2011 Yearbook - Hrvatski zavod za zapošljavanjeYearbook ISSN 1331-2618 Zagreb, April 2012 2...

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Croatian Employment Service Yearbook 2011

Transcript of 2011 Yearbook - Hrvatski zavod za zapošljavanjeYearbook ISSN 1331-2618 Zagreb, April 2012 2...

Page 1: 2011 Yearbook - Hrvatski zavod za zapošljavanjeYearbook ISSN 1331-2618 Zagreb, April 2012 2 Croatian Employment Service Impresum Publisher: Croatian Employment Service, Zagreb, Radnička

Croatian Employment Service

Yearbook2011

Page 2: 2011 Yearbook - Hrvatski zavod za zapošljavanjeYearbook ISSN 1331-2618 Zagreb, April 2012 2 Croatian Employment Service Impresum Publisher: Croatian Employment Service, Zagreb, Radnička

Cro

atia

n Em

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t S

ervi

ce2011Yearbook

ISSN 1331-2618

Zagreb, April 2012

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Croatian Employment Service

Impresum

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

On behalf of the publisher:Ankica Paun JarallahActing Director General, Croatian Employment Service

Editor:Marica Barić

English translation:

Abis d.o.o., Zagreb

Graphic design and print:

Intergrafika TTŽ d.o.o., Zagreb

Circulation:

180 copies

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2011 Yearbook

Table of Contents

Economy and Labour Force 7

Unemployment 12

Labour Force Demand and Employment 20

Preparation for Employment 30

Active Labour Market Policy 34

Unemployment Entitlements 40

Projects Supported by the International Community 43

Organisational Structure and Operations of the CES:

Main Responsibilities and Development Strategy of the Croatian Employment Service 52

Organisational Structure and Employees 54

Sources of Financing and Structure of Expenditures 57

Internal Financial Control System 61

ICT Support to CES Operations 62

Publicity of the CES and International Cooperation 63

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Croatian Employment Service

Geographic Distribution of Regional and Local Offices of the Croatian Employment Service by Counties

COUNTY REGIONAL OFFICE LOCAL OFFICE Sesvete Velika Gorica

Zagreb Dugo Selo VrbovecI. Zagreb Ivanić-Grad Sveti Ivan Zelina City of Zagreb Jastrebarsko Zaprešić

Samobor Donja Stubica ZlatarII. Krapina-Zagorje Krapina Klanjec Pregrada

Zabok

III. Sisak-Moslavina

Petrinja Hrvatska KostajnicaSisak Dvor Sunja

Glina TopuskoGvozd

Kutina Novska Popovača Duga Resa Slunj

IV. Karlovac Karlovac Ogulin Vojnić Ozalj

V. Varaždin VaraždinCestica LudbregIvanec Novi Marof

VI. Koprivnica-Križevci Križevci Đurđevac Koprivnica

VII. Bjelovar-Bilogora BjelovarČazma GarešnicaDaruvar Grubišno Polje

VIII. Primorje-Gorski Kotar Rijeka

Cres-Lošinj KrkCrikvenica OpatijaČabar RabDelnice Vrbovsko

IX. Lika-Senj GospićDonji Lapac SenjNovalja KorenicaOtočac

X. Virovitica-Podravina ViroviticaOrahovica PitomačaSlatina

XI. Požega-Slavonia Požega Pakrac XII. Slavonski Brod-Posavina Slavonski Brod Nova Gradiška Okučani

Benkovac ObrovacXIII. Zadar Zadar Biograd Pag Gračac

Beli Manastir NašiceXIV. Osijek-Baranja Osijek Donji Miholjac Valpovo Đakovo

XV. Šibenik-Knin ŠibenikDrniš VodiceKnin

XVI. Vukovar-SrijemVukovar Ilok Vinkovci Otok Županja

XVII. Split-Dalmatia Split

Supetar TrogirHvar VisImotski VrgoracMakarska KaštelaOmiš SolinSinj Trilj

Umag PazinXVIII. Istria Pula Buzet Poreč Labin Rovinj

XIX. Dubrovnik-Neretva DubrovnikKorčula-Lastovo PločeMetković

XX. Međimurje Čakovec Mursko Središće Prelog

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2011 Yearbook

Map of Regional and Local Offices of the CES by Counties

5

Karta područnih služba i ispostava HZZ po županijama

Central o�ce

Regional o�ce

Local o�ce

Godišnjak 2010.

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Croatian Employment Service

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2011 Yearbook

Economy and Labour Force

Basic Economic TrendsThe Croatian economy did not experience significant recovery in 2011, although certain indica-tors of economic activity point to some positive trends or at least a slowdown of negative trends compared to 2010.According to the revised estimates, a zero GDP growth rate was recorded in 2011. Compared to the same quarters in 2010, an increase was recorded in the second and third quarter (by 0.4 and 0.7%) and a decrease in the first and fourth quarter of 2011 (by 1.0 and 0.4%).

Basic Economic Indicators Recorded in 2010 and 2011,Growth Rates (in %)

2010 2011Gross Domestic Product -1.2 0.0Physical Volume of Industrial Production -1.4 -1.2

Physical Volume of Construction Works -15.9 -9.1

Nominal Retail Trade Turnover -1.1 4.0

Real Retail Trade Turnover -1.8 1.0

Tourist Overnights 2.6 7.0

Exports – Total (HRK) 17.4 9.9

Imports – Total (HRK) -1.4 9.7

Average Monthly Net Salaries 0.6 1.8

Real Net Salaries -0.5 -0.4

Consumer Price Indices 1.1 2.3

Total Number of Employed Persons -4.4 -1.5

Total Number of Unemployed Persons 14.9 1.0

Registered Unemployment Rate 17.4 17.8

LFS Unemployment Rate 11.8 13.5 Source: Croatian Bureau of Statistics

The negative trends in industrial production continued, so that the physical volume of production decreased in 2011 by 1.2% compared to 2010. A decrease was recorded in manufacturing (0.1%), mining and quarrying (4.8%), and electricity, gas, steam and air-conditioning supply (6.8%).Besides in the industrial production sector, a decrease in economic activity was recorded in the construction sector as well although the rate of decrease did slow down compared to the previous year. The annual rate of decrease in the physical volume of construction works was 9.1%.Positive trends were recorded in retail trade, tourism and, to a degree, foreign trade exchange as well.Compared to the previous year, the nominal retail trade turnover increase by 4.0%, while the real retail trade turnover, due to an increase in the consumer price index, increased by 1.0%. The most significant activity was recorded in tourism. The number of tourist arrivals increased by 8.0%, while the number of tourist overnights increased by 7.0%. The share of foreign tourists in the total number of arrivals and in the total number of overnights was 86.7 and 90.7% respectively,

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Croatian Employment Service

while domestic tourists accounted for 13.3% of total arrivals and 9.3% of total overnights. The foreign trade exchange from Croatia towards other countries, i.e. exports, measured in Croatian kuna, increased by 9.9% at the annual level. At the same time, imports to Croatia increased as well, by 9.7%. The coverage of imports by exports remained at the previous year’s level and amounted to 58.9%.A nominal increase of 1.8% was recorded in the average net salaries of employed persons, while the real net salaries of employed persons decreased by 0.4% compared to 2010 due to the rate of inflation of 2.3%.The annual rate of inflation, measured on the basis of the consumer price index, amounted to 2.3% in 2011.The movements in the labour market in 2011 were influenced by the economic trends recorded in the current as well as the previous year. The average number of employed persons decreased, while the number of unemployed persons increased although at significantly slower rates compared to 2010, which resulted in a slight increase in unemployment rate.

Labour Force in CroatiaRegistered Employment and UnemploymentAccording to the data of the Central Bureau of Statistics derived from administrative sources, the total number of economically active citizens (active population) decreased by 1.1% in 2011. The number of employed persons decreased by 1.5%, while the number of unemployed persons increased by 1.0%.

Number of Economically Active Citizens (Active Population) Derived from Administrative Sources (2010 and 2011 Annual Average)

2010 2011 Index Active Population 1,734,879 1,716,571 98.9

Employed Persons 1,432,454 1,411,238 98.5

- Employed in Legal Entities 1,168,179 1,159,657 99.3

- Employed in Craft Businesses and Freelance Professions 231,936 220,637 95.1

- Insured Farmers 32,339 30,944 95.7

Unemployed Persons 302,425 305,333 101.0

Registered Unemployment Rate 17.4 17.8 Source: Croatian Bureau of Statistics

The annual average number of registered employed persons was 1,411,238 in 2011, which is a decrease by 21,216 persons or 1.5% compared to the year before. The largest number of employed persons was employed in legal persons, i.e. 1,159,657 or 82.2% (down by 0.7% compared to 2010), 220,637 persons or 15.6% were employed in craft businesses and free professions (down by 4.9% compared to 2010), and there were 30,944 or 2.2% insured farmers (down by 4.3% compared to 2010).According to the National Classification of Activities, the largest number of employed persons was recorded in manufacturing (248,805 or 17.6%), wholesale and retail trade and repair of motor vehicles and motorcycles (220,632 or 15.6%), public administration, defence and compulsory social security (116,452 or 8.3%), construction (109,802 or 7.8%), and education (107,247 or 7.6%). - Appendix 1, p. 11.In terms of economic sectors (agricultural, non-agricultural and service sectors), the 2011 structure of employed persons showed that 66.7% of employed persons were engaged in service

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2011 Yearbook

activities, 28.6% in non-agricultural and 4.6% in agricultural activities. Compared to 2010, the share of service activities increased (by 0.9 pp), the share of non-agricultural activities decreased (by 0.9 pp), while the share of agricultural activities remained at the previous year’s level.The annual average number of registered unemployed persons increased in 2011 by 2,908 persons, i.e. from 302,425 persons registered in 2010 to 305,333 persons registered in 2011.

Unemployment Rate According to the Administrative SourcesThe simultaneous increase in the number of unemployed and decrease in the number of employed persons recorded in the Republic of Croatia resulted in an increase in the annual average unemployment rate from 17.4% recorded in 2010 to 17.8% in 2010 (according to the Croatian Bureau of Statistics).Unemployment rates by counties were calculated using the data on pension insurance beneficiaries registered with the Croatian Pension Insurance Institute as employed persons and the data on unemployed persons registered with the Croatian Employment Service. According to the afore-mentioned data, the average unemployment rate at the state level amounted to 17.0%. In seven counties it was lower, and in fourteen higher.

0

5

10

15

20

25

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CountiesAverage fot Croatia

Unemployment Rate by Counties, 2011 Annual Average

30

14.9

16.5

17.5

17.9

18.3

18.7

20.6

21.4

24.2

24.4

26.0

26.7

29.6

29.9

30.5

31.8

14.8

13.8

13.4

8.6

8.2

17.0

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Unemployment rates differed significantly across counties. The lowest unemployment rates were recorded in the City of Zagreb (8.2%) and the County of Istria (8.6%). Unemployment rates of the following counties were also below the state average: Primorje-Gorski Kotar (13.4%), Varaždin (13.8%), Dubrovnik-Neretva (14.8%), Međimurje (14.9%) and Koprivnica-Križevci (16.5%). The highest unemployment rates were recorded in the following counties: Slavonski Brod-Posavina (31.8%), Virovitica-Podravina (30.5%), Sisak-Moslavina (29.9%) and Vukovar-Srijem (29.6%).Compared to the year before, unemployment rates decreased in eleven and increased in nine counties. The largest decrease was recorded in the following counties: Karlovac and Bjelovar-Bilogora (by 0.8 pp), and Zadar (by 0.6 pp). On the other hand, the largest increase was recorded in the following counties: Slavonski Brod-Posavina and Krapina-Zagorje (by 1.3 pp), and Split-Dalmatia and Požega-Slavonia (by 1.0 pp). The unemployment rate recorded in the County of Istria remained at the previous year’s level.

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Croatian Employment Service

Employment and Unemployment According to the Labour Force Survey The Labour Force Survey is carried out by the Central Bureau of Statistics in accordance with the methodological rules and principles of the International Labour Organization (ILO) and the Statistical Office of the European Communities (Eurostat). This source of data is therefore internationally comparable.According to the Labour Force Survey, the average number of economically active citizens (active population) in Croatia recorded in 2011 was 1,725,000 (22,000 persons or 1.3% less than in 2010), of which 1,493,000 employed and 232.000 unemployed persons. Compared to the year before, the number of employed persons decreased by 48,000 or 3.1%. The unemployment rate (15-64) also decreased, from 54.0% recorded in 2010 to 52.4% in 2011.

Unemployment Rate According to the Labour Force Survey According to the Labour Force Survey, the average number of unemployed persons grew from 206,000 persons recorded in 2010 to 232.000 in 2011, i.e. by 22,000 persons or 12.6%, resulting in an increase in unemployment rate as well (by 1.7 pp).The 2011 unemployment rate derived from the Labour Force Survey results was 13.5%.

Number of Economically Active Citizens (Active Population)

According to the Labour Force Survey (2010 and 2011 Annual Average)

2010 2011 Index Active Population 1,747,000 1,725,000 98.7Employed Persons 1,541,000 1,493,000 96.9Employment Rate (15-64) 54.0 52.4 -Unemployed Persons 206,000 232,000 112.6Unemployment Rate 11.8 13.5 -

Source: Croatian Bureau of Statistics

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2011 Yearbook

Appendix 1Number of Employed Persons by Activity (National Classification of Activities)

January – December, 2011

Activity(according to the National Classification of Activities)

TOTAL Legal Entities

Craft Businesses

and Freelance Professions

Number %2011/2010Index

Number2011/2010Index

Number2011/2010Index

Agriculture, forestry and fishing 33,828 2.4 101.9 24,891 100.7 8,937 105.2

Individual farmers 30,944 2.2 95.7 - - - -

Agricultural Activities 64,772 4.6 98.8 24,891 100.7 8,937 105.2

Mining and quarrying 6,515 0.5 86.4 6,259 86.3 256 88.9

Manufacturing 248,805 17.6 96.9 214,302 97.4 34,503 93.6 Electricity, gas, steam and air- conditioning supply 16,635 1.2 100.1 16,635 100.1 0 -

Water supply; sewerage, waste management and remediation activities

22,392 1.6 100.8 22,213 100.7 179 107.0

Construction 109,802 7.8 91.5 84,194 92.5 25,608 88.5

Non-agricultural Activities 404,150 28.6 95.5 343,603 96.3 60,547 91.4 Wholesale and retail trade; repair of motor vehicles and motorcycles 220,632 15.6 98.1 187,645 99.2 32,987 92.3

Transportation and storage 75,827 5.4 99.1 62,347 99.6 13,480 97.1 Accommodation and food service activities 83,487 5.9 100.0 47,499 102.6 35,988 96.8

Information and communications 34,145 2.4 101.7 32,835 101.9 1,310 96.4

Financial and insurance activities 37,755 2.7 100.3 36,681 100.4 1,074 95.9

Real estate activities 6,551 0.5 99.3 5,985 99.6 566 97.2 Professional, scientific and technical activities 67,602 4.8 98.7 51,452 99.0 16,150 98.0

Administrative and support service activities 38,870 2.8 101.6 35,110 102.0 3,760 97.7

Public administration and defence; compulsory social security 116,452 8.3 100.9 106,699 100.0 9,753 111.0

Education 107,247 7.6 101.7 106,804 101.7 443 99.5

Health and social welfare activities 95,432 6.8 101.5 83,045 102.0 12,387 98.4

Arts, entertainment and recreation 23,538 1.7 100.3 20,578 101.3 2,960 93.6

Other service activities 28,802 2.0 100.2 14,483 104.6 14,319 96.1 Activities of households as employers; undifferentiated goods- and services-producing activities of households for own use

5,021 0.4 84.5 0 - 5,021 84.5

Activities of extraterritorial organisations and bodies 0 0.0 - 0 - 0 -

Service Activities 941,361 66.7 99.9 791,163 100.6 150,198 96.3 Unclassified by activity 954 0.1 82.0 0 - 954 82.0

TOTAL 1,411,238 100.0 98.5 1,159,657 99.3 220,637 95.1 Source: Croatian Bureau of Statistics, Announcements No. 9.2.6 from 2011 and 2012

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Croatian Employment Service

Unemployment

Total Unemployment TrendsIn 2011, seasonal factors influenced the number of unemployed persons registered with the Croatian Employment Service. Unemployment increased in January and February and then it started significantly decreasing until September, mainly due to a very successful tourism season. After the end of the summer season, unemployment started increasing again, continuing so until the end of the year. Accordingly, the largest number of unemployed persons was recorded in February, and the smallest in September.In December 2011, the number of unemployed persons registered with the Croatian Employment Service equalled 315,438, down by 1.4% compared to the same month the year before. Overall figures show that, in the last several months of 2011, the number of unemployed persons decreased compared to the year before, as shown in the figure.

250

260

270

280

290

300

310

320

330

340

350

I II III IV V VI VII VIII IX X XI XII

2010

2011

Number of Unemployed Persons in 2010 and 2011

Months

Num

ber

of u

nem

ploy

ed (

thou

sand

s)

The number of unemployed persons recorded at the end of 2011 was smaller than the number of unemployed persons recorded at the end of the year before, as the number of newly registered persons (313,988) in the unemployed persons register was somewhat smaller than the sum of the number of registered employed persons and those deleted from the register for reasons other than employment (318,395). Therefore, unemployment slightly decreased because the number of newly registered unemployed persons was smaller than the number of persons deleted from the register of unemployed persons.

Unemployment Structure and Trends by Gender, Age and Educational LevelThe average number of unemployed persons increased from 302,425 recorded in 2010 to 305,333 in 2011, up by 1.0%. The average number of unemployed men increased significantly, while the average number of unemployed women slightly decreased. Therefore, the share of men in the total number of unemployed persons also increased.

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Average Number of Unemployed Persons by Genderin 2010 and 2011

Total Men Women

2011 305,333 141,408 163,925

Structure 100.0 46.3 53.7

2010 302,425 136,805 165,620

Structure 100.0 45.2 54.8

2011/2010 Index 101.0 103.4 99.0

As far as unemployment by age is concerned, the average number of unemployed persons increased in most age groups. The most significant percentage increase in the number of unemployed persons was recorded in the oldest age groups. Thus, the average number of unemployed persons in the group from 55 to 59 years of age increased by 5.0% and in the 60+ group by 12.5%. The share of the oldest age groups in the total number of unemployed persons increased accordingly.

Average Number of Unemployed Persons by Agein 2010 and 2011

Dob 2010 2011 Index

2011/2010 Number % Number % 15 – 19 15,811 5.2 15,617 5.1 98.8

20 – 24 40,007 13.2 41,078 13.5 102.7

25 – 29 41,205 13.6 41,929 13.7 101.8

30 – 34 33,675 11.1 34,308 11.2 101.9

35 – 39 29,342 9.7 29,936 9.8 102.0

40 – 44 30,259 10.0 29,624 9.7 97.9

45 – 49 31,588 10.4 31,582 10.3 100.0

50 – 54 39,466 13.0 37,430 12.3 94.8

54 – 59 31,586 10.4 33,154 10.9 105.0

60+ 9,486 3.1 10,675 3.5 112.5

TOTAL 302,425 100.0 305,333 100.0 101.0

As far as educational levels are concerned, the average number of unemployed persons with secondary education slightly increased, whereas the average number of unemployed persons with post-secondary non-university and university and post-graduate education increased significantly. Therefore, the latter’s share in the total number of unemployed persons also grew.

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Croatian Employment Service

Average Number of Unemployed Persons by Educational Level and Gender in 2010 and 2011

Total

No schooling

and uncomple-ted basic

school

Basic school

1 to 3-year vocational secondary

school

4 (or more)-year vocational secondary school and grammar school

Post-secondary

non-university education

University and post-graduate education

2010 Total 302,425 18,068 70,852 104,103 82,772 11,593 15,037

Structure 100.0 6.0 23.4 34.4 27.4 3.8 5.0

2011 Total 305,333 17,443 68,575 104,924 84,394 12,664 17,333

Structure 100,0 5,7 22,5 34,4 27,6 4,1 5,7 2011/2010 Index 101.0 96.5 96.8 100.8 102.0 109.2 115.3

Men in 2010 136,805 9,060 30,384 55,607 31,486 4,536 5,732

Structure 100.0 6.6 22.2 40.6 23.0 3.3 4.2

Men in 2011 141,408 9,047 30,428 57,015 33,289 5,085 6,544

Structure 100.0 6.4 21.5 40.3 23.5 3.6 4.6 2011/2010 Index 103.4 99.9 100.1 102.5 105.7 112.1 114.2

Women in 2010 165,620 9,008 40,468 48,496 51,286 7,057 9,305

Structure 100.0 5.4 24.4 29.3 31.0 4.3 5.6

Women in 2011 163,925 8,396 38,147 47,909 51,105 7,579 10,789

Structure 100.0 5.1 23.3 29.2 31.2 4.6 6.6 2011/2010 Index 99.0 93.2 94.3 98.8 99.6 107.4 115.9

Unemployment Structure and Trends by Previous Employment ActivityIf 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 2011 was 252,227, up by 0.3% compared to the number recorded at the end of the year before. Therefore, the total number of unemployed persons who had been previously employed did not significantly increase in 2011.The number of unemployed persons decreased in certain large groups, whereas in other activity groups the number of unemployed persons increased. Thus, for example, the number of unemployed persons who had previously been employed in manufacturing decreased by 4.5%, while the number of persons who had previously been employed in trade decreased by 2.1%. The number of persons who had previously been employed in construction did not significantly change. In contrast, the number of unemployed persons who had previously been employed in public administration, defence and compulsory social security increased by 27.7%, while the number of unemployed persons who had previously been employed in health and social welfare increased by 13.4%. The average number of unemployed persons who had previously been employed in education also grew significantly. Generally speaking, it is evident that the number of unemployed persons increased in the group of persons who had previously been employed in the public services sector.

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Average Number of Unemployed Persons by Previous Employment Activity in 2010 and 2011

Average Number of Unemployed Persons by Previous Employment Activity in 2010 and 2011

2010 2011 2011/2010IndexNumber Share Number Share

A Agriculture, forestry and fishing 10,355 4.1 10,809 4.3 104.4

B Mining and quarrying 957 0.4 956 0.4 99.9

C Manufacturing 58,521 23.3 55,864 22.1 95.5

D Electricity, gas, steam and air-conditioning supply 294 0.1 253 0.1 86.1

E Water supply; sewerage, waste management and remediation activities 2,451 1.0 3,106 1.2 126.7

F Construction 30,856 12.3 30,812 12.2 99.9

G Wholesale and retail trade; repair of motor vehicles and motorcycles 50,038 19.9 48,999 19.4 97.9

H Transportation and storage 7,666 3.0 7,297 2.9 95.2

I Accommodation and food service activities 27,678 11.0 28,469 11.3 102.9

J Information and communications 3,268 1.3 3,334 1.3 102.0

K Financial and insurance activities 2,961 1.2 2,781 1.1 93.9

L Real estate activities 1,164 0.5 1,253 0.5 107.6

M Professional, scientific and technical activities 8,411 3.3 8,658 3.4 102.9

N Administrative and support service activities 9,504 3.8 10,496 4.2 110.4

O Public administration and defence; compulsory social security 5,570 2.2 7,111 2.8 127.7

P Education 5,445 2.2 5,915 2.3 108.6

Q Human health and social work activities 4,527 1.8 5,134 2.0 113.4

R Arts, entertainment and recreation 2,316 0.9 2,542 1.0 109.8

S Other service activities 15,061 6.0 13,857 5.5 92.0

TActivities of households as employers; undifferentiated goods- and services-producing activities of households for own use

4,294 1.7 4,503 1.8 104.9

U Activities of extraterritorial organisations and bodies 77 0.0 78 0.0 101.3

TOTAL 251,414 100.0 252,227 100.0 100.3

Unemployment Structure and Trends by Counties and Particular FeaturesAs it has been stressed before, the average number of unemployed persons in 2011 increased only by 1.0% compared to 2010. However, the unemployment trend analysis showed significant differences in the direction and extent of the changes in unemployment among particular counties. The most significant percentage increase in the average number of unemployed persons was recorded in the following counties: Krapina-Zagorje (8.0%), City of Zagreb (5.2%), Zagreb (4.5%) and Split-Dalmatia (5.3%). The most significant percentage decrease in the average number of unemployed persons was recorded in the following counties: Karlovac (-5.2%), Bjelovar-Bilogora (-4.8), Međimurje (-3.6%) and Zadar (-3.4%).The County of Split-Dalmatia (13.1%) and the City of Zagreb (13.0%) accounted for the largest share in the total number of unemployed persons in 2011, up by 0.6 and 0.5 pp respectively.

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Croatian Employment Service

Average Number of Unemployed Persons by Counties in 2010 and 2011

County 2010 2011 2011/2010

IndexNumber Share Number Share

Zagreb 15,256 5.0 15,947 5.2 104.5

Krapina-Zagorje 6,835 2.3 7,380 2.4 108.0

Sisak-Moslavina 18,454 6.1 18,031 5.9 97.7 Karlovac 11,894 3.9 11,280 3.7 94.8 Varaždin 9,716 3.2 9,863 3.2 101.5

Koprivnica-Križevci 7,375 2.4 7,240 2.4 98.2

Bjelovar-Bilogora 12,415 4.1 11,824 3.9 95.2

Primorje-Gorski Kotar 17,878 5.9 17,780 5.8 99.5

Lika-Senj 3,305 1.1 3,210 1.1 97.1

Virovitica-Podravina 9,242 3.1 9,395 3.1 101.7

Požega-Slavonia 5,795 1.9 5,996 2.0 103.5

Slavonski Brod-Posavina 16,297 5.4 16,906 5.5 103.7

Zadar 10,672 3.5 10,310 3.4 96.6

Osijek-Baranja 32,722 10.8 32,663 10.7 99.8

Šibenik-Knin 7,742 2.6 7,525 2.5 97.2

Vukovar-Srijem 18,748 6.2 18,377 6.0 98.0

Split-Dalmatia 37,871 12.5 39,865 13.1 105.3

Istria 7,949 2.6 7,914 2.6 99.6

Dubrovnik-Neretva 7,459 2.5 7,341 2.4 98.4

Međimurje 7,088 2.3 6,830 2.2 96.4

City of Zagreb 37,712 12.5 39,656 13.0 105.2

TOTAL 302,425 100.0 305,333 100.0 101.0

As far as unemployment by gender is concerned, the greatest share of women in the total number of unemployed persons at the end of 2011 was recorded in the following counties: Split-Dalmatia (56.8%), Zadar (56.5%) and Primorje-Gorski Kotar (56.6%), i.e. mainly coastal counties offering a great number of seasonal jobs in the field of accommodation and food service, but also in the County of Slavonski Brod-Posavina (56.6%). The largest share of young unemployed persons up to 24 years of age in the total number of unemployed persons was recorded in the following counties: Bjelovar-Bilogora (23.3%), Požega-Slavonia (23.2%), Međimurje (22.6%) and Krapina-Zagorje (22.6%). Finally, the largest share of qualified persons, i.e. those with secondary; post-secondary non-university; or university and post-graduate education, was recorded in the following counties: Split-Dalmatia (82.7%), Dubrovnik-Neretva (82.3%), Primorje-Gorski Kotar (77.7%), and the City of Zagreb (78.9%).

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Structure of Unemployed Persons by Counties (as of 31 Dec. 2011)

County TOTALMen Women Persons up to

24 years of ageQualifiedPersons

Number Share Number Share Number Share Number Share

Zagreb 15,728 7,698 48.9 8,030 51.1 3,108 19.8 11,348 72.2

Krapina-Zagorje 7,470 3,893 52.1 3,577 47.9 1,691 22.6 5,098 68.2

Sisak-Moslavina 18,422 8,419 45.7 10,003 54.3 3,471 18.8 11,352 61.6

Karlovac 11,403 5,061 44.4 6,342 55.6 1,910 16.7 7,491 65.7

Varaždin 9,973 5,377 53.9 4,596 46.1 1,894 19.0 7,098 71.2

Koprivnica-Križevci 7,557 3,865 51.1 3,692 48.9 1,704 22.5 4,916 65.1

Bjelovar-Bilogora 12,149 6,356 52.3 5,793 47.7 2,831 23.3 7,755 63.8

Primorje-Gorski Kotar 18,512 8,028 43.4 10,484 56.6 2,809 15.2 14,382 77.7

Lika-Senj 3,165 1,487 47.0 1,678 53.0 670 21.2 2,165 68.4

Virovitica-Podravina 9,896 4,752 48.0 5,144 52.0 2,184 22.1 6,213 62.8

Požega-Slavonia 6,183 2,885 46.7 3,298 53.3 1,437 23.2 4,332 70.1

Slavonski Brod-Posavina 17,149 7,440 43.4 9,709 56.6 3,817 22.3 11,740 68.5

Zadar 11,118 4,833 43.5 6,285 56.5 1,772 15.9 8,264 74.3

Osijek-Baranja 33,474 15,046 44.9 18,428 55.1 6,883 20.6 22,723 67.9

Šibenik-Knin 8,155 3,756 46.1 4,399 53.9 1,522 18.7 6,055 74.2

Vukovar-Srijem 18,925 8,805 46.5 10,120 53.5 4,051 21.4 13,200 69.7

Split-Dalmatia 43,225 18,690 43.2 24,535 56.8 8,042 18.6 35,740 82.7

Istria 8,994 4,006 44.5 4,988 55.5 1,428 15.9 6,483 72.1

Dubrovnik-Neretva 8,290 3,669 44.3 4,621 55.7 1,492 18.0 6,819 82.3

Međimurje 6,750 3,331 49.3 3,419 50.7 1,523 22.6 4,274 63.3

City of Zagreb 38,900 19,065 49.0 19,835 51.0 6,074 15.6 30,702 78.9

TOTAL 315,438 146,462 46.4 168,976 53.6 60,313 19.1 228,150 72.3

Croatian War Veterans Unemployment Structure and TrendsAt the end of 2011, there were 26,956 unemployed Croatian war veterans registered with the Croatian Employment Service, of which 37.7% with completed or uncompleted basic school and 37.9% with completed three-year vocational secondary school or school for skilled and highly-skilled workers. The share of unemployment benefit recipients in the total number of unemployed Croatian war veterans was negligible. In terms of age structure, 47.3% of unemployed Croatian war veterans were aged 50 to 65.

Unemployment Structure and Trends by Duration of Unemployment and Particular FeaturesRegistered unemployed persons can also be classified according to the duration of unemployment. At the end of 2011, 41.4% of the total number of unemployed persons had been unemployed for up to 6 months and 44.3% for more than one year. Compared to the year before, the number of unemployed persons who had been unemployed for a period of up to 3 months increased by 13.3%, of those who had been unemployed for a period of 6 to 9 months by 7.5%, while the number of those who had been unemployed for a period of 2 to 3 years increased by 27.4%. In contrast, the number of unemployed persons classified under other categories decreased.

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Croatian Employment Service

Unemployed Persons by Duration of Unemployment(as of 31 Dec. 2010 and 2011)

Duration of Unemployment

2010 2011 2011/2010IndexNumber Share Number Share

Up to 3 months 78,818 24.6 89,269 28.3 113.3

From 3 to 6 months 45,721 14.3 41,474 13.1 90.7

From 6 to 9 months 23,247 7.3 24,979 7.9 107.5

From 9 to 12 months 25,426 7.9 19,781 6.3 77.8

From 1 to 2 years 55,900 17.5 52,176 16.5 93.3

From 2 to 3 years 21,908 6.8 27,907 8.8 127.4

More than 3 years 68,825 21.5 59,852 19.0 87.0

TOTAL 319,845 100.0 315,438 100.0 98.6

As far as duration of unemployment by gender is concerned, the share of unemployed persons who had been unemployed for more than 1 year in the total number of unemployed men was 42.6% and in the total number of unemployed women 45.8%. Hence, the share of long-term unemployed persons in the total number of unemployed persons was greater in the case of women than in the case of men.

Unemployed Persons by Duration of Unemployment and Gender(as of 31 Dec. 2011)

Duration of Unemployment Total Men Share Women Share

Up to 3 months 89,269 42,602 29.1 46,667 27.6

From 3 to 6 months 41,474 19,912 13.6 21,562 12.8

From 6 to 9 months 24,979 11,742 8.0 13,237 7.8

From 9 to 12 months 19,781 9,728 6.6 10,053 5.9

From 1 to 2 years 52,176 25,988 17.7 26,188 15.5

From 2 to 3 years 27,907 14,320 9.8 13,587 8.0

More than 3 years 59,852 22,170 15.1 37,682 22.3

TOTAL 315,438 146,462 100.0 168,976 100.0

Finally, if we consider duration of unemployment in terms of educational levels, it is evident that persons with lower educational levels account for the greater share of long-term unemployed persons. Thus, the share of long-term unemployed persons (for 1 year or more) in the total number of unemployed persons with no schooling or with uncompleted basic school was 64.4%, while the share of those with basic school education was 54.7%, which is considerably less. The share of long-term unemployed persons was even smaller in the groups of persons with three- or four-year secondary school education (43.0 and 38.9%) and post-secondary non-university and university and post-graduate education (32.4% and 29.0%). Although the number of unemployed persons with post-secondary non-university and university and post-graduate education increased significantly, it can still be concluded that the level of education has a significant influence on the duration of unemployment.

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2011 Yearbook

Structure of Unemployed Persons by Duration of Unemployment and Educational Level (as of 31 Dec. 2011)

Duration of Unemployment Total

No schooling and

uncompleted basic school

Basic school

1 to 3-year vocational secondary

school

4 (or more)-year vocational secondary school and grammar school

Post-secondary

non-university education

University and post-graduate education

Up to 3 months 28.3 17.4 23.0 28.8 30.8 36.1 38.0 From 3 to 6 months 13.1 7.7 10.0 14.4 14.6 13.8 15.4

From 6 to 9 months 7.9 5.4 6.3 7.6 9.0 10.8 10.8

From 9 to 12 months 6.3 5.0 6.0 6.2 6.7 7.0 6.8

From 1 to 2 years 16.5 15.8 17.4 17.0 16.2 14.9 14.0

From 2 to 3 years 8.8 10.3 10.4 8.9 8.2 7.2 5.9

More than 3 years 19.0 38.4 26.9 17.1 14.5 10.3 9.1

TOTAL 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Short-term Unemployment 55.6 35.6 45.3 57.0 61.1 67.6 71.0

Long-term Unemployment 44.4 64.4 54.7 43.0 38.9 32.4 29.0

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Croatian Employment Service

Labour Force Demand and Employment

Reported Job VacanciesIn 2011, employers reported a total of 125,579 job vacancies to the CES, which represents an increase by 20,839 job vacancies or 19.9% compared to 2010.According to the National Classification of Activities, the largest number of the reported job vacancies came from the following fields of activity: manufacturing (18,424 or 14.7%), education (17,671 or 14.1%), accommodation and food services (16,849 or 13.4%) and wholesale and retail trade (14,248 or 11.3%). Compared to the year before, workforce demand increased across all activity groups, however mainly in the field of water supply, wastewater disposal, waste management and environmental rehabilitation (by 98.5%), public administration, defence and compulsory social security (by 79.5%), agriculture, forestry and fishing (by 45.8%), financial and insurance activities (by 42.9%) and healthcare and social welfare (by 39.6%). Appendix 2, p. 23.As far as regional organisation is concerned, most job vacancies were reported in the City of Zagreb (19,160 or 15.3%) and the following counties: Split-Dalmatia (12,708 or 10.1%), Primorje-Gorski Kotar (10,407 or 8.3%) and Osijek-Baranja (10,078 or 8.0%); and least in Lika-Senj (1,997 or 1.6%) and Požega-Slavonia (2,019 or 1.6%). Compared to the year before, the largest increase in registered workforce demand was recorded in the following counties: Split-Dalmatia (38.4%), Dubrovnik-Neretva (36.5%), Vukovar-Srijem (33.1%), Osijek-Baranja (25.0%), and the City of Zagreb (26.2%), while in the following counties the registered workforce demand decreased: Šibenik-Knin (17.3%), Požega-Slavonia (5.3%) and Bjelovar-Bilogora (4.6%). Appendix 3, p. 24.In 2011, employers mostly looked for workers engaged in elementary occupations, such as cleaners, deliverers, transport workers, workers without occupational qualifications and similar (31,832 or 25.3%), as well as service workers and shop and market sales workers (26,888 or 21.4%). A significant share in the total workforce demand referred to professionals (19,951 persons or 15.9%), craft and related trade workers (16,897 or 13.5%), and technicians and associated professionals (16,175 or 12.9%).

Reported Job Vacancies by Group of Occupations in 2010 and 2011

Group of Occupations 2010 % 2011 % 2011/2010 Index

(1) Legislators, senior officials and managers 214 0.2 161 0.1 75.2

(2) Professionals 15,938 15.2 19,951 15.9 125.2

(3) Technicians and associated professionals 12,504 11.9 16,175 12.9 129.4

(4) Clerks 6,473 6.2 7,366 5.9 113.8

(5) Service workers and shop and market sales workers 25,101 24.0 26,888 21.4 107.1

(6) Skilled agricultural, hunting, forestry and fishery workers 672 0.6 714 0.6 106.3

(7) Craft and related trade workers 13,857 13.2 16,897 13.5 121.9

(8) Plant and machine operators and assemblers 5,001 4.8 5,594 4.5 111.9

(9) Elementary occupations 24,979 23.8 31,832 25.3 127.4

Total 104,739 100.0 125,578 100.0 119.9

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Employment of Persons from the CES Register In 2011, a total of 185,236 persons from the register of unemployed persons of the Croatian Employ-ment Service were employed, of which 167,531 were employed on a work contract basis (90.4%) and 17,705 (9.6%) on the basis of other business activities (employment under special regulations, registering a company or craft business, temporary service contract, etc.).167,531 persons were employed on a work contract basis, which represents an increase by 26,426 or 18.7% compared to 2010. The structure of employed persons considering various features was as follows:Gender. From the total number of the persons employed, 87,747 were women (accounting for a 52.4% share in the total number of employed persons) and 79,784 were men (47.6%). Compared to 2010, the share of employed women decreased, whereas the share employed men increased by 1.7 pp.Educational Level and Groups of Occupations. The largest number of registered employed persons refers to persons with secondary school education, including those who completed a three-year vocational secondary school or school for skilled and highly skilled workers (63,627 or 38.0%) and those who completed a four-year vocational secondary school or grammar school (48,619 or 29.0%), followed by those with basic school education (27,102 or 16.2%), university and post-graduate edu-cation (15,014 or 9.0%) and post-secondary non-university education (9,729 or 5.8%). Compared to the year before, an increase in registered employment was recorded across all educational lev-els. The largest increase was recorded in the group of persons with uncompleted basic school (by 31.7%) and in the group of those with completed university and post-graduate education (22.5%).

Number of Persons from the CES Register Employed on a Work Contract Basisin 2010 and 2011 by Educational Level

Year TOTAL

No schooling and

uncompleted basic school

Basic school

1 to 3-year vocational secondary

school

4 (or more)-year vocational secondary school and grammar school

Post-secondary

non-university degree

University and post-graduate degrees

2010 141,105 2,612 22,688 52,963 41,915 8,673 12,254

Share 100.0 1.9 16.1 37.5 29.7 6.1 8.7

2011 167,531 3,440 27,102 63,627 48,619 9,729 15,014

Share 100.0 2.1 16.2 38.0 29.0 5.8 9.0

2011/2010 Index 118.7 131.7 119.5 120.1 116.0 112.2 122.5

Different groups of occupations (in accordance with the National Classification of Occupations) accounted for the following shares in the total registered employment recorded in 2011:• Service workers and shop and market sales workers (38,202 or 22.8%); • Craft and related trades workers (29,201 or 17.4%); • Elementary occupations (28,669 or 17.1%);• Technicians and associated professionals (25,534 or 15.2%);• Clerks (18,428 or 11%); • Professionals (14,584 or 8.7%);• Plant and machine operators and assemblers (11,536 or 6.9%); • Skilled agricultural, hunting, forestry and fishery workers (1,337 or 0.8%); • Legislators, senior officials and managers (21 or 0.01%); and• Armed forces (19 or 0.01%).

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Croatian Employment Service

Work Experience. From the total number of the persons employed from the CES register, 146,298 persons (87.3%) had prior work experience, whereas 21,233 (12.7%) were employed for the first time.Duration of Employment. 151,932 persons (90.7%) were employed on a temporary basis, where-as 15,599 persons (9.3%) were employed on a permanent basis. Compared to 2010, the share of temporary employment increased, while the share of permanent employment decreased (by 5.2 pp).Employment Activity. The register of unemployed persons with prior work experience primarily includes persons from the following four large fields of activity: manufacturing, wholesale and retail trade, construction, and accommodation and food services; and these four fields of activity are also the ones in which most persons are consequently employed.Thus, in 2011, the total number of persons employed from the CES register by field of activity looked as follows:

• Wholesale and retail trade: 27,439 persons or 16.4%,• Accommodation and food services: 27,316 persons or 16.3%,• Manufacturing: 27,084 persons or 16.2%,• Construction: 15,512 persons or 9.3%;• Education: 11,280 persons or 6.7%,• Administrative and support service activities: 10,754 persons or 6.4%;• Agriculture, forestry and fishing: 8,211 persons or 4.9%, etc.

Compared to 2010, employment increased across all fields of activity except in other service ac-tivities and extraterritorial organisations and bodies, and especially in ‘large’ groups of activities, such as: manufacturing (by 3,431 persons or 14.5%), accommodation and food services (by 3,402 persons or 14.2%), construction (by 3,196 persons or 25.9%), wholesale and retail trade (by 2,820 persons or 11.5%), public administration (by 2,944 persons or 75.7%), agriculture, for-estry and fishing (by 1,946 persons or 31.1%) and water supply, sewerage, waste management and remediation activities (by 1,550 persons or 67.8%).

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Appendix 2

Reported Job Vacancies and Persons from the CES Register Employed on a Work Contract Basis by Activity (according to the National Classification of Activities) in 2010 and 2011

Activity(2007 National Classification

of Activities)

Reported Job Vacancies Employed from the CES Register on a Work Contract Basis

2010 2011 2011 Share

2011/ 2010Index

2010 2011 2011 Share

2011/ 2010Index

Agriculture, forestry and fishing 3,254 4,743 3.8 145.8 6,265 8,211 4.9 131.1

Mining and quarrying 215 147 0.1 68.4 279 313 0.2 112.2

Manufacturing 16,454 18,424 14.7 112.0 23,653 27,084 16.2 114.5

Electricity, gas, steam and air-conditioning supply 141 139 0.1 98.6 112 134 0.1 119.6

Water supply; sewerage, waste management and remediation activities

1,681 3,337 2.7 198.5 2,285 3,835 2.3 167.8

Construction 6,824 8,484 6.8 124.3 12,316 15,512 9.3 125.9

Wholesale and retail trade; repair of motor vehicles and motorcycles

14,135 14,248 11.3 100.8 24,619 27,439 16.4 111.5

Transportation and storage 2,337 3,167 2.5 135.5 4,085 5,183 3.1 126.9

Accommodation and food service activities 16,855 16,849 13.4 100.0 23,914 27,316 16.3 114.2

Information and communications 1,111 1,203 1.0 108.3 1,268 1,444 0.9 113.9

Financial and insurance activities 1,576 2,252 1.8 142.9 1,636 1,740 1.0 106.4

Real estate activities 372 416 0.3 111.8 649 697 0.4 107.4

Professional, scientific and technical activities 2,663 3,638 2.9 136.6 4,580 5,413 3.2 118.2

Administrative and support service activities 5,861 6,004 4.8 102.4 9,179 10,754 6.4 117.2

Public administration, defence; compulsory social security 5,501 9,874 7.9 179.5 3,891 6,835 4.1 175.7

Education 14,435 17,671 14.1 122.4 9,854 11,280 6.7 114.5

Human health and social work activities 6,852 9,563 7.6 139.6 5,493 6,733 4.0 122.6

Arts, entertainment and recreation 1,473 1,933 1.5 131.2 1,914 2,365 1.4 123.6

Other service activities 2,966 3,470 2.8 117.0 4,317 4,138 2.5 95.9

Activities of households as employers; undifferentiated goods- and services-producing activities of households for own use

30 15 0.0 50.0 776 1,088 0.6 140.2

Activities of extraterritorial organizations and bodies 3 1 0.0 33.3 20 17 0.0 85.0

TOTAL 104,739 125,578 100.0 119.9 141,105 167,531 100.0 118.7

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Croatian Employment Service

Appendix 3

Reported Job Vacancies and Persons from the CES Register Employed on a Work Contract Basis by Counties in 2010 and 2011

County

Reported Job Vacancies Employed from the CES Register on a Work Contract Basis

2010 2011 2011 Share

2011/ 2010Index

2010 2011 2011 Share

2011/ 2010Index

Zagreb 4,173 4,772 3.8 114.4 6,687 8,415 5.0 125.8

Krapina-Zagorje 2,419 2,888 2.3 119.4 3,368 4,139 2.5 122.9

Sisak-Moslavina 3,368 4,207 3.4 124.9 6,199 7,483 4.5 120.7

Karlovac 2,534 2,889 2.3 114.0 4,727 5,015 3.0 106.1

Varaždin 5,099 6,191 4.9 121.4 5,620 6,663 4.0 118.6

Koprivnica-Križevci 3,333 3,966 3.2 119.0 3,613 4,562 2.7 126.3

Bjelovar-Bilogora 3,926 3,744 3.0 95.4 5,619 6,461 3.9 115.0

Primorje-Gorski Kotar 8,774 10,407 8.3 118.6 9,640 10,874 6.5 112.8

Lika-Senj 1,601 1,997 1.6 124.7 1,652 2,074 1.2 125.5

Virovitica-Podravina 3,062 3,714 3.0 121.3 4,435 5,259 3.1 118.6

Požega-Slavonia 2,132 2,019 1.6 94.7 3,095 3,543 2.1 114.5

Slavonski Brod-Posavina 3,371 4,163 3.3 123.5 6,015 7,501 4.5 124.7

Zadar 4,175 4,751 3.8 113.8 5,896 6,454 3.9 109.5

Osijek-Baranja 8,064 10,078 8.0 125.0 13,810 17,238 10.3 124.8

Šibenik-Knin 5,077 4,197 3.3 82.7 4,463 4,923 2.9 110.3

Vukovar-Srijem 4,333 5,769 4.6 133.1 8,221 10,517 6.3 127.9

Split-Dalmatia 9,179 12,708 10.1 138.4 17,115 20,470 12.2 119.6

Istria 6,869 7,954 6.3 115.8 7,101 8,159 4.9 114.9

Dubrovnik-Neretva 3,478 4,747 3.8 136.5 4,852 5,317 3.2 109.6

Međimurje 4,594 5,257 4.2 114.4 4,090 4,780 2.9 116.9

City of Zagreb 15,178 19,160 15.3 126.2 14,887 17,684 10.6 118.8

TOTAL 104,739 125,578 100.0 119.9 141,105 167,531 100.0 118.7

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2011 Yearbook

Employment Rate by Educational Level and OccupationThe annual employment rate shows how many persons from the total number of unemployed persons who looked for employment during the year were employed. In 2011, the employment rate amounted to 26.4%, which means that more than one fourth of the 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 educational level. In the case of persons with no schooling or uncom-pleted basic school, the employment rate equalled 11.9%. It equalled 21.4% in the case of those with basic school, 28.9% in the case of those with vocational secondary school in the duration of up to three years or school for skilled and highly skilled workers, 26.4% in the case of those with four-year vocational secondary school or grammar school, 32.1% in the case of those with post-secondary non-university education and 34.0% in the case of those with university and post-graduate education. It is evident that higher employment rates are associated with higher educational levels.

Employment Rate by Educational Level in 2011 (%)

A B C D E F

40

35

30

25

20

15

10

5

0

Em

ploy

men

t rat

e (%

)

11.9

21.4

28.926.4

32.134.0

Educational Levels:A – no schooling and uncompleted basic school,B – basic school,C – 1 to 3-year vocational secondary schoolD – 4 (or more)-year vocational secondary school and grammar school,E – post-secondary, non-university education, F – university and post-graduate education.

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

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Employment Rate by Occupation at Secondary School Level

Occupation % Occupation %Caregiver 39.5 Naval Mechanical Technician 22.5Construction Equipment Operator 38.8 Storage Keeper 22.4Gas Fitter 38.8 Arranger and Theatre Designer 22.2Cook 38.2 Maritime Sailor 21.7Expert Textile Worker 35.7 Shoemaker 21.4Fireman 35.7 Graphic Designer 21.1Forest Technician 35.3 Chemical Worker 20.9Electrical Engineering Technician 35.1 Physiotherapy Technician 20.6Freight Motor Vehicle Driver 34.6 Knitter 20.4Water 33.9 Indok Service Associate 20.4Carpenter 33.8 Tailor 20.0Plumber 33.3 Administrative and Personnel Clerk 19.9Agricultural Machinery Mechanic 32.7 Agricultural Tourism Technician 19.7Heating and Air-conditioning Installer 32.7 Shorthand Typist 19.4Electrical Mechanic 32.7 Architectural Technician 18.8Butcher 32.4 Bookbinder 17.9Gardener 32.4 Technical Drawer 17.6Vehicle Technician 32.3 Cosmetician 17.6Room painter 32.3 Florist 17.5Joiner 32.2 Fine Art and Design 15.6

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

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

Occupation/Major % Occupation/Major %Biology and Chemistry 62.9 Economy 25.1Teaching 62.5 Administrative Law 24.9Nursing 59.0 Philosophy 24.9Croatian and English Language 58.1 Sociology 24.1English Language and Literature 56.9 Public Administration 23.6Geography 52.4 Veterinary Science 23.5General Medicine 51.4 Journalism 22.9Preschool Education 50.2 Building Construction 22.8Croatian Language and Literature 49.6 Political Science 21.6

Dentistry 47.2 Foreign Trade 19.6

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Seasonal Employment in TourismProvision of placement services with regards to seasonal employment in tourism is one of im-portant business activities of the Croatian Employment Service. Continuing the practice pursued over the previous years, at the beginning of 2011 the CES organised regular regional meetings with representatives of larger hotel and tourism companies for the purpose of reaching concrete agreements concerning the planning (forecasting) and meeting the demand for seasonal work-ers. The meetings were held in coastal counties of Croatia (Istria, Primorje-Gorski Kotar, Zadar, Šibenik-Knin, Split-Dalmatia and Dubrovnik-Neretva) which were getting ready for the then up-coming tourist season.After preparing the demand forecasts and selecting seasonal workers from unemployed domicile population, the representatives of the afore-mentioned companies, in cooperation with regional offices of the Croatian Employment Service based in continental counties (Osijek, Vinkovci, Bjel-ovar, Sisak, etc.), also conducted informative interviews with the interested candidates and then selected the most appropriate ones and referred them to the agreed job positions.During the tourist season, a total of 20,160 workers were employed (2,009 persons or 11.1% more compared to the year before), mostly waiters (2,274 persons or 11.3% from the total num-ber of employed persons), salespersons (2,182 or 10.8%), cooks (2,072 or 10.3%), chamber-maids (1,537 or 7.6%), kitchen help (1,140 or 5.7%), assistant cooks (931 or 4.6%) and cleaning ladies (807 or 4.0%).At the county level, most seasonal workers were employed from the following counties: Split-Dalmatia 3,558 (17.6%), Istria 2,084 (10.3%), Dubrovnik-Neretva 1,976 (9.8%), Primorje-Gor-ski Kotar 1,667 (8.3%), Zadar 1,575 (7.8%), Šibenik-Knin 1,444 (7.2%), Osijek-Baranja 1,428 (7.1%) and Vukovar-Srijem 1,297 (6.4%).

Interregional MediationInterregional 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 partic-ular occupations. Through these services, the CES also strives to encourage migration of workers and ensure their employment, especially in areas recording high unemployment rates. Therefore, if a certain regional office is not in the position to fill a job vacancy by referring to it a 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 28,113 workers registered with the CES as unemployed were employed in 2011 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, 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 (3,360 or 12.0%), Vukovar-Srijem (3,030 or 10.8%), Sisak-Moslavina (2,672 or 9.5%), Slavonski Brod-Posavina (2,333 or 8.3%) and Bjelovar-Bilogora (1,846 or 6.6%).As far as the employment activity is concerned, most seasonal workers employed through inter-regional job placement services found employment in the following activities: accommodation and food services (7,985 or 28.4%), wholesale and retail trade (4,440 or 15.8%), construction (3,697 or 13.2%), manufacturing (3,517 or 12.5%) and administrative and auxiliary service activities (2,328 or 8.3%). The persons employed in the place outside the territorial scope of the regional or local office to which the request had originally been submitted included mainly: salespersons (2,226 persons or 7.9%), cooks (1,423 persons or 5.1%), waiters (1,248 persons or 4.4%), economic clerks (745 persons or 2.7%), and cleaning ladies (723 persons or 2.6%).

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Employment of Persons AbroadIn the scope of international job placement services, the CES is in charge of executing two bilateral agreements on employment in the Federal Republic of Germany, as well as consultation, informing, referral and employment of Croatian citizens in the Federal Republic of Germany.Employment of Croatian citizens abroad is subject to a working visa issued by the relevant state for a specific period of time. A person must be granted a long stay visa prior to applying for a working visa.In 2011, the Croatian Employment Service provided placement services to seasonal workers, medi-cal technicians, the so-called ‘guest workers’ and students participating in summer practical training programmes in the Federal Republic of Germany, as well as to sailors on ships owned by foreign companies.Through the job placement activities carried out by the CES, a total of 5,650 Croatian citizens were employed abroad during 2011, which is by 106 workers or 1.9% more compared to the year before.Employment in the Federal Republic of Germany is mainly seasonal in character, so that in 2011 most workers found employment, on the basis of the bilateral agreements in force, in the following fields of activity: agriculture (3,383 persons or 63.9%) and accommodation and food services (1,818 persons or 34.3%) for a period of 6 months; and amusement parks for up to 9 months (97 persons or 1.8%), i.e. 5,298 persons from the total number of persons engaged in seasonal employment.Most seasonal workers were employed from the following counties: Brod-Posavina, Osijek-Baranja and Vukovar-Srijem. Most seasonal workers (3,016 or 56.9%) were women.Throughout the year, employers from the Federal Republic of Germany report their need for sea-sonal workers to the Croatian Employment Service. A significant number of such workers had already worked for the same employers during the previous years. If the German employers are satisfied with the work performed by particular workers and there is a need for their employment, they send new employment agreements for the same workers through the Central Employment Intermediation Office in Bonn each year. Pursuant to German law, seasonal workers in agriculture and accommodation and food services had been permitted until 2009 to work in the Federal Republic of Germany for no longer than four months. However, in January 2009, the permitted duration of temporary work contracts was extended to six months. As far as the entertainment business is concerned, seasonal workers can now be employed for a period of up to nine months during a calendar year.The agreements (together with the description of work, salary amount and other terms of employment offered and required by the employer) are received by the Central Office of the Croatian Employment Service. They are made out to a specific unemployed person (first and last name, date of birth and address). Such agreements are called ‘name-based agreements’. They are sent by the Central Office to be executed by the relevant regional office according to the place of permanent residence of the specified unemployed person. If the German employer does not specify the person by name, but only states certain work-related requirements (the so-called ‘anonymous agreements’), the Central Office then provides its job placement services and organises a selection of workers.Pursuant to the Agreement signed between the Croatian Government and the Government of the Federal Republic of Germany on the Employment of Workers for the Purpose of their Professional Advancement and Language Improvement (Agreement on Temporary Employment, Official Gazette – International Agreements 14/2002), 188 persons of up to 40 years of age engaged in various oc-cupations were employed for a period of 18 months, while 50 medical nurses and technicians who passed the qualifying exam were employed for a longer or indefinite period of time.In 2011, in cooperation with the Central Employment Intermediation Office in Bonn, the CES organ-ised two selections/interview sessions for candidates seeking to find employment in the Federal Re-public of Germany as ‘guest workers’ and medical nurses/technicians. These sessions were attended by a total of 157 persons.During summer vacations, 54 student applications for spending up to 3 months in the Federal Repub-lic of Germany were received.All activities concerning the placement of sailors on foreign ships were carried out by the Rijeka and Split Regional Offices onto which the CES transferred its job placement duties in this regard. In 2011, a total of 60 sailors registered with the Croatian Employment Service were employed on foreign ships.

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Number of Workers Employed Abroad in 2010 and 2011

Year Total Seasonal Workers

Medical Technicians

Guest Workers Students

Sailors on Foreign Ships

2010 5,544 5,349 45 150 2 107

2011 5,650 5,298 50 188 54 60

2011/2010 Index 101.9 99.0 111.1 125.3 - 56.1

The Croatian Employment Service has so far carried out a number of activities the purpose of which is preparation for active participation in the EURES Network after the admission of the Republic of Croatia to the European Union. A project entitled Preparation of the CES for Joining the EURES Net-work was carried out as part of Component 1 of the IPA Programme. The purpose of the project was to provide support to the Croatian Employment Service in the implementation and promotion of the EURES Network in Croatia. The project objectives included the harmonisation of the job placement business processes and preparation of recommendations for the adjustment of ICT applications to ensure the exchange of EURES data, as well as the strengthening of the capacities of counsellors in the field of implementing business processes associated with EURES and promoting EURES among the key stakeholders.

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Preparation for Employment

The Preparation for Employment, continuously run by the Croatian Employment Service, is based on the principles of lifelong learning, including the importance of early interventions and enhancement of competencies related to the management of personal vocational development. The need for continu-ous adjustment and enhancement of competencies in the ever-changing labour market conditions and the increasing diversity of the offer of educational programmes lead to an increasing need for vocational development planning. Special emphasis is put on lifelong vocational guidance activities, including the assessment and development of competencies required for vocational development management, vocational and additional training of unemployed persons for the purpose of improving their competitiveness in the labour market, and employment-oriented vocational selection services. In doing so, the CES primarily focuses on providing its services in the form of group work (group in-forming, group career development counselling, career management skill acquisition, and similar) in order to provide an opportunity to participate in the said activities to as many users of its services as possible.

Vocational Guidance and Selection - Enhancement of Competencies in Accordance with the Labour Market DemandVocational guidance activities carried out in 2011 included various types of vocational informing and counselling sessions intended for unemployed persons and other target groups, encompassing pre-vention activities and work with pupils and students in the process of selecting an adequate edu-cational programme. For the purpose of ensuring vocational information to pupils, the CES printed 10,840 brochures and made 22,355 copies of the CD containing five regional secondary school enrol-ment brochures. In addition, for the purpose of ensuring vocational information to final-year secondary school pupils, the CES purchased 2,500 informative brochures entitled A Guide for Future Students from the University of Zagreb.In 2011, over 11,500 persons were informed through the activities intended for unemployed persons and job seekers about various specific areas of vocational development management. Professional psychological counselling and ability to work assessment services were provided to 15,720 persons estimated to have extreme difficulties in the process of (re)integration into the labour market. With the aim of improving the active job search skills, the CES organised 4,162 various types of workshops involving 32,845 persons.In cooperation with employers, the CES continuously carries out vocational selection activities for the purpose of ensuring competent workforce based on the established job-specific competencies and requirements. Professional vocational selection services were provided to over 18,000 candidates, of which 3,765 persons were included in employment-oriented selections (30% more than in 2010), while 14,414 persons were included in education-oriented selections (68% more than in 2010).Vocational guidance intended for final-year primary and secondary school pupils refers to the so-called ‘early interventions’ and is a prevention measure, i.e. a helping tool in the process of making adequate decisions regarding the choice of educational programmes and employment. It includes a survey of vocational interests of pupils of primary and secondary schools carried out on the basis of the Vocational Interest Questionnaire once a year. On the basis of this survey, an expert team of the relevant school and the CES define the target groups in need of specific vocational guidance services.In 2011 (academic year 2010/2011), a total of 52,621 pupils participated in the survey, of which 37,344 primary school pupils and 15,277 secondary school pupils. The results of the survey of the vocational interests of pupils are one of the elements relevant in the process of planning the enrolment policy and the vocational guidance activities taking into consideration the data concerning the labour market demand.Vocational informing and counselling services are provided depending on the needs of the pupils and the type of difficulties they are having. In 2011, a total of 33,972 final-year pupils of primary and sec-ondary schools participated in the vocational informing and counselling activities: individual and group

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information was given to 22,006 pupils, and 11,966 pupils were individually or collectively counselled (15% more compared to the year before).Also, for the purpose of promoting occupations in demand in the labour market, the Croatian Employ-ment Service carries out, in cooperation with regional chambers of crafts and trade, various promo-tional activities, as well as finances medical examinations of pupils required for their enrolment in the programmes preparing them for such occupations. In 2011, the CES covered the cost of 1,391 medi-cal examinations.In 2011, the vocational guidance computer programme entitled My Choice was used in 84 licensed locations, i.e. in all regional offices of the CES, in primary and secondary schools, adult education institutions, and other institutions associated with the labour market. The fourth version of the pro-gramme was prepared. It has a database that includes 350 occupations which, in addition to providing descriptions of occupations, also promotes gender equality in the process of choosing an occupation, especially among young persons (the most frequent users of this programme), by listing the names of occupations in both genders. Furthermore, training was provided to 27 new institutions/ programme users.With the aim of building and improving the pupil and student standard in the Republic of Croatia, in 2011 the Croatian Employment Service once again drew up the Recommendations for the Enrolment and Scholarship Policies based on the analysis and forecasts regarding the labour market demand for particular qualifications. The said Recommendations are forwarded to the Ministry of Science, Edu-cation and Sports, local and regional self-government units, as well as sector committees. The Rec-ommendations are used in the preparation of competitions for student scholarships of the National Foundation for Support to the Pupil and Student Standard, preparation of competitions for admission of pupils/students in campuses, etc.The Government of the Republic of Croatia adopted the Enterprise Learning Strategy 2010-2014 in June 2010. In 2011, the CES participated in the process of implementing measures from the Action Plan by carrying out a series of activities the aim of which was to promote a positive attitude concern-ing enterprise, increase the interest in entrepreneurial training and enhancement of entrepreneurial skills, develop entrepreneurial competencies, strengthen cooperation and networking with economic entities, and other.The CES participated in the preparation of the National Curriculum for civic education, which proposes activities the purpose of which is to improve career development skills in primary and secondary schools.The Lifelong Learning Week was held in September 2011. It is an initiative started in order to sensitize the public about the concept of lifelong learning, promote the learning culture and encourage personal motivation of all stakeholders in the field of education and employment. During the campaign, more than 350 events were organized across Croatia, involving over 600 different institutions. All regional CES offices, in cooperation with their partners, i.e. state administration bodies, counties, local com-munities, social partners, associations, adult education institutions, schools and other organisations, participated in the Lifelong Learning Week.The representatives of the Croatian Employment Service also participate in managing boards, com-missions, working groups and other activities carried out under several educational projects: Further Development of the Croatian Qualifications Framework (Ministry of Science, Education and Sports), Regional Network of Local Educational Institutions (Agency for Vocational Training and Adult Edu-cation), Inclusion of Pupils and Students with Difficulties in Employment-oriented Educational Pro-grammes (Ministry of Science, Education and Sports), Croatian Labour Market-oriented Vocation-al Education (Ministry of Economy, Labour and Entrepreneurship and GTZ), Strengthening of the Institutional Framework for the Development of the VET Occupational Standards/Qualifications and Curricula (Agency for Vocational Training and Adult Education), and other.With the aim of improving lifelong vocational guidance, in June 2011 the CES started carrying out activities under the IPA Project entitled CES Client Services: Improvement of Lifelong Vocational Guidance and ICT Support. The activities aimed at improving the lifelong vocational guidance ser-vices envisage the development of a unique legal framework for the provision of vocational guidance services, as well as the establishment of the National Forum for Lifelong Vocational Guidance and

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seven Career Informing and Counselling Centres with the aim of promoting and improving the lifelong vocational guidance system. The programme also envisages the preparation of a new software infra-structure, upgrading of the existing application models and services, and their integration into the new CES ICT system.The European Lifelong Guidance Policy Network (ELGPN) has been established in order to harmon-ise the lifelong vocational guidance policies in the field of employment and education among the EU member and candidate states. The Croatian Employment Service acts as the national coordinator of activities; the representatives of the CES actively participated in the implementation of the adopted Work Programme of the Network, i.e. in the process of harmonising the policies and practices in the field of Career Management Skills and Mechanisms of Cooperation and Coordination in the Voca-tional Guidance Policy and System Development. A proposal of the catalogue of activities was also prepared with the aim of developing career management skills in the employment system.In 2011, the creation of a database of group counselling methods by particular target groups started under the Leonardo da Vinci INTRADA project. The purpose of the project is dissemination of innova-tions and curricula for group vocational guidance services intended for various target groups, including the creation of a database and methodological manuals, education and training of vocational guid-ance and education counsellors working in the education and employment systems, as well as inclu-sions concerning the implementation and use of group work activities.

Vocational Rehabilitation and Employment of Persons with Disabilities and Other Low-employability FactorsPursuant to the Law on Vocational Rehabilitation and Employment of Persons with Disabilities (Of-ficial Gazette No. 143/02 and 33/05) and the implementation of measures prescribed under the Na-tional Strategy for Equalization of the Possibilities of Persons with Disabilities 2007-2015, 748 persons with disabilities participated in vocational informing activities carried out by the Croatian Employment Service in 2011, while 997 persons with disabilities participated in the vocational counselling activi-ties, of which 404 attended individual counselling sessions and 593 group counselling sessions, i.e. workshops. Workshops adjusted to the needs of persons with disabilities were conducted, including the active job search workshops for unemployed hearing-impaired persons organised by the CES in cooperation with the Croatian Sign Language Interpreters and Translators Society.Some of the active policy measures under the National Employment Incentive Plan 2011/2012, imple-mented by the Croatian Employment Service, refer to promoting the integration of persons with dis-abilities into the labour market. Apart from the measures ensuring employment co-financing, the CES promotes employment through measures ensuring education co-financing and financing as well as in-volvement in public works. A flexible approach is applied in the process of implementing the measures intended for unemployed persons from sensitive groups. Thus, in the case of persons with disabilities, long-term unemployment is not a precondition for being included in the programmes implemented under active policy measures. The only condition is that the relevant person is registered with the CES. In 2011, the active policy measures implemented by the Croatian Employment Service involved 581 persons with disabilities. In 2010 and 2009 the number of persons benefiting from the mentioned incentives was considerably smaller (349 and 146 respectively).In the period from January 2010 until March 2011, the CES ran a project entitled Promoting Greater Inclusion of Persons with Disabilities in the Labour Market under Component 4 of the Instrument for Pre-Accession Assistance Programme, namely Human Resources Development. Under the said project, non-refundable funds in the total value of 2,189,706.39 euros were allocated for the execution of 19 grants.The Croatian Employment Service and the City of Zagreb partnered with URIHO in the implementation of the grant programme called Introduction of a Virtual Workshop Model for Long-term Unemployed Persons with Disabilities with the Aim of Increasing their Employability, for which non-refundable funds were allocated under the IPA project called Promoting Greater Inclusion of Persons with Disabilities in the Labour Market. The purpose of the project was to create a virtual workshop for long-term unem-ployed persons with disabilities trained in administrative, commercial or accounting/financial occupa-tions. The virtual workshop includes simulated work situations, thus enabling the users to improve

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their professional and work/social knowledge and skills required for efficient inclusion in the work environment. During 2011, 31 persons with disabilities participated in the Virtual Workshop activities.During 2011, the Association for Protection and Promotion of Mental Health called Svitanje implement-ed a project entitled Ensuring Equal Employment Opportunities for Persons with Disabilities Caused by Psychological Disorders. The CES, Zagreb Regional Office, participated in the project as a partner institution. The said project resulted in significant progress with respect to solving problems related to the employment and social inclusion of persons with disabilities caused by psychological disorders as well as curbing the prejudices and discrimination towards the same.The projects under which non-refundable funds were allocated in the framework of the IPA project entitled Promoting Greater Inclusion of Persons with Disabilities in the Labour Market also included two grant programmes implemented by the regional offices of the Croatian Employment Service. The Kutina Regional Office implemented the project called With the Development of Artistic Skills into the World of Labour, while the Osijek Regional Office implemented the project called Work and Education for Persons with Disabilities. The regional offices of the CES also acted as partner institutions in the implementation of nine grant programmes under the afore-mentioned IPA project.Together with URIHO, the City of Zagreb and the Fund for Vocational Rehabilitation and Employment of Persons with Disabilities, the CES participated in 2011 in the implementation of a new model of vocational rehabilitation run by the Work Centre based in Zagreb. The model includes a six-month vocational rehabilitation procedure aimed at improving professional skills and development of the so-called ‘life’ or ‘transferable’ skills. 41 persons participated in the Work Centre programme providing vocational training in the performance of one of five different occupations.In addition to various models for the improvement of vocational rehabilitation in accordance with the National Strategy for Equalization of Opportunities for Persons with Disabilities 2007/2015 (Official Gazette 63/07), the Croatian Employment Service also participates in the process of improving the rights based on disability and proposes adoption of the relevant legislation.In accordance with the afore-said, the CES participated in the activities of the cross-sector working group related to the preparation of a proposal for a uniform list of impairments and functional abilities for all categories of persons with disabilities, regardless of the manner in which disability occurred and causes of the same. It also participated in the activities of the working group formed for the purpose of preparing a proposal for a uniform medical examination authority. The experimental implementation of the uniform list of functional abilities was carried out during 2011, and it provides a foundation for establishing a social/medical disability model which will, in addition to the physical damage, include in the medical examination (analysis) the functioning of the person with disability and the factors related to his/her environment as well.The CES also participated in the activities of the working groups acting in the framework of other projects implemented under the IPA 2007-2009 Programme, Component 4, such as: Inclusion of Pupils and Students with Difficulties in Employment-oriented Education, a project run by the Ministry of Science, Education and Sports, and Establishment of Support in Social Inclusion and Employment of Socially Endangered and Marginalised Groups, a project run by the Ministry of Health and Social Welfare.Furthermore, the CES participates on a continuous basis in the project called Re-socialisation of Treated Drug Addicts run by the Office for Curbing the Misuse of Opiate Drugs of the Government of the Republic of Croatia. The activities of the CES under the project include the encouragement of former addicts to seek education and employment through vocational guidance activities and financ-ing of the inclusion of the project beneficiaries in educational and employment programmes, as well as through intensive cooperation with other competent state authorities, institutions and organisations of the civil society participating in the implementation of the said re-socialisation project. In 2011, 126 unemployed former drug addicts participated in vocational guidance activities. During the year, vocational information services were provided to 120, and vocational counselling services to 94 re-socialisation project beneficiaries. 36 treated addicts participated in the active job search workshops, while 81 project beneficiaries underwent a psychological and medical examination for the purpose of assessing their ability to work. In 2011, 57 project beneficiaries participated in various educational programmes, 7 participated in public works programmes, while 21 beneficiaries found employment through job placement services provided by the Croatian Employment Service.

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Active Labour Market Policy

The active policy measures falling under the responsibility of the Croatian Employment Service include: co-financing of employment of unemployed persons, co-financing of personal advance-ment for the purpose of retaining employment, financing of labour market-oriented education for unemployed persons, and co-financing and financing of employment in public work pro-grammes. The mentioned measures form integral parts of the National Employment Incentive Plan for 2011 and 2012.The implementation measures falling under the responsibility of the Croatian Employment Ser-vice include subsidies for employment, subsidies for personal advancement, financing of educa-tion, and other measures performed by the CES in accordance with Articles 34-36 of the Job Placement and Unemployment Insurance Act (Official Gazette No. 80/08 and 121/10).The subsidies for employment and personal advancement have been adjusted to the State Sub-sidies Act (Official Gazette No. 140/05 and 49/11) and mainly refer to horizontal subsidies for all entrepreneurs, excluding however the entrepreneurs in financial difficulties.The subsidies for employment and personal advancement falling under the responsibility of the Croatian Employment Service have been adjusted to the definitions from Articles 38, 39 and 40 of the Decision on the Announcement of General Block Exemption Regulations with regards to State Subsidies contained in the Directive of the European Commission (EC) No. 800/2008.One of the priorities of the National Employment Incentive Plan in 2011 was to increase employ-ability through educational programmes adjusted to the needs of the local labour market, thus ensuring not only an increase in the level of qualifications and employability of the groups unfa-vourably positioned in the labour market, but also a decrease in the labour market supply and demand imbalance. Furthermore, public works programmes were organised in cooperation with the local community. The purpose of the same is to activate and engage in work the groups with the lowest level of employability in the labour market. A new measure called Vocational (On-the-job) Training for Employment without a Work Contract, enabling young unemployed persons of specific occupations to acquire work experience which is a precondition for taking state, qualify-ing and master exams.The employment and education co-financing and education financing measures are intended for the following groups of unemployed and employed persons:• young persons up to 25 or 29 years of age with no work experience;• long-term unemployed persons up to 25 years of age under the condition that they have

been registered as unemployed for at least 6 months or over 25 under the condition that they have been registered as unemployed for at least 12 months;

• unemployed persons over 50 years of age registered as unemployed for at least 6 months as well as employed persons over 50 years of age facing the threat of losing their employ-ment due to their age, educational level, lack of professional knowledge and skills;

• persons with disabilities;• special groups of unemployed persons including single parents, victims of family abuse,

Croatian war veterans, parents of four and more underage children, parents of children with special needs, asylum seekers, treated addicts, and other groups of unemployed persons facing the threat of social exclusion and long-term unemployment.

In 2011, the measures under the National Employment Incentive Plan encompassed a total of 33,972 persons, of which 2,707 persons were employed through subsidies for employment, 772 persons through subsidies for self-employment, 632 received a further training subsidies, 13,788 persons participated in labour-market oriented educational programmes, 4,760 participated on-the-job training without a work contract, 10,780 were employed in public works programmes, while the subsidy for job preservation was provided to 533 persons. From the total number of persons encompassed by the measures in 2011, 18,885 were women (or 55.6%).

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In 2011, HRK 281,316,366.09 was paid out for the purpose of implementing measures under the National Employment Incentive Plan.The Croatian Employment Service also implemented the measures aimed at increasing the rate of employment of persons of the Roma national minority pursuant to the National Programme for the Roma and the Action Plan for the Decade of Roma Inclusion 2005-2015.In 2011, the measures intended to ensure opportunities for employment and education for the persons of the Roma national minority encompassed 542 persons from the register of unem-ployed persons, of which 493 were employed in public works programmes, 12 persons were employed through subsidies, 35 attended training programmess, while 2 persons participated on-the-job training without a work contract.In 2011, a total of HRK 7,061,805.27 was paid out for employment, education and training of unemployed persons of the Roma national minority.Besides under the National Employment Incentive Plan and the National Programme for the Roma, training of unemployed persons was also financed using EU funds and the funds pro-vided by local self-government and administrative units. In 2011, 1,954 unemployed persons participated in training programmes through local employment partnerships in the framework of EU projects.The measures implementation data show that the largest share of the total number of persons encompassed by the measures refers to the persons who acquired occupational qualifications through secondary school programmes (61.0%), which is in accordance with their share in the total number of registered unemployed persons.As far as persons with low educational qualifications are concerned, a positive effect was achieved through the following measures: Public Works (38.6%) and Financing of Labour Market-Oriented Education (34.0%), which is expected since these measures are intended for persons with low educational qualifications and persons threatened by social exclusion.The largest number of persons who completed university and post-graduate educational pro-grammes were encompassed by the following two measures: Co-financing of First Employment of Young Persons with no Work Experience (46.2%) and Vocational (On-the-job) Training with-out a Work Contract (60.4%).As far as age structure is concerned, persons from 20 to 24 years of age accounted for the great-est share (19.0%), followed by the group from 25 to 29 years of age (17.7%) and the group from 30 to 34 years of age (11.3%).

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Appendix 4a

Empl

oyed

/Edu

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1

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37

2011 Yearbook

Appendix 4a

Empl

oyed

/Edu

cate

d Pe

rson

s in

201

1 by

Act

ive

Polic

y M

easu

res

unde

r the

Nat

iona

l Em

ploy

men

t Inc

entiv

e Pl

an fo

r 201

1 an

d 20

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y C

ount

ies

Coun

tyTO

TAL

Empl

oym

ent

Subs

idie

sSe

lf-em

ploym

ent

Subs

idies

Furth

er T

rain

ing

Subs

idie

s

Trai

ning

of

Unem

ploy

ed

Pers

ons

Publ

ic W

orks

On-

the-

Job

Trai

ning

with

out

Wor

k Co

ntra

ct

Job

Pres

erva

tion

Subs

idy

Tota

lW

omen

Tota

lW

omen

Tota

lW

omen

Tota

lW

omen

Tota

lW

omen

Tota

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omen

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omen

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omen

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eb65

934

794

3527

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055

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416

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994

00

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ina-

Zago

rje80

246

310

652

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00

341

184

126

6420

315

30

0

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osal

vina

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365

113

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120

085

850

380

651

129

022

611

957

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vac

1,01

059

464

3417

90

045

324

834

921

112

792

00

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ždin

1,20

466

311

449

225

5149

502

275

313

122

202

163

00

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ivnica

-Križ

evci

915

548

3615

61

00

380

233

341

188

152

111

00

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ovar

-Bilo

gora

1,12

767

638

1323

70

031

921

164

337

110

474

00

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orje

-Gor

ski K

otar

2,36

21,

415

159

9078

3921

474

1,19

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536

920

035

227

70

0

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-Sen

j41

721

713

25

30

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297

151

7356

420

0

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vitica

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ravin

a1,

446

835

8653

5220

100

497

266

604

360

197

136

00

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ga-S

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nia

645

333

3413

112

00

238

100

156

6820

615

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0

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onsk

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d-Po

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540

838

8434

185

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350

539

316

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651

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236

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486

305

334

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217

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00

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ek-B

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99

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341

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690

956

513

393

00

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Knin

1,17

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269

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36

459

291

255

103

158

990

0

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148

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130

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571

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atia

3,91

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099

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61,

592

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641

444

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a68

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2118

80

037

918

079

2513

510

50

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ovni

k-Ne

retv

a70

541

565

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70

029

518

822

412

593

680

0

Međ

imur

je1,

135

606

212

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3633

817

333

220

514

011

40

0

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of Z

agre

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946

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451

626

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311

199

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531

00

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707

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377

230

063

218

413

,788

7,47

510

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6,04

04,

760

3,54

253

310

1

Appendix 4b

Employed/Educated Persons in 2011 by Measures under the National Programme for the Roma andthe Action Plan for the Decade of Roma Inclusion 2005-2015 by Counties

CountyTOTAL

Training of Unemployed

Persons

Co-financing of Employment in Duration of 24

Months

Public WorksOn-the-Job

Training without Work Contract

Total Women Total Women Total Women Total Women Total WomenSisak-Moslavina 21 5 0 0 1 1 20 4 0 0Varaždin 12 2 0 0 0 0 12 2 0 0Koprivnica-Križevci 44 14 4 1 0 0 40 13 0 0Bjelovar-Bilogora 17 3 0 0 0 0 17 3 0 0Virovitica-Podravina 7 1 0 0 2 0 5 1 0 0Slavonski Brod-Posavina 62 11 0 0 0 0 62 11 0 0Osijek-Baranja 223 63 0 0 2 0 221 63 0 0Međimurje 133 41 31 10 4 0 96 29 2 2City of Zagreb 23 11 0 0 3 1 20 10 0 0TOTAL 542 151 35 11 12 2 493 136 2 2

Redeployment ProgrammeIn accordance with Article 120, Section 1 of the Labour Act1, any employer that establishes a surplus of at least twenty employees whose work contracts will, regardless of the reason, be terminated within a period of 90 days as well as any employer that plans to terminate the work contracts of at least five employees due to business reasons must consult the workers’ council for the purpose of eliminating the need for lay-offs.Any employer that, after the consultations on redeployment programmes, still intends to termi-nate a number of work contracts due to business reasons, within the meaning of the provisions of Article 120, Section 1 of the Labour Law, shall be obligated to draft a Redeployment Programme.During the process of drafting the programme, employers must consult with the competent pub-lic employment office (regional office of the Croatian Employment Service according to the seat of the employer) regarding the possibilities of involving the affected employees in active employ-ment policy programmes.Drawing up of a redeployment programme is a special measure the goal of which is to remove or mitigate the damage arising from the termination of the work contract for the worker. More precisely, a situation where a large number of layoffs happens at the same time or within a short period of time has substantially different social, economic and other consequences compared to individual layoffs. The Croatian Employment Service actively participates in solving the so-arisen problem.Already during the counselling activities, the CES tries to help the redundant employees or those facing the threat of layoff by providing placement services during the notice period with the aim of securing other employment for them, referring such employees to retraining or advancement programmes for the purpose of obtaining some other position in the same company or some-where else.In the implementation of the said activities concerning the handling of surplus employee situ-ations, 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 per-sons covered by the programmes.

1 Labour Act (Official Gazette No. 149/09)

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38

Croatian Employment Service

The end goal of the mentioned activities is to help persons facing the threat of layoff be reem-ployed as fast as possible, ensure the return of as many workers as possible to the world of labour and prevent long-term unemployment.Surplus of employees is mainly caused by privatisation, restructuring, change of production programme, introduction of new technologies, inability to adjust to market demands, and other.As far as structure is concerned, redundant employees are usually persons who are almost en-tirely unneeded in the labour market, i.e. low-employable categories of persons such as women, older persons and persons with disabilities.In 2011, the CES received 44 redeployment programmes encompassing 3,457 persons, of which 1,131 women (a share of 32.7%) and 2,326 men (a share of 67.3%).As far as the structure of workers covered by redeployment programmes by educational level is concerned, workers with secondary school education (47.6%) accounted for the largest share, followed by skilled and highly-skilled workers (18.7%), low-skilled workers (13.3%) and workers with post-secondary education (9.0%).As far as age structure is concerned, most workers belonged to the group from 45 to 49 years of age (17.5%), followed by those in the group from 50 to 54 (16.1%), from 55 to 59 (14.9%), from 35 to 39 (13.1%), from 40 to 45 (12.2%) and from 30 to 34 years of age (10.8%).The persons covered by redeployment programmes mainly came from manufacturing (a share of 61.5%), professional, scientific and technical activities (a share of 9.6%), wholesale and retail trade (a share of 7.6%) and construction (a share of 6.3%).Compared to 2010 when the CES received 89 redeployment programmes encompassing 5,637 persons, the number of programmes received in 2011 decreased by 45, while the number of persons encompassed by the same decreased by 2,180.The number of new persons entered in the register of unemployed persons immediately follow-ing the termination of employment due to economic, technical or organisational reasons amount-ed to 49,458 persons in 2011. The figure shows that only a small number of new persons entered in the register of unemployed persons immediately following the termination of employment due to economic, technical or organisational reasons was covered by redeployment programmes.

Number of Programmes and Persons Covered by Redeployment Programmes and Number of New Persons Registered Immediately after Termination of Employment due

to Economic, Technical and Organisational Reasons, 2006 to 2011

YearNumber of

programmes received

Number of persons

covered by the programmes

Number of newly-registered persons whose employment was terminated for economic

reasons

2007 18 1,504 26,5442008 31 2,642 29,5992009 89 6,199 64,493 2010 89 5,637 65,0872011 44 3,457 49,458

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2011 Yearbook

Mobile TeamsFor the purpose of ensuring support to workers covered by redeployment programmes, regard-less of whether their employment was terminated due to restructuring, organisational or eco-nomic reasons, mobile teams were formed within the Croatian Employment Service. They are composed of professionals from the field of career development: employment counsellors, psy-chologists, lawyers, and other professionals, if necessary. The purpose of mobile teams is to prepare the workers, who are declared redundant, for the labour market and act on their behalf while they are still employed in their respective companies in order to reduce the number of per-sons entering the register of unemployed persons. Mobile teams perform their activities through mobile centres established in companies with surplus employees as long as there is a need for team work.For the purpose of making the declared surplus employees aware of the new possibilities and conditions in the labour market, mobile teams provide various services: information about the labour market and the manner in which various rights can be claimed, counselling, i.e. assis-tance in defining their work potential, organisation of workshops through which the workers ac-quire job-search skills, education in acquiring professional skills, assistance in self-employment and starting own business, organisation of an internal employment service within the company where job vacancies can be posted, job placement services in the open labour market, and co-financing of employment with other employers in the case of workers over 50 years of age.In 2011, mobile team counsellors conducted individual informing sessions for 3,945 workers, and group informing sessions for 1,085 workers. 1,486 workers facing the threat of layoff partici-pated in individual counselling sessions.

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40

Croatian Employment Service

Unemployment Entitlements

Pursuant to the provisions of the Act on Employment Mediation and Unemployment Rights2, unemployment insurance includes:• unemployment benefit,• pension insurance,• financial assistance and reimbursement for education-related expenses,

• one-off financial assistance and reimbursement for travel and relocation expenses.

Unemployment BenefitUnemployed persons acquire the right to unemployment benefit provided they had worked 9 out of 24 months preceding the termination of employment. In order to be eligible for unemployment benefit, an unemployed person must report to the CES and submit a request for unemployment benefit within 30 days from the date of termination of employment or sick or maternity leave. If an unemployed person fails to report to the CES within the specified deadline of 30 days due to justifi-able reasons, he/she may report to the authorised employment service and submit a request for unemployment benefit within 8 days from the date of termination of the reason that caused the failure to meet the deadline, however no later than 60 days from the missed deadline.The person whose employment is terminated through his/her own fault or by consent is not eligible for unemployment benefit. An unemployed person, depending on the total years of service, acquires the right to unemployment benefit for the period of 90 to 450 days. The exception to this rule are unemployed persons with 32 or more years of service missing up to 5 years to be eligible for age-based retirement who may claim unemployment benefit until reemployment or until one of the cases 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 ben-efit, 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 Benefit3. The one-off payment of the unemployment benefit may be granted for opening a craft business, i.e. sole busi-ness, and for employment in a company in which the relevant unemployed person has a share of no more than 25%, as well as for vocational training for employment without a work contract.The basis for determining the unemployment benefit amount is the average salary earned in the three-month period preceding the termination of employment reduced by statutory contributions. If the basis cannot be determined on the basis of the salary, it is then determined on the basis of the minimum salary reduced by statutory contributions, depending on the time spent in service.During the first 90 days, unemployment benefit amounts to 70%. During the rest of the period, it equals 35% of the base amount. During the first 90 days, unemployment benefit may not exceed 70% of the base amount, while during the rest of the period it may not exceed 35% of the average salary paid in the Republic of Croatia in the previous year according to the last officially published data.The highest unemployment benefit paid out in the period from 1 January to 31 December 2011 was HRK 3,740.10. The average unemployment benefit in 2011 amounted to HRK 1,565.07.The right to unemployment benefit may be extended in the case of unemployed persons registered with the CES continuously for more than 12 months and if they had fully claimed the previously de-termined unemployment benefit right. Unemployment benefit right is extended for a period of 30 to 120 days, depending on the determined duration of the unemployment benefit claimed.142,523 requests for unemployment benefit (initial requests, continuation of payments, and requests for extension) were submitted in 2011, of which 142,880 were approved (the number of approved re-

2 Official Gazette No. 80/08 and 121/103 Official Gazette No. 32/09

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2011 Yearbook

quests in 2011 is greater than the number of requests submitted in the same year since the requests submitted at the end of the previous calendar year are processed at the beginning of the new year). 607 complaints over the resolution on requests for unemployment benefit were submitted, of which 482 were dismissed and 6 approved. In 2011, 57 complaints were filed with the Administrative Court of the Republic of Croatia.In 2011, 771 requests for a one-off payment of the unemployment benefit were received, and 695 approved.

Deletion from the Register of Unemployed PersonsThe Act on Employment Mediation and Unemployment Rights prescribes the situations when an unemployed person is to be deleted from the register of unemployed persons. In 2011, 33,998 first instance resolutions on deletion of persons from the register of unemployed persons of the CES were reached. 868 appeals were submitted over the resolutions on deletion, of which 764 were dismissed and 3 approved.

Claiming Unemployment Insurance on the Basis of Having Worked AbroadThe Act on Employment Mediation and Unemployment Rights prescribes that a Croatian citizen who had worked abroad is eligible for unemployment benefit during the period of unemployment in ac-cordance 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 provi-sions of the Act on Employment Mediation and Unemployment Rights provided he/she had paid the employment contribution to the Croatian Employment Service for at least 9 out of 24 months preced-ing the termination of employment abroad.In the process of determining the right to unemployment insurance, the Croatian Employment Service applies the agreements on social security the Croatian Government has signed with other countries.Social security agreements containing provisions on unemployment have been signed with the Re-public of Austria, the Netherlands, the Czech Republic, Bosnia and Herzegovina, Former Yugoslav Republic of Macedonia, Republic of Slovakia, Republic of Slovenia, Luxemburg, Yugoslavia (Serbia and Montenegro), Bulgaria and Italy, and are currently in force.Based on Section III of the Constitutional Decision on the Sovereignty and Independence of the Republic of Croatia, the Unemployment Insurance Agreement signed between the Former Federal Republic of Yugoslavia and the Federal Republic of Germany still applies. This agreement regulates the financial and legal protection of workers who had lost employment in Germany and consequently returned to Croatia. This is the only agreement on the basis of which an unemployed person that had stopped working abroad can, if meeting the requirements prescribed by the said agreement and the Job Placement and Unemployment Insurance Act, claim the right to unemployment benefit, regardless of the fact that their employment had been terminated outside of Croatia. The mentioned agreement also regulates the refunding of benefit payments and the Republic of Croatia sends out a request for refund to the Federal Republic of Germany twice a year. 24 such requests were submit-ted in 2011.Under the social security agreements signed with other countries, only the periods during which the person was insured count when applying for unemployment benefit, provided also that the employ-ment 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 insurance were exchanged with these countries in 3,133 cases.Apart from the terms set forth in these agreements, an unemployed person must also meet the re-quirements set forth in the Act on Employment Mediation and Unemployment Rights.

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42

Croatian Employment Service

Financial Assistance and Reimbursement for Education-related ExpensesAn unemployed person referred to educational programmes by the CES is eligible to receive, for the duration of such activities, financial assistance in the amount of the non-taxable tuition determined pursuant to special regulations, along with reimbursement for travel expenses (public transportation), reimbursement for the cost of prescribed protective clothes, shoes and other aids if receiving training for occupations in demand pursuant to special authorisations and licenses, as well as reimburse-ment for the cost of food outside the place of permanent or temporary residence.In 2011, 20,673 persons claimed the right to financial assistance for educational purposes.

One-off Financial Assistance and Reimbursement for Travel and Relocation ExpensesUnemployed persons in the case of which the CES is not in the position to find employment in their place of residence, and who find employment in some other place, either through their own efforts or through the job placement services provided by the CES, have the right to a one-off financial assis-tance 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 2011, 7,303 persons claimed the right to reimbursement for travel and relocation expenses and 63 persons claimed the right to a one-off financial assistance.

Pension InsuranceThe 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.The following table gives an overview of the number of financial unemployment insurance beneficia-ries in 2010 and 2011.

Unemployment Entitlement Beneficiaries in 2010 and 2011

2010 2011 2011/2010Index

Average Number of Beneficiaries Per MonthUnemployment Benefit 78,439 74,501 95.0Pension Insurance 11 9 81.8

Number of Beneficiaries Receiving One-off PaymentsOne-off Payment of Unemployment Benefit 694 634 91.4

Unemployed PersonsAverage Number of Unemployed Persons 302,425 305,333 101.0Unemployed Persons as of 31 December 319,845 315,438 98.6

Unemployment Benefit RecipientsAverage Number 78,439 74,501 95.0In December 83,121 75,222 90.5Share of Average Number of Unemployment Benefit Recipients in the Average Number of Unemployed Persons

25.9% 24.4% -

4 Official Gazette No. 74/09

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43

2011 Yearbook

Projects Supported by the International Community

Instrument for Pre-accession Assistance (IPA)The IPA Programme is a unique programme for the period 2007-2013 that has replaced previous pre-accession programmes, namely CARDS, PHARE, ISPA and SAPARD, as well as consolidated the components of the same.The main purpose of the IPA Programme is the provision of support to candidate countries in the process of harmonising their national legislation with the acquis communautaire and preparation for using the structural and cohesion developmental funds after the accession to the EU.To ensure a more efficient implementation of the main objectives, the IPA Programme has been divided into five components:

1. Transition Assistance and Institution Building,2. Cross-border Cooperation,3. Regional Development,4. Human Resources Development, and5. Rural Development.

The Croatian Employment Service takes part in the implementation of three components of the Programme: Transition Assistance and Institution Building, Cross-Border Cooperation, and Human Resources Development.

In 2011, the following projects were implemented within the scope of Component 1: Transition As-sistance and Institution Building:

Croatian Employment Service Labour Market Training CentreThe main objective of the Croatian Employment Service Labour Market Training Centre project is to strengthen the capacities of the Croatian Employment Service and other labour market institu-tions/organisations for the purpose of developing a more effective and efficient labour market. The purpose of the project is to support the establishment of the Croatian Employment Service Labour Market Training Centre ensuring education to employees of the CES and other key labour market stakeholders. The value of the services agreement is 1,000,000 euros.The implementation of the project commenced in October 2010. Activities falling within the scope of Component 1: Defining and Enhancing the Key Competencies and Quality Standards Concerning the Core and Additional Business Processes of the Croatian Employment Service have been com-pleted. The Working Group met six times to produce a framework of key competencies and quality standards concerning the core and additional business processes of the CES.Under Component 2 of the Croatian Employment Service Labour Market Training Centre project, an analysis of the need for education and training was carried out and the Analysis Report prepared. Working Group 2 was formed in May 2011 (composed of the representatives of the CES and other labour market institutions and organisations). It is in responsible, together with the project team, for the development of the organisational and educational model of the Croatian Employment Service Labour Market Training Centre. The 1-year Operational Plan of the Croatian Employment Service Labour Market Training Centre, the 3-year CES Employee Development Plan and the Organisational Development Strategy of the Croatian Employment Service Labour Market Training Centre are cur-rently being drafted.Under Component 3, 40 future trainers from the CES and 11 future trainers from other labour market institutions and organisations started participating in an educational programme in July 2011. By the end of December, three training courses were carried out in the Trainer Skills Module, two in the Basic Orientation Module and one in the Labour-market Related Knowledge and Skills Module. The training programmes carried out under this component will be competed in January 2012.

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Preparation of the Croatian Employment Service for Joining the EURES NetworkThe Twinning Light project entitled Preparation of the CES for EURES was implemented in the period from September 2010 until April 2011. The main objective of the project was to support the mobility and free movement of workers within the European Economic Zone markets pursuant to the require-ments contained in Chapter 2: Free Movement of Workers. The purpose of the project was to support the Croatian Employment Service in the implementation and promotion of the EURES Network in Croatia, and its total value was 230,000 euros. As part of the project, recommendations concerning the adjustment of the CES job placement business processes and the CES information system to the EURES standards were defined. Furthermore, a procedure manual was prepared for the future EURES counsellors and their capacities were strengthened through training programmes and study visits. The EURES Network and its functions were presented to the labour market stakeholders and the wider public in the form of presentations and promotional material.Under Component 2, i.e. Cross-Border Cooperation (IPA CBC), the regional offices of the CES participated in projects of cross-border cooperation between the border regions of Croatia and Hun-gary, and Croatia and Slovenia. Under the IPA II Cross-Border Cooperation between Hungary and Croatia, the regional offices participated in seven projects in 2011. The regional offices in Osijek, Vinkovci, Čakovec and Križevci participated in the project called Professional Employment Academy. The regional offices in Čakovec and Varaždin participated in the project called Mobile Region and the project called Speak the Same for Success. The regional office in Križevci participated in the project called Promotion of Workforce Mobility, whereas the regional office in Osijek participated in the project called Hospitality on the Left and Right Banks of River Drava and the project called Togetherness – Cooperation. The regional offices in Osijek, Vukovar and Bjelovar participated in the project called Learning and Work. As far as cooperation between Slovenia and Croatia is concerned, the regional offices in Krapina, Čakovec and Varaždin participated in the project called POM – Youth Enterprise Development Network.

Under Component 4, i.e. Human Resources Development (IPA HRD), the CES implemented 5 projects, as follows:

Local Partnerships for Employment – Phase 3The project entitled Local Partnerships for Employment – Phase 3 included two components: a ser-vices agreement and a grant programme. The value of the services agreement was €1,900,000.The main objective of the project was to reduce unemployment and the threat of new unemployment by designing and implementing active and prevention labour market policy measures.The purpose of the project was to enhance and develop an institutional framework (based on part-nerships) for human resources development and strengthen the capacities of local stakeholders for development and implementation of active labour market policy measures.The execution of the services agreement started in November 2009. Under Component 1 of the project, eight local partnerships formed under the programmes run in the framework of the CARDS Programme were audited and evaluated, and the Action Plans of the mentioned partnerships were improved.Human Resources Development Strategies and Action Plans were developed in 13 counties in which new partnerships for employment had been formed, and educational programmes for trainers in the field of monitoring and evaluation of Human Resources Development Strategies were conducted. The implementation of the project finished on 21 July 2011.In the framework of the grant programme, 26 contracts were signed with various beneficiaries, such as the regional offices of the Croatian Employment Service, development agencies, local administra-tion bodies and non-governmental organisations. The total value of the project was 2,182,006 euros.

Youth in the Labour Market The project entitled Youth on the Labour Market consisted of two components: a services agreement and a grant programme. The total value of the project was 2,946,000 euros (services agreement: €1,100,000, grant programme: €1,846,000).

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The main objective of the project was to reduce unemployment of young persons at the regional level. The purpose of the project was to promote and encourage employment of young persons at the regional level (applying a partnership-based approach) by developing and implementing the active labour market policy.The purpose of the tender for the allocation of non-repayable grants was to promote and encourage employment of young persons (applying a partnership-based approach) on the basis of the working measures and methods ensuring them easier access to the labour market.Under Component 1, Action Plans for employment of young persons were drafted in 8 counties with the largest number of unemployed young persons, i.e. strategic documents containing practical mea-sures for solving the problem of unemployment among young persons. Local labour market stake-holders participated in the process of drafting these plans applying the bottom-up approach, which includes: identification of priorities at the local level; translation of the same into measures and project ideas; and, finally, development of project briefs containing detailed project implementation plans. More than 50 project briefs ready for financing were developed in the 8 mentioned counties under the project. Under Component 2, a survey was carried out on the basis of which a report on the exist-ing services provided by the CES to unemployed persons, with the emphasis on young unemployed persons, and potential new services intended for young unemployed persons was also drafted. On the basis of the said report, a number of new services and mechanisms for the provision of services to young unemployed persons in the process of employment were proposed, such as employment clubs, workshops for job seekers based on films, use of social networks, volunteer work, review of printed materials, education of counsellors, a website adjusted to young persons, one-stop-shops and self-employment. The mentioned services and mechanisms for the provision of the same were presented at round tables. Some of the presented services were selected for further elaboration. Pilot employment clubs were introduced in two regional offices of the CES, namely Karlovac and Zadar. Counsellors trained to be club managers were elected and two employment clubs were conducted in both regional offices encompassing a total of 30 young unemployed persons. One third of the partici-pants found employment within the period of three weeks and the rest kept searching for employment using the skills acquired while participating in the club. 50 CES counsellors were trained in efficient communication with young persons and workshops in job search skills were presented in the form of films supplied under the project. The implementation of the project finished in July 2011.On the basis of the grant programme, a total of 31 contracts were signed in the total value of 3,597,033 euros.

Fostering Effective Inclusion of Persons with Disabilities into the Labour Market The project consisted of two components: a services agreement and a grant programme. The total value of the project was 2,235,000 euros.The main objective of the project was to promote social inclusion of persons with disabilities by ensur-ing their integration in the labour market. The purpose of the project was to increase the level of em-ployability of persons with disabilities and help them access the labour market through development and implementation of active employment measures at the regional level.The execution of the project started in January 2010. In 2011, the capacities of labour market stake-holders for promoting and emphasizing the advantages of employing persons with disabilities were strengthened and a manual for employment counsellors created. Two more manuals were created, of which one is intended for employers and provides guidelines for the selection, employment, work-place adjustment and adequate supervision of persons with disabilities, and the other for persons with disabilities and provides guidelines for active job search. A national web portal (the so-called ‘one-stop-shop’) that provides information and other services to unemployed persons with disabilities and employers was also designed. The promotion and official opening of the portal were held at the presentation of the Employer of the Year for Persons with Disabilities award.The goal of the grant programme was to ensure support in the employment and education of persons with disabilities through multidisciplinary approach in order to ensure their integration or retention in the labour market, to make the public aware of the rights and problems of persons with disabilities, and to make the employers more aware of the advantages of employing persons with disabilities in order

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to ensure equal participation in the open labour market for the same. 19 contracts in the total value of 1,810,386 euros were signed under the grant programme.

Women in the Labour MarketThe project entitled Women in the Labour Market consisted of two components: a services agreement and a grant programme. The value of the project was 3,000,000 euros.The main objective of the project was to increase the level of employability of unfavourably positioned women and support their access to the labour market. The purpose of the project was to support the development of a more efficient labour market policy as a precondition for social inclusion and access of unfavourably positioned women to the labour market.The execution of the services agreement started in September 2010, while the implementation of projects under the grant programme started in November 2010.A Study on the Position of Women in the Labour Market is the first outcome under Component 1 of this project. It gave a clear picture regarding the participation of women and their possibilities in the labour market.Training programmes in the implementation of a gender sensitive policy as part of the labour market policy were conducted for state administration employees and representatives of the civil society, and a Guide for Gender Sensitive Policy prepared.Under Component 1, a Manual with Examples of Good Practice in the Implementation of Active Policy Measures Intended for Women Unfavourably Positioned in the Labour Market was also created. A short documentary film on the position of women in the labour market called The Right Way with ex-amples of good practice from the projects executed so far in the framework of the grant programme run by the Croatian Employment Service was also made.The evaluation of the active policy measures intended for women unfavourably positioned in the la-bour market (2007 – 2010) showed that participation in the existing measures, programmes and proj-ects had a positive effect on unemployed and inactive women. The mentioned evaluation served as the foundation for the preparation of the proposal of a new palette of active policy measures intended for women.Under Component 2, i.e. Development of Adjusted Services for Sensitive Groups of Women in the La-bour Market, which will be introduced by the Croatian Employment Service and social welfare centres, a working group for the development of new work methods for the CES and social welfare centres composed of unfavourably positioned women who are capable of work and who use the services of both institutions. 18 contracts were signed under the grant programme. The total value of the grant programme was 2,017,477 euros.

CES Services for Clients: Improving Lifelong Career Guidance and ICT Support The project consists of two components: a services agreement and a supply of goods agreement. The total value of the project is 3,730,000 euros (services agreement: €2,430,000, supply of goods agreement: €1,300,000).The main objective of the project is to support the development of the capacities of Croatian public institutions and relevant non-governmental partners in the field of employment. The project has two purposes:•To develop an enhanced ICT system of the CES based on the model of integration and exchange

of data among the key labour market stakeholders for the purpose of providing better services to clients.

•To support the development of the lifelong vocational guidance system the services of which would be available to all citizens of the Republic of Croatia, and which would be based on their needs in the field of education and choice of occupation in accordance with the employment policy and good practices of the European Union.

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The execution of the services agreement started on 27 June 2011. Working Groups 1 and 2 were under Component 1. Their purpose is to define the model of exchange and integration of data be-tween the CES and the key stakeholders as well as determine the degree to which the key business processes of the CES are ICT supported. In the period from September to December 2011, 13 meet-ings of the Working Group 1 (including fully staffed meetings and individual meetings with members of WG1) and 19 meetings of the Working Group 2 were held. Detailed documents with the analysis of the existing situation and recommendation for the improvement of the exchange of data and the CES ICT system were also prepared.The part of the project related to the improvement of the lifelong vocational guidance system is ex-ecuted under Components 3, 4 and 5. Components 3 and 4 are currently being implemented. The key stakeholders, which will participate in the activities of the National Forum for Lifelong Career Guid-ance, were identified under Component 3. The National Forum has been envisaged as an indepen-dent advisory network and an umbrella organisation in the field of lifelong career guidance that would gather the key stakeholders in the field of education, employment and social inclusion. Two meetings of the National Forum Working Group, at which the members discussed the scope of operation and responsibilities of the Forum, were held. This Component also includes the assessment of the existing Croatian and EU practices, as well as the preparation of a draft legal framework for the provision of lifelong career guidance services.Component 4 of the project should result in establishing seven Centres for Career Informing and Counselling and Career Guidance in Zagreb, Osijek, Koprivnica, Varaždin, Slavonski Brod, Zadar and Šibenik. Prior to the establishment of the mentioned centres, a review of the best EU practices related to Career Guidance Centres, along with a review of the services they provide and a study visit to one of the Vocational Guidance Centres in an EU member state, will be made.Component 5 refers to the presentation of the Centres for Career Informing and Counselling and Ca-reer Guidance to the key stakeholders, clients and the wider public at the national and regional levels.

PROGRESSThe EU programme called PROGRESS is designed for the period 2007-2013. It provides support in the process of achieving EU goals in the field of employment, social inclusion, working conditions, gender equality and fight against discrimination.

Different Experiences – New SolutionsThe implementation of the project entitled Different Experiences – New Solutions started in April 2010 and lasted until March 2011.Project partners included: Maribor Economic Institute as the main partner, AOF Nord from Denmark, the European Development Agency from the Czech Republic and the Croatian Employment Service.The main project objectives include: • Initiating a discussion on general guidelines and methods for a successful approach to solving the

current crisis in the labour market. • Raising awareness of the importance of attaining the objectives of the European Employment

Strategy and the Lisbon Strategy. • Exchange of experiences, practices and ideas concerning a successful and efficient policy on

increasing the labour force supply in order to maintain the balance between the active and non-active population, and promotion of flexicurity.

• Inclusion of social partners and other important local stakeholders in the creation of efficient struc-tures for a successful implementation of active employment and social policies.

In the scope of the second work package, the final international conference was organised in 2011 in Slovenia (Maribor), at which the emphasis was put on fexicurity and the implementation of the active ageing policy.

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Equally DiverseThe implementation of the project started in December 2011. The purpose of the project is to curb discrimination and promote equality and diversity in the Croatian labour market. The main objectives of the project include strengthening of the capacities of the key labour market stakeholders in the field of curbing discrimination, development and promotion of good anti-discrimination practices among employers, and raising the public awareness concerning the matters related to anti-discrimination and diversity.

IPA 2010-2011The project documents for the following projects envisaged under the IPA 2010-2011 Programme were prepared in 2011:

The new Approaches of the CES in Delivering Services to Clients (Services Contract)The main objective of this project is to strengthen and improve the Croatian Employment Ser-vice in the field of providing services to clients. The purpose of the project is to strengthen the capacities of the Croatian Employment Service in the field of job placement and preparation for employment. The implementation of the project is expected to begin in October 2012. The imple-mentation phase will last 18 months. The total value of the project is 1,500,000 euros.

Training for Employment of Redundant Workers, those threatened by Unemployment and the Long-term Unemployed Persons (Direct Grant Award)Under this project, training and re-training of target groups unfavourably positioned in the labour market will be financed. The main objective of the project is to provide support in the implemen-tation of active employment measures, and its purpose is to increase the level of employability of surplus workers and long-term unemployed persons through vocational training for employment. The implementation phase will last 18 months, and the implementation of the project is expected to begin at the end of 2012. The total value of the project is 4,300,000 euros.

Developing Investment Plan of the Croatian Employment Service (Framework Contract)The main objective of this project is to support the Croatian Employment Service in the develop-ment of a stack of project ideas for infrastructure-related projects, and its purpose is to develop the strategic preconditions for the financing and implementation of infrastructure-related projects run by the Croatian Employment Service. The total value of the project is 195,000 euros, and the implementation phase will last 12 months. The planned implementation commencement date is the second half of 2012.The tenders under the following grant programmes were announced:

Improving Labour Market Access to Disadvantaged GroupsUnder this grant programme, projects aimed at providing adjusted programmes for the develop-ment of skills and provision of individual support in the process of searching for a job, as well as developing entrepreneurial potential of threatened groups in the labour market (support in the process of establishing cooperatives with a special emphasis on establishing cooperatives by the members of the Roma national minority) will be financed. Projects aimed at raising the awareness concerning the elimination of stereotypes related to the employment of threatened groups will also be supported. The tender for the allocation of non-repayable funds was open until 6 December 2011. The total value of this grant programme is 2,000,000 euros.

Improving Access to Sustainable Employment of Long-term Unemployed Highly Educated PersonsThe main objective of this grant programme is to support the development and implementation of active labour market policies and its specific objective is to increase the level of employability

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of long-term unemployed highly educated persons through adjusted services and measures. The tender for the allocation of non-repayable funds was open until 7 November 2011. The evaluation of project proposals is currently in process. The total value of this grant programme is 1,000,000 euros.

Local Employment Development InitiativesThis grant programme is aimed at financing projects contributing to the attainment of goals de-fined under Human Resources Development Strategies at the county level, and other relevant strategic documents at the local or regional level. Projects aimed at strengthening the capacities of Local Partnerships for Employment will also be supported. The value of this grant programme is 1,870,000 euros. Project proposals are currently being collected, and the tender is open until 12 March 2012.

IPA 2012-2013Under the IPA 2012 – 2013 Programme, Component 4: Human Resources Development, the Project Implementation Department prepared the initial documents for 6 new projects, namely:

1. Strengthening of the Croatian Employment Service Labour Market Training Centre.2. Improving Labour Market Access of Persons with Disabilities.3. Education and Vocational Training for Employment without Commencing Employment.4. Local Employment Development Initiatives.5. External Evaluation of the Active Labour Market Measures.6. Establishing of Social Networks in the Croatian Employment Service.

Financial Management of EU ProjectsThe Agreement between the Government of the Republic of Croatia and the European Commis-sion, on the basis of which the Financing Agreement signed between the Government of the Re-public of Croatia and the European Commission with regards to the Multi-year Human Resourc-es Development Operational Programme concerning the funds provided by the Commission through the Instrument for Pre-accession Assistance under the Human Resources Development component in Croatia (Official Gazette, International Agreements, 3/2011) was amended, came into force in March 2011. Thus, all the preconditions for the use of the financial funds allocated under the Human Resources Development Operational Programme for the period 2007-2011 were satisfied. With the coming into force of the mentioned Financing Agreement, the Depart-ment for Financing and Contracting of EU Projects, which functions within the Croatian Employ-ment Service as an implementation body of the Operational Structure for the Implementation of Component 4 of the IPA Programme, got the authorisation to contract, implement and finance the projects within the scope of Priority 1, Measures 2.1 and 2.3 of Priority 2 and Priority 4 of the Human Resources Development Operational Programme with regards to the mentioned alloca-tions. The Republic of Croatia will thus be allocated additional 37,294,129 euros, which makes, together with the existing allocations granted under the Operational Programme 2007-2009, a total of 82.325.898 euros. From the total amount allocated for the Human Resources Manage-ment Operational Programme in the period 2007-2011, the implementation body of the Croatian Employment Service will be in charge of operations in the value of €44,230,801 instead of the former €23,914,122.In 2011, the implementation and financing of 5 service provision agreements, 64 non-repayable funds allocation agreements and 1 direct grant award agreement signed in 2010 were contin-ued. 70 new agreements were signed, of which 5 service provision agreements, 64 non-repay-able funds allocation agreements and 1 direct grant award agreement. By the end of 2011, the implementation of the following service provision agreements: Promoting Greater Inclusion of Persons with Disabilities in the Labour Market, Youth in the Labour Market and Local Partner-ships for Employment – Phase 3; 48 non-repayable funds allocation agreements (17 under the

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Women in the Labour Market non-repayable funds allocation programme, 14 under the Promot-ing Greater Inclusion of Persons with Disabilities in the Labour Market programme and 17 under the Establishing Support for Social Integration and Employment of Socially Threatened and Mar-ginalised Groups programme, finished, while the tender for awarding a goods supply agreement announced at the beginning of 2011 was revoked.With the aim of informing the public about the situation in the sector, the tender conditions and the manner of completing the application forms, additional informative workshops were held for each particular tender for allocation of non-refundable funds announced in 2011. As a result, a total of 20 workshops were held for potential applicants to the tender for allocation of non-repayable funds.By the end of 2011, from the total amount of currently available funds allocated to the imple-mentation body of the Croatian Employment Service, operations in the value of 22,623,077.86 or 51.15% of the total allocations for the period 2007-2011 were contracted, and 67.79% of the agreed funds disbursed to contractors in accordance with contractual obligations.

System for Curbing Incidents of Irregularities and Frauds in Using EU Funds After the system for curbing incidents of irregularities and frauds within the CES had been es-tablished and the persons in charge of curbing incidents of irregularities and frauds in using EU funds appointed, further development of the same was continued throughout 2011.The persons in charge of curbing irregularities within the CES participated in four educational seminars during the previous year, thus learning about the new rules and procedures in the process of curbing irregularities and frauds in using EU funds which became effective on 3 June 2011.In 2011, the persons in charge of curbing irregularities within the CES also prepared and held three educational seminars on the topic of curbing irregularities and frauds for a total of 37 CES employees.Four quarterly reports on irregularities concerning the implementation of Component 1 of the IPA Programme were prepared and submitted to the Central Finance and Contracting Agency within the prescribed deadlines. Furthermore, four quarterly reports were prepared and submitted to the body in charge of the operational programme (Ministry of Economy, Labour and Entrepre-neurship) concerning the implementation of Component 4 of the IPA Programme. In 2011, a total of 5 cases of alleged existence of irregularities and frauds in using EU funds were handled.

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Organisational Structure and Operations of the CES

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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 mediation of job-seekers in the country and abroad;• Ensuring unemployment entitlements to unemployed persons;• Vocational counselling of unemployed and other persons in making career and occupational

choices;• Organisation of vocational education, additional training and retraining programmes;• Promotion of employment and education through implementation of active employment policy

measures;• Monitoring and analysis of labour market conditions and informing the public of the same.

Who are the users of our services?The users of our services include:• Employers – companies, craft businesses, entrepreneurs, cooperatives and other;• Unemployed persons – persons actively looking for employment who are available for work, who

earn less than the average amount of the unemployment benefit and unemployment insurance claimants;

• Job seekers – persons registered with the CES who are looking for employment but are not claiming unemployment insurance, including employed persons, students and other;

• Pupils, students and other – the CES is open to all persons who need information concerning employment and labour market.

What services do we offer to employers?Here is an overview of the services we offer to employers:• By providing insight into the most comprehensive database on unemployed persons and job

seekers, we conduct selection of candidates that, on the basis of their qualifications, fit the needs of employers best;

• We advertise the demand for workers free of charge (on our website, in bulletins, on information boards in regional and local offices);

• We provide team (psychological, medical and pedagogical) assessment of the candidate’s char-acteristics, taking into consideration the job and workplace specific requirements;

• We conduct the selection procedure (pre-selection, final selection) and refer the agreed number of candidates to employers for particular jobs;

• We offer financial assistance for reemployment or further education through our employment incentive programme;

• We provide legal assistance in the field of employment as well as professional and organisa-tional help in the process of restructuring and handling of surplus employees;

• On the basis of a contractual relationship, we offer the employers the mentioned and other ser-vices without involving a lot of administrative work.

What do we offer to unemployed persons and job-seekers?• Information about job vacancies from various sources, along with information about the labour

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market demand, economic trends in particular Croatian regions, successful entrepreneurs, and other;

• Info Desk services (the place for regular reporting, handling of administrative matters, arranging individual counselling and group informing sessions, obtaining legal advice, etc.);

• Individual counselling – assistance in assessment of the work, professional and personal po-tential, assistance in drawing up a career and employment plan, target job placement services, feedback on activities carried out and the results achieved;

• Group informing – provision of information about the situation in the labour market in the con-crete 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 suc-cessful orientation in the labour market as possible, as well as occasions for exchanging experi-ences in the search for employment through informal activities and gatherings;

• Financial and legal protection of unemployed persons pursuant to the valid laws and regulations (unemployment benefit and other types of assistance);

• Vocational guidance sessions – assistance in additional (self)assessment of personal possi-bilities and characteristics in choosing an adequate educational programme, determining the remaining working ability, and assessment of the working potential for a concrete job position.

Strategic Development Plan of the CESThe CES performs its activities in accordance with the guidelines and goals prescribed under the Strategic Plan of the Croatian Employment Service for the period 2008 – 2011. The Plan defines the vision, mission and strategic goals of the CES as follows:

Vision StatementTo be the main participant in the development of the Croatian labour market, especially in the process of matching the overall demand with supply for the purpose of achieving full employ-ment.

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

Strategic Goals1. 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.

Considering its continuous efforts to enhance its services, invest in the technological develop-ment and business process organisation and design, the CES 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 standard of the provision of services to all users, primarily unemployed persons and employers, but also other institutions in the environment. In order to monitor the re-alisation of the above-mentioned goals, indicators for monitoring the business processes related to employment, vocational guidance and unemployment insurance have been defined.

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Organisational Structure and Employees

The Croatian Employment Service is a public institution established pursuant to the Act on Em-ployment Mediation and Unemployment Rights5.The CES performs the operations from the scope of its activity through the following organisa-tional units:• Central Office, • 22 regional offices, and• and 96 local offices,

thus making its services available across the Republic of Croatia. The Central Office includes:

1. Director General’s Office,2. Job Mediation and Preparation for Employment Sector,3. Legal and General Affairs, Unemployment Insurance and Human Resources Management Sector,4. Economic, Financial and Accounting Affairs and Asset Management Sector,5. Organisational Development and Project Implementation Sector,6. PR and International Cooperation Department, Internal Audit Department, Department for

Financing and Contracting of EU Projects.The mentioned sectors are divided in departments, and departments in divisions.The regional offices of the CES are differently organised depending on the regions they cover and the volume of business. The regional offices in Zagreb, Split, Osijek and Rijeka include the following departments: Job Placement and Preparation for Employment Department; Analysis and Statistics Department; IT Department; Legal, Personnel and General Affairs Department; Finance and Accounting Department; and Project Implementation Department.Other regional offices also include the Job Placement and Preparation for Employment Depart-ment; Analysis, Statistics and IT Department; Legal Affairs, Personnel and General Affairs De-partment; Finance and Accounting Department; and Project Implementation Department.The departments of regional offices are further divided into divisions.The CES is governed by the Managing Board composed of eleven members, i.e. representa-tives of state institutions, trade unions, employers, workers and associations of unemployed per-sons. These representatives are appointed by the Government of the Republic of Croatia. The CES is headed by a Director General who has the authority to represent it and is responsible for the legality of its operations. Director General is also appointed by the Government. The scope, authorities and responsibilities of the Managing Board, Director General and Assistant Director General are defined under the CES Bylaws.On 31 December 2011, the Croatian Employment Service employed a total of 1,290 workers. 735 (57.0%) employees had university and post-graduate (master’s) degree, 197 (15.3%) had post-secondary non-university education and 288 (22.3%) employees completed a 4-year sec-ondary school. 24 employees (1.9%) completed a three-year vocational school or school for skilled and highly-skilled workers and 46 employees (3.5%) had basic school education only. Employees with university and post-graduate education make the absolute majority at the CES (57.0%).From the total number of CES employees, 1,140 or 88.4% were employed in regional offices, while 150 or 11.6% were employed at the Central Office. The largest number of employees was recorded in the regional offices in Zagreb (173), Split (123), Osijek (95) and Rijeka (73), collec-tively accounting for 36.0% of the total number of CES employees.

5 Official Gazette No. 80/08 and 121/10

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Employees of the CES by Educational Level as of 31 December 201160

50

40

30

20

10

0

Per

cent

age

%

57.0

University and post-graduate education

4(or more)-year vocational

school and grammar school

Vocational school in the duration of up to 3 years and

school for skilled and highly skilled

workers

Post-secondary,

non-university education

Basic education

22.3

15.3

3.5 1.9

Employee EducationDuring 2011, numerous activities contributing to the realisation of 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, were carried out.One of the mentioned activities was the implementation of the project called the Croatian Employ-ment Service Labour Market Training Centre that commenced on 11 October 2010. The purpose of the project is to support the establishment of the Croatian Employment Service Labour Market Training Centre for the purpose of providing education to the employees of the CES as well as other key labour market stakeholders, i.e. provide support in the process of designing a system for employee training and advancement, thus ensuring better service to the users.As part of the project, a framework of competencies required to perform the business processes of the CES (at three levels) was designed and the service provision standards for the CES were defined.A training needs analysis was carried out at the level of the entire CES on a representative sample of 100 persons. Valuable information which will be used to upgrade the existing training and ad-vancement programmes designed for the CES employees and the creation of new ones was thus collected.And, what is even more important, 10 training seminars for 35 persons engaged in different busi-ness processes, who will occasionally act as trainers imparting the knowledge and skills primarily with regards to the business process they perform, were designed and conducted. Apart from the training seminars intended for new trainers, training seminars were also provided for the perma-nently employed trainers through which they had an opportunity to enhance their existing knowl-edge and skills. In 2012, 50 CES mentors will participate in advancement seminars.Apart from the activities carried out under the Croatian Employment Service Labour Market Train-ing Centre project, a large number of training and advancement programmes were conducted in 2011 under other EU projects as well. 6 job search club managers and counsellors for working with young persons were trained in the framework of the project called Youth in the Labour Market. Two training modules were organised in regional centres providing education to 100 persons under the project called Preparation of the CES for Joining the EURES Network. A significant number of counsellors participated in the educational programme in the field of gender sensitive policy under the project called Women in the Labour Market, while 10 counsellors participated in the training seminar called Creation, Monitoring and Evaluation of Active Employment Policy Measures.

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A significant number of employees participated in the workshops and seminars organised at the local level under the project called Local Partnerships for Employment – Phase 3 with the aim of developing entrepreneurial competencies and building the awareness concerning the needs and possibilities of particular groups in the labour market.Within the scope of the employee development and education programme, the employees of the CES had an opportunity to acquire or improve the specific knowledge and skills by participat-ing in professional conferences, seminars, workshops and study visits. Some of the mentioned activities were organised within and some outside the Croatian Employment Service system (by other labour market stakeholders, partner organisations from the country and abroad or through outsourcing, i.e. contracts with third parties).An increasing trend was noticed in the number of participants in the training and advancement programmes in the field of preparation, implementation, financing and contracting EU projects, primarily within the scope of the training programmes run by the Central Finance and Contract-ing Agency and the Ministry of Finances. On the other hand, the number of participants in the training programmes in the field of law and accounting decreased compared to the previous years.All regional offices and departments of the CES participated in the implementation of the educa-tional activities related to human resources development and strengthening of the institutional capacity of the CES through interactive team work (including in the first place the following de-partments: Employee Development and Education; Human Resources Development, Personnel and General Affairs; Job Placement and Active Employment Policy; Unemployment Insurance; and Project Implementation) and direct cooperation with key labour market stakeholders.A novelty is a training programme conducted in all offices called Education in the Protection of Personal Information and Official Record Keeping with the aim of improving the knowledge about the relevant legal provisions, raising the awareness of the need to keep professional and business secrets, as well as developing personal accountability. The CES trainers, supported by legal experts, designed a training programme applying three different methodological ap-proaches. Training seminars in the duration of 2 to 4 hours were conducted by 40 CES trainers in all CES offices, encompassing almost 90% of the total number of CES employees.2011 was marked by the new services provided by the CES along with other novelties intro-duced into the key business processes, which is why the trainers, as well as other employees, conducted a significant number of workshops, presentations and brief tutoring sessions the purpose of which was to improve the performance of operations in the scope of a particular ap-plication or procedure.The CES team of trainers conducted a total of 148 educational activities encompassing 1,490 participants.

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Sources of Financing and Structure of Expenditures

Sources of FinancingPursuant to the provisions of the Act on Employment Mediation and Unemployment Rights, the sources of financing of employment-related activities include the employment contribution and other sources.Pursuant to the Statutory Insurance Contributions Act, employment contribution is paid into the unique state treasury account.Within the meaning of the Budget Act, the Croatian Employment Service is a non-budgetary beneficiary financed through the budget and other sources.Pursuant to the Order of the Ministry of Finance, by cancelling the transfer account of the Croa-tian Employment Service in 2007, income from other sources is now paid into the state budget as well. The total expenditures of the CES for 2011 are thus also included in the state budget expenditures.The total planned income of the CES for 2011 amounted to HRK 2,083,654,428, of which HRK 2,002,935,414 from the state budget and HRK 80,719,014 from the pre-accession EU funds.The total realised income amounted to HRK 2,072,307,017, i.e. 99.45% of the annual plan. The re-alised income from the state budget amounted to HRK 1,989,808,283, i.e. 99.34% of the planned figure, while the realised income from assistance programmes provided by international organisa-tions and EU bodies amounted to HRK 71,259,191, i.e. 88.28% compared to the planned figure.In addition, in 2011 the CES realised income from financial aid and donations in the total amount of HRK 429,727; income from assistance received from budget beneficiaries on the basis of a transfer of EU funds in the amount of HRK 10,381,714 (for the financing of EU projects involving the regional offices of the CES and the financing of the Lifelong Learning Programme imple-mented by the Agency for Mobility and EU Programmes); and income for the financing of ex-penditures related to vocational (on-the-job) training for employment without a work contract in the amount of HRK 331,723, the CES being the beneficiary of the said measure. The mentioned sources of income were not included in the planned budget and were used up to the amount paid into the account pursuant to the provisions of Article 50 of the Budget Act.Furthermore, income from the sale of non-financial assets in the amount of HRK 96,379 was also entered in the CES ledgers. This income refers to the donations of long-term assets made to CES partners in the EU-financed projects. The entering of the mentioned income in the ledgers was carried out pursuant to the provisions of Article 57 of the Regulations on Budget Accounting and Calculation Plan in accordance to which capital assistance to non-budgetary beneficiaries is entered by debiting the account for the relevant operational expenditures and crediting it by the income from the sale of long-term assets.

Structure of ExpendituresThe funds for operating expenditures of the CES were disbursed in accordance with the State Budget of the Republic of Croatia for 2011, the CES Income and Expenditure Plan for 2011, and the laws and legal provisions applicable to the operations of the CES.In 2011, the total expenditures amounted to HRK 2,073,043,618 or 0.51% less than planned.In the structure of the realised expenditures, expenditures related to the provision of unemploy-ment insurance accounted for the largest share, i.e. 72.09% or a total of HRK 1,494,461,487, of which HRK 1,392,179,247 was used for the payment of the unemployment benefit to unem-ployed persons, also including one-off payments of the unemployment benefit. HRK 101,304,612 was used for the payment of the financial assistance and reimbursement for education-related expenses (in the case an unemployed person is referred to an educational programme by the CES), while HRK 977,628 was used for the payment of the one-off financial assistance and re-imbursement for travel and relocation expenses (in the case an unemployed person is employed outside their place of permanent residence).

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In 2011, a total of HRK 288,378,171 (13.91% of the total expenditures) was spent on active labour market policy measures, of which HRK 281,316,366 was spent on the measures covered by the Annual National Employment Incentive Plan, while HRK 7,061,805 was spent on the measures covered by the Action Plan for the Decade of Roma Inclusion 2005-2015.HRK 1,471,277, i.e. 0.07% of total expenditures, was spent on vocational guidance activities.The expenditures related to the employees of the CES amounted to HRK 140,170,746, accounting for 6.76% of the total expenditures. Employee salaries and benefits are paid in accordance with the CES Regulations on Employee Salaries, Basic Collective Employment Agreement for Public Service Employees and Officers, Collective Agreement for the Croatian Employment Service, and other legislation regulating the payment of salaries in public services. Some of the employee-related expenditures were financed using the allocated for the project called Direct Award of Non-repayable Funds to the Human Resources Development Operational Structure, of which HRK 206,395 from the national component and HRK 1,169,570 from the EU funds. Employee-related expenditures in the amount of HRK 71,717 were financed using the funds available under current assistance programmes covered by county budgets which are intended for the employees of the CES participating in EU projects.In 2011, the material and financial expenditures of the CES accounted for a total of HRK 47,148,919 (2.27% of the total expenditures). Some of the material expenditures were financed using the funds obtained through financial aid and donations in the amount of HRK 273,292, while some were financed using the income earmarked for financing of expenditures for vocational training for employment without a work contract in the amount of HRK 158,314. Expenditures in the amount of HRK 955,288 were financed using the funds allocated under the project called Direct Award of Non-repayable Funds to the Human Resources Development Operational Structure.HRK 7,854,170 (0.37% of the total expenditures) was spent on the procurement of non-financial assets, of which HRK 7,831,730 using the funds from the state budget and HRK 22,440 using the funds obtained through capital aid and donations.A total of HRK 93,393,160 was spent on expenditures related to the projects financed using the funds allocated under EU pre-accession assistance programmes, of which HRK 70,995,432 using the EU funds; HRK 9,285,060 using the assistance from budgetary beneficiaries on the basis of a transfer of EU funds; HRK 187,463 using the assistance received from international organisa-tions; HRK 86,567 using the current financial assistance allocated under county budgets; and HRK 12,838,638 using the funds from the state budget allocated under the national component.HRK 1,935,467 was spent on financing the project called Croatian Employment Service Labour Market Training Centre implemented under Component 1 of the IPA Programme: Transition Assis-tance and Institution Building, while HRK – 269,046 was refunded in the case of the project called Preparation of the Croatian Employment Service for Joining the EURES Network.The expenditures related to the project called Promoting Equality in the Croatian Labour Market implemented under the PROGRESS Programme (The Community Programme for Employment and Social Solidarity) amounted to HRK 342,230, while the expenditures related to the project called European Experiences in Tourism Management implemented under the Lifelong Learning Programme amounted to HRK 184,096.The regional offices of the CES implement projects financed under Component 4, Human Re-sources Development, and Component 2, Cross-border Cooperation, of the IPA Programme. In 2011, HRK 9,672,898 was used for the projects implemented under Component 4 and HRK 343,840 for projects implemented under Component 2.The 2011 expenditures of the Croatian Employment Service include the expenditures for the im-plementation of Component 4 of the IPA Programme, Human Resources Development, in the total amount of HRK 81,183,675.Pursuant to the provisions of Article 57 of the Regulations on Budget Accounting and Calculation Plan, the CES ledgers include the expenditures related to the donations of long-term assets made to partners in the EU-funded projects in the amount of HRK 96,379 as well as those related to the received donations of long-term assets and small inventory in the total amount of HRK 69,309.

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The income/expenditures balance was recorded as an income deficit in the amount of HRK 736,601. This deficit is covered using the surplus income from previous years in the amount of HRK 3,488,357, making a surplus income of HRK 2,751,756 to be used in 2012.

Public Procurement The Croatian Employment Service is an institution obligated to apply the Public Procurement Act pur-suant to the Public Procurement Act (Official Gazette No. 110/07 and 125/08) and the Regulations on the List of Entities Obligated to Apply the Public Procurement Act (Official Gazette No. 83/09).The Croatian Employment Service adopted the Procurement Plan for 2011, which was revised in the course of the year due to a re-allocation of budget funds.The procurement operations are planned for the purpose of ensuring coordinated execution of pro-curement operations in regional offices and the Central Office, respecting the principles of public procurement and ensuring transparent participation and equal treatment of all economic entities in the process, while also encouraging market competition.In accordance with the Procurement Plan, the CES executed in 2011 a total of 128 low-value pro-curement operations (up to HRK 300,000.00/500,000.00) and 25 high-value procurement operations (over HRK 300,000.00/500,000.00). It also prepared decisions on the commencement of procure-ment operations and agreements on procurement operations in the value of up to HRK 70,000.00 which are not covered by the clause on mandatory application of the mentioned Act. As far as high-value procurement operations are concerned, the CES concluded 6 master agreements in 2011.The Public Procurement Act stipulates that all procurement operations (low- and high- value opera-tions and concluded agreements) must be announced in the Electronic Public Procurement Bulletin. In 2011, the CES published a total of 297 invitations to tender, notifications of commencement of a public procurement operation, notifications on concluded agreements, etc.The CES keeps a record of its procurement operations and signed procurement agreements. In 2011, it prepared a statistical report concerning the signed procurement agreements for the previous year and delivered it to the Public Procurement System Management by 31 March 2011.On the basis of the Conclusion of the Government of the Republic of Croatia (Official Gazette No. 32/11) and in accordance with Article 20, Section 1, Item 4 of the Act on the Right to Access Informa-tion (Official Gazette No. 172/03, 144/10, 37/11 and 77/11), as an entity obligated to apply the Public Procurement Act, the CES published an Overview of Public Procurement Agreements Signed and Executed in 2010 and an Overview of Public Procurement Agreements Signed and Executed in 2011 on the CES website (www.hzz.hr).The CES performs its regular activities in either owned or leased commercial space. The CES owns 26,216.15 square meters of commercial space used by the Central Office, 22 regional offices, and local offices. The CES leases 4,375.94 square meters of commercial space. The CES uses 44 com-mercial spaces under the signed lease agreements and pays rent, whereas 19 commercial spaces were granted to the CES to be used free of charge. In 2011, the CES signed 7 temporary lease agreements. 3 tender document packages were prepared and 3 tender procedures for the sale of commercial space owned by the CES carried out.Within the scope of its asset management operations, the CES manages its own real estate (com-mercial space, apartments, garages, and other), the leased real estate, as well as the CES-owned movables.The regular asset management operations include the registration of ownership, commercial space segmentation, appraisal of the real state for purchase, sale and lease purposes, purchase and sale of real estate, execution of public tenders for the sale and lease of the CES-owned real estate, prepa-ration and monitoring of agreements on the lease or sale of commercial space, property insurance, maintenance and repairs, overheads monitoring, and other.Each year, the CES carries out an inventory check each for the previous year. It keeps a record on owned real estate, the real estate it uses on the basis of lease or enjoyment agreements, as well as on the CES-owned stocks, business shares and movables.

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Appendix 5

Income Statement1 January – 31 December 2011 (HRK)

No. Account Name of Account Planned Realised Index(5:4)

1 2 3 4 5 6

INCOME1 671 Income from the State Budget 2,002,935,414 1,989,808,283 99.3

2 632 Assistance from international organisations and assistance from EU institutions and bodies 80,719,014 71,259,191 88.3

3 6333 Assistance from budget beneficiaries on the basis of a transfer of EU funds 10,381,714

4 632,663 Income from financial Aid and donations 429,7275 652 Other unmentioned income 331,7236 7 Other income (asset donations) 96,379

Total Income 2,083,654,428 2,072,307,017 99.5EXPENDITURES

1 3711 Unemployment InsuranceUnemployment benefit 1,392,179,247Education-related expenditures (financial assistance, travel expenses, and other) 101,304,612

Other expenditures (reimbursement for travel and relocation expenses and one-off financial assistance) 977,628

1,494,555,000 1,494,461,487 100.02 3721 Vocational Guidance, Informing and Rehabilitation 1,760,000 1,471,277 83.63 35,3722 National Employment Incentive Plan 281,402,900 281,316,366 100.04 3722 Action Plan for the Decade of Roma Inclusion 7,065,000 7,061,805 100.0

5 32, 36, 38, 4

Component 4 of the IPA Programme: Human Resources Development 95,823,214 81,183,675 84.7

6 3237 Croatian Employment Service Labour Market Training Centre 1,688,000 1,935,467 114.7

7 3237 Preparation of the Croatian Employment Service for Joining the EURES Network 340,000 -269,046

8 32, 37, 4

Projects under the IPA Programme: Human Resources Development and Cross-border Cooperation 1,575,500 10,016,738 635.8

9 37 Training for Employment of Workers Facing Unemployment 3,150,000 010 32, 34 Projects under the PROGRESS Programme 660,000 342,230 51.911 32,37 Expenditures from the Lifelong Learning Programme 0 184,09612 31 Employee-related expenditures 140,428,240 140,170,746 99.813 32, 34 Material and financial operational expenditures 47,272,742 47,148,919 99.714 4 Expenditures for the procurement of non-financial assets 7,933,832 7,854,170 99.015 3,4 Other expenditures (asset donations made and received) 0 165,688

Total Expenditures 2,083,654,428 2,073,043,618 99.5

Total Income 2,083,654,428 2,072,307,017 99.5Total Expenditures 2,083,654,428 2,073,043,618 99.5Income/expenditures balance -736,601

9221 Surplus income from previous period 3,488,357Surplus Income 2,751,756

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Internal Financial Control System

Internal AuditPursuant to legal regulations, internal audits are conducted within the CES for the purpose of improving its business operations.The Internal Audit Department provides support to the budget user in the realisation of his goals by drafting strategic and annual internal audit plans based on the objective risk assessment, by performing separate internal audits in accordance with the adopted plans, by assessing the adequacy and efficiency of the financial management and control system, as well as by giving recommendations related to the improvement of his business operations.Seven audits were conducted in 2011 for which Action Plans including 14 accepted recommen-dations and steps to be taken were drafted. 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 the relevant audit reports, the existing internal control system integrated into the processes, designed and implemented by the management in the revised process, is improved.Pursuant to the Public Internal Financial Control System Act, an annual report on audits conduct-ed and the activities of the Internal Audit Department was drafted and delivered to the Central Harmonisation Unit of the Ministry of Finance.In order to be allowed to perform internal audit activities in the public sector, one must obtain a certification of competence issued by the Minister of Finance pursuant to the programme and instructions of the Ministry of Finance, the Central Harmonisation Unit. The auditors must also use all other available information and data for the purpose of enhancing their professional abili-ties and competencies.For the purpose of advancing their knowledge, skills and competencies, the employees of the Internal Audit Department thus participated during 2011 in additional educational activities, op-tional modules, as well as annual and periodic seminars and workshops. Cooperation between internal audit units and other state administrative bodies was maintained through regular meetings and events organised by the Central Harmonisation Unit of the Minis-try of Finance, as well as through informal communication among internal auditors for the pur-pose of exchanging professional experiences and good practices.Furthermore, in the framework of the peer learning programme called Internal Auditing run by the World Association of Public Employment Services (WAPES), female internal auditors em-ployed by the CES participated in the working group formed for the purpose of exchanging ex-periences and knowledge, promoting good practices and establishing international cooperation in the field of internal auditing of public employment services. In 2011, the final conference, at which the results of the activities of the working group related to the identified good practices in the field of internal auditing of public employment services in Germany, Austria, Belgium (Le Forem, VDAB), Sweden, Russia and Croatia, was organised.

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ICT Support to CES Operations

In 2011, the CES worked on the development/improvement of the ICT support to its business pro-cesses related to working with unemployed persons.The job placement business process software support now includes upgraded user modules en-suring integration with the PIN system, data interoperability with other institutions of the Republic of Croatia, better management of the work hours of counsellors, as well as improved business intelligence and statistical reporting system.As far as safety is concerned, the system for controlling the right of accessing and using the user modules was upgraded and the public key infrastructure (PKI), along with the electronic signature and electronic business infrastructures, implemented.As far as technology is concerned, the central system equipment was upgraded, a reserve data-base stored at FINA was made fully functional, the CES Private Cloud infrastructure was imple-mented, the user IT equipment was renewed, and a unique private CES network created.As far as the development of new support is concerned, a new web page, www.burzarada.hr, was implanted, online web statistics ensured, and project documents for the implementation of the document management system project prepared.With regards to the standardisation of business processes and support, the CES renewed its ISO 9001:2008 certificate, now covering the process of handling unemployment insurance matters as well.

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Publicity of the CES and International Cooperation

In the framework of public relations, activities related to ensuring the transparency of the CES and its services with regards to both unemployed persons and employers, as well as the general public, were continued in 2011.The transparency of CES operations and activities is ensured through published printed materi-als, participation in round tables, television appearances, media and public statements, as well as notifications and news posted on the CES website.Through the mentioned activities, the public was timely informed about the conditions and changes in the labour market at both the regional and national levels, as well as about the novelties related to the labour market and CES operations.Responding to the demands and needs of its users, the Croatian Employment Service designed and created a new CES web portal section related to the supply and demand of job vacancies called the Job Market (www.burzarada.hr). The new section of the portal allows the job seekers to browse job vacancies in a simpler, faster and better way, and the employers to browse the supply of available workers and CVs.A system of internal instructions was set up as a unique place for the transparent creation of busi-ness procedures applied to the entire system and for the creation of a business process related flow of information. The system makes it possible to register, explain and define each change with the aim of simplifying the monitoring of business processes, uniforming the activities of all organi-sational units belonging to the system, and ensuring availability of information, facilitated learning and monitoring of business flows.With the aim of improving internal communications and collecting all information required for the proper functioning and operation of the CES in one place, an intranet website was created at the end of 2010. It enables better horizontal and vertical linking of divisions, departments, local and regional offices, easier flow of information, and posting of inquiries to and receiving answers from authorised departments.International cooperation between the CES and its bilateral and multi-lateral partners was con-tinued. Bilateral international cooperation involved a series of projects, seminars, workshops and study visits to public employment services in Austria, Bosnia and Herzegovina, Montenegro, Italy, Kosovo, Hungary, Macedonia, Germany, Slovenia, Serbia and Turkey.Under the Stability Pact, i.e. the Regional Cooperation Process, the Croatian Employment Service assumed the presidency of the Centre of Public Employment Services of Southeast European Countries (CPESSEC) in 2011. The purpose of the CPESSEC is to encourage the exchange of ex-periences and good practices with the aim of improving the chances for employment in Southeast European countries. The CPESSEC member countries are: Bosnia and Herzegovina, Bulgaria, Montenegro, Croatia, Macedonia, Slovenia, Romania, Serbia and Turkey. During its presidency, the CES organised 2 managerial and 2 expert conferences. The topics of the managerial confer-ences included: Public Employment Services and Venerable Operations, and Skills for Green Jobs. The conferences were organised by the European Commission (TAIEX) and the CES. The topics of the expert conferences included: Role of Partnerships in Designing and Implementation of Projects, and Workforce Mobility and EURES. Apart from Directors General and experts from public employment services from Southeast European countries, the conferences were attended by speakers from the International Labour Organisation (ILO), European Commission, European Training Foundation (ETF), World Association of Public Employment Services (WAPES), Europe-an Trade Union Confederation (ETUC), and the Confederation of European Employers’ Associa-tions (BUSINESSEUROPE). The 7th managerial conference entitled Public Employment Services and Venerable Operations and the 6th expert conference entitled Role of Partnerships in Design-ing and Implementation of Projects were organised on 3 and 4 March 2011. The 8th managerial conference entitled Skills for Green Jobs and the 7th expert conference entitled Workforce Mobility and EURES were held on 3 and 4 November 2011 in Zagreb. In July 2011, the CES published Statistical Bulletin No.3 on the website of the Centre (www.cpessec.org), which presents the de-

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mographic and economic indicators of the members of the Centre, thus providing comprehensive statistical data in one place.In February 2011, the CES was visited by the representatives of the Turkish delegation with the aim of introducing the representatives of the Ministry of Labour and Social Security of the Republic of Turkey with the activities performed by the CES, the social security system of the Republic of Croatia, and the experiences related to the pre-accession activities.The CES continued cooperating with the Public Employment Service of the Federal Republic of Germany on the basis of the previously signed agreement on cooperation. In February 2011, the CES was visited by Mr. Andreas Haack, Deputy Ambassador of the Federal Republic of Germany to the Republic of Croatia based in Zagreb, who presented a proposal for future cooperation with regards to the topic of facilitating the access to the Croatian labour market for potential investors, small and medium-size entrepreneurs from the Federal Republic of Germany.In March 2011, the CES was visited by the representatives of the Ministry of Labour and Social Protection of the Republic of Kosovo and the Kosovar Public Employment Service. The purpose of the study visit was to introduce the members of the Kosovar delegation with the operations of the CES and the Job Fair concept.A Cooperation Agreement between the CES and the Hungarian Public Employment Service was signed on 24 March 2011, during the Hungarian EU Presidency, at the Sveti Martin Spa & Golf Resort. The mentioned Cooperation Agreement was signed by Mrs. Ankica Paun Jarallah, Director General of the Croatian Employment Service, and Mr. Róbert Komáromi, Director of the Hungar-ian Public Employment Service. Further cooperation plans agreed between Mrs. Ankica Paun Jarallah and Mr. Róbert Komáromi include the exchange of experiences in the following priority areas: improvement of public employment services, provision of services to employers, and provi-sion of services to job seekers. The two institutions will also cooperate in the implementation of joint projects and projects run under various European and other international programmes, in the preparation activities for joining the EURES network, and in the field of vocational rehabilitation and employment of persons with disabilities.On 16 June 2011, the Croatian Employment Service organised a national conference entitled 80 Years of Lifelong Vocational Guidance in the Republic of Croatia: New Challenges and Approach-es, also inviting an international audience. The conference included an overview of the develop-ment of the vocational guidance system in Croatia and within the Croatian Employment Service from its beginnings in 1931, when the first Counselling Station offering counselling services in the process of choosing an occupation was established, until today; an overview of the development of the vocational guidance measurement instruments; an overview of the present-day features of the vocational guidance system; and an overview of the further development plans relating to the same. During the Conference, the invited representatives from the EU member states introduced the participants with the existing practice and the vocational guidance system features character-istic of their countries.A cooperation agreement with the Montenegrin Employment Service was signed on 19 July 2011 in Podgorica, Montenegro. The agreement was signed by Mrs. Ankica Paun Jarallah, Director General of the Croatian Employment Service, and Mr. Zoran Jelić, Director General of the Mon-tenegrin Employment Service. The main purpose of signing this Cooperation Agreement was to ensure better cooperation between Croatia and Montenegro as well as encourage further progress in the development of cross-border projects implemented by the countries and institutions in the field of labour and employment.The first bilateral meeting between Mrs. Ankica Paun Jarallah, Director General of the Croatian Employment Service, and Mr. Xin Changxin, Assistant Minister of Human Resources and Social Welfare, was held on 30 November 2011 in Beijing, the People’s Republic of China. The meeting was organised as part of the conference of the World Association of Public Employment Services (WAPES) entitled Green Works attended by Mrs. Ankica Paun Jarallah as one of the speakers. During this bilateral meeting, Mrs. Ankica Paun Jarallah and Mr. Xin Changxin exchanged expe-rienced and opinions concerning the topics of common interest to both countries in the field of labour and employment.

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Multilateral international cooperation was continued through the membership in the WAPES Man-aging Board (World Association of Public Employment Services - WAPES). As one of the 16 mem-bers of the WAPES Managing Board, the CES actively participated in the implementation of the WAPES Annual Action Plan. It also continued its close cooperation with the WAPES Presidency (Pôle Emploi, France) and its Executive Secretariat (VDAB, Belgium). As members of the com-munication team, the CES employees actively participated in the preparation of the globally dis-tributed WAPES Newsletter.The employees of the Croatian Employment Service attended a number of professional conferenc-es and seminars organised in the country and abroad, responding to invitations from international bodies, organisations and associations (individual governments of EU member states, Council of Europe, ETF, ILO, IOM, UNECE, UNDP, CEI, WAPES, and similar) received through the Ministry of the Economy, Labour and Entrepreneurship, Ministry of Foreign Affairs and European Integra-tion or to direct invitations to participate in the same as moderators, presenters, and other.

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Notes

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ISSN 1331-2618