Labour and Employment in Kosovo 2007

7/30/2019 Labour and Employment in Kosovo 2007

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REPUBLIC OF KOSOVA

GOVERNMENT OF KOSOVA

MINISTRYOFLABOURANDSOCIALWELFARE

DEPARTMENT OF LABOUR AND EMPLOYMENT

L A B O U R

A N D

E M P L O Y M E N T

K O S O V A

2 0 0 7

A N N U A L R E P O R T


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Editors:

Julius Krause

Senior Policy Advisor, MLSW / DLE GTZ / CIM

[email protected]

Shpetim Kalludra

Chief for Labour Market Analysis Section , MLSW / DLE

[email protected]

Labour Market Analysis Section

Department of Labour and Employment

Ministry of Labour and Social Welfare

Responsible:

Ylber Shabani, Director General

Department of Labour and Employment

Ministry of Labour and Social WelfareRruga Tiarna, N.N.10000 Prishtina, Kosova


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Table of Contents

MAP OF KOSOVA ............................................................................................................... vii

ABBREVIATIONS .......................................................................................................... ix

LIST OF TABLES .......................................................................................................... xi

LIST OF FIGURES ........................................................................................................ xiii

EXECUTIVE SUMMARY ................................................................................... xv

1. Introduction ................................................................................................................ 01

1.1. Objectives and Methodology ........................................................................... 03

1.2. Definitions and Terminology .............................................................................. 04

2. Registered Unemployment .......................................................................................... 07

2.1. Skills and Unemployment ...................................................................... 09

2.2. Age and Unemployment ................................................................................. 10

2.3. Ethnicity and Unemployment ........................................................................... 10

2.4. Gender and Unemployment ............................................................................ 11

2.5. Regional Developments ................................................................................... 12

2.6. Unemployment Staff Ratio / Regional Capacities ........................................ 12

3. Employment Mediation ............................................................................................... 15

3.1.Vacancies ............................................................................................................ 16

3.1.1. Vacancies by Sector .......................................................................... 163.1.2. Vacancies by Skills ............................................................................. 17

3.1.3. Vacancies by Region .......................................................................... 18

3.2. Placements ........................................................................................................ 18

3.2.1. Placements by Sector ........................................................................ 19

3.2.2. Placements by Skills .......................................................................... 20

3.2.3. Placements by Age ............................................................................ 21

3.2.4. Placements by Ethnicity ...................................................................... 21

3.2.5. Placements by Gender ....................................................................... 22

3.2.6. Placements by Region ....................................................................... 22

4. Vocational Training .................................................................................................... 25

4.1. Training by Skills .............................................................................................. 26

4.2. Training by Age ............................................................................................... 27

4.3. Training by Ethnicity ........................................................................................ 27

4.4. Training by Gender ......................................................................................... 27

4.5. Training by Region .......................................................................................... 28

5. Rsum ...................................................................................................................... 29

6. References ................................................................................................................ 31

APPENDIX ......................................................................................................................... 33

A. Labour Market Indicators ......................................................................................... 34

A.1. Population Estimates ........................................................... 35

A.2. Scenarios on Employment and Unemployment ................................................. 35

A.3. Labour Market Performance ............................................................................. 37A.3.1. Activity Rate

A.3.2. Unemployment Rate

A.3.3. Registration Rate

A.3.4. Inflow Ratio

A.3.5. Employment Rate

............................................................................. 37

....................................... 37

....................................... 38

...................................... 38

........................................................................... 38

B. Employers Survey on Wages .................................................................................. 39

C. Employment Data and Charts .... 40

C.1. Regional Unemployment & PES Performance

C.2. Labour Demand: Vacancies & Placements

C.3. PES Performance Data

C 3.1. Gender Skills - Age

C 3.2. Registration by Ethnicity

C 3.3. Registered Impaired

....................................... 40

.......................................... 41

............................................... 44

... 44. 45

. 46

D. ISCED . 47


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MAP OF KOSOVA

Department of Labour and EmploymentEmployment Offices

Vocational Training Centres in Kosova


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ABBREVIATIONS

DLE Department of Labour and Employment

DSW Department of Social Welfare

ED Employment Division

ILO International Labour Organisation / International Labour Office

IOM International Organisation of Migration

IMF International Monetary Fund

MAFRD Ministry of Agriculture, Forestry and Rural Development

MCYS Ministry of Culture, Youth and Sports

MEF Ministry of Economy and Finance

MEO Municipal Employment Office

MEST Ministry of Education, Science and Technology

MLSW Ministry of Labour and Social Welfare

MTI Ministry of Trade and Industry

REC Regional Employment Centre

SOK Statistical Office Kosova

UNDP United Nations Development Programme

VTC Vocational Training Centre

VTD Vocational Training Division

WB World Bank

AHS Agriculture Household Survey

DHS Demographic and Health Survey

HDS Human Development Survey

ISCED International Standard Classification of Education

ISCO International Standard Classification of Occupations

LFS Labour Force Survey

NACE International Standard Classification of Economic Activities


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LIST OF TABLES

Content PageTable 1 Unemployment 2007 (Inflow, Outflow, Increase) 09Table 2 Unemployment by Skills 09Table 3 Unemployment by Age 10Table 4 Unemployment by Ethnicity 10

Table 5 Unemployment by Gender 11Table 6 Unemployment flows by Region 12Table 7 Unemployment-Staff-Ratio 13Table 8 Vacancies by Skills 17Table 9 Vacancies by Regions 18Table 10 Placements, Vacancies, Rates 19Table 11 Placement by Skills/Placement-Rates 20Table 12 Placements by Age 21Table 13 Placements by Ethnicity 21Table 14 Placements by Gender 22Table 15 Placements by Region 22Table 16 Training by Skills 26Table 17 Training by Age 27Table 18 Training by Ethnicity 27

Table 19 Training by Gender 28Table 20 Training by Region 28Table 21 Unemployment Overview 35Table 22 Scenario A 36Table 23 Scenario B 36Table 24 Scenario C 36Table 25 Scenario D 37Table 26 Placement Rates by Municipality 40Table 27 Regional Unemployment Overview 41Table 28 Placements by Sector / Nace 41Table 29 Vacancies by Sector / Nace 42Table 30 Internal Performance Indicators Gender / Skills / Age 44Table 31 Registration by Ethnicity / Albanians 45Table 32 Registration by Ethnicity / Serbs 45

Table 33 Registration by Ethnicity / Other Minorities 46Table 34 Registration by Ethnicity / All Minorities 46Table 35 Registered Impaired 46


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LIST OF FIGURES

Content PageFigure 1 Increase Rate Registrations 09Figure 2 Increase Registrations by Skills 09Figure 3 Increase Rate / Age 10Figure 4 Increase Rate by Ethnicity 11

Figure 5 Proportional Outflow by Gender 11Figure 6 Increase Rate by Regions 13Figure 7 Outflow to Staff Ratio 2006 13Figure 8 Outflow to Staff Ratio 2007 13Figure 9 Employment Services 16Figure 10 Vacancies 2003-2007 16Figure 11 Vacancies by Economical Sectors 16Figure 12 Vacancies by Owner 17Figure 13 VRR by Skills 17Figure 14 VRR by Regions 18Figure 15 ASR by Regions 18Figure 16 Placements 2001-2007 18Figure 17 Placement by Sector 19Figure 18 Placement by Owner 2003-2007 19

Figure 19 Placement Rate by Skills 20Figure 20 PVR by Skills 20Figure 21 Placement Rate by Age 21Figure 21a Outflow Rate Rate by Age 21Figure 22 Placement Rate by Ethnicity 22Figure 23 Placement Rate by Regions 23Figure 24 Placement-Staff Ratio 23Figure 25 VT Participants 2002-2007 26Figure 26 Activation Rate by Skills 26Figure 27 Activation Rate by Age 27Figure 29 Activation Rate by Gender 27Figure 30 Activation Rate by Regions 28Figure 37 A C2 Inflow by Gender 42Figure 38 A C2 Outflow by Gender 42

Figure 39 A C2 Placements by Gender 43Figure 40 A C2 Placements by Sector 43Figure 41 A C2 Placements by Owner 43Figure 42 A C2 Placements Priority Groups Young and Unskilled 43


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EXECUTIVE SUMMARY

In absolute figures 334595 persons registered as unemployed with the Kosovan public

employment services until the end of 2007 resulting in an increase of 2,6% compared to

2006. Similar to the previous year, the registered unemployed represent a registered

unemployment rate in a range of 39% to 43% out of the economically active population.

About 93% of the registered unemployed are long-term unemployed (12 months +).

Almost 47% of the registered unemployed are female. Compared to 2006, the number of

female registrations increased by about 2,9%. The female unemployment rate is about 56

to 61%, while the male unemployment-rate is about 32-36%.

Nearly 60% of the registered unemployed refer to the educational level unskilled. The

number of unemployed out of this skills group increased by 3%. More than 72% of all

registered unemployed dispose an educational level below secondary school. These

lower skilled unemployed suffer from a registered unemployment rate of 67 to 71%. Thehigher skilled population faces comparatively low unemployment rates of 6 to 7%.

The youngest age group - from 15-24 years - faces the highest yearly inflow to unem-

ployment (inflow rate 7,7%) as well as the highest increase rate (3,4%) in registrations.

The eldest age group in 2007 even shows a decrease in unemployment by about -1%.

On the average, one Kosovan employment officer in 2007 had to care for 1838 unem-

ployed: This is 12 times more, than on the European average. With 1202 unemployed per

officer, the region of Gjilan/Gnjilane faces the most comfortable situation within Kosova,

while the region of Mitrovic/Mitrovica, with 2413 unemployed per officer, suffers from the

worst unemployment-staff ratio.

6535 vacancies were acquired by the Kosovan employment offices during 2007,

representing a decrease of more than -23% compared to 2006. Statistically every month

more than 612 unemployed had to compete for 1 vacancy offered, increasing from a

relation of 454-to-1 in 2006.

Regarding the sectors by owner, 31% of all vacancies were offered in the public sector,

but 69% in the private sector.

Concerning the economical sectors, the tertiary sector demand (services) increased up to

67%, while the secondary sector (production) still covers 30% of all vacancies. At least 5993 unemployed found a job through the mediation of the employment services

in 2007, representing a decrease of more than 18% compared to 2006 as well as a

placement rate of 1,8% (declining from 2,3% in 2006).

18,5% of all placements referred to the public sector and 81,5% to the private sector.

Distinguishing the economical sectors, almost 68% of all placements in 2007 referred to

the tertiary sector (all services).

About 64% of all unemployed placed in new jobs were male representing a placement

rate of 2,2% - about 27% were female, representing a placement rate of 1,4%.

With a placement rate of more than 21%, unemployed with an university degree faced the

most comfortable situation in comparison to other skills levels: unskilled unemployed


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reached a placement rate of 1,1% in 2007 - whereas the placement rate of unskilled

female unemployed is as low as 0,7%. Female unemployed with a university degree

reached a placement rate of about 27%. The higher the skills level, the lower the female

disadvantage in terms of job placements.

Different from previous reporting periods, the results achieved for Kosova-Serbs, for allminorities and for the non-Serb minorities are for the first time clearly below the Kosovan

average: While Kosova-Albanians reach a placement rate of about 1,9%, the Kosovan

minorities face a placement rate of 1,5%.

In total 3047 registered unemployed entered a vocational training during 2007, repre-

senting a 12 months decrease of -12% and a decline of the activation rate (respectively

training rate) down from 1,1% to about 0,9%.

The activation rate of female unemployed remained at about 0,7% in 2007 while the

activation rate of male unemployed decreased from about 1,4% down to 1,1%.

Unemployed in the age of 15-24 years reached the highest activation rate (1,4%) and the

highest proportion (45%) out of all training participants (also) in 2007.

Although unskilled persons represent 60% of all unemployed only 28% out of all training

participants refer to this skills level. The activation rate of unskilled unemployed decreased

from 0,5% in 2006 down to 0,4% in 2007 while disproportional to existing employment

restrictions the activation rate of unemployed with an university degree increased from

3,3% to 5,4% at the same time.


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MLSW / DLE - Kosova Labour and Employment 2007

1

Chapter 1

INTRODUCTION


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1. Introduction

In continuation since 2003, the 2007 DLE annual report addresses the issues of labour and

employment in Kosova. Special attention is paid to the performance of activities carried out

by the Department of Labour and Employment (DLE) of the Kosovan Ministry of Labour and

Social Welfare (MLSW) - respectively its Employment Division and its Vocational TrainingDivision.

1.1. Objectives and Methodology

The current report presents - as far as possible the socio-demographical structure as well

as the development of the registered unemployment, the employment mediation and the

vocational training. The focus - predominantly - is set on the development of internal figures

and internal performance indicators - by comparing figures and developments in 2007 to the

results of 2006 - and partially to previous years: Therefore the figures used in this report

mainly refer to data collections carried out by the statistical officers of the MunicipalEmployment Offices (MEO) and the respective Regional Employment Centres (REC). On

account of this, the DLE developed data forms, covering registrations, vacancies, place-

ments and vocational training, as far as possible differentiated by gender, skills, age,

ethnicity, region, sector of activity, sector by owner etc. The DLE statistical officers proved,

compiled and processed the data in order to prepare monthly reports, which are the basis for

the DLE annual report.

As far as necessary, concerning external determinants of the labour market, such as the po-

pulation, the working age population, the active population and the employment, the report

refers to secondary research based on external Kosovan and international sources - as wellas to the outcome of own - primary - research.

The main objective of this report is to support the decision making process and the policy

design within the MLSW, particularly by the Minister and its advisors, the Vice-Minister, the

DLE Director as well as the heads of the ED and the VTD. Further on it aims to provide

transparent information about the development of labour and employment in Kosova to

Kosovan and international stakeholders as well as to the interested public, by

Presenting and analysing the structure and facets of unemployment in Kosova and its

regions in particular regarding the socio-demographical aspects gender, skills, age andethnicity.

Analysing vacancies offered and placements realized, through the Kosovan employment

services, regarding the socio-demographical aspects as well as the structural aspects of

the demand side, such as the sectors by activity and by owner.

Highlighting the structure of participants and the outcome of the vocational training as a

measure to enhance the employability of registered unemployed.

Referring - wherever possible the analysis to internationally accepted and comparable

indicators as defined by Euro Stat, ILO or European common practice.

Labour and employment is a most serious topic regarding the state of the Kosovan

development. Therefore, dont hesitate to give us your feedback!


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1.2. Definitions and Terminology

In order to allow a suitable differentiation and interpretation concerning the outcome of this report,the used terminology and definitions are listed below:

o The Population is the resident population within the Kosovan territory.

o The Working AgePopulation consists of the part of the resident population within the age15-64, orientated on the existing labour law.

o Unemployment refers according to ILO definitions to persons within the working age,who are a) without work, b) looking for work and c) are available for work.

Classical and cyclical unemployment: refers to a situation, in which the number of job-seekers exceeds the number of vacancies. This is in a classicalcase caused by a limitedaggregate labour demand while cyclical based on a misfit of real wages.

Search Unemployment: involves people being temporarily between jobs, searching fornew ones, also called frictional unemploymentand wait unemployment.

Structural Unemployment: involves a mismatch between the workers looking for jobsand the vacancies available, includes mismatch unemployment and technologicalunemployment.

o The (registered) Unemployed - refers to the persons who registered as unemployed(Theseshould be persons, who are without work, but are looking for work however, thisrequirement is implemented only partially in Kosova and most other countries).

o The long-term Unemployed are persons, who are registered as unemployed for more than12 month: this report refers to a calculative proportion of long-term unemployment, whichis under the condition [outflow


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o The Labour Force Participation Rate (or Activity Rate) is the proportion of the activepopulation out of the working-age population.

o The Unemployment Rate respectively the registered unemployment rateis the proportion ofregistered unemployed out of the active population.

o The Absolute Unemployment Gap: Total difference in percentage points between femaleand male unemployment rates.

o The (registered) Youth Unemployment Rate is the proportion of registered unemployedfrom 16 to 24 years out of the active population of the same age.

o The Unemployment Ratio refers the registered unemployed to the working-age population,the unemployment ratio here is equal to the registered unemployment ratiorespectively to theregistration rate.

o The (registered) Youth Unemployment Ratio is the proportion of registered unemployedfrom 16-24 out of the working-age population of the same age.

o The Inflow (to WAP) Ratio refers the total inflow to registered unemployment over the yearto the working-age population.

o The Employment Rate refers the employed to the working age population (it is not a mirrorof the unemployment rate but corresponds to the unemployment ratio).

o The Absolute Employment Gap: Total difference in percentage points between female andmale employment rates.

o The Unemployment-Staff Ratio refers the number of unemployed to the number ofemployment officers (without cleaner and security - but including administrative staff).

o Further performance indicators referring to the unemployment-staff relation are the

o Acquisition-Staff Ratio (total 12-months cumulated vacancies-to-staff)

o Placement-Staff Ratio (total 12-months cumulated placements-to-staff)

o Outflow-to-Staff relation (total 12-months cumulated outflow-to-staff)

o Inflow-to-Staff relation (total 12-months cumulated inflow-to-staff)

o The Inflow Rate is the share of the average number of monthly newly registeredunemployedout of the average number of registered unemployed during the year. In order to allow abetter comparison this report partially refers to a 12 month cumulated rate.

o The Outflow Rate is the share of the average number of the monthly sum of placed and de-leted former registered unemployed out of the average number of registered unemployedduring the year. In order to allow a better comparison this report partially refers to a 12 monthcumulated rate.

o The Deleted represent those persons as a part of the outflow, which will be removed from theclassification registered unemployed apart from the reason placement - if

a) a job was found by own affords,b) no further interest in the services of the employment offices,c) no contact to the employment offices within an agreed time period,d) working age was exceeded,

e) the registered person died.

o The Placement Rate is the number of former unemployed mediated into new jobs by theemployment services during the year in relation to the average number of registered


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unemployed during the year (its a derivate of the placement ratio as the number ofplacements per registered unemployed persons).

o The Vacancy-Registration Rate is the number of vacancies acquired by the employmentservices during the year in relation to the average number of registered unemployed duringthe year (its a derivate of the vacancy/unemployed ratio as the number of vacancies per

registered unemployed persons).

o The Placement-Vacancy Rate is the number of placements realized in relation to thenumber of vacancies acquired by the employment services during the year.

o The Activation Rate shows the share of persons starting a vocational training during theyear out of the average number of registered unemployed during the year.

o The Graduation Rate shows the share of persons graduating a vocational training during theyear out of the number of participants during the year.

o ISCED: International Standard Classification of Education (ISCED 97 see Annex)

o Skill Groups - former classification translated to ISCED:

- Unskilled (ISCED 0 - 2): No school, not completed elementary school.- Semi-skilled (ISCED 3): Elementary school completed, 3-6 month in-service training.- Skilled (ISCED 3A): 2nd. School not completed, 3-6 month technical training.- Secondary school (ISCED 3C): 2nd. School completed, 4 years tech. gymnasium.- High School (ISCED 4): Not completed university, engineer graduation.- University (ISCED 5A or 6):completed faculty, graduates, post-graduates.

o Sectors by Activity are orientated on International Standard Classification of economicactivities, NACE (Rev. I), but still not fully compatible:

(A) Agriculture / Forestry (B) Fishing (C) Mining (D) Manufacturing(E) Electricity / Gas / Water (F) Construction (G) Trade (H) Hotel/Gastronomy( I ) Transport / Communication (J / K) Finance / Real Estate etc. (M) Education(N) Health / Social Protection (O) Services (Q) NGO's / Organisations

o Economical Sectors: Primary Sector (NACE: A-B), Secondary Sector (C-F), Tertiary Sector(G-O,Q).

o Sectors by Owner: Public Sector: Governmental and governmental controlled institutionsand enterprises. Private Sector: Private individuals, farms, businesses and companies.

o Ethnical Groups:Albanian, Serbian, Montenegrin, Ashkali, Roma, Turkish, Bosniak, and

Other. For analyses purposes a shorter classification will also be used:Albanian, all minorities, Serbian, and other minorities (without Serbian).


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Chapter 2

REGISTERED

UNEMPLOYMENT


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2. Registered Unemployment

In total 334595 persons registered as

unemployed with the Kosovan public

employment services until the end of

2007. The shown figures represent anincrease of 2,6% over 12 months, what is

slightly higher compared to the 12 months

increase in 2006 but still far below the

outcomes of previous years (see fig. 1).

While the 12-months cumulated inflow to unemployment significantly decreased by more than

23% compared to the results in 2006 at the same time the cumulated outflow from unemployment

over proportionally declined by more than 35%.

Regarding both declining inflow and outflow rates

(see tab. 1) confirms the overall trend of the labour

market since 2000, indicating a low circulation and

limited dynamics in terms of job-creation and the

reintegration of unemployed to employment: In a

best case scenario the calculative proportion of long-term unemployed increased from 84% to

more than 86%, while on the calculative average (of best and worst case scenario) in 2007, it

increased from 91% to 93%. In other words: 93% of all registered unemployed are registered for

more than 12 months (definitions). Long-term unemployment increased and remains to be the

core problem of the Kosovan labour market.

2.1. Skills and Unemployment

Comparing the skills levels, with 199648 persons,

the unskilled unemployed (ISCED 0-2) in 2006

still represent the highest proportion out of the

total number of unemployed (59,6%) as well as

the highest increase rate in registrations (+3%). At the same time this skills level again represents

the highest number of new registrations (12412 persons) increasing from a share of 50% to

53% of the total inflow (tab.2, fig.2).

As the only skills group, unemployed on the skills level higher school show a decrease in the

number of registrations (-4%), what most likely refers also to administrative changes concerning

the institutional definitions of skills levels: many of the former higher school degrees, referring to

ISCED 4, are more and more

formally offered within bachelor

programmes referring to ISCED 5.

The respective new registrations are

now referred to the skills level

university the net effect regardingboth groups should be zero.

2004 2005 2006 2007

12-months Inflow 30395 29661 30327 23279Monthly Inflow Rate 0,86% 0,79% 0,78% 0.58%

12 months Outflow 11428 12585 22691 14710

Monthly Outflow Rate 0,32% 0,34% 0,58% 0.37%

12 months Increase 6,7% 5,7% 2,4% 2.6%

Table 1: Unemployment 2007

.Skills ISCEDRegistered

Unemployed %

12MonthsInflow

12MonthsOutflow

MonthlyInflowRate

MonthlyOutflow

Rate

.Unskilled 0-2 199648 59,6 12412 6658 0.52% 0.28%

.Semi-skilled 3 14009 4,2 668 314 0.40% 0.19%

.Skilled 3a 29767 8,9 1341 857 0.38% 0.27%

.2nd. school 3c 86309 25,8 7487 5469 0.73% 0.53%

.High school 4 2211 0,7 386 477 1.43% 1.77%

.University 5a+ 2651 0,8 985 935 3.04% 2.88%

Table 2: Unemployment by Skills 2007

Fig.1. Increase Rat e

Registration

2.6%

8.2%

9.7%

6.7%

5.7%

2.4%

2002 2003 2004 2005 2006 2007

Fig.2. Increase R egistratio n by Skills

uni

1.9%

High Schoo l

-4.0%

2nd.

School

2.4%Skilled

1.7%

Semi-

Skilled

2.6%

Unskilled

3.0%


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Despite a missing linear correlation regarding the skills levels and the increase of unemployment

(fig. 2), a closer look on the outcome of the figures in 2007, like in 2006, reveals an ongoing

segmentation of the Kosovan labour market. Particularly a proportional comparison of the outflow

by skills may emphasise most the direct relation of skills levels and a possible reintegration to

employment (fig. 2a and tab. 2):

The higher educated skills levels (higher school and university) face both the highest average

monthly inflow rates as well as the far highest average monthly outflow rates, indicating over

proportional labour market dynamics respectively a lower risk to remain (long-term) unemployed.

While the calculative proportion of long-term unemployed in Kosova is 93% on the average, the

calculative proportion of long-term unemployed referring to the higher skilled levels is about 71%

on the average. In addition the higher skilled groups realise an average decrease in registrations

of about -1%.

Contrasting that especially unemployed on the three lowest skills levels suffer from a combination

of both increasing registrations and low dynamics regarding the labour market flows. Besides

the limited absorption capacities of the Kosovan economy, high-skilled Kosovars most probably

face search (younger age groups) and mismatch respectively technological (elder persons)

unemployment, while the unemployment of the lowest skilled groups might be seen as

predominately structural.

2.2. Age and Unemployment

Regarding the unemployed by age, most unem-

ployed in total figures still refer to the age from

25-39 years. However, a direct comparison of to-

tal figures by age suffers from the different number of years the defined age groups cover. Like in

previous years the highest pressure in terms of unemployment is again on the youngest age

group, particularly as far it concerns the increase in registrations (+3,4%) and the inflow rate (see

table 3 and fig. 3).

Different from the general tendency but confirming

according results of 2006, unemployed in the age of 55-64

years again profit from a decrease in registrations, which is by

about -1% in 2007 (see fig. 3).

2.3. Ethnicity and Unemployment

A presentation of registrations by ethnicity follows with first priority the aim to comparatively re-

gard developments concerning the access of minorities to the Kosovan public employment

services: The 2007 increase rate in registrations still displays higher results for registered minori-

ties (6,2%), than for registered Kosova-Al-

banians (2,3% - see fig. 4). In addition the

Kosovan minorities reach over proportio-

nal results regarding the average monthlyinflow rates (tab. & fig. 4).

AgeRegistered

Unemployed2007

12MonthsInflow

12MonthsOutflow

MonthlyInflowRate

MonthlyOutflow

Rate

15-24 98695 7453 4194 0.64% 0.36%

25-39 147411 9602 5895 0.55% 0.34%

40-54 66286 4629 2806 0.58% 0.35%

55-64 22203 1595 1815 0.59% 0.67%Table 3: Unemployment by Age

Ethnicity

RegisteredUnemployed

2007 %

12MonthsInflow

12MonthsOutflow

MonthlyInflowRate

MonthlyOutflow

Rate

.K-Albanians 304461 91 20800 13978 0.57% 0.38%

.K-Serbs 13428 4 1404 341 0.90% 0.22%

.All Minorities 30133 9 2479 732 0.70% 0.21%Table 4: Unemployment by Ethnicity

Fig.3: 12- M ont hs Increase

Rate by age3.4%

2.6% 2.8%

-1.0%

15-24 25-39 40-54 55-64


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On the one hand higher inflow rates and increase rates in this case

positively indicate continuing progress in the inclusion of minorities

and a particularly high acceptance of services offered as far it con-

cerns the group of the Serb unemployed. On the other hand, the

Kosovan minorities face an over proportional decrease in the outflow

from unemployment. Different from previous reporting periods, in

2007 the respective outflow-rates are even below the results reached on the Kosovan average

(tab. 4, compare DLE Annual Report 2006). However, with an average proportion of less than

92%, long-term unemployment of Kosovan minorities remains below the Kosovan average (with

an average proportion of 89% Kosova Serbs face the lowest long-term unemployment).

2.4. Gender and Unemployment

At the end of 2007 the total stock of persons registered as unemployed with the Kosovan public

employment offices consists of 156679 female and 177916 male. While the number of female

registrations increased by 2,9% during 2007, the number of registered male unemployed under

proportionally increased by about 2,4%.

As the female registrations

show a higher relative and

total increase than the male

registrations, the share of

female unemployed in 2007

again slightly grew.

Nevertheless it is worth to

remark that with 0,5 percen-

tage points the total gender gap in the increase rates in 2007 reveals an ongoing decline (tab. 5).

Further on female unemployed under proportionally suffer from a decreasing outflow from

unemployment: Subsequently the female share on the total outflow in 2007 for the first time grew

up to a level of more than 40% (compare fig. 5)

Considering a relation of gender divergences to the risk groups of young (15-24) and unskilled

unemployed, there is a slightly positive development: Regarding the figures of male unemployed

of the same age group (15-24) aswell as of female unemployed of

elder age groups, in 2007 young

female unemployed profit from a

lower (and declining) increase rate

in registrations in both cases (tab. 5)

A look on the skills levels by gender

shows a reduced gender gap, which

is based on a declining increase in

registrations for unskilled female onthe one hand and a growing

increase in registrations for unskilled male unemployed on the other hand.

2005 2006 2007

Female Male Female Male Female Male

M. Inflow Rate 0,80% 0,79% 0.67% 0.88% 0.56% 0.61%

M. Outflow Rate 0,24% 0,42% 0.43% 0.72% 0.32% 0.41%

12 M. Increase 9811 8596 4333 3303 4481 4088

12 M. increase rate 7,1% 4,5 2.9% 1.9% 2.9% 2.4%

Unemployed 147865 170525 152198 173828 156679 177916

Proportion 46,3% 53,7% 46.7% 53.3% 46.8% 53.2%

12 M. Increase unsk. 7,5% 4,6% 3.6% 1.4% 3.4% 2.4%

Registered unskilled 104632 84316 108411 85483 112097 87551

Proportion unskilled 55,1% 44,9% 55.9% 44.1% 56.1% 43.9%

12 M. Increase 15-24 8,9% 8,4% 5.0% 4.8% 2.6% 4.2%

Registered 15-24 43967 46975 46184 49252 47398 51297

Proportion 15-24 48,3% 51,7% 48.4% 51.6% 48.0% 52.0%

Table 5: Unemployment by Gender

Fig.4. 12 M ont hs Increase Rate

by Ethnicity

2.3%

A lb.

8.6%

Serbs 6.2%

A ll

M in

Fig.5: Proportional Outflow by Gender

Female

40.2%Female

38.0%Female

35.5%Female

32.4%

Female

34.6%

M ale

59.8%

M ale

62.0%

M ale

64.5%

M ale

67.6%M ale

65.4%

2003 2004 2005 2006 2007


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12

Regarding the female and unskilled unemployment in general, it is worth mentioning again the

procedures to apply for financial social assistance, which in Kosova is given to more than 40.000

families: A basic requirement for this is to prove, not to receive any further income. To do so

affords to register all adult family members of a household as unemployed! The employment

offices only rudimentarily started to distinguish according cases. So, most probably there remain

a high number of opportunistic registrations:

Although a detailed analysis on this suffers from data gaps, it is highly plausible to refer many of

those registrations to unskilled female, who are administratively pushed from a personal status

definition as economic inactive to a status of registered unemployed. Biased estimates would

quantify these cases by at least 30000 to 40000 persons, what should be taken into account

regarding the current stock of female registrations as well as subsequent activities of employment

promotion, based on analysing existing gender gaps (see MLSW-DLE 2003, 2004, see WB 2003,

2004, see MLSW-DSW 2003, 2004, see SOK 2006).

2.5. Regional Developments

Equal to previous years, the highest

stock in the number of registered un-

employed at the end of 2007 refers to

the employment offices in the region of

Prishtina (68437), just followed by

those in the region of Mitrovica (62735

table 6).

Significant divergences and changes

are displayed by a look on the regional

increase rates regarding the registered

unemployed persons. Different from

2006 (and from all other regions) the

region of Mitrovica showed a decrease

in registrations.

The highest increase rate in regis-

trations in 2007 refers to the region ofGjilan, which also faces repeatedly the highest relative inflow to unemployment (inflow rate). Des-

pite this, the relative outflow from unemployment (outflow rate) within the region of Gjilan again

represents the highest results compared to all other regions. Contrasting that unemployed in the

region of Gjakova and Peja suffered from the far lowest results, facing a monthly outflow of (only)

0,27%: The results reported from those regions represent (only) 73% of the outflow reached on

the Kosovan average and 53% of the regional maximum rate (see table 6 and 6a).

2.6. Unemployment - Staff Ratio and Regional Capacities

In order to support an appropriate performance indication, the analysis and comparison of resultsshould take into account differentiations of regional capacities: In total 182 regional employment

officers (without support staff) had to care for more than 334 thousand registered unemployed -

Regions2007

Inflow Rate % Outflow Rate % Currentregistered

unemployedmonthlyaverage

12-monthscumulative

monthlyaverage

12-monthscumulative

.Ferizaj/Uroevac 0.52% 6.27% 0.28% 3.36% 34877

.Gjakov/Gjakovica 0.55% 6.58% 0.27% 3.22% 38860

.Gjilan/Gnjilane 0.94% 11.32% 0.51% 6.16% 36068

.Mitrovic/Mitrovica 0.37% 4.44% 0.39% 4.66% 62735

.Pej/Pe 0.47% 5.58% 0.27% 3.30% 38154

.Prishtin/Pritina 0.60% 7.23% 0.42% 5.02% 68437

.Prizren/Prizren 0.72% 8.65% 0.38% 4.61% 55464

Table 6: Inflow/Outflow Rates / Registrations

2006

Inflow Rate % Outflow Rate % Currentregistered

unemployedmonthlyaverage

12-monthscumulative

monthlyaverage

12-monthscumulative

.Ferizaj/Uroevac 0.92% 11.03% 0.58% 6.94% 33868

.Gjakov/Gjakovica 0.58% 6.91% 0.31% 3.72% 37564

.Gjilan/Gnjilane 1.21% 14.54% 0.89% 10.67% 34246

.Mitrovic/Mitrovica 0.55% 6.57% 0.51% 6.13% 62871

.Pej/Pe 0.57% 6.81% 0.49% 5.86% 37289

.Prishtin/Pritina 0.76% 9.16% 0.53% 6.40% 66933

.Prizren/Prizren 1.01% 12.15% 0.80% 9.66% 53255

Table 6a: Inflow/Outflow Rates / Registrations


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13

Fig.8:12-Months Outflow-Staff Ratio 2007

61

Ferizaj

Uroevac

59

Gjakov

Gjakovica

73

Gjilan

Gnjilane

113

Mitrovic

Mitrovica 63

Pej

Pec

81

Prishtin

Pritina

105

Prizren

Prizren

81

Kosovan

Average

Fig.7:12-Months Outflow-Staff Ratio 2006

114

Kosovan

Average

203

Prizren

Prizren80

Prishtin

Pritina

98

Pej

Pec

133

Mitrovic

Mitrovica

114

Gjilan

Gnjilane

73

Gjakov

Gjakovica

123

Ferizaj

Uroevac

resulting in an unemployment-staff ratio of 1838:1 (for an orientation on this figure: the EU ratio is

150:1, 12 times less despite this, the operational staff was decreased by about 10% - see DLE

Annual Report 2006).

Similar to previous years, the public employment offices in the region of Mitrovica continuously

suffer from the highest (worst) unemployment-staff ratio, followed by the offices in the region ofPrizren. The regions with the lowest (best)

unemployment-staff ratio in 2007 are again Gji-

lan and Prishtina (tab. 7).

According to a common experience of all PES,

a high capacity effort - caused by a combination

of a relatively higher unemployment-staff and

inflow-staff ratio - tends to results in a relatively

lower outflow-to-staff relation and vice versa.

For the Kosovan PES this might be verified only

partially. While the employment offices in the region of Prizren face a far over proportional

unemployment staff ratio as well as the highest inflow-staff relation, the concerned employment

officers still realize the most successful outflow-to-staff performance.

Contrasting that the employment

offices in the regions of Gjakova

and Ferizaj provide the lowest

outflow-to-staff performance in

2007, despite facing anunemployment and inflow staff

relation near or below the

Kosovan average (compare tab.

7 and fig. 7).

However, the shown outcome

may indicate different econo-

mical developments within the

regions as well as different

priorities, regarding regional em-ployment promotion support

activities implemented on the central level of DLE (partially in co-operation with external partners,

such as UNDP, ILO, IOM, EAR, GTZ, AWO etc.). Nevertheless, they most probably also reveal

disparities regarding the performance and implementation of administrative procedures.

Regarding further and external indicators of the labour market (see chapters below), both a

declining outflow and outflow-staff performance refers less to the general economic performance

in Kosova rather than to a more and more unfavourable situation in terms administrative

operational capacities and staff.

TotalRegistered

Unemploymentto-Staff-Ratio

Inflow-to-Staff

Outflow-to-Staff

Ferizaj/Uroevac 34877 1836:1 114:1 61:1

Gjakov/Gjakovica 38860 1850:1 121:1 59:1

Gjilan/Gnjilane 36068 1202:1 133:1 73:1

Mitrovic/Mitrovica 62735 2413:1 108:1 113:1

Pej/Pe 38154 1908:1 106:1 63:1

Prishtin/Pritina 68437 1629:1 117:1 81:1

Prizren/Prizren 55464 2311:1 197:1 105:1

ALL 334595 1838:1 128:1 81:0

Table 7: Unemployment-Staff Ratio


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15

Chapter 3

EMPLOYMENT

MEDIATION


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16

Re istration

Counselling

Matching Procedure

Training

Unemployed Employer

Vacanc

No success Success

Placement

EmploymentServices

Advice

InformationIncentives

Fig.10: 12-Months cumulated Vacancy

7948 84007121

8561

6535

2003 2004 2005 2006 2007

Fig.11: 12-Months cumulated Vacancies by Sector

3%

8%

11%

30%

32%

15%

67%

60%

74%

2005

2006

2007

Primary Secondary Tertiary

3. Employment Mediation

Considering the procedures of public

employment services in general, their

main task is focused on the registration

of unemployed in order to reintegratethem to employment: After the regis-

tration, this means to advice unemployed persons in

terms of their future employment and / or career de-

velopment. If necessary concerning an adjusted

labour market orientation, a vocational training is

switched between to update required skills.

The next step refers to the employers: The objective to lead unemployed to

employment is based on the successful acquisition of vacancies - as well as to properly match

unemployed as the personnel offered with the demand reported. This procedure usually is

called employment-mediation: Contact employers, acquire vacancies (labour demand) and place

jobseekers (labour supply). As far as possible, the outcome of this procedure will be illustrated in

the following chapter.

3. 1. Vacancies

In 2007 the Kosovan public employment ser-

vices acquired 6535 vacancies cumulated over

the year. Compared to 2006 this is a decreaseof more than 23%. Referring to the number of

persons who registered as unemployed, the

number of acquired vacancies results in a vac-

ancy-registration-rate (VRR) of 1,97% in 2007, while it was about 2,7% in 2006 (fig. 10, MLSW-

DLE Monthly Labour Market Information 12/2007):

Within a 12 months period, there was 1 vacancy available for about 51 unemployed (38 in 2006).

Considering a monthly average gives a more realistic impression on the situation. Statistically

every month more than 612 unemployed had to compete for 1 vacancy offered.

3.1.1. Vacancies by Sector

Regarding the classical classificationof

the economical sectors, like in previous

years, most vacancies offered in 2007

referred to the tertiary sector(services,

67%), followed by the secondary sector

(production, 30%) and the primary sec-

tor (agriculture, 3%). All three sectors

faced a decrease in the number of

vacancies reported. Decreasing under proportionally, the tertiary sector - different from previous


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17

reporting periods

nonetheless in 2007

realised a growing share

on the total demand (+7

percentage points, see

fig. 11).

A look on the sectors by

owner reveals

ambivalent results

concerning the development of the Kosovan labour market: On the one hand the absolute

number of vacancies referring to both - public and private sector - according to the general

outcomes in 2007 significantly decreased. On the other hand the private sector shows an ongoing

increase regarding its share on the total demand in 2007, which grew from a proportion of 63% to

69% (fig. 12).

3.1.2. Vacancies by Skills

Analysing the vacancies by skills levels

shows some changes compared to the

outcome of 2006: With a share of 39% in

2007 the highest number of vacancies

refers to the skills level secondary

school instead to unskilled unemployed. Unemployed on almost all skills levels suffered from a

decreasing labour demand (tab. 8). As an exception after a tremendous decline in 2006 va-cancies referring the skills level higher school significantly increased (what most likely refers to

technical reasons rather than to a fundamental development. On the average the total number

of vacancies acquired for both groups of higher skilled unemployed declined by about 13%).

However, to gain a realistic impression on the

relation of skills levels and labour demand aff-

ords to refer to the vacancy registration rate by

skills (by proportionally referring the vacancies

offered to the distinguished skills groups):

Despite a significant decline regarding the ge-

neral development of the vacancy-registration rates (VRR) (except for unemployed on the skills

level higher school - see tab. 8), the according chart (see fig. 13) still reveals an almost linear

positive correlation: Higher skills more jobs !!!

Particularly unemployed with an university degree realize a 12-months VRR (30,1%), which is

very far above the Kosovan average of 1,97%. Contrasting that unskilled unemployed are

remaining not unexpected repeatedly clearly below (12-months VRR=1,1%):

While on the monthly average in 2007 about 39 unemployed with an university degree competedfor 1 vacancy offered, statistically this relation is about 400-to-1 for unemployed on the skills level

Skills ISCED Prop.cumulated12-Months

Changeto 2006

VRR2006

VRR2007

unskilled 0-2 32% 2116 -34.7% 1.7% 1.1%semi-skilled 3 5% 346 -16.8% 3.0% 2.5%skilled 3a 6% 389 -38.4% 2.2% 1.3%2nd. school 3c 39% 2577 -14.0% 3.6% 3.0%high school 4 4% 293 208% 4.1% 13.0%university 5a+ 12% 814 -31.0% 48.2% 30.1%

Table 8: Vacancies by Skills

Fig.13: 12-Months VRR by Skills

Un-

skilled

1.1%

Semi-

skilled

2.5%

Skilled

1.3%

2nd.

School

3.0%

High

school

13.0%

Uni

30.1%

Fig.12: 12-Months comulated Vacancies by Ow ner

3198public

37%

3526public

49%

4651public

55%

5776public

73%

2026

public31%

5363private

63%3595private

51%

3750private

45%2167

private27%

4509private

69%

2003 2004 2005 2006 2007


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18

Fig.14: 12-M o nths VR R by Regio ns

FerizajUroevac

1.8%

GjakovGjakovica

1.4%

GjilanGnjilane

3.1% MitrovicMitrovica

1.6%

PejPe

1.5%

PrishtinPritina

2.0%

PrizrenPrizren2.4%

Fig.16: 12-Months cumulated Placements

5993

4528 3730

5242

6370

5863

7348

2001 2002 2003 2004 2005 2006 2007

secondary school, 625-to-1 on the Kosovan average and more than 1112-to-1 for unskilled

unemployed.

3.1.3. Vacancies by Region

Resuming finally the vacancies by regionsshows unexceptionally decreasing results

respectively acquisitions all over Kosova:

In comparison to the further regions, the

highest decrease in labour demand as well as the lowest vacancy registration rate (VRR) in 2007

was reported from the offices in the region of Gjakova just followed by the region of Peja. While

the region of Mitrovica in 2007 faced the lowest decrease in vacancies offered, the highest VRR

again was achieved in the region of Gjilan. A look on the regional disparities regarding the VRR

reveals that the worst performing region in

2007 reached 73% of the Kosovan average

and only 47% of the maximum VRR (tab.

9).

In other words: While in the region of

Gjakova on the monthly average statistically

about 834 unemployed had to compete for 1 vacancy offered, this relation was about 385-to-1 in

the region of Gjilan (for the monthly average performance see also MLSW-DLE 12/2007).

Considering different service capacities in terms of staff within the regions and the respective em-

ployment offices, different to its VRR, the highest vacancy-staff-ratio respectively acquisition-staff

ratio (ASR) in 2007 was achieved by the employment officers in the region of Prizren (55:1).

Similar to the results of the VRR, the

lowest performance concerning the ASR

refers to the employment officers in the

regions of Gjakova (26:1) and Peja

(29:1) (see table 9 and fig. 15).

Although referring to different regions,

the outcome regarding regional disparities under the consideration of different regional capacities

in 2007 is near to the results of the VRR by region (see above): The region with the worst

performing officers concerning the ASR achieves about 78% of the Kosovan average and 47% of

the maximum ASR.

3.2. Placements

Besides the outflow (which inclu-

des de-registrations for several

reasons, e.g., self found jobs aftera DLE based vocational training

etc.) the placements may be regarded as the most important performance-indicator concerning all

Regions2007

cumulated12-Months

Changeto 2006

ASR2006

VRR2006

ASR2007

VRR2007

.Ferizaj/Uroevac 610 -37.9% 52:1 2.9% 32:1 1.8%

.Gjakov/Gjakovica 553 -39.9% 48:1 2.4% 26:1 1.4%

.Gjilan/Gnjilane 1084 -15.0% 40:1 3.7% 36:1 3.1%

.Mitrovic/Mitrovica 1010 -9.4% 38:1 1.8% 39:1 1.6%

.Pej/Pe 572 -21.9% 33:1 2.0% 29:1 1.5%

.Prishtin/Pritina 1376 -22.3% 33:1 2.6% 33:1 2.0%

.Prizren/Prizren 1330 -24.6% 71:1 3.3% 55:1 2.4%Table 9: Vacancies by Region

Fig.15: 12-M ont hs A SR by R egions

Ferizaj

Uroevac

32

Gjakov

Gjakovica

26

Gjilan

Gnjilane

36

M itrovic

M itrovica

39Pej

P e

29

Prishtin

Pritina

33

P rizren

P rizren

55


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19

activities in the field of employment promotion. The Placements, as a main part of the outflow,

represent the main objective of the Kosovan public employment services, the integration to the

labour market. Leading unemployed to employment:

In 2007 the Kosovan public employment offices realized 5993 direct placements of registered

unemployed persons into new jobs. Compared to the total number of placements in 2006, thisoutcome represents a decrease of about 18% (see fig. 16 and tab. 10).

Referring the placements in 2007 to the number of persons currently registered as unemployed,

accordingly results in a 12-months placement rate (PR) of about 1,8% - which is the lowest result

since 2003 (see table 10).

Referring the cumulated number of placements

realised to the number of vacancies reported re-

sults in a placement-vacancy-rate (PVR) of 92% in

2007, growing from 86% in 2006 and 82% in 2005(tab. 10). In the long-term view the current PVR

indicates an obviously progressing success in the matching procedures of the employment

offices. Nevertheless in a short term comparison the growth of the PVR is at least partially

administratively based on an over proportional decline of vacancies offered (see tab. 10).

3.2.1. Placements by Sector

Confirming the development concerning

the vacancies, also in terms of placements

the tertiary sector (services) in 2007

shows a growth of its dominant position up

to a share of almost 68%. Correspon-

dingly the secondary sector (production)

almost kept its position compared to 2006,

while the share on all placements referring

to the primary sector continuously declines (fig. 17).

Comparing the sectors by owner in

2007 again corresponds to the aboveshown general tendency: While in

2007 the share on all placements

referring to the public sector declined

down to about 19%, the private sector

economy at the same time absorbed

almost 81% of all realised placements

(see fig. 18).

Regarding the 2007 development in absolute figures reveals a nearly stable development of

placements referring to the private sector economy (-1,1%). Sharply contrasting, the total numberof placements absorbed by the public sector tremendously decreased by about 54% in 2007

(compare MLSW-DLE Monthly Kosova Labour Market Information 12/2006, 12/2007).

2003 2004 2005 2006 2007

Placements 5242 6370 5863 7348 5993

Vacancies 7943 8401 7121 8561 6535

PVR 66% 76% 82% 86% 92%

PR 1,9% 2,1% 1,9% 2.3% 1.8%

Table 10: Placements / Vacancies/ Rates

Fig.18:12-Months P lacements by Owner

Public

64%

Public

46%

Public

51%

Public

33%Public

18%

Private

36%

Private

54%Private

49%

Private

67%

Private

82%

2003 2004 2005 2006 2007

Fig.17: 12-Months c umulated Placements by Sector

3.5%

14.9%

9.6%

28.7%

17.6%

29.2%

67.8%

67.5%

61.2%

2005

2006

2007

Pr imary Secondary Ter tiary


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20

3.2.2. Placements by Skills

Analysing the job-placements by skills

levels reveals an ongoing polarisation:

While the number of placements referringto higher skills levels (high school and

university) increased, those unemployed

on the skills levels below faced a signifi-

cant decrease in placements, which in 2007 is at least -20% and more (see table 11).

Despite in absolute figures the highest number of placements refers to the skills levels se-

condary school and unskilled (compare tab. 11), similar to the outcomes regarding the outflow

from unemployment and the vacancies, only a propor-

tional comparison of the placement results may allow

emphasising the strong relation of education and em-

ployment opportunities:

The three upper skills-groups again achieved 12-

months cumulated placement rates (PR) above the

Kosovan average of 1,8% in 2007, while the three

groups below secondary school remain below. In particular the results for the skills levels

university and higher school are far above all others and even increasing (see fig. 19,

compare tab. 11).

Referring the placements realized to the vacancies reported reveals particularly high and increa-

sing results of the placement-vacancy rate (PVR) for the skills levels unskilled and secondary

school:

Considering decreasing placements as well as over proportionally decreasing vacancies may

allow questioning whether improvements in the PVR in 2007 are different from 2006 mainly

based on technical-administrative reasons - or on progress in the matching performance (what is

surly the case for the longer-term development see tab. 10,11).

As far it concerns the skills level university,

there is seemingly a continuously very limited

offer (labour supply) relative to the demand

(vacancies). As mentioned already in previous

reports, the situation dismantles a high need

for an adequate adjustment of concrete skills

requested - in order to further improve the

affordable employability of this group: Especially elder unemployed with a higher education most

likely suffer from a so called structural mismatch respectively technological unemployment.

The whole situation indicates a high number of still not covered employment opportunities forhigher educated Kosovars. The Kosovan labour market in this case continuously suffers from

limited (respectively wrong adjusted) labour supply rather than from restrictions in labour demand.

Placements

2007 ISCEDTotal

12 MonthsChangeto 2006

PR2006

PVR2006

PR2007

PVR2007

.Unskilled 0-2 2202 -23.8% 1.49% 89% 1.11% 104%

.Semi-skilled 3 174 -23.0% 1.66% 54% 1.25% 50%

.Skilled 3a 348 -29.3% 1.68% 78% 1.17% 89%

.2nd. school 3c 2548 -20.6% 3.81% 107% 2.97% 99%

.High school 4 148 92.2% 3.34% 81% 6.59% 51%

.University 5a+ 573 26.2% 18.45% 38% 21.21% 29%

Tab. 11: Placement by Skills

Fig.20: PVR by SkillsUn-

skilled,104%

Semi-skilled

50%

Skilled89%

2nd.school

99%

Highschool

51%Uni29%

Fig.19: 12-Months P lacementRate by Skills

Un-skilled

1.1%

Semi-skilled

1.3%Skilled

1.2%

2nd.school

3.0%

Highschool

6.6%

Uni21.2%


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21

3.2.3. Placements by Age

Concerning the placements by age groups, the

first aspect to remark is the again successfully

implemented priority given to young unemployed.

Like in 2005 and 2006 also in 2007 the placementrates are reversely correlated to the age: The younger the age-group the higher the placement

rate (fig.21).

Nevertheless, according to the general outcomes in 2007, both the placement rates (PR) as well

as the total number of placements show a decrease for all age

groups, whereas the highest decrease in job-placements refers to

the eldest group of registered unemployed.

Worth highlighting is the almost inverse relation of outflow and

placements (fig. 21 and 21a). In other words, the placements-

outflow-share (POS) is negative correlated to the age groups.

As to see by comparing placements and outflow by age (fig.

21, 21a, tab. 12), the outflow of the elder age groups is much

less based on assisted job placements than the outflow of the

younger age groups. While the elder groups seem to count

more on own efforts in order to realise a successful

reintegration to the labour market, this development seemingly

confirms the high dependence of younger unemployed on

active measures of public employment promotion:

In this context it should be mentioned again that more than 30000 young persons cross the

border to working age each year. Many of those try to enter the labour market. Therefore, the

younger age groups in Kosova obviously face an over proportional demographical pressure.

Further on they partially still suffer from the exclusion from formal education during the 1990s. In

addition they mostly dont dispose professional experience and they are missing adequate social

networks (see GTZ 2006 and ILO 2006), which are essential particularly on the Kosovan labour

market. Accordingly supportive measures including counselling, employment mediation,

financial employment support and vocational training - are highly needed to compensate at leastthese structural disadvantages.

3.2.4. Placements by Ethnicity

Corresponding to the high dominant proportion of Kosova-Albanians within the registered unem-

ployed (tab. 4), also the highest 12-months cumulated number of placements in 2007 refers to

this group.

Regarding the relation of placements and registrations, the

Kosova-Albanians realize a 12-months placement rate (PR) ofabout 1,9%, what is slightly above the results reached on the Ko-

sovan average.

Placements2007

Total 12Months

Changeto 2006

PR2005

PR2006

PR2007

POS2007

15-24 2445 -18.3% 2.7 3.1 2.51 58%

25-39 2622 -18.3% 1.7 2.2 1.79 45%

40-54 849 -17.8% 1.4 1.6 1.28 31%

55+ 77 -31.9% 0.7 0.5 0.34 4%

Tab. 12: Placement by Age

Placements2007

Total12 Months

PR2007

Albanians 5658 1.87%

Other Minorities 254 1.54%

Serbs 81 0.62%All Minorities 335 1.13%

Tab. 13: Placement by Ethnicity

Fig.21: 12-Months PlacementRate by age

2.5%

1.8%

1.3%

0.3%

15-24 25-39 40-54 55+

Fig.21a. 12 M ont hs Outflo w Rate by

age8.0%

4.2%4.0%4.3%

15-24 25-39 40-54 55+


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22

Different from previous reporting periods, the results achieved for

Kosova-Serbs, for all minorities and for the non-Serb minorities are

for the first time clearly below the Kosovan average (tab. 13, fig. 22),

what most probably goes together with an over proportional reduction

of public employment schemes (compare chapters 3.2.1. and 3.1.1.)

as well as with restrictions in official documentation of private-sector

placements referring to the northern Mitrovica municipalities.

3.2.5. Placements by Gender

Taking into account a female share out of all

unemployed by almost 47% and a female

share on all placements by about 36%,

female unemployed continuously face an

under proportional placement performance.

However, regarding the overall development

concerning the gender gap leads to more positive results: The share of female placements

increased from 27% in 2006 to 36% in 2007. While male unemployed faced a decreasing

placement rate (PR) the PR of female unemployed increased. Subsequently also the total gap of

the female and male placement rates decreased from 1,8 percentage points in 2006 down to 0,8

percentage points in 2007 (compare table 14).

A look on the unemployment risk groups of young (15-24) and unskilled unemployed by

gender almost follows the above shown tendency: For unskilled unemployed the gender gap in

the PR decreased down to about 1 percentage point. The youngest age group even achieves a

decline in the PR gender gap down to 0,6 percentage points. In both cases female unemployed

under proportionally suffer from a decrease in total placements (tab. 14).

3.2.6. Placements by Region

Regarding the development within the Ko-

sovan regions, like in previous reporting

periods the employment offices in the

region of Prizren also in 2007 realized thehighest number of job-placements in

absolute figures.

The lowest number of placements was

reported from the region of Peja (tab 15). All regions face a decrease in placements. While the

lowest decrease (-5%) refers to the region of Gjakova, the employment offices in the region of

Ferizaj faced highest decrease in total placements (about -27%) (tab. 15).

Regarding the placements within the regions relative to their stock of registered unemployed, with

a placement rate (PR) of about 2,5% unemployed in the region of Prizren repeatedly profit fromthe best regional placement performance, while unemployed in the region of Mitrovica again

suffered from the lowest PR (about 1,4%) in 2007 (see fig. 23, tab. 15).

Placements2005 2006 2007

Female Male Female Male Female Male

Total 1475 4388 2006 5342 2182 3811

PR 1,0% 2,6% 1,3% 3.1% 1.41% 2.2%

Proportion 25% 75% 27% 73% 36% 64%

Increase 0,1% -10% 36.0% 21.7% 8.8% -28.7%

PR unskilled 0,4% 2,5% 0.66% 1.68%

PR 15-24 1,9% 3.60% 2.48% 2.54%

Tabela 14: Placement by Gender

Regions2007

Cumulated12-Months

Increaseto 2006

PR2006

PSR2006

PR2007

PSR2007

.Ferizaj/Uroevac 637 -26.9% 2.57% 46:1 1.84% 34:1

.Gjakov/Gjakovica 646 -5.0% 1.81% 36:1 1.68% 31:1

.Gjilan/Gnjilane 841 -15.2% 2.90% 31:1 2.38% 28:1

.Mitrovic/Mitrovica 718 -20.5% 1.44% 31:1 1.14% 28:1

.Pej/Pe 577 -17.7% 1.88% 32:1 1.52% 29:1

.Prishtin/Pritina 1235 -15.1% 2.17% 27:1 1.81% 29:1

.Prizren/Prizren 1339 -23.3% 3.28% 70:1 2.45% 56:1

Table 15: Placements by Region

Fig.22: 12-Months PlacementRate by Ethnicity

Alb.1.87% Min.

1.54%

Serbs0.62%


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Fig.24: 12-M onths P SR by Regions P rizerenP rizren

56

P rishtinPritina

29

Pej

P e

29

M itrovic

M itrovica

28

GjilanGnjilane

28

Gjakov

Gjakovica

31

FerizajUroevac

34

Taking into consideration the

different regional capacities in

terms of staff partially confirms

the shown tendency concerning

regional disparities in the place-

ment performance:

The employment officers in the

region of Prizren again realize -

similar to the PR in this region -

the far highest placement-staff

ratio (PSR: 56:1), followed by the

region of Ferizaj (PSR 34:1).

The far worst regional perfor-

mance in 2007 regarding the PSR was reported from the employment officers in the regions of

Gjilan (28:1) and Mitrovica (28:1).

Fig.23: 12-M onths PR by Regions

Ferizaj

Uroevac

1.8%

Gjakov

Gjakovica

1.7%

Gjilan

Gnjilane

2.4%

M itrovic

M itrovica

1.1%

Pej

Pe

1.5%

Prishtin

Pritina

1.8%

Prizren

Prizren

2.4%


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Chapter 4

VOCATIONAL

TRAINING


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Fig.25: 12-Months c umulated VT participants

1658 2201

3108

3928 3455 3047

2002 2003 2004 2005 2006 2007

4. Vocational Training

Besides its Employment Division

(ED), which is responsible for the

registration, counselling and job-

placement of unemployed, the DLEis also managing the Vocational

Training Division (VTD).

The objective of this Division is to

support the employability of registered unemployed. To reach this, the VTD runs a network of 8

regional vocational training centres (VTC) and co-ordinates vocational training capacities of

external allied training institutions.

During 2007 in total 3455 registered unemployed entered a vocational training (VT). Compared to

2006 the number of VT participants (again) decreased by almost 12%. Referring the total number

of VT participants (respectively entries) in 2007 to the average number of registered unemployed

at this time, results in a 12-months activation rate (AR) of about 0,9% - decreasing from 1,1% in

2006 and 1,3% in 2005 (see fig. 25).

Referring to the cumulated number of VT entries in 2007, the number of graduates from VT

(2381), results in a graduation rate (GR) of about 78% - declining from a GR of 84% in 2006.

4.1. Training by Skills

Concerning the different skills-levels of the VT participants in

2007, the figures reported repea-

tedly reveal an ambivalent

outcome:

Disproportional to the existing

employability restrictions, the three upper skill groups still realize activation rates (AR) far above

the Kosovan average, while the activation rates of the three lower skill groups remain far below

(see fig. 26).

Although representing almost 60% of all unemployed, the

group of the unskilled only represents 28% of all VT

participants in 2007. Contrasting that 59% of the training

participants refer to the skills level secondary school,

which represents 26% of all unemployed (compare tab.

16 and chapter 2.1., tab. 2).

In addition only unemployed with a higher school or university degree show an increasing

tendency in VT participation respectively an increasing activation rate in 2007 unemployed on

all further skills levels face a decreasing activation rate (compare fig. 26, tab. 16).

2007 ISCEDcumulated12-Months

Increaseto 2006

PropEntries

AR2006

GR2006

AR2007

GR2007

Unskilled 0-2 846 -3.6% 28% 0.5% 79% 0.4% 78%

Semi-skilled 3 41 -31.7% 1% 0.4% 112% 0.3% 93%

Skilled 3a 132 -48.2% 4% 0.9% 77% 0.4% 73%

2nd. school 3c 1807 -14.8% 59% 2.5% 85% 2.1% 78%

High school 4 73 30.4% 2% 2.4% 73% 3.2% 82%

University 5a+ 148 74.1% 5% 3.3% 105% 5.4% 76%

Table 16: Vocational Training by Skills

Fig.26: 12-M ont hs

A ct iva tio n Rat e

by Skills (%)

Un-skilled

0.4%

Semi-skilled

0.3%

Skilled0.4%

2nd.school

2.1%

Highschool

3.2%

Uni5.4%


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Fig.27: 12-Months Activatio nRate by age

1.43%

0.94%

0.53%

0.03%

15-24 25-39 40-54 55+

4.2. Training by Age

Regarding the VT participants by age, shows increasing capacities

respectively an increasing activation rate only for unemployed in the

age from 40-54 years.

Nevertheless, like in previous reporting periods, the actual figures

confirm an ongoing priority given by MLSW / DLE to young unemployed (compare tab. 17). As to

see from the chart (fig .27), similar to the placement rates also the activation rates are reversely

correlated to the age:

While the youngest age group achieved

an activation rate (AR) of about 1,4%, in

particular the VT participation of unem-

ployed belonging to the eldest age group

(55-64), remains on an almost insignifi-

cant low (and decreasing) level (tab. 17).

However, a total decrease in VT participation by about -21% referring to the age group from 15-

24 years as well as a significantly decreasing share on all VT participants (from 54% down to

45% in 2007) gives reason to carefully observe an appropriate future implementation of

vocational training concerning mentioned priorities (see tab. 17).

4.3. Training by Ethnicity

Confirming the results of 2006, a look onthe figures of VT by ethnicity shows an

ongoing decline in the inclusion of the

Kosovan minorities. While all ethnical groups face a decreasing VT participation, this tendency

reveals an over proportional impact particularly on the Serb unemployed (tab. 18):

Referring the cumulated number of VT participants during 2007 to the average number of unem-

ployed out of the ethnical groups, results in the lowest activation rate (AR) for registered Kosova-

Serbs. While also the AR results for the non-Serb minorities remain far below the Kosovan

average, the activation rate referring to the Kosova-Albanians is slightly above (see tab. 18).

4.4. Training by Gender

Compared to 2006, the 12-months cumulated figures of vocational

training by gender in 2006 show a decreasing VT participation for both

registered male and female unemployed. Nevertheless the female de-

crease of about 4,4% is under proportional to the male decrease of

about 15%. Accordingly the female share on all VT capacities grew

from 32% in 2006 up to 35% in 2007 (tab. 19).

While the male activation rate (AR) declined down to about 1,1%, the female AR in 2007 under

proportionally declined down to about 0,7% (fig. 29 compare also table 19).

2007cumulated12-Months

Increaseto 2006

PropEntries

AR2006

GR2006

AR2007

GR2007

.Age 15-24 1363 -27% 44.7% 1.96% 84% 1.43% 81%

.Age 25-39 1337 1% 43.9% 0.92% 82% 0.94% 75%

.Age 40-54 341 41% 11.2% 0.38% 91% 0.53% 75%

.Age 55+ 6 -40% 0.2% 0.04% 70% 0.03% 283%

Table 17: Vocational Training by Age


Increaseto 2006

PropEntries

AR2006

GR2006

AR2007

GR2007

Albanians 2947 -8.96% 97% 1.09% 82% 0.97% 78%

Minorities 100 -54.13% 3% 0.77% 114% 0.34% 89%Serbs 41 -73.38% 1% 1.25% 95% 0.31% 41%

Other 59 -7.81% 2% 0.40% 159% 0.36% 122%

Table 18: Vocational Training by Ethnicity

Fig. 29: 12-M ont hs activat ion

Rate by Gender

Fem.

0.68%

M ale

1.11% A ll

0.91%


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Regarding in addition the VT inclusion

of the unemployment-risk group of un-

skilled unemployed by gender still re-

veals a clear disadvantaged situation for

unskilled female unemployed:

While the share of unskilled female on

all unemployed is more than 33%, it is

still less than 7% out of the VT participants. Although profiting from total increase in VT

participation, unskilled female still suffer from a far under proportional activation rate: While on the

Kosovan average statistically in 2007 about 110 unemployed competed for a free place in a

vocational training centre, this relation is 143-to-1 for unskilled male, but 526-to-1 for unskilled

female unemployed.

4.5. Training by Region

A look on the development of vo-

cational training (VT) capacities by

region, leads to contradicting re-

sults: While 5 of the Kosovan regi-

ons face a decreasing VT partici-

pation, 2 regions realise increa-

sing capacities. The highest de-

crease in VT capacities refers to the region of Mitrovica (about -45%). The highest increase was

realised in the region of Prishtina (about +19%)(tab. 20).

Referring the realised VT capacities in absolute figures to the average stock of unemployed

registered in the different regions, the highest activation rate (AR) in 2007 was again reached in

the region of Gjakova (about 1,5). According to the above shown decrease, the lowest AR in

2007 refers to the region of Mitrovica (about 0,6% - compare tab. 20, fig.30).

The development of the AR reveals

an ongoing increasing disparity con-

cerning the regional VT participation

respectively VT capacities: In 2007the lowest AR only represents 37%

of the maximum (while it was 51% in

2006 compare tab. 20).

In other words, in the region of Gjakova statistically 68 unemployed persons faced 1 free place in

a vocational training centre of DLE or an allied partner during 2007 - at the same time in the

region of Mitrovica about 182 registered unemployed persons had to compete for a free place in

vocational training (respectively for the chance to adjust required skills to labour market needs).


Increaseto 2006

PropEntries

AR2006

GR2006

AR2007

GR2007

Female 1057 -4.43% 35% 0.73% 89% 0.68% 94%

Male 1990 -15.28% 65% 1.35% 81% 1.11% 69%

All 3047 -11.81% 100% 1.06% 84% 0.91% 78%

Unskilled Fem. 207 7.81% 0.18% 88% 0.19% 203%

Unskilled Male 614 -10.50% 0.80% 77% 0.70% 39%

Table 19: Vocational Training by Gender

2007cumulated

12-Months

Increase

to 2006

Prop

Entries

AR

2006

GR

2006

AR

2007

GR

2007.Ferizaj/Uroevac 245 -42.49% 8% 1.26% 56% 0.71% 53%

.Gjakov/Gjakovica 568 -0.70% 19% 1.52% 75% 1.47% 52%

.Gjilan/Gnjilane 325 -23.17% 11% 1.24% 84% 0.92% 82%

.Mitrovic/Mitrovica 348 -45.02% 12% 1.01% 92% 0.55% 66%

.Pej/Pe 365 -1.62% 12% 0.99% 73% 0.96% 72%

.Prishtin/Pritina 618 19.31% 20% 0.77% 89% 0.91% 98%

.Prizren/Prizren 553 8.01% 18% 0.96% 107% 1.01% 106%

Table 20: Vocational Training by Region

Fig.30: 12-M ont hs Ac tivatio n Rate by Regions

Ferizaj

Uroevac

0.71%

Gjakov

Gjakovica

1.47%

Gjilan

Gnjilane

0.92% M itro vic

M itrovica0.55%

Pej

Pe

0.96%

Prishtin

Pritina

0.91%

Prizren

Prizren

1.01%


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Rsum


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5. Rsum

First it should not remain unmentioned that extrapolating general tendencies from the results of

this report in comparison to the outcomes of previous reporting periods is limited due to an on-

going decrease in service capacities (regarding equipment and staff). The current unemployment

staff ratio increased from a level of about 1600-to-1 up to more than 1800-to-1, what is now morethan 12 times higher (respectively worse), than on the European average. A reduction of quan-

tities cant be considered to be without impact on the quality of the workflow procedures. A de-

crease in the outflow from unemployment, in the acquisition of vacancies and in job-placements

therefore cant be referred directly to the general economic environment and development.

Despite above mentioned there are still a few aspects worth to remark:

Increasing from a share of 91% to 93% the extreme high (registered) long-term unemployment

continuously remains to be the major problem which goes together with discouraging decreases

in the outflow from unemployment as well as in the 12 months results of vacancies and place-

ments. However, a closer look on the development of vacancies and placements dismantles a

decreasing outcome as mainly caused by limitations of public sector demand. Contrasting that,

the private sector still reveals a stable tendency. A proportional comparison of public and private

sector shows that cumulated over 12 months almost 70% of the vacancies and more than 80% of

all placements referred to the private sector economy.

Concerning the concrete performance of employment promotion, the current development leads

to ambivalent results: To remark positively, is the again successful inclusion of minorities to the

services offered by DLE. A revisable indicator is the still over proportional inflow rate regarding

this target group. Nevertheless, under proportional results concerning the respective outflow,

activation and placement rate, require to carefully observe this issue.

A main point to mention is the constantly successful support given to young unemployed: As this

is the explicitly expressed priority of the DLE, unemployed in the age of 15-24 years again realize

the highest activation and placement rates. Bearing in mind an ongoing over proportional share of

assisted job-placements on the total outflow referring to the younger age-groups may emphasise

an extended need for intensive counselling, vocational training and employment mediation.

Considering an obvious relation of skills and employment it should be mentioned that the group ofthe unskilled unemployed is facing both an under proportional activation rate and an extreme

low placement rate. Overcoming the disproportional inclusion of lower skilled unemployed and

in particular intensifying the support of unskilled female - remains to be an inevitable duty for

future activities of employment promotion.

Regarding finally the gender aspect, there are slightly positive developments: Confirming the

results of 2006 female unemployed profit from a growing share on the total outflow from unem-

ployment as well as from an increasing inclusion to employment mediation respectively job-place-

ments. Different from male unemployed, female unemployed even realise an increasing place-

ment rate in 2007. Further on the increase rate in registrations shows a declining gender gap,which is 0,5 percentage points in 2007 (while it was 1 percentage point in 2006 and 2,6

percentage points in 2005).


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References

Euro Stat (2003): The European Union Labour Force Survey, Methods andDefinitions 2001, Luxembourg

ETF / Pirher, Sonja (2003): Development and Capacity Building in the field of Education and

Labour Market Statistics, TorinoGTZ / MCYS (2006): The Kosovo Youth Policy and Action Plan, Prishtina

GTZ /MCYS / MLSW (2006): Questionnaire Report about Youth and Employment, Prishtina

IMF (2005): Kosov0: Gearing Policies Towards Growth and Development,Washington

Labour and Employment in Kosovo 2007

Documents

Transcript of Labour and Employment in Kosovo 2007