Croatian Employment Service
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2016 Yearbook Croatian Employment Service 2016 Yearbook Croatian Employment Service ISSN 2584-3729 Zagreb, May 2017 Croatian Employment Service IMPRINT 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 Publisher: Ante Lončar, Acting Director General of the Croatian Employment Service Editor: Marica Barić English Translation: Abis d.o.o., Zagreb Graphic Design: Intergrafika TTŽ d.o.o., Zagreb 2 2016 Yearbook Contents Summary 7 Economy and Labour Force 10 Unemployment 15 Labour Force Demand and Employment 21 Job Placement and Preparation for Employment 31 Active Labour Market Policy 39 Unemployment Insurance 43 International Community Supported Projects 48 Organizational Structure, Governance and Human Resources 53 Publicity of Operations and International Cooperation 55 Sources of Funding and Structure of Expenses 58 Internal Control System 64 3 Croatian Employment Service Geographic Distribution of Regional and Local Offices of the CES by County COUNTY REGIONAL OFFICE LOCAL OFFICE Dugo Selo Velika Gorica Ivanić-Grad Vrbovec Zagreb Jastrebarsko Zaprešić I Zagreb City of Zagreb Samobor Zagreb Jug Sesvete Zagreb Zapad Sveti Ivan Zelina Donja Stubica Zabok II Krapina-Zagorje Krapina Klanjec Zlatar Pregrada Dvor Petrinja Glina Sunja Sisak 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 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 2016 Yearbook Map of Regional and Local Offices of the CES by County Central Office Regional Office Local Office 5 Croatian Employment Service 6 2016 Yearbook Summary Economic Environment and Labour Market Trends: 2016 was marked by positive economic trends. Compared to a moderate growth of 1.6% recorded in 2015, a dynamic Gross Domestic Product growth of 2.9% was achieved in 2016. All basic economic indicators, from industrial production through construction, tourism and trade to labour market, demonstrated positive trends. According to both the administrative sources and the Labour Force Survey, the changes in the labour market mainly refer to a decrease in the number of unemployed persons and the rate of unemployment, stagnation, i.e. a slight increase in the number of employed persons, and the consequent decrease in active population. The average annual number of registered employed persons was 1,390,419, with a zero growth rate, while the average annual number of registered unemployed persons decreased by 15.4%, down to 241,860 persons. The strong decrease in the number of unemployed persons and the stagnating number of employed persons led to a decrease in the average annual registered unemployment rate of 2.2 percentage points, i.e. from 17.0% recorded in 2015 to 14.8% in 2016. According to the Labour Force Survey (LFS), there were on average 1,590,000 employed and 240,000 unemployed persons in 2016. Compared to 2015, the number of employed persons increased by 0.3%, while the number of unemployed persons decreased by as many as 21.6%. Consequently, the rate of employment (15 – 64) increased to 56.9% (by 0.9 percentage points). The average LFS-based unemployment rate amounted to 13.1% in 2016, dropping by 3.1 pp compared to 2015. Registered Unemployment: The decreasing trend in registered unemployment continued for the third consecutive year. The average number of unemployed persons decreased from 285,906 recorded in 2015 to 241,860 in 2016, dropping by 15.4%. Unemployment decreased in terms of both unemployed men (17.4%) and unemployed women (13.7%). The largest percentage decrease in the average number of unemployed persons was recorded in younger age groups (persons aged 15 to 19: 20.0% and 20 to 24: 19.8%), while the oldest age group (60+) was the only group that recorded a slight increase in unemployment (0.8%). Furthermore, the average number of unemployed persons decreased in all groups distinguished by the level of education, primarily in the case of persons who completed secondary education (three-year program: 18.4% and four-year program: 16.3%). In 2016, the number of unemployed persons declined in all areas of activity and across all the counties. At the end of the year, the structure of unemployed persons included 54.4% short-term (less than 1 year) and 45.6% long-term (more than 1 year) unemployed persons. Since duration of unemployment depends greatly on the achieved level of education and decreases proportionally with the increase in the same, persons with the lowest level of education accounted for the largest share of long-term unemployed persons (71.4%), while the smallest share of long-term unemployed persons was recorded in the group of unemployed persons with undergraduate university and post-secondary non-university education and those with graduate and post-graduate university or academy education (30.0% and 29.7% respectively). Labour Force Demand and Employment: In 2016, the employers reported 232,254 vacancies to the CES, which represents a 14.7% increase compared to the year before and continued growth in labour force demand. The increase in the number of reported vacancies was recorded in most areas of activity and across all counties. However, after several years of oscillating growth, the trend in registered employment shifted in 2016. The number of persons from the CES unemployment register who found employment decreased by 5.9% compared to 2015. More precisely, 218,834 persons from the CES unemployment register were employed during the year, of which 197,047 (90.0%) on a work 7 Croatian Employment Service contract basis and 21,787 (10.0%) on the basis of other business activities (workplace training without a work contract, starting a company, craft or trade business, temporary service contract, etc.). Compared to 2015, employment regulated on a work contract basis decreased by 4.6%, while the number of persons employed on the basis of other business activities decreased by 15.9%. Seasonal employment accounts for a large share of total employment. To be more precise, 40,682 persons found seasonal employment in 2016, which accounts for 20.6% of the total number of persons from the CES unemployment register employed on a work contract basis. Compared to 2015, the total number of seasonal workers slightly decreased by 785 or 1.9%. Seasonal employment was most significant in accommodation and food service activities (55.1% of the total number) and trade (12.4%). Most seasonal workers employed in 2016 came from the Coastal (a total of 61.3%) and Slavonian (22.0%) counties, while persons from North-western and Central Croatia account for a relatively small share of seasonal employment (14.9%). Active Labour Market Policy: In 2016, a total of 70,728 persons participated in the measures envisaged under the Active Labour Market Policy from the scope of responsibility of the Croatian Employment Service, i.e. 9.2% participants more than in 2015. The total number of participants included 33,021 active participants from the previous year and 37,707 new entrants in the course of 2016. Most new entrants joined workplace training without a work contract (15,059 persons or 39.9%) and public works (8,773 persons or 23.3%) or took advantage of employment incentives (5,716 persons or 15.1%). A relatively small number of new participants took advantage of the following measures: institutional training for the unemployed (10.1%), self-employment (start- up) incentives (6.2%), job retention subsidies (5.1%) and subsidies for institutional training (advancement incentives) for the employed (0.3%). The share of new entrants from a particular group in the respective average number of unemployed persons was most significant in the group of persons with graduate and post- graduate university or academy education (40.3%), followed by young persons up to 29 years of age (32.5%) and short-term unemployed persons, including those unemployed for up to 6 months (19.7%) and from 6 to 12 months (21.9%). In terms of gender, women accounted for a slightly larger share of new entrants (16.8%) compared to men (14.1%). The total number of new entrants who joined in 2016 included 915 persons with disabilities (12.9% of the average number of unemployed persons with disabilities), 1,615 Croatian war veterans (6.9% of the average number of unemployed war veterans) and 569 members of the Romani national minority. Unemployment Insurance: In 2016, there were on average 39,907 unemployment benefit recipients per month, i.e. 16.5% of the total number of unemployed persons. Besides the unemployment benefit, unemployed persons claimed other types of financial insurance as well. In 2016, the CES thus approved 3,229 requests for financial assistance during education and training, 14,912 requests for financial assistance during workplace training without a work contract, 1,869 requests for financial assistance to persons insured under an extended pension insurance scheme on the basis of temporary work contracts for regular seasonal jobs, 9,336 requests for reimbursement of travel and relocation expenses, as well as 107 requests for one- off financial assistance and 193 requests for pension insurance.