2013, the CES planned and executed procurement operations related to the supply of goods, works and services pursuant to the said act and in accordance with the public procurement principles, while ensuring transparent participation and equal treatment of all economic entities as well as promoting market competition. 57 Croatian Employment Service

After adopting the budget and subordinate regulations based on the Public Procurement Act, the CES drafted the Procurement Plan for 2013. The CES Procurement Plan is a document providing public insight into the list of all the needs for the procurement of goods, works and services of the CES within a given period in a transparent way. The CES published its Procurement Plan for 2013 on its web pages and notified the central state administrative body responsible for the public procurement system about it, as stipulated under the Public Procurement Act. In accordance with the Procurement Plan, the CES executed in 2013 a total of 36 low-value procurement operations (procurements whose estimated value is equal or higher than HRK 70,000.00 and lower than the European threshold of EUR 200,000), of which 5 operations refer to the supply of services from Appendix II B, 6 high-value procurement operations (procurements whose estimated value is greater than the European threshold of EUR 200,000), of which 2 operations refer to the supply of services from Appendix II B, and signed 128 individual public procurement agreements on the basis of the 128 already signed master agreements. The Public Procurement Act stipulates that all procurement operations (low- and high-value operations and the signed agreements) must be published in the Electronic Public Procurement Bulletin. In 2013, the CES published 105 notices, including invitations to tender, notifications of signed agreements, etc. Pursuant to Article 44 of the Public Procurement Act, the CES published on its web pages 98 invitations to tender for the supply of services from Appendix II B for 6 objects of procurement: medical services, medical and sanitary services for the unemployed, complete medical examinations for workers, vocational training, security services, and travel agency services. Pursuant to Article 44, Section 5 of the Act, the CES sent out invitations to tender for the procurement of legal services (services listed in Appendix II B), and was not obligated to publish the same on its web pages. However, the CES published the relevant agreements in the Electronic Public Procurement Bulletin. The CES kept a register of public procurement agreements and master agreements, as well as updated the data from the register at least every six months and published it on its web pages. The CES also kept a record of procurement operations and procurement agreements signed and delivered a statistical report on the procurement agreements signed to the Public Procurement System Administration. CES Asset Management – The CES performs its regular activities in its own or leased commercial spaces. The CES owns 25,126.59 sq m of commercial space, which is used by the Central Office, 22 regional offices and local offices. The CES also uses 4,571.89 sq m of leased commercial space. 45 commercial spaces are used on the basis of lease agreements including rent payments, while 25 commercial spaces have been allocated to the CES for rent-free use. 4 tender documentation packages were prepared and 4 tender procedures completed in 2013, of which 3 for the lease of commercial space owned by the CES and 1 for the sale of commercial space owned by the CES. After the completion of bankruptcy and execution procedures, the CES acquired real property from 32 loan beneficiaries, of which 6 legal and 26 natural persons, in the total estimated value of HRK 54,152,918.90. The CES is also in possession of real property acquired from 4 companies in the estimated value of HRK 33,512,695.82 and real property acquired from 6 natural persons in the estimated value of HRK 1,300,378.83. The real property acquired from 2 companies in the total estimated value of HRK 16,604,214.93 and real property acquired from 20 natural persons in the total estimated value of HRK 2,735,629.32 are not in possession of the CES. In addition, the CES owns 17 flats, of which 4 flats are allocated for temporary use on the basis of lease agreements in areas of special state concern pursuant to a decision issued by the Ministry of the Sea, Tourism, Transport and Development, Administration for Displaced People, Returnees and Refugees (Vukovar), 2 flats are used by protected tenants, 1 flat is used by the Croatian Pension Insurance Institute, 5 flats are used by CES employees, and 5 flats are empty. The CES covers utility costs for the mentioned flats. The CES is a shareholder in 13 stock companies and owner of business shares in 3 limited liability companies. The total nominal value of shares owned by the CES is HRK 17,987,600.00, and the total value of business shares owned by the CES is HRK 1,467,300.00. 58 2013 Yearbook

Schedule 6

Statement of Income and Expenditures, 1 January – 31 December 2013 (HRK)

Index No. Account Name of Account Planned Realised (5:4) 1 2 3 4 5 6 INCOME 1 671 Income from the State Budget 2,290,493,640 2,239,153,694 97.8 Financial aid from international organisations and EU bodies 2 632 33,548,918 34,080,287 101.6 and institutions Assistance from budget beneficiaries on the basis of a 3 6333 16,850,398 transfer of EU funds 4 6331,6332 Income from financial aid 186,550 5 652 Other non-mentioned income 1,061,748 6 663 Income from donations 32,250 7 7 Income from the sale of non-financial assets 12,488 Total Income 2,324,042,558 2,291,377,415 98.6 EXPENDITURES 1 3711 Unemployment Insurance 1,635,561,170 1,634,794,636 100.0 Unemployment benefit 1,402,194,632 Education-related expenditures (financial assistance, travel 230,478,864 expenses etc.) Other expenditures (reimbursement for travel and relocation 2,121,140 expenses, one-off financial assistance) 2 3 Active Employment Policy 374,450,167 391,682,000 104.6 3 National Employment Incentive Plan 362,230,767 362,119,534 100.0 3 Action Plan for the Decade of Roma Inclusion 9,033,000 9,000,577 99.6 Project “Vocational Training for Employment without a Work 3722 2,717,400 17,079,751 628.5 Contract” Project “Training for Employment of Redundant Workers and 3722 469,000 3,482,138 742.5 Long-term Unemployed Persons” 3 3721 Vocational Guidance 1,200,000 1,199,649 100.0 4 3,4 Project expenditures 124,831,640 72,784,462 58.3 Projects implemented under the components of the IPA 32, 37, 4 programme: “Human Resources Development” and “Cross- 56,100 667,799 1190.4 border Cooperation” 32, 34 Projects implemented under the PROGRESS programme 25,250 24,308 96.3 32,37 Projects implemented under the Lifelong Learning Programme 100,000 983,395 3237 Other projects 43,900 167,091 39.4 Component 4 of the IPA programme: “Human Resources 3,4 124,226,390 70,941,869 57.1 Development” 5 3,4 Administration and Management 187,999,581 190,489,037 101.3 31 Employee expenditures 130,911,672 132,149,919 100.9 32, 34 Material and financial operating expenditures 44,092,909 45,563,152 103.3 4 Expenditures for the procurement of non-financial assets 12,995,000 12,763,478 98.2 38 Other expenditures from donated assets 12,488 Total Expenditures 2,324,042,558 2,290,949,784 98.6

Total Income 2,324,042,558 2,291,377,415 98.6 Total Expenditures 2,324,042,558 2,290,949,784 98.6 Balance 427,631 9221 Surplus from previous period 1,216,001 Surplus Income 1,643,632

59 Croatian Employment Service

Internal Financial Control System

Pursuant to the Public Internal Financial Control System Act (OG 141/06), the internal financial control system includes financial management and control, and internal auditing. The Croatian Employment Service carries out both activities envisaged under the system with the aim of improving its operations.

Financial Management and Control Financial management and control departments serve to ensure proper, economical, ethical, efficient and effective performance of operations and their compliance with the laws, regulations, policies and plans; to protect the assets from losses caused by poor management, unjustified spending and utilisation, irregularities and frauds; to strengthen the competences for successful achievement of the set goals; as well as to ensure timely preparation of financial reports and monitoring of business results. Within the Croatian Employment Service, financial management and control activities are carried out within the scope of five different components: control environment, risk management, control activities, information and communication, as well as monitoring and assessment of the financial management and control system. In 2013, internal instructions called “Code of Conduct for the Employees of the Croatian Employment Service” were prepared and delivered to all CES employees as part of the Control Environment component. The Code of Conduct is based on five principles, including the respect of the law, personal and professional integrity of CES employees, responsibility, working in the interest of the public and prevention of conflicts. As part of the same component, the Procedure for Developing the CES Strategic Plan was prepared in 2013 as well. Within the scope of activities carried out under the Risk Management component, the CES Risk Management Strategy was prepared, the CES Risk Register established and the importance of risk management was presented to the management of the CES. The Procedure for Conducting Annual Controls related to financial management and control activities performed within the Croatian Employment Service was prepared within the scope of the Control Activities component. Pursuant to the regulations, the Annual Report on the Public Internal Financial Control System for 2012 was delivered to the Ministry of Finance together with the Plan for Designing and Implementing the Financial Management and Control System for 2013.

Internal Auditing Pursuant to legal regulations, the CES performs internal audits with the aim of improving its operations. Internal audit departments support the budget user in the process of achieving their goals through drafting strategic and annual internal audit plans based on the objective risk assessment, performance of separate internal audits in accordance with the adopted plans, assessment of the adequacy and efficiency of the financial management and control system, as well as through the provision of recommendations related to the improvement of their business operations. On the basis of the Annual Internal Audit Plan for 2013, eight audits were conducted within the CES for which final auditor’s reports were drawn up, including action plans with 13 accepted recommendations and steps to be taken. The implementation of the same is monitored in accordance with the provisions of Article 29 of the Public Internal Financial Control System Act. On the basis of the recommendations specified in auditor’s reports, the existing internal controls integrated into the processes, designed and implemented by the management in the particular process being audited, is improved.

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Pursuant to the Public Internal Financial Control System Act, an Annual Report on Conducted Audits and Internal Auditing Activities was drafted and delivered to the Central Harmonisation Unit of the Ministry of Finance. In 2013, the activities related to obtaining internal auditors’ opinions about the financial management and control system for audited areas as part of the Fiscal Responsibility Statement were carried out, including the preparation of the Internal Auditing Strategic Plan for the next 3-year period and the Internal Audit Annual Plan for the next year, thus ensuring monitoring of the quality of activities performed by the Internal Audit Department. Cooperation between internal audit departments established within other state administrative bodies and institutions was maintained through regular meetings and events organised by the Central Harmonisation Unit of the Ministry of Finance, as well as through informal communication among internal auditors for the purpose of exchanging professional experiences and examples of good practice. Internal auditors from the CES also participated in the activities of the working groups formed under the peer learning programme called “Internal Auditing”. Furthermore, the mentioned working group conducted a meeting in 2013 at which further activities concerning the identification of examples of good practice in internal auditing, exchange of experiences and knowledge, and international cooperation among internal audit departments of public employment offices in Germany, Austria, Sweden, Norway, Belgium (VDAB), Moldavia and Croatia were discussed.

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ICT Support for CES Operations

The activities related to ICT support for CES operations are based on the “Strategy for Development of ICT Support for Business Processes”. The planned development and improvement of ICT support for business processes applied in working with the users was completed in 2013. The user platform was upgraded to include new and improved application modules: • Application support for redefined business processes used in working with unemployed persons (categorisation and professional plan) was developed, and the implementation of the same is expected in 2014. • Application support was also developed for supporting processes (vocational training of CES employees, international cooperation, project management). • Application support for conducting online survey research based on the Limesurvey Platform was developed as well. • The Info Desk sub-system was adjusted to meet the changes in the legal requirements (revocation of the monthly reporting obligation) and the application was redesigned in line with the new legal regulations as well. The Info Desk was also integrated with the personal identification number (OIB) system and the pension system database. • New support for the CES portal called “Burza rada” was developed and implemented. • The application system for integration with the CES contact centre was upgraded (data on unemployed persons and employers). • Application support for using the NIAS system (National Identification and Authentication System) and accessing the personal user mailbox system (OKP) was developed as part of the Croatian Government’s project “e-citizens”. • A system for monitoring the disbursement of financial benefits to unemployed persons during active job search in other EU member states (export of unemployment benefit) was established. • In cooperation with the Croatian Pension Insurance Institute, the data concerning the education of unemployed persons were integrated in the “e-employment record” system. The following activities were carried out with regards to the communication platform: • The project called Unified Communications was implemented. • The Call Centre platform was upgraded. The following activities were carried out with regards to the technology platform: • The Private Cloud system was upgraded. • The user computer equipment was replaced with new equipment. • Computer equipment supplied in the framework of the project “CES Services for Clients: Improving Career Guidance and ICT Support” was delivered and installed in the APIS IT space; and connection between the new Data Centre and the Data Centre located at Radnička 1 was established. • Provision of support to the newly opened local offices of the Zagreb Regional Office (Zagreb South, SR Njemačke 6 and Zagreb West, M. Tartaglie 2) was ensured.

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Publicity and International Cooperation

Publicity of Operations As in previous years, PR activities aimed at ensuring the visibility of the CES and its services to unemployed persons, employers and the general public continued in 2013 as well. The transparency of activities and operations of the CES is ensured through everyday communication with the media, guest appearances in radio and television shows, media releases, press conferences, printing of leaflets brochures, promotional materials, organisation of round tables, public events and visits, provision of complete information to all institutions that require labour market related information for their activities and analyses, informing about the activities carried out by the CES through its website and social networks. Through the mentioned activities the public is timely informed about the condition and changes in the labour market at both regional and national level, novelties in the labour market and the activities carried out by the CES. In the course of 2013, 29 requests for information submitted pursuant to the Access to Information Act were handled and an annual report on the implementation of the said Act was prepared and delivered to the Agency for Protection of Personal Information, as prescribed. Compared to 2012, the number of requests decreased by 25.6%, which indicates that an increase in CES information and data transparency has been achieved. In 2013, the CES activated a new website www.hzz.hr and its portal www.burzarada.hr was upgraded to ensure simplified use and browsing for its users. The CES continuously works on updating the data and texts on its website in order to make all important information and forms available to the users as quickly as possible. In the course of 2013, the CES issued 12 CES Newsletters for partners, associates and employer in order to inform them about the most important developments within the CES. Furthermore, the labour market statistics and data at both regional and national level were published in 276 Monthly Statistical Bulletins, 23 Yearbooks in Croatian and 1 Yearbook in the English language. 6 Analytical Bulletins providing the analysis of data about the occurrences, conditions and trends in the Croatian economy and labour market and comparisons of the characteristics of the Croatian labour market with those of other EU member states, were also issued (4 at the national and 2 at the regional level). In 2013, the CES also carried out an annual employer survey supported by the following partners: Croatian Chamber of Economy, Croatian Chamber of Crafts and Trades and Croatian Employers’ Association. After the survey, 23 reports on survey results were prepared at the national level and at the level of the regional offices of the CES. Joining social networks, such as Facebook, Twitter and Linkedin, at the end of 2012 proved a valuable solution in terms of establishing communication with the users. On Facebook, the most frequented social network, CES recorded 10,000 followers/users at the end of 2013, which shows an increasing trend and an actual increase of 75% compared to 2012. The CES continuously cooperates with all state administrative bodies, institutions and authorities from its environment, develops partnerships and participates in over 170 different activities (round tables, conferences, seminars). The regional offices of the CES organised 44 round tables as part of job fairs or other events associated with employment and human resources development policies intended for employers and other labour market stakeholders.

International Cooperation The bilateral and multilateral cooperation fostered between the Croatian Employment Service and its partners was continued in 2013 through various projects, seminars, workshops, professional meetings and study visits to public employment services at the regional, European and global level. During the first half of 2013, the CES actively and systematically carried out the preparation activities for full participation in the work of the competent bodies, committees and sub-groups of the European Commission responsible for the European labour market and employment by attending meetings of

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the Employment Committee, the EMCO Indicators Sub-group and the Ad Hoc Sub-group, by taking part in the preparation for the meetings of the Employment, Social Policy, Health and Consumer Affairs Council (EPSCO), as well as by attending bilateral meetings with the European Commission. The CES also participated at the meetings of the Heads of Public Employment Services (HoPES), meetings of assistants to HoPES, as well as the meetings of the EURES Working Party, EURES correspondents and the EURES Working Group for Internship and Apprenticeship. In addition, the CES also participated in the PARES meetings and the PES-to-PES Dialogue. After the Republic of Croatia became an EU member state on 1 July 2013, the Croatian Employment Service became a full participant in European committees, groups and sub-groups engaged in matters related to employment and labour market and assumed the obligations arising from EU membership associated with the harmonisation of the Croatian laws and regulations concerning labour and employment with the European legal framework, the procedure for adopting new legal acts, as well as the harmonisation of views of the member states concerning the issues associated with particular policy documents/directives with the aim of creating uniform EU policies. In September of 2013, the CES received a delegation from the European Parliament Committee on Employment and Social Affairs. On this occasion, the implementation of the Operational Programme “Human Resources Development” for 2012 – 2013 (co-financed by the ESF) was discussed. As part of the European Semester, the representatives of the CES participated at the bilateral meeting between the Republic of Croatia and the European Commission held in October 2013. One of the topics discussed at the meeting was Croatia’s programme of economic reforms envisaged for 2013. Since it joined the World Association of Public Employment Services (WAPES), the Croatian Employment Service has actively participated in activities performed by the Association. In 2013, it continued performing various activities in its capacity as a member of the Managing Board and the co-presiding public employment service for the WAPES Region Europe (together with the French Pôle Emploi). As the co-presiding public employment service, the CES organised two meetings of the WAPES Region Europe (in Sweden and Moldavia) at which topics of common interest to all public employment services, members of the Association, were discussed. The meetings were held as part of conferences organised by various public employment services. The outcomes of the two European meetings were 5 activities carried out at the European level in 2013. In its capacity as the co-presiding public employment service, the CES also represented other public employment services and their possibilities at various conferences held under the auspices of the Association and professional gatherings organised for the purpose of promoting WAPES. Under the Stability Pact, i.e. the Regional Cooperation Process, the CES continuously participates in activities of the Centre of Public Employment Services of Southeast European Countries (CPESSEC) for the purpose of encouraging the exchange of experiences and good practices with the aim of improving the chances for employment in Southeast European countries. The CPESSEC member countries are: Bosnia and Herzegovina, Bulgaria, Montenegro, Croatia, Macedonia, Slovenia, Hungary, Romania, Serbia and Turkey. In 2013, the Centre was presided by the Employment Agency of Montenegro that organised two management conferences and 2 professional conferences with the CES as an active participant. Apart from participating at conferences, the CES also took part in the preparation of the Statistical Bulletin that contains the statistics related to working and finding employment in EU member states. The representatives of the CES also participated in the activities of the European Lifelong Guidance Policy Network (ELGPN). The CES played the role of the national representative and operational coordinator for the Republic of Croatia. Using the allocated funding, the manual that provides guidelines for the preparation of lifelong vocational guidance policies in EU member states and includes two examples of good practice in the field of lifelong vocational guidance from the Republic of Croatia was translated into Croatian as well as printed and distributed to CES regional offices and other relevant stakeholders from the field of education, employment and social inclusion. Other outcomes include the translation and printing of review articles on the topic of career management skills and unemployment of young persons, the role of lifelong vocational guidance within the Youth Guarantee initiative, and the uniform European lexicon of terms from the field of lifelong vocational guidance policy making. 64

Croatian Employment Service 2013 Yearbook

ISSN 1849-4420

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