PRELOM yearbook 2010 - Hrvatski zavod za zapošljavanje · Yearbook Croatian Employment Service...

Yearbook

Croatian Employment Service

20102010

Cro

ati

an

Em

plo

ym

en

t S

erv

ice

Yearbook

ISSN 1331-2618

Zagreb, April 2011

2010

Impressum

Publisher:

On Behalf of Publisher:

Editor:

English translation

Graphic Design and Print:

Circulation:

Croatian Employment Service, Zagreb, Radni ka cesta 1Phone: 00385 1 61 26 000Fax: 00385 1 61 26 038E-mail – Editorial:Website: http://www.hzz.hr

č

[email protected]

Ankica Paun JarallahDirector General of the Croatian Employment Service

Marica Barić

Abis d.o.o., Zagreb

Birotisak d.o.o., Zagreb

180 copies


Content

Economy and Labour Force 7

Unemployment 12

Labour Force Demand and Employment 20

Preparation for Employment 30

2010 National Employment Incentive Plan 34

Unemployment Entitlements 40

Projects Supported by the International Community 44

Main Responsibilities and Development Strategy

of the Croatian Employment Service 53

Organisational Structure and Employees 55

Sources of Financing and Structure of Expenditures 59

Internal Financial Control System 62

ICT Support to the Operations of the CES 63

Publicity of the CES and International Cooperation 64

Organisational Structure and Operations of the CES

Yearbook 2010

4

Geographical Distribution of Regional and Local Offices of theCroatian Employment Service by Counties

I. Zagreb

II. Krapina-Zagorje

III. Sisak-Moslavina

IV. Karlovac

V. Varaždin

VI. Koprivnica-Križevci

VII. Bjelovar-Bilogora

VIII. Primorje-Gorski Kotar

IX. Lika-Senj

X. Virovitica-Podravina

XI. Požega-Slavonija

XII. Brod-Posavina

XIII. Zadar

XIV. Osijek-Baranja

XV. Šibenik-Knin

XVI. Vukovar-Srijem

XVII. Split-Dalmatia

XIX. Dubrovnik-Neretva

XX. Međimurje

City of Zagreb

XVIII. Istria


COUNTY REGIONAL OFFICE LOCAL OFFICE

5

Map of Regional and Local Offices of theCroatian Employment Service by Counties

Central office

Regional office

Local office

Yearbook 2010

6


Basic Economic Trends

The indicators of economic activity were mainly negative during 2010, although the negativetrends associated with certain important segments of economy did start to slow down. Theexceptions were the positive trends recorded in tourism and foreign trade exchange, and arelatively low rate of inflation. The Real Gross Domestic Product fell by 1.2% compared to the yearbefore. Only in the third quarter of 2010 did the Gross Domestic Product grow, albeit slightly (by0.3%), while it was falling during the rest of the year (at a rate of 2.3% in the first two quarters and0.6% in the last quarter of the year).

The physical volume of industrial production decreased in 2010 by 1.4% compared to 2009. A

decrease in production was recorded in manufacturing (by 2.1%) and mining and quarrying (by

9.2%), while the production increased in electricity, gas, steam and air-conditioning supply (by

6.4%).

After a decrease of 6.5% recorded in the field of construction works in 2009, the crisis in that sector

continued to deepen throughout 2010, so that the annual rate of decrease in the physical volume

of construction works amounted to no less than 15.9% at the end of 2010.

One of the major consequences of the recession in Croatian economy, besides the mentioneddecrease in production and construction works, is surely a decrease in retail trade. Compared tothe year before, when the recorded decrease in retail trade amounted to 14.1% in nominal and15.3% in real terms (due to an increase in Consumer Price Indices), the figures recorded in 2010were considerably lower, i.e. by 1.1% in nominal and 1.8% in real terms.

7

Economy and Labour Force

Source: Croatian Bureau of Statistics

Basic Economic Indicators Recorded in 2009 and 2010,Growth Rates (%)

2009 2010

Gross Domestic Product

Physical Volume of Industrial Production

Physical Volume of Construction Works

Nominal Retail Trade Turnover

Real Retail Trade Turnover

Tourist Overnights

Exports – Total (HRK)

Imports – Total (HRK)

Average Monthly Net Salaries

Real Net Salaries

Consumer Price Indices

Total Number of Employed Persons

Total Number of Unemployed Persons

Registered Unemployment Rate

Yearbook 2010

-6.0 -1.2

-9.2 -1.4

-6.5 -15.9

-14.1 -1.1

-15.3 -1.8

-1.4 2.6

-20.3 17.4

-25.7 -1.4

2.6 0.6

0.2 -0.5

2.4 1.1

-3.2 -4.4

11.2 14.9

14.9 17.4

Unemployment Rate Derived from Survey Results 9.1 11.8

8

Positive rates of change were recorded in foreign trade exchange from Croatia towards othercountries, i.e. in exports, which grew in 2010 by 17.4%. Imports to Croatia decreased by 1.4%. The2010 Import/Export Coverage Ratio was 58.9%.

In 2010, Croatian tourism recorded an increase in activity. Compared to the year before, thenumber of tourist arrivals increased by 3.2%, whereas the number of overnights increased by2.6%. Foreign tourists accounted for 85.9% of total arrivals and 90.4% of total overnights, whiledomestic tourists accounted for 14.1% of total arrivals and 9.6% of total overnights.

The negative trends in economic activity recorded in 2010 were followed by a considerable slow-down in the growth of nominal salaries of employed persons which decreased by 0.6% comparedto 2009. With the annual inflation rate of 1.1%, the real salaries of employed persons decreased by0.5%.

The year of 2010 recorded a relatively low annual inflation rate measured on the basis ofConsumer Price Indices, i.e. 1.1%.

The slowing economic activity recorded at the end of 2009 and in 2010 had a negative impact onlabour market indicators. Total employment decreased, while unemployment increased. Theresult was a significant increase in the unemployment rate.

According to the data of the Croatian Bureau of Statistics of the Republic of Croatia derived fromadministrative sources, the total number of economically active citizens (active population)decreased in 2010 (by 27,079 persons or 1.5%). The number of employed persons alsodecreased (by 66,330 or 4.4%), whereas the number of unemployed persons increased (by39,251 persons or 14.9%).

Registered Employment and Unemployment, 2010AnnualAverage

Labour Force in Croatia

The annual average number of registered employed persons was 1,432,454 in 2010, which is adecrease by 66,330 persons or 4.4% compared to the year before. The largest number ofemployed persons was employed in legal entities, i.e. 1,168,179 or 81.5% (down by 3.5%compared to 2009), 231,936 persons or 16.2% were employed in craft businesses and freelanceprofessions (down by 8.1% compared to 2009), and there were 32,339 or 2.3% insured farmers(down by 8.4% compared to 2009).

2009 2010

Number of Economically Active Citizens (Active Population)Derived from Administrative Sources (2009 and 2010 Annual Average)

Index

Source: Croatian Bureau of Statistics

-

Active Population

Employed Persons

- Employed in Legal Entities

- Employed in Craft Businesses and Freelance Professions

- Insured Farmers

Unemployed Persons

Registered Unemployment Rate


1,761,958 1,734,879 98.5

1,498,784 1,432,454 95.6

1,211,085 1,168,179 96.5

252,404 231,936 91.9

35,295 32,339 91.6

263,174 302,425 114.9

14.9 17.4

According to the National Classification ofActivities, the largest number of employed persons wasrecorded in manufacturing (256,843 or 17.9%), wholesale and retail trade and repair of motorvehicles and motorcycles (224,981 or 15.7%), construction (119,984 or 8.4%), publicadministration, defence and compulsory social security (115,462 or 8.1%) and education (105,426or 7.4%). -Appendix 1, p. 11.

In terms of economic sectors (agricultural, non-agricultural and service sectors), the 2010structure of employed persons showed that 65.8% of employed persons were engaged in serviceactivities, 29.5% in non-agricultural and 4.6% in agricultural activities. Compared to 2009, theshare of service activities increased (by 1.3 pp), and the shares of non-agricultural and agriculturalactivities decreased by 1.2 and 0.1 pp respectively.

The annual average number of registered unemployed persons increased in 2010 by 39,251persons or 14.9%, i.e. from 263.174 persons registered in 2009 to 302,425 persons registered in2010.

The simultaneous increase in the number of unemployed and decrease in the number ofemployed persons recorded in the Republic of Croatia resulted in an increase in the annualaverage unemployment rate from 14.9% recorded in 2009 to 17.4% in 2010 (according to theCroatian Bureau of Statistics).

Unemployment rates by counties were calculated using the data on pension insurancebeneficiaries registered with the Croatian Pension Insurance Institute (as registered employedpersons) and the data on registered unemployed persons from the register of the CroatianEmployment Service. According to the afore-mentioned data, the average unemployment rate atthe state level amounted to 16.7%. In eight counties it was lower and in thirteen higher.

Unemployment Rate Derived fromAdministrative Sources

9

Unemployment rates differed significantly across counties. The lowest unemployment rates wererecorded in the City of Zagreb (7.7%) and the County of Istria (8.5%). Unemployment rates of the

Yearbook 2010

City

of Z

agre

b

Istri

a

Vara

ždin

Prim

orje

-Gor

ski K

otar

Kra

pina

-Zag

orje

Međ

imur

je

Zagr

eb

Kop

rivni

ca-K

ri žev

ci

Dub

rovn

ik-N

eret

va

Zada

r

Spl

it-D

alm

atia

Lika

-Sen

j

Pož

ega-

Sla

voni

a

Šib

enik

-Kni

n

Osi

jek-

Bar

anja

Bje

lova

r-B

ilogo

ra

Kar

lova

c

Bro

d-P

osav

ina

Vro

vitic

a-P

odra

vina

Sis

ak-M

osla

vina

Vuk

ovar

-Srij

em

Per

cent

age

%

0

5

10

15

20

25

35

Unemployment Rate by Counties, 2010 Annual Average

30

15.4

16.5

16.6

17.5

17.8

19.1

20.3

21.0

23.3

24.9

26.7

26.9

29.9

30.1

30.3

30.4

14.8

13.5

13.2

8.5

7.7

16.7

Counties

Average forCroatia

10

following counties were also below the state average: Primorje-Gorje (13.2%), Varaždin (13.5%),Dubrovnik-Neretva (14.8%), Me imurje (15.4%), Koprivnica-Križevci (16.5%) and Krapina-Zagorje (16.6%). The highest unemployment rates were recorded in the following counties: Brod-Posavina (30.4%), Sisak-Moslavina (30.3%), Vukovar-Srijem (30.1%) and Virovitica-Podravina(29.9%).

Compared to the year before, unemployment rates increased across all counties, yet primarily inthe following counties: Brod-Posavina (4.5%), Zagreb (3.9%), Krapina-Zagorje (3.8%), Osijek-Baranja (3.6%) and Virovitica-Podravina (3.4%). The lowest increase in unemployment rate wasrecorded in the following counties: Zadar and Karlovac (by 1.3%), Istria and Lika-Senj (by 1.4%),Dubrovnik-Neretva (by 1.6%) and the City of Zagreb (1.7%).

The Labour Force Survey is carried out by the Croatian Bureau of Statistics in accordance with themethodological rules and principles of the International Labour Organization (ILO) and theStatistical Office of the European Communities (Eurostat). This source of data is thereforeinternationally comparable.

According to the Labour Force Survey, in 2010 the average number of economically active citizens(active population) in Croatia recorded was 1,747,000, out of which 1,541,000 employed and206,000 unemployed persons. The unemployment rate calculated in accordance with theEurostat criteria (15 - 64) was 54.0%.

According to the Labour Force Survey, the average number of unemployed persons grew from160,000 persons recorded in 2009 to 206,000 in 2010, i.e. by 28.8%, so that the unemploymentrate increased considerably as well (by 2.7 pp).

The 2010 unemployment rate derived from the Labour Force Survey results was 11.8%.

đ

Employment and Unemployment Derived from the Labour Force Survey

Unemployment Rate Derived from the Labour Force Survey

Number of Economically Active Citizens (Active Population)Derived from the Labour Force Survey (2009 and 2010 Annual Average)

2009 2010 Index

Source: Bureau of StatisticsCroatian

Active Population

Employed Persons

Employment Rate (15-64)

Unemployed Persons

Unemployment Rate Derived from theLabour Force Survey Results


1,765,000 1,747,000 99.0

1,605,000 1,541,000 96.0

56.6 54.0 -

160,000 206,000 128.8

9.1 11.8 -

Activities of households asemployers; undifferentiatedgoods - and services-producingactivities of households for own use

Water supply; sewerage,waste management andremediation activities

Construction

Non-agricultural Activities

Wholesale and retail trade;repair of motor vehiclesand motorcycles

Transportation and storage

Accommodation andfood service activities

Information and communication

Financial andinsurance activities

Real estate activities

Professional, scientific andtechnical activities

Administrative and supportservice activities

Public administration and defence;compulsory social security

Education

Human health and socialwork activities

Arts, entertainment and recreation

Other service activities

Service Activities

Unclassified by activity

TOTAL

11

Number of Employed Persons by Activity (National Classification of Activities)January – December, 2010

Appendix 1

TOTAL Legal Entities Craft Businessesand Freelance Professions

Agriculture, forestry and fishing

Individual farmers

Agricultural Activities

Mining and quarrying

Manufacturing

Electricity, gas, steam andair-conditioning supply

Activity(according to the NationalClassification of Activities)

Source: Croatian Bureau of Statistics, Announcements No. 9.2.6 from 2010 and 2011.

Yearbook 2010

2010/2009Index

Number Number%Number2010/2009

Index2010/2009

Index

33,204 2.3 96.9 24,710 95.9 8,494 99.9

32,339 2.3 91.6 - - - -

65,543 4.6 94.2 24,710 95.9 8,494 99.9

7,544 0.5 85.3 7,256 85.5 288 80.4

256,843 17.9 94.1 219,976 94.5 36,867 92.0

16,614 1.2 98.6 16,614 98.6 0 -

22,220 1.6 103.4 22,053 103.3 167 132.3

119,984 8.4 85.3 91,052 86.7 28,932 81.1

423,205 29.5 91.9 356,951 92.9 66,254 86.9

224,981 15.7 92.5 189,241 93.0 35,740 89.8

76,487 5.3 94.7 62,610 95.6 13,877 91.2

83,484 5.8 97.1 46,291 99.6 37,193 94.3

33,577 2.3 100.9 32,217 101.1 1,360 95.4

37,655 2.6 96.6 36,535 96.7 1,120 93.7

6,594 0.5 102.5 6,012 104.2 582 87.5

68,473 4.8 97.4 51,991 98.4 16,482 94.5

38,257 2.7 103.7 34,409 105.0 3,848 93.4

115,462 8.1 101.8 106,673 100.8 8,789 114.6

105,426 7.4 101.6 104,981 101.7 445 100.4

93,983 6.6 100.7 81,395 101.0 12,588 99.0

23,477 1.6 98.0 20,315 97.8 3,162 99.2

28,747 2.0 96.6 13,849 99.5 14,898 94.0

5,940 0.4 84.7 0 - 5,940 84.7

942,542 65.8 97.5 786,519 98.2 156,023 93.9

1,164 0.1 76.9 0 - 1,164 76.9

1,432,454 100.0 95.6 1,168,179 96.5 231,936 91.9

Total Unemployment Trends

In 2010, seasonal factors influenced the number of unemployed persons registered with theCroatian Employment Service. Unemployment was increasing from the beginning of the year untilMarch, and then it started significantly decreasing until June. After the end of the summer season,unemployment started increasing again, continuing so until the end of the year. Therefore, thesmallest number of unemployed persons was recorded in July, and the largest in December.

In December 2010, the number of unemployed persons registered with the Croatian EmploymentService equalled 319,845, up by 9.7% compared to the same month the year before. Overallfigures show that, in 2010, the number of unemployed persons increased compared to the yearbefore (see picture).

Unemployment

The number of unemployed persons recorded at the end of 2010 was higher than the number ofunemployed persons recorded at the end of 2009, as the number of newly-registered persons(289,234) in the unemployment register was higher than the sum of the number of registeredemployed persons and those deleted from the register for reasons other than employment(260,934). Therefore, unemployment increased because the total number of newly-registeredpersons exceeded the total number of persons deleted from the register.

The average number of unemployed persons increased from 263,174 recorded in 2009 to302,425 in 2010, up by 14.9%. A greater percentage increase in unemployment was recorded inthe case of men than in the case of women. Thus, the share of men in the total number ofunemployed persons also increased.

Unemployment Structure and Trends by Gender,Age and Educational Level

12

Months

Num

ber

of U

nem

plo

yed P

ers

ons

(thousa

nds)


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

Number of Unemployed Persons in 2009 and 2010

2010

2009

200

220

240

260

280

300

320

340

2010

Structure

2009

Structure

2010/2009 Index

Total Men

Average Number of Unemployed Persons by Genderin 2009 and 2010

Women

As far as unemployment by age is concerned, the average number of unemployed personsincreased across all age groups. The most significant percentage increase was recorded in theaverage number younger age groups. Thus, the average number of unemployed persons in thegroup from 25 to 29 years of age increased by 22.1 percent, and in the group from 30 to 34 by 21.6percent. The share of young persons in the total number of unemployed persons increasedaccordingly.

Average Number of Unemployed Persons by Agein 2009 and 2010

Index

20010/2009Age

% Number

2009 2010

13

Number %

As far as educational levels are concerned, the average number of unemployed personsincreased across all categories in 2010. However, the greatest increase was recorded in theaverage number of unemployed persons with non-university and university level and andpostgraduate degrees. Therefore, their share in the total number of unemployed persons alsogrew. The percentage increase in the number of unemployed persons with secondary educationwas significantly greater in the case of men than in the case of women.

15 - 19

20 - 24

25 - 29

30 - 34

35 - 39

40 - 44

45 - 49

50 - 54

54 - 59

60+

TOTAL

Yearbook 2010

302,425 136,805 165,620

100.0 45.2 54.8

263,174 107,115 156,059

100.0 40.7 59.3

114.9 127.7 106.1

33,644 12.8 40,007 13.2 118.9

33,743 12.8 41,205 13.6 122.1

27,690 10.5 33,675 11.1 121.6

25,398 9.7 29,342 9.7 115.5

26,841 10.2 30,259 10.0 112.7

28,259 10.7 31,588 10.4 111.8

37,862 14.4 39,466 13.0 104.2

28,146 10.7 31,586 10.4 112.2

8,371 3.2 9,486 3.1 113.3

263,174 100.0 302,425 100.0 114.9

13,220 5.0 15,811 5.2 119.6

Unemployment Structure and Trends by Previous EmploymentActivity

If we exclude from the total number of unemployed persons those who had been previouslyemployed, their structure can be observed by the activity they had been engaged in duringprevious employment. The number of such persons recorded at the end of 2010 was 265,685, upby 9.3% compared to the number recorded at the end of the year before. Therefore, the totalnumber of unemployed persons who had been previously employed significantly increased overthe observed period.

The number of unemployed persons grew across all larger activity groups. For example, thenumber of unemployed persons who had been previously employed in construction increased byalmost 23%, thus also significantly increasing their share in the total number of unemployedpersons. The number of unemployed persons who had previously been employed inaccommodation and food service increased by 11.5%, the number of those who had previouslybeen employed in trade increased by 5.6%, whereas the number of unemployed persons who hadpreviously been employed in manufacturing grew by 1.2%. The largest percentage increase inunemployment (47.6%) was recorded among those persons who had previously been employedin the activity group encompassing public administration, defence and compulsory social security.

14

Average Number of Unemployed Personsby Educational Level and Gender in 2009 and 2010

Total

No schoolingand

uncompletedbasic school

Basicschool

1 to 3-yearvocationalsecondary

school

4 (or more)-year

vocationalsecondary

schooland grammar

school

Post-secondary,

non-university

degree

Universitylevel

and post-graduatedegree


2009 Total 263,174 17,477 64,246 90,421 70,330 9,259 11,441

Structure 100.0 6.6 24.4 34.4 26.7 3.5 4.3

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

2010/2009Index

114.9 103.4 110.3 115.1 117.7 125.2 131.4

Men in 2009 107,115 8,000 24,497 43,296 23,692 3,369 4,261

Structure 100.0 7.5 22.9 40.4 22.1 3.1 4.0

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

2010/2009Index

127.7 113.3 124.0 128.4 132.9 134.6 134.5

Women in 2009 156,059 9,477 39,749 47,125 46,638 5,890 7,180

Structure 100.0 6.1 25.5 30.2 29.9 3.8 4.6

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

2010/2009Index 106.1 95.1 101.8 102.9 110.0 119.8 129,6

Unemployment Structure and Trends by Counties and Particular Features

As it has been stressed before, the average number of unemployed persons in 2010 increased by14.9% compared to 2009. However, the unemployment trend analysis showed significantdifferences in the extent of that increase among particular counties. The most significantpercentage increase in average unemployment was recorded in the following counties: Krapina-Zagorje (30.2%), Zagreb (28.3%), City of Zagreb (24.9%), Međimurje (20.3%), Primorje-GorskiKotar (19.9%), Varaždin (19.4%), Koprivnica-Križevci (18.1%) and Istria (17.9%).

The County of Split-Dalmatia and the City of Zagreb accounted for the largest share in the totalnumber of unemployed persons in 2010 (12.5%), up by 1 pp, followed closely by the County ofOsijek-Baranja (10.8%).

15

2009 2010Activity(2007 National Classification of Activities)

Number Share Number Share

2010/2009Index

A. Agriculture, forestry and fishing

B. Mining and quarrying

C. Manufacturing

D. Electricity, gas, steam andair-conditioning supply

Unemployed Persons by Previous Employment Activity(as of December 31, 2009 and 2010)

E. Water supply; sewerage,waste management andremediation activities

F. Construction

G. Wholesale and retail trade; repair ofmotor vehicles and motorcycles

H. Transportation and storage

I. Accommodation andfood service activities

J. Information and communication

K. Financial and insurance activities

L. Real estate activities

M. Professional, scientific and technical activities

N. Administrative and support service activities

P. Education

Q. Human health and social work activities

R. Arts, entertainment and recreation

S. Other service activities

O. Public administration and defence;compulsory social security

T. Activities of households as employers;undifferentiated goods- and services-producingactivities of households for own use

U. Activities of extraterritorial organisations and bodies

TOTAL

Yearbook 2010

10,268 4.2 11,104 4.2 108.1

831 0.3 1,064 0.4 128.0

57,655 23.7 58,348 22.0 101.2

280 0.1 282 0.1 100.7

2,116 0.9 2,974 1.1 140.5

26,419 10.9 32,479 12.2 122.9

48,203 19.8 50,924 19.2 105.6

7,484 3.1 7,681 2.9 102.6

30,621 12.6 34,214 12.9 111.7

3,105 1.3 3,289 1.2 105.9

2,540 1.0 2,927 1.1 115.2

1,110 0.5 1,258 0.5 113.3

7,591 3.1 8,877 3.3 116.9

9,199 3.8 11,021 4.1 119.8

4,500 1.9 6,640 2.5 147.6

4,812 2.0 5,459 2.1 113.4

4,399 1.8 4,998 1.9 113.6

2,310 1.0 2,642 1.0 114.4

15,028 6.2 15,207 5.7 101.2

4,454 1.8 4,225 1.6 94.9

90 0.0 72 0.0 80.0

243,015 100,0 265,685 100,0 109.3

As far as unemployment by gender is concerned, the greatest share of women in the total numberof unemployed persons at the end of 2010 was recorded in the following counties: Split-Dalmatia(57.9%), Zadar (57.1%) and Primorje-Gorski Kotar (56.8%), i.e. mainly coastal counties offering agreat number of seasonal jobs in the field of accommodation and food service. The largest numberof young unemployed persons up to 24 years of age in the total number of unemployed personswas recorded in the following counties: Požega-Slavonia (24.4%), Međimurje (23.8%),Koprivnica-Križevci (23.4%), Brod-Posavina (23.0%) and Bjelovar-Bilogora (22.6%). Finally, thelargest number of qualified unemployed persons (with secondary; non-university; or universityand postgraduate degrees) was recorded in the following counties: Split-Dalmatia (82.1%),Dubrovnik-Neretva (81.6%), Primorje-Gorski Kotar (77.6%), and the City of Zagreb (78.6%)

16

2009 2010County

Number Share Number Share

Average Number of Unemployed Persons by Counties in 2009 and 2010

2010/2009Index

Zagreb

Krapina - Zagorje

Sisak - Moslavina

Karlovac

Varaždin

Koprivnica - Križevci

Bjelovar - Bilogora

Primorje - Gorski Kotar

Lika - Senj

Virovitica - Podravina

Požega - Slavonia

Brod - Posavina

Zadar

Osijek - Baranja

Šibenik - Knin

Split - Dalmatia

Vukovar - Srijem

Istria

Dubrovnik - Neretva

Međimurje

City of Zagreb

Total


11,895 4.5 15,256 5.0 128.3

5,249 2.0 6,835 2.3 130.2

16,863 6.4 18,454 6.1 109.4

11,462 4.4 11,894 3.9 103.8

8,137 3.1 9,716 3.2 119.4

6,243 2.4 7,375 2.4 118.1

11,436 4.3 12,415 4.1 108.6

14,910 5.7 17,878 5.9 119.9

3,088 1.2 3,305 1.1 107.0

8,343 3.2 9,242 3.1 110.8

5,310 2.0 5,795 1.9 109.1

14,130 5.4 16,297 5.4 115.3

10,037 3.8 10,672 3.5 106.3

28,561 10.9 32,722 10.8 114.6

7,132 2.7 7,742 2.6 108.6

17,269 6.6 18,748 6.2 108.6

33,601 12.8 37,871 12.5 112.7

6,740 2.6 7,949 2.6 117.9

6,686 2.5 7,459 2.5 111.6

5,892 2.2 7,088 2.3 120.3

30,190 11.5 37,712 12.5 124.9

263,174 100.0 302,425 100.0 114.9

Croatian War Veterans Unemployment Structure and Trends

Unemployment Structure and Trends by Duration of Unemployment and Particular

Features

At the end of 2010, there were 27,209 unemployed Croatian war veterans in the CES register ofunemployed persons, out of which 37.8% with completed or uncompleted basic school and 38.3%with completed 1 to 3-year vocational secondary school. The share of unemployment benefitrecipients in the total number of unemployed Croatian war veterans was negligible. In terms oftheir age structure, 44.2% of unemployed Croatian war veterans were aged from 50 to 65.

Registered unemployed persons can also be classified according to the duration ofunemployment. At the end of 2010, 38.9% of the total number of unemployed persons waited foremployment for up to 6 months and 45.8% for more than one year. Compared to the year before,the number of unemployed persons who had been waiting for employment from 9 to 12 monthsgrew by 22.6%, of those who had been waiting for employment for 1 to 2 years by 51.6% and thosewho had been waiting for employment for 2 to 3 years by 27.7%. The number of unemployedpersons who had been waiting for employment for more than 3 years decreased by 11.5%.

17

MenTotal

Qualified Persons

Number ShareCounty

Structure of Unemployed Persons by Counties (Dec. 31, 2010)

Women

Zagreb

Krapina - Zagorje

Sisak - Moslavina

Karlovac

Varaždin


Bjelovar - Bilogora


Lika - Senj


Požega - Slavonia

Brod - Posavina

Zadar

Osijek - Baranja

Šibenik - Knin

Split - Dalmatia

Vukovar - Srijem

Istria

Dubrovnik - Neretva

Međimurje

City of Zagreb

Total

Yearbook 2010

Up to 24 Years of Age

Number ShareNumber ShareNumber Share

16,022 7,714 48.1 8,308 51.9 3,047 19.0 11,304 70.6

7,262 3,875 53.4 3,387 46.6 1,573 21.7 4,834 66.6

19,061 8,514 44.7 10,547 55.3 3,620 19.0 11,567 60.7

11,871 5,266 44.4 6,605 55.6 1,865 15.7 7,537 63.5

10,206 5,422 53.1 4,784 46.9 2,007 19.7 7,179 70.3

7,700 3,934 51.1 3,766 48.9 1,799 23.4 4,955 64.4

12,408 6,362 51.3 6,046 48.7 2,807 22.6 7,830 63.1

19,614 8,467 43.2 11,147 56.8 3,254 16.6 15,218 77.6

3,540 1,649 46.6 1,891 53.4 693 19.6 2,376 67.1

9,864 4,463 45.2 5,401 54.8 2,150 21.8 6,171 62.6

6,092 2,921 47.9 3,171 52.1 1,485 24.4 4,302 70.6

16,996 7,405 43.6 9,591 56.4 3,910 23.0 11,555 68.0

11,497 4,933 42.9 6,564 57.1 1,796 15.6 8,298 72.2

34,211 15,008 43.9 19,203 56.1 7,242 21.2 23,451 68.5

8,424 3,828 45.4 4,596 54.6 1,527 18.1 6,255 74.3

19,490 9,065 46.5 10,425 53.5 4,253 21.8 13,403 68.8

40,777 17,182 42.1 23,595 57.9 7,401 18.1 33,494 82.1

9,270 4,235 45.7 5,035 54.3 1,454 15.7 6,614 71.3

8,359 3,695 44.2 4,664 55.8 1,427 17.1 6,823 81.6

7,281 3,608 49.6 3,673 50.4 1,735 23.8 4,553 62.5

39,900 19,359 48.5 20,541 51.5 6,441 16.1 31,366 78.6

319,845 146,905 45.9 172,940 54.1 61,486 19.2 229,085 71.6

18

Unemployed Persons by Duration of Unemployment(Dec. 31, 2009 and 2010)

Indeks2010/2009

Number Share

2009 2010Duration ofUnemployment

Unemployed Persons by Duration of Unemployment and Gender(Dec. 31, 2010)

Duration of Unemployment Total Men Share Women Share

As far as duration of unemployment by gender is concerned, the share of unemployed personswho had been waiting for employment for more than 1 year in the total number of unemployed menwas 41.6% and in the total number of unemployed women 49.4%. Hence, the share of long-termunemployed persons in the total number of unemployed persons was greater in the case ofwomen than in the case of men.

Finally, if we observe duration of unemployment in terms of educational levels, the lower theeducational level, the greater the share of long-term unemployed persons. Thus, the share of long-term unemployed persons (waiting for 1 year or more) in the total number of unemployed personswith no schooling or uncompleted basic school amounted to 67.9% and 54.7% in the case ofunemployed persons with basic school, which is considerably less. The share of long-termunemployed persons was even smaller in the groups of persons with three- or four-year vocationalsecondary school (43.2% and 41.7%) and non-university and university and postgraduatedegrees (36.7% and 31.3%). Although the number of unemployed persons with non-universityand university and postgraduate degrees grew significantly, it can still be concluded that the levelof education has a significant influence on the duration of unemployment.

Up to 3 months

From 3 to 6 months

From 6 to 9 months

From 9 to 12 months

From 1 to 2 years

From 2 to 3 years

More than 3 years

TOTAL

Up to 3 months

From 3 to 6 months

From 6 to 9 months

From 9 to 12 months

From 1 to 2 years

From 2 to 3 years

More than 3 years

TOTAL

Number Share


72,521 24.9 78,818 24.6 108.7

44,774 15.4 45,721 14.3 102.1

21,726 7.5 23,247 7.3 107.0

20,731 7.1 25,426 7.9 122.6

36,868 12.6 55,900 17.5 151.6

17,152 5.9 21,908 6.8 127.7

77,773 26.7 68,825 21.5 88.5

291,545 100.0 319,845 100.0 109.7

78,818 38,540 26.2 40,278 23.3

45,721 21,995 15.0 23,726 13.7

23,247 11,671 7.9 11,576 6.7

25,426 13,519 9.2 11,907 6.9

55,900 28,070 19.1 27,830 16.1

21,908 8,511 5.8 13,397 7.7

68,825 24,599 16.7 44,226 25.6

319,845 146,905 100.0 172,940 100.0

Short-term Unemployment

Long-term Unemployment

Structure of Unemployed Persons by Duration of Unemploymentand Educational Level (Dec. 31, 2010)

19

Up to 3 months

From 3 to 6 months

From 6 to 9 months

From 9 to 12 months

From 1 to 2 years

From 2 to 3 years

More than 3 years

TOTAL

Yearbook 2010

Duration ofUnemployment

Total

No schoolingand


Basicschool


school

4 (or more)-year

vocationalsecondary

schooland grammar

school

Post-secondary,

non-university

degree

Universitylevel


24.6 12.3 20.3 25.5 26.7 30.7 35.3

14.3 8.0 10.5 15.8 16.2 14.8 17.0

7.3 5.0 6.6 7.4 7.5 8.8 8.9

7.9 6.9 8.0 8.1 7.9 9.1 7.6

17.5 16.2 17.5 17.6 17.8 18.0 15.6

6.8 8.3 8.0 6.3 6.8 6.0 5.0

21.5 43.3 29.2 19.3 17.0 12.7 10.7

100.0 100.0 100.0 100.0 100.0 100.0 100.0

54.2 32.1 45.3 56.8 58.3 63.3 68.7

45.8 67.9 54.7 43.2 41.7 36.7 31.3

20

Reported Job Vacancies

In 2010, employers reported a total of 104,739 job vacancies to the CES, which represents anincrease of 2.3% or 2,312 job vacancies compared to 2009.

According to the National Classification of Activities, the largest number of reported job vacanciescame from the following fields of activity: accommodation and food service (16,855 or 16.1 %),manufacturing (16,454 or 15.7%), education (14,435 or 13.8%), and wholesale and retail trade(14,135 or 13.5%). Compared to the year before, the largest increase in labour force demand wasrecorded in public administration, defence and compulsory social security (by 2,075 or 60.6%),manufacturing (by 818 or 5.2%), healthcare and social welfare (811 or 13.4%), transportation andstorage (by 724 or 44.9%), and other service activities (by 658 or 28.5%), whereas the largestabsolute decrease was recorded in construction (by 1,162 or 14.6%), education (by 1,032 or6.7%), trade (by 1,030 or 6.8%), agriculture, forestry and fishery (by 577 or 15.1%), andadministrative and auxiliary service activities (by 400 or 6.4%).

As far as regional organisation is concerned, most job vacancies were reported in the City ofZagreb (15,178 or 14.5%) and the following counties: Split-Dalmatia (9,179 or 8.8%), Primorje-Gorski Kotar (8,774 or 8.4%) and Osijek-Baranja (8,064 or 7.7%); and least in the County of Lika-Senj (1,601 or 1.5%). Compared to the year before, the volume of registered demand for workersincreased in thirteen counties, however mainly in the following counties: Osijek-Baranja (by 1,186or 17.2%), Šibenik-Knin (by 1,103 or 27.8%), Bjelovar-Bilogora (by 758 or 23.9%), Dubrovnik-Neretva (by 745 or 27.3%) and Brod-Posavina (by 549 or 19.5%). The volume of registereddemand for workers decreased in eight counties, however mainly in the following counties: Zagreb(by 1,050 workers or 20.1%), Istria (by 785 workers or 10.3%), Požega-Slavonia (by 537 workersor 20.1%) and Zadar (by 480 workers or 10.3%).

In 2010, employers mostly looked for service workers and shop and market sales workers (25,101or 24.0%) as well as workers engaged in elementary occupations such as cleaners, deliverers,transport workers, workers without occupational qualifications and similar (24,979 or 23.8%). Asignificant share in the total number of labour force demand referred to professionals (15,938persons or 15.2%), craft and related trade workers (13,857 or 13.2%), and technicians andassociated occupations (12,504 or 11.9%).

Appendix 2, p. 23.

Labour Force Demand and Employment

Group of Occupations 2009 2010

(1) Legislators, senior officials and managers

(2) Professionals

(3) Technicians and associated professionals

(4) Clerks (office and desk clerks)

(5) Service workers and shop and market sales workers

(6) Skilled agricultural, hunting,forestry and fishery workers

(7) Craft and related trade workers

(8) Plant and machine operators and assemblers

(9) Elementary occupations

Total

Reported Job Vacancies by Group of Occupations in 2010


%2010/2009

Index%

247 0.2 214 0.2 86.6

15,427 15.1 15,938 15.2 103.3

11,797 11.5 12,504 11.9 106.0

5,488 5.4 6,473 6.2 117.9

25,126 24.5 25,101 24.0 99.9

530 0.5 672 0.6 126.8

13,758 13.4 13,857 13.2 100.7

5,464 5.3 5,001 4.8 91.5

24,590 24.0 24,979 23.8 101.6

102,427 100.0 104,739 100.0 102.3

Employment of Persons from the CES Register

In 2010, a total of 141,105 persons from the register of unemployed persons of the CroatianEmployment Service were employed on a work contract basis (by 22,819 persons or 19.3% morethan in 2009), whereas 5,522 were employed on the basis of other business activities (starting acompany or craft business; signing up for agricultural insurance; employment based on specialregulations, and other). From the total number of persons employed on a work contract basis,76,260 were women, making up a share of 54.0% in the total number of employed personscompared to a share of 58.8% recorded in 2009.

The largest number of registered employedpersons refers to persons with secondary school education, including those who completed 1 to 3-year vocational secondary school (37.5%) and those who completed 4-year vocational secondaryschool or grammar school (29.7%), followed by those with basic school education (16.1%),university and postgraduate degrees (8.7%), non-university education (6.1%), and persons withno schooling or uncompleted basic school education (1.9%). Compared to the year before, anincrease in registered employment was recorded across all educational levels. The largestincrease was recorded in the groups of persons with university and postgraduate degrees(30.2%).

Educational Level and Groups of Occupations.

21

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

• Service workers and shop and market sales workers (32,747 or 31.5%);

• Elementary occupations (24,330 or 17.2%);

• Craft and related trades workers (23,144 or 16.4%);

• Technicians and associated professionals (21,867 or 15.5%);

• Clerks (16,004 or 11.3%);

• Professionals (12,130 or 8.6%);

• Plant and machine operators and assemblers (9,831 or 7.0%);

• Skilled agricultural, hunting, forestry and fishery workers (1,043 or 0.7%);

• Legislators, senior officials and managers (29 or 0.02%); and

• Armed forces (10 or 0.007%).

Yearbook 2010

2009

Share

2010

Share

2010/2009Index

Number of Persons from the CES Register Employed on a Work Contract Basisin 2009 and 2010 by Educational Level

Year TOTALBasicschool


school

4 (or more)-year

vocationalsecondary

schooland grammar

school

Post-secondary,

non-university

degree

Universitylevel


No schoolingand


118,286 2,389 19,710 43,970 35,538 7,268 9,411

100.0 2.0 16.7 37.2 30.0 6.1 8.0

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

100.0 1.9 16.1 37.5 29.7 6.1 8.7

119.3 109.3 115.1 120.5 117.9 119.3 130.2

22

Work Experience. From the total number of employed persons, 123,998 persons (87.9%) hadprior work experience, whereas 17,107 (12.1%) were employed for the first time.

Duration of Employment. 126,802 persons (89.9%) were employed on a temporary basis,whereas 14,303 persons (10.1%) were employed on a permanent basis. Compared to 2009, theshare of temporary employment increased, while the share of permanent employment decreased(by 4.4 pp).

Employment Activity. It is common that the register of unemployed persons with prior workexperience primarily includes persons from manufacturing, trade, accommodation and foodservice, and construction, and that these four areas of activity are also the ones in which mostpersons are consequently employed.

In 2010, the total number of persons from the CES register employed on a work contract basisincluded:

• Wholesale and retail trade: 24,619 persons or 17.4 %,

• Accommodation and food service: 23,914 persons or 16.9 %,

• Manufacturing: 23,653 persons or 16.8 %,

• Construction: 12,316 persons or 8.7 %;

• Education: 9,854 persons or 7.0 %,

• Administrative and auxiliary service activities: 9,179 persons or 6.5 %;

• Agriculture, hunting, forestry and fishing: 6,265 persons or 4.4%, etc.


23

Appendix 2

Reported Job Vacancies and Persons from the CES Register Employed on a Work ContractBasis by Activity (according to the National Classification of Activities) in 2009 and 2010

Yearbook 2010

Reported Job VacanciesEmployed from the CES Register

on a Work Contract Basis

2009 20102010Share

Index2010/2009

2009 2010

3,831

290

15,636

83

1,275

7,986

15,165

1,613

16,543

1,366

1,385

295

2,283

6,261

3,426

15,467

6,041

1,136

2,308

30

7

102,427

3,254

215

16,454

141

1,681

6,824

14,135

2,337

16,855

1,111

1,576

372

2,663

5,861

5,501

14,435

6,852

1,473

2,966

30

3

104,739

3.1

0.2

15.7

0.1

1.6

6.5

13.5

2.2

16.1

1.1

1.5

0.4

2.5

5.6

5.3

13.8

6.5

1.4

2.8

0.0

0.0

100.0

84.9

74.1

105.2

169.9

131.8

85.4

93.2

144.9

101.9

81.3

113.8

126.1

116.6

93.6

160.6

93.3

113.4

129.7

128.5

100.0

42.9

102.3

5,798

261

19,552

99

1,491

9,456

22,219

2,921

20,610

1,081

1,464

491

3,679

7,056

3,026

8,736

4,252

1,671

4,195

200

28

118,286

6,265

279

23,653

112

2,285

12,316

24,619

4,085

23,914

1,268

1,636

649

4,580

9,179

3,891

9,854

5,493

1,914

4,317

776

20

141,105

4.4

0.2

16.8

0.1

1.6

8.7

17.4

2.9

16.9

0.9

1.2

0.5

3.2

6.5

2.8

7.0

3.9

1.4

3.1

0.5

0.0

100.0

108.1

106.9

121.0

113.1

153.3

130.2

110.8

139.8

116.0

117.3

111.7

132.2

124.5

130.1

128.6

112.8

129.2

114.5

102.9

388.0

71.4

119.3

Agriculture, forestry and fishing

Mining and quarrying

Manufacturing

Electricity, gas, steam andair-conditioning supply

Water supply; sewerage,waste management andremediation activities

Construction

Wholesale and retail trade; repair ofmotor vehicles and motorcycles

Transportation and storage

Accommodation and foodservice activities

Information and communication

Financial and insurance activities

Real estate activities

Administrative and supportservice activities

Public administration and defence;compulsory social security

Education

Human health and socialwork activities

Arts, entertainment and recreation

Other service activities

Activities of households asemployers; undifferentiatedgoods- and services-producingactivities of households forown use

Activities of extraterritorialorganisations and bodies

TOTAL

Professional, scientific andtechnical activities

2010Share

Index2010/2009

Activity(2007 National Classification

of Activities)

County

24

Appendix 3

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


131.8

130.1

104.5

126.3

120.9

127.5

112.4

126.3

119.5

110.5

107.8

124.0

118.7

124.7

109.7

103.6

115.2

120.2

121.9

132.2

125.7

119.3

4.7

2.4

4.4

3.3

4.0

2.6

4.0

6.8

1.2

3.1

2.2

4.3

4.2

9.8

3.2

5.8

12.1

5.0

3.4

2.9

10.6

100.0

6,687

3,368

6,199

4,727

5,620

3,613

5,619

9,640

1,652

4,435

3,095

6,015

5,896

13,810

4,463

8,221

17,115

7,101

4,852

4,090

14,887

141,105

5,073

2,588

5,932

3,744

4,648

2,833

4,998

7,634

1,382

4,014

2,872

4,849

4,966

11,071

4,068

7,939

14,852

5,910

3,980

3,093

11,840

118,286

79.9

100.5

103.4

112.4

101.5

115.0

123.9

97.6

103.3

115.2

79.9

119.5

89.7

117.2

127.8

99.7

96.5

89.7

127.3

109.2

97.6

102.3

4.0

2.3

3.2

2.4

4.9

3.2

3.7

8.4

1.5

2.9

2.0

3.2

4.0

7.7

4.8

4.1

8.8

6.6

3.3

4.4

14.5

100.0

4,173

2,419

3,368

2,534

5,099

3,333

3,926

8,774

1,601

3,062

2,132

3,371

4,175

8,064

5,077

4,333

9,179

6,869

3,478

4,594

15,178

104,739

5,223

2,406

3,256

2,255

5,022

2,899

3,168

8,989

1,550

2,657

2,669

2,822

4,655

6,878

3,974

4,348

9,516

7,654

2,733

4,208

15,545

102,427

Zagreb

Krapina - Zagorje

Sisak - Moslavina

Karlovac

Varaždin


Bjelovar - Bilogora


Lika - Senj


Požega - Slavonia

Brod - Posavina

Zadar

Osijek - Baranja

Šibenik - Knin

Split - Dalmatia

Vukovar - Srijem

Istria

Dubrovnik - Neretva

Međimurje

City of Zagreb

Total

2009 20102010Share

Index2010/2009

2009 20102010Share

Index2010/2009

Reported Job VacanciesEmployed from the CES Register

on a Work Contract Basis

25

Employment Rate by Educational Level and Occupation

The annual employment rate shows how many persons from the total number of unemployedpersons who looked for employment during the year were employed (on a work contract basis). In2010, the employment rate amounted to 24.3%, i.e. less than one fourth of unemployed personswho looked for employment during the year actually found it.

Significant differences were recorded in the employment rate among groups of unemployedpersons distinguished by educational level. In the case of persons with no schooling oruncompleted basic school, the employment rate equalled 9.6%. It equalled 18.3% in the case ofthose with basic school, 25.9% in the case of those with vocational secondary school in theduration of up to three years, 25.4% in the case of those with four-year vocational secondaryschool or grammar school, 34.6% in the case of those with non-university education and 35.1% inthe case of those with university and postgraduate degrees. It is evident that the highereducational level is always associated with the higher employment rate.

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

Employment Rate by Educational Level in 2010 (%)

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

Yearbook 2010

0

10

20

30

40

50

A B C D E F

9.6

18.3

25.9 25.4

34.6 35.1

Em

plo

yme

nt

Ra

te (

%)

26

The following table shows ten occupations with the highest and ten with the lowest rate ofemployment at non-university and university and postgraduate degree level.

Employment Rate by Occupation/Major at Non-university andUniversity and Postgraduate Degree Level

Occupation/Major Occupation/Major

Employment Rate by Occupation at Secondary School Level

Occupation % Occupation %

% %


Gardener 35.3 Print Graphic Designer 20.5

Automated Construction Equipment Operator 33.7 Lower Elementary Teaching Associate 20.1

Cook 33.1 Room Painter 20.0

Forest Technician 33.1 Administrative Personnel Clerk 19.9

Expert Textile Worker 32.8 Iron Worker 19.8

Air Traffic Controller 32.5 Maritime Sailor 19.8

Freight Motor Vehicle Driver 32.4 Milling Machine Operator 19.8

Medical Nurse/Medical Technician 32.0 19.8

Central Heating and Air Conditioning Assembler 32.0 Ceramic Product Maker 19.7

Pharmaceutical Technician 31.6 Indok Service Associate 19.5

Electrical Engineering Technician 30.8 Weaver 19.0

Midwife 30.7 Fine Art and Design 18.3

Textile Technician 30.6 18.2

Road Motor Vehicle Driver 30.4 Electrical Engineer (Radio-Television Technology) 18.1

Waiter 30.4 Mathematician – Computer Scientist 18.1

Agricultural Technician 30.3 Spinner 17.3

Hotel and Tourism Technician 30.2 Technical Designer 17.0

Turner 30.0 Shorthand Typist 16.1

Hair-dresser 29.9 Scenographic Designer 14.9

Hotelier 29.9 Power Electrician 14.5

Knitter

Typist

Teaching 65.5 Philosophy 22.3

Croatian and English Language 61.6 Textile and Chemical Technology 22.3

Biology and Chemistry 59.5 Building Construction 22.2

Croatian and Italian Language 57.3 Cattle Breeding 22.1

General Medicine 56.6 Economy 20.8

Librarianism, Croatian Language and Literature 55.5 Painting 20.5

Physical Therapy 55.2 Marine Engineering 19.1

Senior Medical Nurse / Medical Technician 54.0 Political Sciences 18.9

German Language 53.8 Textile and Clothing Engineer 18.1

English Language 53.4 Graphic Artist 16.9

27

Seasonal Employment in Tourism

Interregional Employment Mediation Services

Provision of employment mediation services with regards to seasonal employment in tourism isone of important business activities of the Croatian Employment Service. Continuing the practicepursued over the previous years, at the beginning of 2010 the CES organised regular regionalmeetings with representatives of larger hotels and tourism companies for the purpose of reachingconcrete agreements concerning the planning (forecasting) and meeting the demand for seasonalworkers. 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 thenupcoming tourist season.

After preparing the demand forecasts and selecting seasonal workers from unemployed domicilepopulation, the representatives of the afore-mentioned companies also conducted informativeinterviews with candidates interested in seasonal employment and selected the most appropriateones in cooperation with regional offices of the Croatian Employment Service based in continentalcounties (Osijek, Vinkovci, Bjelovar, Sisak, etc.) and referred them to the agreed job positions.

During the tourist season, a total of 18,151 workers were employed, mostly waiters (2,015 personsor 11.1%), cooks (1,862 persons or 10.3%), salespersons (1,860 persons or 10.2%),chambermaids (1,465 persons or 8.1%), kitchen help (1,098 persons or 6.0%), assistant cooks(822 persons or 4.5%), cleaning ladies (745 persons or 4.1%), administrative clerks (465 personsor 2.6%), and receptionists (411 persons or 2.3%).

At the county level, most seasonal workers were employed from the following counties: Split-Dalmatia 2,928 (16.1%), Istria 2,103 (11.6%), Dubrovnik-Neretva 1,869 (10.3%), Primorje-GorskiKotar 1,684 (9.3%), Zadar 1,463 (8.1%), Osijek-Baranja 1,456 (8.0%) and Šibenik-Knin 1,300(7.2%).

Through interregional employment mediation services provided by the regional offices of the CESsituated in continental regions of Croatia, a total of 6,632 seasonal workers were employed incoastal regions during the tourism season. The largest number of seasonal workers wasemployed from the following counties: Osijek-Baranja (2,684 persons), Vukovar-Srijem (2,522persons), Sisak-Moslavina (2,224 persons), Brod-Posavina (1,753 persons) and Bjelovar-Bilogora (1,510 persons).

Interregional employment mediation services are provided with the aim of meeting the employers'demand for workers, especially in areas where there is an insufficient number of workers engagedin particular occupations. Through these services, the CES also strives to encourage migration ofworkers 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 aworker from its own county, the relevant request is then forwarded to other regional offices withregistered labour force meeting the job-specific requirements. Interregional employmentmediation services are especially important in the process of meeting the demand for seasonalworkers during the tourist season and meeting the demand for workers in occupations in demand.

Through interregional employment mediation services, a total of 23,035 workers registered withthe CES as unemployed were employed in 2010 in the place outside of the territorial scope of theregional or local office where the request had originally been received, among which mainlysalespersons (1,836 persons or 8.0%), cooks (1,198 persons or 5.2%), waiters (1,003 persons or4.4%), cleaning ladies (638 persons or 2.8%), economic clerks (593 persons or 2.6%),administrative clerks (582 persons or 2.5%), freight car drivers (546 persons or 2.4%), kitchen help(529 persons or 2.3%), assistant cooks (452 persons or 2.0%) and chambermaids (421 persons or1.8%).

Yearbook 2010

28

In terms of counties, most workers who were employed in the place outside the territorial scope ofthe regional or local office where the request had originally been received came from the followingcounties: Osijek-Baranja (2,684 or 11.7%), Vukovar-Srijem (2,522 or 10.9%), Sisak-Moslavina(2,224 or 9.7%), Brod-Posavina (1,753 or 7.6%) and Bjelovar-Bilogora (1,510 or 6.6%).

As far as the employment activity is concerned, most seasonal workers employed throughinterregional employment mediation services found employment in the following activities:accommodation and food service (6,632 or 28.8%), wholesale and retail trade (3,812 or 16.5%),construction (2,851 or 12.4%), manufacturing (2,774 or 12%), and administrative and auxiliaryservice activities (2,100 or 9.1%).

In the scope of international employment mediation services, the CES is in charge ofimplementation of two bilateral employment agreements in the Federal Republic of Germany, aswell as consultation, informing, referral and employment of Croatian citizens in the FederalRepublic of Germany.

Employment of Croatian citizens abroad is subject to a work permit issued by the relevant state fora specific period of time. A person must be granted a residence permit prior to applying for a workpermit. In 2010, the Croatian Employment Service provided employment mediation services toseasonal workers, medical technicians, the so-called 'guest workers' and students participating insummer practical training programmes in the Federal Republic of Germany, as well as to sailors onships owned by foreign companies.

Through the employment mediation activities carried out by the CES, a total of 5,544 Croatiancitizens were employed abroad during 2010, which is 858 workers or 18.3% more compared to theyear before.

Employment in the Federal Republic of Germany is mainly seasonal in character, so that, on thebasis of the bilateral agreements in force, most workers found employment in the following fields ofactivity: agriculture (3,304 persons or 67.5%) and accommodation and food service (1,736persons or 32.5%) for a period of 6 months; and amusement parks for up to 9 months (86 persons),i.e. 5,349 persons from the total number of persons engaged in seasonal employment.

Throughout the year, employers from the Federal Republic of Germany report their need forseasonal workers to the Croatian Employment Service. A significant number of such workers hadalready worked for the same employers during the previous years. If the German employers aresatisfied with the work performed by particular workers and there is a need for their employment,they send new work contracts for the same workers through the Central EmploymentIntermediation Office in Bonn each year. Pursuant to German law, seasonal workers in agricultureand accommodation and food service had been permitted until 2009 to work in the FederalRepublic of Germany for no longer than four months. However, in January 2009, the permittedduration of temporary work contracts was extended to six months. As far as the entertainmentbusiness is concerned, seasonal workers can now be employed for a period of up to nine monthsduring a calendar year.

The agreements (together with the description of work, salary amount and other terms ofemployment offered and required by the employer) are received by the Central Office of theCroatian Employment Service. They are made out to a specific unemployed person (first and lastname, date of birth and address). Such agreements are called 'name-based agreements'. Theyare sent by the Central Office to be executed by the relevant regional office based on the place ofpermanent residence of the specified unemployed person. If the German employer does notspecify the person by name, but only states certain requirements (the so-called 'anonymousagreements'), the Central Office then provides its employment mediation services and organises aselection of workers.

Employment of PersonsAbroad and their Return fromAbroad


29

SeasonalWorkers

MedicalTechnicians

GuestWorkers

StudentsSailors on

foreignships

2009

2010

2010/2009Index

TotalYear

Number of Workers Employed Abroad in 2009 and 2010

During summer vacations, 9 student applications for spending up to 3 months in the FederalRepublic of Germany were received.

All activities concerning the employment mediation of sailors on foreign ships were carried out bythe Rijeka and Split Regional Offices onto which the CES transferred its employment mediationduties in this matter. In 2010, a total of 107 sailors registered with the Croatian EmploymentService were employed on foreign ships.

The Croatian Employment Service has so far carried out a number of activities such as thepreparation for active participation in the EURES network after the admission of the Republic ofCroatia to the European Union. One of such activities was also the establishment of two MigrantInformation Centres (MICs) in the Osijek and Rijeka Regional Offices.

Yearbook 2010

From the total number of employment agreements received, 38 persons were employed on thebasis of anonymous offers. Most seasonal workers were employed from the following counties:Brod-Posavina, Vukovar-Srijem and Osijek-Baranja. The majority of seasonal workers employed(2,875 or 58.1%) were women.

Pursuant to the Agreement made by and between the Croatian Government and the Governmentof the Federal Republic of Germany on Employment of Workers for Professional Advancementand Language Improvement Purposes (Agreement on Temporary Employment, Official Gazette –International Agreements 14/2002), 150 persons of up to 40 years of age engaged in variousoccupations were employed for a period of 18 months, while 45 medical nurses and technicianswho passed the qualifying exam were employed for a longer or indefinite period of time.

In 2010, in cooperation with the Central Employment Intermediation Office in Bonn, the CESorganised two selections/interview sessions for candidates seeking to find employment in theFederal Republic of Germany as 'guest workers' and medical nurses/medical technicians. Thesesessions were attended by 116 candidates.

4,686 4,425 32 133 35 61

5,544 5,349 45 150 2 107

118.3 120.8 140.3 106.4 112.8 175.4

30

Preparation for Employment

The Preparation for Employment run by the Croatian Employment Service is based on theprinciples of lifelong learning, importance of early intervention and enhancement of competenciesrelated to the management of personal vocational development. In 2010, in the light of the globalcrisis, the CES placed emphasis on the Preparation for Employment activities encompassing theassessment and development of competencies, vocational and additional training of unemployedpersons for the purpose of improving their competitiveness in the labour market, vocationalguidance and selection services, as well as on development of services in the field of vocationalrehabilitation and employment of persons with disabilities and other aggravated employabilityfactors. The CES primarily focused on group activities (group informing, group counselling andsimilar) in order to provide an opportunity for as many of its users as possible to participate in thesaid activities. The influence of the CES on educational policy in accordance with the labourmarket demand was significant. The CES participated in the drafting of the Enterprise LearningStrategy, activities related to the implementation of the Croatian Qualification Framework,activities carried out by Professional Councils, etc.

Vocational guidance activities carried out in 2010 included various types of vocational informingand counselling sessions for unemployed persons and other target groups, encompassingprevention activities and work with pupils and students in the process of selecting an adequateeducational programme. For the purpose of ensuring professional informing of pupils, the CESprinted 12,750 brochures and made 27,440 copies of the CD containing five regional secondaryschool enrolment brochures. In addition, for the purpose of ensuring professional informing offinal-year pupils of primary and secondary schools, the CES purchased 2,500 informativebrochures entitledAGuide for Future Students and 5,000 copies of the CD containing the brochureentitled 2010 Secondary School Enrolment Guide from the Ministry of Science, Education andSports.

In 2010, the CES significantly increased the number of activities intended for unemployed personsand job-seekers by conducting individual and group informing sessions on various issuesconcerning the management of personal vocational development. Professional vocational andpsychological counselling services along with work competencies assessment services, i.e.psychological testing, interview and examination by an occupational medical specialist wereprovided to 7,603 unemployed persons estimated to have extreme difficulties in the process of(re)integration into the labour market. With the aim of improving the active job search skills, theCES organised 3,679 various types of workshops involving 33,633 persons, i.e. 21% morecompared to the year before. In addition, a total of 1,135 psychological vocational selections werecarried out involving 11,508 candidates, out of which 343 selections were carried out for thepurpose of re-employment (2,908 persons), and 792 for the purpose of including unemployedpersons in educational activities (8,600 persons). Apart from referring unemployed persons toattend various educational activities, the CES continued its cooperation with the local and regionalself-government units pursuant to the National Employment Incentive Programme (119unemployed persons were referred to participate in an educational process with 15 differentprogrammes).

Vocational guidance intended for pupils includes the application of a Vocational InterestQuestionnaire on the basis of which priority groups of pupils in need of vocational counsellingconcerning the selection of the most appropriate educational programme or occupation areidentified. During 2010, a total of 57,367 pupils participated in the survey, of which 40,449 primaryschool pupils and 17,241 secondary school pupils, representing 84% of the total number of final-year pupils of primary schools and 37% of the total number of final-year pupils of secondary

Vocational Guidance, Selection and Enhancement of Competencies in Accordance with

Labour Market Demand


31

schools. The survey analysis showed that about 30% of the pupils had the need for professionalhelp in the selection of the appropriate educational programme or occupation.

Vocational guidance counsellors provide vocational informing and counselling services to thepupils depending on their needs and identified difficulties. This sort of help is especially required bypupils with developmental difficulties and more serious health problems limiting their possibilitiesin the process of selecting an educational programme or occupation. The priority group to beincluded in the process of vocational counselling also includes the pupils displaying various typesof behaviour disorders, i.e. learning difficulties, and those leaving secondary school at their owndiscretion. In 2010, a total of 39,470 final-year pupils (42% of the total population) participated invocational informing and counselling activities. Also, for the purpose of promoting occupations indemand, in cooperation with regional chambers of crafts and trade, the Croatian EmploymentService carries out the activities related to promotion of craft and trade occupations intended forpupils as well as finances medical examinations required for their enrolment in the programmespreparing them for such occupations. In 2010, a total of 1,288 prior medical examinations of pupilswere financed for the purpose of their enrolment in programmes preparing them for occupations indemand.

With the aim of developing and enhancing the pupil and student standard in the Republic ofCroatia, the Croatian Employment Service cooperated with the National Foundation for theSupport to the Pupil and Student Standard in the process of determining the criteria for theCompetition to Win a Scholarship for Occupations/Study Programmes in Demand for AcademicYear 2010/2011.

In 2010, the vocational guidance computer programme entitled My Choice was used in 88licensed locations, i.e. in all regional offices of the Croatian Employment Service, in primary andsecondary schools, adult education institutions, and other institutions associated with the labourmarket. A total of 8,356 users used the programme at regional offices of the CES, of which 6,769pupils. The results of the evaluation carried out in 2010 showed that the users were very satisfiedwith this service.

During 2010, the CES continued its activities under a project entitled Labour Market–OrientedVocational Education in the Republic of Croatia. In the framework of this project, the CES prepareda report on vocational education and labour market for the County of Zadar and carried out otheractivities envisaged under the 2010 Project Plan.

With the aim of improving lifelong vocational guidance, the CES carried out, under the IPA Projectentitled CES Client Services: Improvement of Lifelong Vocational Guidance and ICT Support,preparation activities for a project whose purpose is to establish a National Vocational GuidanceForum, determine the legal framework that would regulate the vocational guidance system in thefield of employment and education, and establish seven pilot career development centres. Thepurpose of the project is also to enhance the CES ICT system based on the model of integrationand exchange of information between the key labour market stakeholders for the purpose ofensuring better services to clients.

The European Lifelong Guidance Policy Network (ELGPN) has been established in order toharmonise the lifelong vocational guidance policies in the field of employment and educationamong the EU member and candidate countries. The Ministers of the two competent Ministries,i.e. the Ministry of the Economy, Labour and Entrepreneurship and the Ministry of Science,Education and Sports, have named the CES the national representative and operative partnerwithin the ELGPN. The Network supports the development of a system of national lifelongvocational guidance policies, association with employment, lifelong learning and social inclusionpolicies, and exchange of experiences and knowledge among its members. An ELGPN brochurecontaining the most important information related to the activities of the Network and a report onactivities carried out in 2009/2010 has been translated and printed.

The Croatian Employment Service is one of the partners in a project called Leonardo da VinciINTRADA implemented by the Social Research Institute from Vienna and the Austrian PublicEmployment Service. The purpose of the project is dissemination of innovations and curricula for

Yearbook 2010

32

group vocational guidance services intended for various target groups, including the creation of adatabase and methodological manuals.

The representatives of the Croatian Employment Service also participate in managing boards,commissions, working groups and other activities carried out under several educational projects:Further Development of the Croatian Qualifications Framework, Higher Learning InstitutionsNetwork, Local Educational Institutions Network, etc. The Enterprise Learning Strategy calledEntrepreneurial Croatia was adopted by the Government of the Republic of Croatia in June 2010and, in the second half of the year, the CES participated in the implementation of measures fromthe relatedAction Plan.

On December 31, 2010 there were 6,255 persons with disabilities in the register of the CroatianEmployment Service. During the year, 1,080 persons with disabilities registered with the CES asunemployed were employed.

Pursuant to the Act on Vocational Rehabilitation and Employment of Persons with Disabilities(Official Gazette No. 43/02 and 33/05) and the implementation of measures prescribed under theNational Strategy for Equalization of the Possibilities of Persons with Disabilities 2007-2015,1,471 persons with disabilities participated in vocational informing and counselling activitiescarried out by the Croatian Employment Service in 2010, of which 458 persons attended thecounselling workshops. In total, 48 workshops adjusted to the needs of persons with disabilitieswere conducted, among which it is important to highlight the active job search workshops forunemployed hearing-impaired persons organised by the CES in cooperation with the Federationof Deaf and Hard-of-Hearing Persons of the City of Zagreb.

Some of the active policy measures concerning the co-financing of employment implemented bythe Croatian Employment Service refer to promoting integration of unfavourably positionedpersons into the labour market, i.e. special groups of unemployed persons such as persons withdisabilities (Measure 4 – Co-financing of employment of special groups of unemployed persons).Apart from the employment co-financing measures, the CES also encourages employmentthrough education co-financing and financing measures, as well as measures through whichunemployed persons participate in public works. In 2010, the active policy measures implementedby the Croatian Employment Service involved 349 persons with disabilities, whereas in 2009 thenumber of persons benefiting from the mentioned incentives was considerably smaller (146).

In 2010, the Croatian Employment Service participated in the activities of the Cross-SectorWorking Group carried out in the process of drafting a proposal for a uniform list of impairmentsand functional abilities for all categories of persons with disabilities. Pursuant to the decisionpassed by the Government of the Republic of Croatia in September 2010, the Proposal for aUniform List of Impairments and Functional Abilities will experimentally be applied for a period ofone year in order to evaluate the same and create the foundation for establishing a uniformmedical examination authority. Representatives of four regional offices of the CroatianEmployment Service participated in the related training and experimental application of theProposal for a Uniform List of Impairments and Functional Abilities created in accordance with theInternational Classification of Functioning, Disability and Health (WHO, 2001).

In 2010, female representatives of the CES participated in the activities of the CoordinatingCommittee for Helping People Injured by Landmines and Unexploded Ordnance in the process ofdrafting the Croatian Action Plan for Helping People Injured by Landmines and UnexplodedOrdnance 2010–2014.

In 2010, the CES also participated, as one of the partners, in a project implemented by the ZagrebWork Centre, a new model of vocational rehabilitation and employment of long-term unemployedpersons with disabilities, along with the City of Zagreb, URIHO and the Fund for Vocational

Vocational Rehabilitation and Employment of Persons with Disabilities and Other

Aggravated Employability Factors


33

Rehabilitation and Employment of Persons with Disabilities. The purpose of the Work Centre is toprovide opportunities for renewal of knowledge and skills and enhancement of work and socialcompetencies to long-term unemployed persons with disabilities, thus increasing theirpossibilities of entering the labour market.

With the aim of informing the employers and the public concerning employment and workingpotential of persons with disabilities as well as making them more sensitive in this regard, theCroatian Employment Service also participated, as a partner institution, in a project calledEmployer of the Year of Persons with Disabilities. On the basis of this project, employers recordingthe best results concerning employment and treatment of persons with disabilities are selected.

During 2010, the Croatian Employment Service was also implementing a project called PromotingGreater Inclusion of Persons with Disabilities in the Labour Market under the Instrument for Pre-Accession Assistance Programme 2007-2009. Under the said project, a study called The Positionand Needs of Persons with Disabilities in the Labour Market was made. The conclusions andrecommendations of the study ensured guidelines for the creation of action plans for employmentof such persons in eight selected counties. 89 employment mediation counsellors in the labourmarket were educated in the field of employment of persons with disabilities. A manual for labourmarket counsellors, a manual for persons with disabilities and a manual for employers providingemployment opportunities to persons with disabilities were created. Under Component 3 of theproject implemented by the Fund for Vocational Rehabilitation and Employment of Persons withDisabilities, a unique web portal containing all relevant information on employment and educationof persons with disabilities was created as well.

Apart from additional types of services intended for unemployed persons with disabilities, during2010, the CES was continuously carrying out various support measures and activities intended forother socially sensitive groups, e.g. measures for promoting education and employment of treateddrug addicts under a project called Re-socialisation of Treated DrugAddicts.

Yearbook 2010

34

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 advancement for thepurpose of retaining employment, financing of labour market-oriented education for unemployedpersons, and co-financing and financing of employment in public work programmes. The mentionedmeasures form integral partsof the National Employment Incentive Plan for2009 and 2010.

The implementation measures falling under the responsibility of the Croatian Employment Serviceinclude subsidies for employment, subsidies for personal advancement, financing of education, andother measures performed by the CES in accordance with Articles 34-36 of the Act on EmploymentMediation and Unemployment Rights (Official Gazette No. 80/08).

The subsidies for employment and personal advancement have been adjusted to the State SubsidiesAct (Official Gazette No. 140/05) and mainly refer to horizontal subsidies for all entrepreneurs,excluding however the entrepreneurs in financial difficulties.

The subsidies for employment and personal advancement falling under the responsibility of theCroatian Employment Service have been adjusted to the definitions from Articles 38, 39 and 40 of theDecision on the Announcement of General Block Exemption Regulations with regards to StateSubsidies contained in the Directive of the European Commission (EC) No. 800/2008.

The National Employment Incentive Plan pays special attention to increasing the employability ofemployed and unemployed persons through further education. On one hand, additional educationincreases employability and provides opportunities for acquisition of new skills and, on the other, itreduces the imbalance between the supply and demand for particular skills and occupations in thelabour market.

Public work programmes were organised in cooperation with the local community. Their purpose is toactivate and engage in work the groups with the lowest level of employability in the labour market.Such programmes are intended for long-term unemployed persons who have been registered with theCES for over one year in the case of which local authorities co-finance the cost of employment, and forlong-term unemployed persons who have been listed in the register for more than 3 years in the caseof which employment is financed fully.

In 2010, a new measure called On-the-job Training without a Work Contract, part of the NationalEmployment Incentive Plan for 2011 and 2012, was introduced. It is contained in Chapter 7 of theEconomic Recovery Programme of the Government of the Republic of Croatia. A measure calledIntroducing a Volunteering, Internship, Work Practice and Traineeship System to Help Young PersonsAcquire Work Experience was introduced to activate the labour market. Its purpose is to ensureentrance to the labour market to young unemployed persons with no work experience or employmentrecord through vocational training. Vocational training helps young long-term unemployed personswith secondary or post-secondary education acquire work experience without which finding firstemployment and taking qualifying and master exams is quite difficult.

The employment, education co-financing and education financing measures are intended for thefollowing 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 beenregistered as unemployed for at least 6 months or over 25 under the condition that they have beenregistered as unemployed for at least 12 months;

unemployed persons over 50 years of age as well as employed persons over 50 years of age facingthe threat of losing their employment due to their age, educational level, lack of professionalknowledge and skills;

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

In 2010, the measures involved a total of 13,088 persons from the register of unemployed persons, ofwhich 2,139 persons were employed through subsidies for employment, 284 persons through

•

•

•

2010 National Employment Incentive Plan


35

subsidies for self-employment, 614 persons received education for employment with a knownemployer (subsidies for personal advancement), 4,566 persons received labour-market orientededucation, 448 persons received on-the-job training without a work contract and 5,037 persons wereemployed in public work programmes. In 2010, the total number of persons covered by the measuresincluded 6,468 women (or 49.4%).

Since the commencement of the implementation of the afore-mentioned measures until December31, 2010, a total of HRK 195,479,411.17 was paid out.

The data show that the largest share of the total number of persons covered by the measures refers tothe persons who acquired occupational qualifications through secondary school programmes(63.7%), which is a reflection of their share in the total number of unemployed persons.

As far as persons with low educational qualifications are concerned, a positive effect was achievedthrough the following two measures: Public Works (57.2%) and Financing of Labour Market-OrientedEducation (30.8%), i.e. active policy measures intended for persons with low educationalqualifications and persons threatened by social exclusion.

Most persons with university and postgraduate degrees were covered by the measure ensuring Co-financing of First Employment of Young Persons with no Work Experience (24.5%), which wasexpected on the basis of the related incentive.

As far as age structure is concerned, young persons from 20 to 24 years of age accounted for the greatestshare, followed by the group from25 to 29 yearsofage and the group from40 to 44 yearsofage.

The Croatian Employment Service also implemented the measures related to preparation foremployment and self-employment, and co-financing of employment of unemployed persons of Romanationality pursuant to the National Programme for the Roma and the Action Plan for the Decade ofRoma Inclusion 2005-2015.

In 2010, the measures dedicated to providing persons of Roma nationality opportunities foremployment and education covered 304 persons from the register of unemployed persons, of which272 were employed and 11 received education for employment with an unknown employer.

The greatest share of persons of Roma nationality was covered by the measure providingemployment in public work programmes.

Until December 31, 2010, a total of HRK 4,898,988.25 was disbursed for co-financing of employmentand education of unemployed persons of Roma nationality.

Number of Persons Covered by the Measures Implementedin 2010 under the National Employment Incentive Plan by Gender

MeasureTotal

Employed/Educated

Women Share of Women

Yearbook 2010

Co-financing of first employment of youngpersons with no work experience

767 367 47.8

Co-financing of employment of long-termunemployed persons

940 595 63.3

Co-financing of persons over 50 305 133 43.6

Co-financing of employment of specialgroups of unemployed persons 127 27 21.2

Co-financing of self-employment oflong-term unemployed persons 284 126 44.3

Co-financing of education for employmentwith a known employer 614 163 26.5

Financing of education 4,566 2.021 44.3

On-the-job training without a work contract 448 332 74.1

Public works 5,037 2,704 53.7

TOTAL 13,088 6,468 49.4

36

Appendix 4a


Em

plo

yed

/Ed

ucate

d P

ers

on

s in

2010 b

yA

cti

ve P

olicy M

easu

res u

nd

er

the N

ati

on

al E

mp

loym

en

t In

cen

tive P

lan

for

2009 a

nd

2010 b

y C

ou

nti

es

Tota

lW

omen

Tota

lW

omen

Tota

lW

omen

Tota

lW

omen

Tota

lW

omen

Tota

lW

omen

Zagr

eb77

3834

2313

1219

787

76

328

166

Bjel

ovar

-Bilo

gora

5421

1717

200

8035

217

929

2165

231

8

Međ

imur

je16

471

139

4011

452

206

125

2114

644

302

Dub

rovn

ik-N

eret

va60

350

013

456

8452

33

281

146

Lika

-Sen

j15

40

062

1878

377

716

266

Karlo

vac

7434

00

155

107

300

164

3122

560

327

Krap

ina-

Zago

rje93

310

010

557

8960

2117

308

165

Kopr

ivni

ca-K

rižev

ci56

300

012

558

171

102

3024

382

214

Sisa

k-M

osla

vina

111

600

030

113

128

819

442

3474

241

9

Osi

jek-

Bara

nja

309

170

1513

469

172

662

318

3724

1,49

269

7

Pože

ga-S

lavo

nia

5327

134

9827

107

7136

3130

716

0

Istri

a63

340

014

599

63

00

214

136

Prim

orje

-Gor

ski K

otar

179

103

600

299

179

223

117

108

771

407

Brod

-Pos

avin

a58

280

029

056

307

194

3426

689

304

Split

-Dal

mat

ia24

813

118

219

442

209

629

405

2414

1,52

577

8

Šibe

nik-

Knin

4923

190

140

8515

163

00

359

171

V ara

ždin

6634

9735

120

7118

882

2112

492

234

Vuko

var-

Srije

m13

970

123

267

103

416

159

3227

866

362

Viro

vitic

a-Po

drav

ina

9135

208

135

5127

411

931

1755

123

0

Zada

r38

170

018

510

215

576

107

388

202

City

of Z

agre

b42

625

26

176

729

615

497

2218

1,37

566

4

Tota

l2,

423

1,24

861

416

34,

566

2,02

15,

037

2,70

444

833

213

,088

6,46

8

Cou

nty

Co-

financi

ng o

fem

plo

ymen

t

Educa

tion

for

a k

now

nem

plo

yer

Educa

tion

for

an

unkn

own e

mplo

yer

Public

wor

ksO

n-t

he-

job t

rain

ing

wit

hou

t a w

ork

contr

act

TO

T AL

37

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

Appendix 4b.

County

Total Women Women Women WomenTotal Total Total

Redeployment Programme

In accordance with Article 120, Section 1 of the Labour Act , any employer that establishes asurplus of at least twenty employees whose work contracts will, regardless of the reason, beterminated within a period of 90 days as well as any employer that plans to terminate the workcontracts of at least five employees due to business reasons must consult the workers' council forthe purpose of eliminating the need for lay-offs.

Any employer that, after the consultations on redeployment programmes, still intends to terminatea number of work contracts due to business reasons is, pursuant to the provisions of Article 120,Section 1 of the LabourAct, obligated to draft a Redeployment Programme.

During the process of drafting the programme, employers must consult with the competent publicemployment office (regional office of the Croatian Employment Service according to the seat of theemployer) regarding the possibilities of involving the affected employees in active employmentpolicy programmes.

Drawing up of a redeployment programme is a special measure the goal of which is to remove ormitigate the damage arising from the termination of the work contract for the worker. Namely, asituation where a large number of layoffs happens at the same time or within a short period of timehas substantially different social, economic and other consequences compared to individuallayoffs. 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 thosefacing the threat of layoff by providing employment mediation services during the notice periodwith the aim of securing other employment for them, referring such employees to retraining orupgrading programmes for the purpose of obtaining some other position in the same company orsomewhere else.

1

Co-financingand financing of

education ofpersons of Roma

nationality

Co-financing ofemployment of

persons ofRoma nationality

in the durationof 24 months

Co-financing ofemployment of

persons ofRoma nationality

in public workprogrammes

Total

Employed/Educated Persons in 2010 by Measures under the National Programme for the Romaand the Action Plan for the Decade of Roma Inclusion 2005-2015 by Counties

Yearbook 2010

Bjelovar-Bilogora 0 0 0 0 17 5 17 5

Međimurje 16 2 2 0 69 20 87 22

Koprivnica-Križevci 0 0 0 0 17 7 17 7

Sisak-Moslavina 0 0 1 1 12 3 13 4

Osijek-Baranja 1 0 0 0 116 29 117 29

Brod-Posavina 3 0 0 0 18 2 21 2

Šibenik-Knin 0 0 1 1 0 0 1 1

Varaždin 0 0 0 0 9 2 9 2

Virovitica-Podravina 0 0 0 0 1 0 1 0

City of Zagreb 12 7 0 0 9 5 21 12

Total 32 9 4 2 268 73 304 84

38

Year

Number of Programmes and Persons Covered by RedeploymentProgrammes and Number of Newly-Registered Persons whose

Employment was Terminated for Economic Reasons, 2006 to 2010

Number of personsinvolved in theprogrammes

Number ofprogrammes

received

Number of newly-registered persons whose

employment wasterminated for economic

reasons

In the implementation of the said activities concerning the handling of surplus employee situations,the CES faces a series of objective problems, primarily the lack of job vacancies in the case of boththe same and other employers, followed by the psycho-physical condition of persons covered bythe programmes.

The end goal of the mentioned activities is to help persons facing the threat of layoff be reemployedas fast as possible, ensure the return of as many workers as possible to the world of labour andprevent long-term unemployment.

Surplus of employees is mainly caused by privatisation, restructuring, change of productionprogramme, 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 almostentirely unneeded in the labour market, i.e. persons with aggravated employability factors such aswomen, older persons and persons with disabilities.

In 2010, the CES received 89 redeployment programmes involving 5,637 persons, of which 1,925women (a share of 34.1%) and 3,712 men (a share of 65.9%).

As far as the structure of workers covered by redeployment programmes by educational level isconcerned, workers with secondary school education (40.5%) accounted for the largest share,followed by skilled and highly-skilled workers (23.2%), employees with non-university education(11.5%) and workers with low educational qualifications (10.8%).

As far as age structure is concerned, most workers belonged to the group from 55 to 59 years ofage (20.7%), followed by those in the group over 60 (19.6%), from 50 to 54 (14.4%) and from 45 to49 years of age (11.1%).

The persons covered by redeployment programmes mainly came from manufacturing (32.2%),agriculture, forestry and fishing (25.8%) construction (14.4%), and information andcommunications (6.0%).

In 2010, there were in the register of unemployed persons 65,087 workers whose employmentwas terminated for economic, technical or organisational reasons. It is therefore evident that only asmall number of such workers were covered by redeployment programmes.

Compared to 2009, the number of programmes received was the same (89), whereas the numberof persons covered by the programmes decreased by 562 workers or 9.1%.


2006

2007

2008

2009

2010

48 3,394 31,278

18 1,504 26,544

31 2,642 29,599

89 6,199 64,493

89 5,637 65,087

39

Mobile Teams

For the purpose of ensuring support to workers covered by redeployment programmes,regardless of whether their employment was terminated for restructuring, organisational oreconomic reasons, mobile teams were formed within the Croatian Employment Service. They arecomposed of professionals from the field of career development: employment counsellors,psychologists, legal advisers, and other professionals, if necessary. The purpose of mobile teamsis to prepare the redundant workers for the labour market and act on their behalf while they are stillemployed in their respective companies in order to reduce the number of persons entering theregister of unemployed persons. Mobile teams perform their activities through mobile centresestablished 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 andconditions in the labour market, mobile teams provide various services: information about thelabour market and the manner in which various rights can be claimed, counselling, i.e. assistancein defining their work potential, organisation of workshops through which the workers acquire job-search skills, education in acquiring professional skills, assistance in self-employment andstarting a business, organisation of an internal employment service within the company where jobvacancies can be posted, employment mediation 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 2010, mobile team counsellors conducted individual informing sessions for 1,272 workers, andgroup informing sessions for 1,077 workers. 792 workers facing the threat of layoff participated inindividual counselling sessions.

Yearbook 2010

40

Pursuant to the provisions of the Act on Employment Mediation and Unemployment Rights ,unemployment entitlements include:

• unemployment benefit,

pension insurance,

financial assistance and reimbursement for education-related expenses,

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

Unemployed persons acquire the right to unemployment benefit provided they had worked 9 out of24 months preceding the termination of employment. In order to be eligible for unemploymentbenefit, an unemployed person must report to the CES and submit a request for unemploymentbenefit within 30 days from the date of termination of employment or sick or maternity leave. If anunemployed person fails to report to the CES within the specified deadline of 30 days due tojustifiable reasons, he/she may report to the authorised employment service and submit a requestfor unemployment benefit within 8 days from the date of termination of the reason that caused thefailure 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 eligiblefor 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 thisrule are unemployed persons with 32 years of service who may claim unemployment benefit untilreemployment, i.e. until one of the cases prescribed by the afore-mentioned Act resulting intermination of the right to unemployment benefit arises. Pursuant to theAct onAmendments to theAct on Employment Mediation and Unemployment Rights that came into force on November 1,2010, an unemployed person with more than 32 years of service missing up to 5 years to beeligible for age-based retirement has the right to unemployment benefit. At the request of theunemployed person who has been granted right to unemployment benefit, the same may bedisbursed as a one-off payment. The terms and the method of payment are determined under theDecision on the One-off Payment of the Unemployment Benefit . The one-off payment of theunemployment benefit may be granted for opening a craft business, i.e. sole business, and foremployment in a company in which the relevant unemployed person has a share of no more than25%, as well as for on-the-job training without a work contract.

The basis for determining the unemployment benefit amount is the average salary earned in thethree-month period preceding the termination of employment reduced by statutory contributions. Ifthe basis cannot be determined on the basis of the salary, it is then determined on the basis of theminimum salary reduced by statutory contributions, depending on the time spent in service.

Prior to entry into force of the Act on Amendments to the Act on Employment Mediation andUnemployment Rights, i.e. November 1, 2010, unemployment benefit during the first 90 daysamounted to 70% of the base amount and 50% during the rest of the period. The persons grantedright to unemployment benefit until reemployment or until one of the cases resulting in terminationof the right to unemployment benefit arises were, after the period of 12 months, entitled to 40% ofthe base amount.

During the first 90 days, unemployment benefit could not be higher than 100% of the base amount,whereas during the rest of the period it could not exceed 80% of the base amount. As far aspersons granted right to unemployment benefit until reemployment or until one of the casesresulting in termination of the right to unemployment benefit arises are concerned, unemploymentbenefit could not, after the period of 12 months, exceed 60% of the minimum salary determinedpursuant to special regulations reduced by statutory contributions. After entry into force of the Act

2

3

4

•

•

•

Unemployment Benefit

Unemployment Entitlements

2 Official Gazette No. 80/08 and 121/10.3 Official Gazette No. 121/10.4 Official Gazette No.32/09.


41

on Amendments to the Act on Employment Mediation and Unemployment Rights, unemploymentbenefit now equals 70% of the base amount during the first 90 days and 35% during the rest of theperiod. The highest unemployment benefit during the first 90 days may not amount to more than70% and during the rest of the period more than 35% of the average salary paid in the Republic ofCroatia in the previous year according to the latest officially published data.

The highest unemployment benefit paid out in the period from January 1 to October 31, 2010 wasHRK 2,251.20, and after November 1, 2010, i.e. after entry into force of the Act on Amendments tothe Act on Employment mediation and Unemployment Rights, HRK 3,717.70. The averageunemployment benefit in 2010 amounted to HRK 1,506.93.

Pursuant to the Act on Amendments to the Act on Employment Mediation and UnemploymentRights , the right to unemployment benefit may be extended in the case of unemployed personsregistered with the CES continuously for more than 12 months and if they fully claimed thepreviously determined unemployment benefit right. Unemployment benefit right is extended for aperiod of 30 to 120 days, depending on the determined duration of the unemployment benefitclaimed.

136,187 requests for unemployment benefit (initial requests, continuation of payments, andrequests for extension) were submitted in 2010, of which 131,574 were approved. 404 complaintsover the resolution of requests for unemployment benefit were submitted, of which 307 weredismissed and 35 approved. In 2010, 54 complaints were filed with the Administrative Court of theRepublic of Croatia.

In 2010, 856 requests for a one-off payment of the unemployment benefit were received, and 737approved.

The Act on Employment Mediation and Unemployment Rights prescribes the situations when anunemployed person is to be deleted from the register of unemployed persons. In 2010, 26,360 firstinstance resolutions on deletion of persons from the register of unemployed persons werereached. 427 appeals were submitted over the resolutions on deletion, of which 410 weredismissed and 16 approved.

The Act on Employment Mediation and Unemployment Rights prescribes that a Croatian citizenwho had worked abroad is eligible for unemployment benefit during the period of unemployment inaccordance with the provisions of the international agreement.

A Croatian citizen who had worked in a country with which the Republic of Croatia has not signedan agreement regulating unemployment entitlements or a country in which he/she had not beensecured for the event of unemployment, may claim the right to unemployment benefit according tothe provisions of the Act on Employment Mediation and Unemployment Rights provided he/shehad paid the employment contribution to the Croatian Employment Service for at least 9 out of 24months preceding the termination of employment abroad.

In the process of determining the right to unemployment entitlements, the Croatian EmploymentService applies the agreements on social security the Croatian Government has signed with othercountries.

Social security agreements containing provisions on unemployment have been signed with theRepublic of Austria, the Netherlands, the Czech Republic, Bosnia and Herzegovina, FormerYugoslav Republic of Macedonia, Republic of Slovakia, Republic of Slovenia, Luxemburg, Serbiaand Montenegro, Bulgaria and Italy, and are currently in force.

Based on Section III of the Constitutional Decision on the Sovereignty and Independence of the

5

Deletion from the Register of Unemployed Persons

Claiming Unemployment Insurance on the Basis of Having Worked Abroad

Yearbook 2010

5 Official Gazette No. 121/10.

42

Republic of Croatia, the Unemployment Insurance Agreement signed between the FormerFederal Republic of Yugoslavia and the Federal Republic of Germany still applies. This agreementregulates the financial and legal protection of workers who had lost employment in Germany andconsequently returned to Croatia. This is the only agreement on the basis of which an unemployedperson that had stopped working abroad can, if meeting the requirements prescribed by the saidagreement and the Act on Employment Mediation and Unemployment Rights, claim the right tounemployment benefit, regardless of the fact that their employment had been terminated outsideof Croatia. The mentioned agreement also regulates the refunding of benefit payments and theRepublic of Croatia sends out a request for refund to the Federal Republic of Germany twice ayear. 23 such requests were submitted in 2010.

Under the social security agreements signed with other countries, only the periods during whichthe person was insured count when applying for unemployment benefit, provided that theemployment had been terminated in Croatia and that the unemployed person had been, prior tosubmitting the request, employed in Croatia for a certain period of time or insured for the event ofunemployment (e.g. pursuant to the agreement signed with Slovenia: 9 months in the last 12months; pursuant to the agreement signed withAustria: 26 weeks in the last 12 months).

Apart from the terms set forth in these agreements, an unemployed person must also meet therequirements set forth in theAct on Employment Mediation and Unemployment Rights.

An unemployed person referred to educational programmes by the CES is eligible to receive, forthe duration of such activities, financial assistance in the amount of the non-taxable tuitiondetermined pursuant to special regulations, along with reimbursement for travel expenses (publictransportation), reimbursement for the cost of prescribed protective clothes, shoes and other aidsif receiving training for occupations in demand pursuant to special authorisations and licenses,and reimbursement for the cost of food outside the place of permanent or temporary residence.

In 2010, 5,101 persons claimed the right to financial assistance for educational purposes.

Unemployed persons in the case of which the CES is not in the position to find employment in theirplace of residence, and who find employment in some other place, either through their own effortsor through the employment mediation services provided by the CES, have the right to a one-offfinancial assistance and reimbursement for travel and relocation expenses (from the place ofresidence to the place of employment) for themselves, their spouses and children.

The eligibility requirements for receiving this type of unemployment insurance have beendetermined on the basis of the Decision on the One-off Financial Assistance and Reimbursementfor Travel and Relocation Expenses .

In 2010, 6,417 persons claimed the right to reimbursement for travel and relocation expenses and59 persons claimed the right to the one-off financial assistance.

The right to pension insurance is granted to an unemployed person who has been granted right tounemployment benefit and is of a certain age, i.e. missing up to a maximum of 5 years of service tomeet the requirements for age-based retirement.

The following table gives an overview of the average number of financial insurance beneficiaries in2009 and 2010.

6

FinancialAssistance and Reimbursement for Education-related Expenses

One-off Financial Assistance and Reimbursement for Travel and RelocationExpenses

Pension Insurance

6 Official Gazette No. 74/09.


43

Yearbook 2010

Unemployment Entitlement Beneficiaries in 2009 and 2010

2009 20102010/2009

Index

Average Number of Beneficiaries Per Month

Unemployment benefit – Total

Unemployment benefit – Croatian war veterans

Pension insurance

Number of Beneficiaries Receiving One-off Payments

68,967 78,439 113.7

10 5 50.0

32 11 34.4

One-off Bonus 106 3 2.8

One-off Payment of Unemployment Benefit 561 694 123.7

Projects Supported by the International Community

Instrument for Pre-accessionAssistance (IPA)

The IPA Programme is a unique programme for the period 2007-2013 that has replaced previouspre-accession programmes, namely CARDS, PHARE, ISPA and SAPARD, as well asconsolidated the components of the same.

The main purpose of the IPA Programme is the provision of support to candidate countries in theprocess of harmonising their national legislation with the acquis communautaire and preparationfor using the structural and cohesion developmental funds after the accession to the EU.

The financial funds allocated to the Republic of Croatia under components of the IPA Programmefor the period 2007-2011 amount to EUR 749.83 million.

To ensure a more efficient implementation of the main objectives, the IPA Programme has beendivided into five components:

1. TransitionAssistance and Institution Building,

2. Cross-border Cooperation,

3. Regional Development,

4. Human Resources Development,

5. Rural Development.

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

Implementation of the following projects has started within the scope of

The value of the service contract is €1,000,000. The main objective of the project is to strengthenthe capacities of the Croatian Employment Service and other labour marketinstitutions/organisations for the purpose of developing a more effective and efficient labourmarket. The purpose of the project is to support the establishment of the Croatian EmploymentService Labour Market Centre ensuring education to employees of the CES and other key labourmarket stakeholders. The service contract was signed in August 2010, and the implementation ofthe 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 andAdditional Business Processes of the Croatian Employment Service, are also being carried out.These activities will help produce a report on the key competencies and quality standardsconcerning the core and additional business processes of the Croatian Employment Service onthe basis of which training programmes to be conducted in the later project phases will beelaborated.

The value of the project is €230,000. The main objective of the project is to support the mobility andfree movement of workers within the European Economic Area markets pursuant to therequirements contained in Chapter 2: Free Movement of Workers. The purpose of the project is tosupport the Croatian Employment Service in the implementation and promotion of the EURESNetwork in Croatia.

The implementation of a project entitled Twinning Light started on September 13, 2010. Thecontract was awarded to the German Federal Employment Agency. During September and at the

Component 1: Transition

Assistance and Institution Building:

Croatian Employment Service Labour Market Centre

Preparation of the Croatian Employment Service for Joining the EURES Network

and

44


beginning of October, specialised consultations were held between the German experts and therelevant participants within the CES, which served as the foundation for drafting theRecommendations concerning the adjustments to the CES business processes required for asuccessful integration into the EURES Network. An analysis of the existing applications for dataexchange used by the CES was made in November, and the training programme for the CEScounsellors developed.

Under , i.e. , the regional offices of the CESparticipate in projects of cross-border cooperation between the border regions of Croatia andHungary. Seven regional offices participate in the implementation of the mentioned cross-borderprojects. The following regional offices are involved in the implementation of a project entitledBorderless Cooperation: Hungarian/Croatian Professional Employment Academy, namelyČakovec, Osijek, Vinkovci and Križevci. The Osijek, Bjelovar and Vukovar Regional Officesparticipate in a project called Learning and Work, whereas the Čakovec and Varaždin RegionalOffices are involved in a project called Strengthening of Cross-Border Labour Market Competition– Mobile Region.

Under , i.e. , 4 projects wereimplemented in 2010:

The project entitled Local Partnerships for Employment – Phase 3 includes two components: aservice contract and a grant scheme. The value of the project is €4,500,000 (service contract:€1,900,000, grant scheme: €2,600,000).

The main objective of the project is to reduce unemployment and the threat of new unemploymentby designing and implementing active and prevention labour market policy measures.

The purpose of the project is to enhance and develop an institutional framework (based onpartnerships) for human resources development and strengthen the capacities of localstakeholders for development and implementation of active labour market policy measures.

The implementation of the service contract started in November 2009. All activities envisagedunder Component 3 (Strengthening of local stakeholders' capacities for planning, developmentand implementation of active measures in the labour market by applying a partnership-basedapproach) were carried out. The planned workshops intended for potential beneficiaries of grantsand project clinics, the purpose of which is provision of education in the preparation andimplementation of projects and development of capacities, were also held.

The implementation of activities under Component 1 (To include the concept of local partnershipsfor employment more in the process of designing policies, strategies and measures in regionallabour markets in Croatia) and Component 2 (To encourage human resources development at theregional level by applying a partnership-based approach and the European Social Fundstandards).

Component 1: analyses of situations in the existing local partnerships for employment werecarried out and served as a foundation for drafting a proposal of a model for sustainable activity oflocal partnerships for employment in Croatia. On the basis of the afore-mentioned documents, aproposal of activities and organisational structure of such partnerships was made in which theprocedures concerning the functioning and application of the proposed models were elaborated inmore detail.

Component 2: the establishment of new local partnerships for employment started in December2010. By the end of February 2011, local partnerships for employment had been officiallyestablished in all Croatian counties.

The call for proposals for grant scheme was open until February 11, 2010. The evaluationprocedure is finished, and the signing of the grant contract was held on January 26, 2011.A total of26 projects will be financed under the grant scheme.

Component 2 Cross-Border Cooperation (IPA CBC)

Component 4 Human Resources Development (IPA HRD)

Local Partnerships for Employment – Phase 3

45

Yearbook 2010

46

Youth in the Labour Market

Fostering Effective Inclusion of the Persons with Disabilities into the Labour Market

The project entitled Youth in the Labour Market consists of two components: a service contract anda grant scheme. The total value of the project is €2,946,000 (service contract: €1,100,000, grantscheme: €1,846,000).

The main objective of the project is to reduce unemployment of young persons at the regionallevel. The purpose of the project is to promote and encourage employment of young persons at theregional level (applying a partnership-based approach) by developing and implementing theactive labour market policy.

The purpose of the call for proposals for grant schemes is to promote and encourage employmentof young persons (applying a partnership-based approach) on the basis of the measures andmethods ensuring them easier access to the labour market.

The implementation of the service contract started in January 2010. Component 1: a study basedon investigating the attitudes of young unemployed persons and employers in 8 counties wasmade. A two-day workshop for potential applicants to the grant scheme entitled Youth in theLabour Market was conducted. The process of drafting Action Plans for employment of youngpersons in 8 counties with the largest number of unemployed young persons is under way.Component 2: a survey was carried out on the basis of which a report on the existing servicesprovided by the Croatian Employment Service to unemployed persons, especially youngunemployed persons, and potential new services was also drafted. On the basis of the said report,a number of new services and mechanisms for the provision of services to young persons in theprocess of employment were proposed.

The call for proposals for grant schemes was open until March 2010. The evaluation process is inprogress. The signing of contracts under the grant scheme started in February 2011.

The project consists of two components: a service contract and a grant scheme. The total value ofthe project is €2,235,000 (service contract: €1,100,000, grant scheme: €1,235,000).

The main objective of the project is to promote social inclusion of persons with disabilities in thelabour process. The purpose of the project is to increase the level of employability of persons withdisabilities and help them access the labour market through development and implementation ofactive employment measures at the regional level.

The grant programme is aimed at developing projects adjusted to the specific needs of personswith disabilities for the purpose of their integration in the labour market and increasing theiremployability. In addition, projects the aim of which is to raise the awareness of the wider public,and especially employers, of the possibilities and advantages of employing persons withdisabilities will also be supported.

The implementation of the service contract started in January 2010. Most activities envisagedunder the agreement were also carried out in 2010. The capacities of local stakeholders, i.e.potential applicants to the grant schemes, with respect to solving the problems of persons withdisabilities related to their access to the labour market were strengthened. A research was carriedout and a study made concerning the problems and needs of persons with disabilities in the labourmarket. On the basis of the research results, eight counties were selected in which working groupsconsisting of relevant local stakeholders were formed. Their task is to create action plans foremployment of persons with disabilities. In 2010, the members of the mentioned working groupsproduced such action plans in cooperation with local experts. Final versions of those plans weremade at the end of January 2011. The capacities of labour market stakeholders for promoting andemphasizing the advantages of employing persons with disabilities were strengthened as well,and a manual for employment counsellors created. Two more manuals were created, of which oneis intended for employers providing guidelines for the selection, employment, workplaceadjustment and adequate supervision of persons with disabilities, and the other for persons with


47

Yearbook 2010

disabilities providing guidelines for active job search. A national web portal (the so-called 'one-stop-shop') providing information and other services to unemployed persons with disabilities andemployers was also designed. The promotion and official opening of the portal were held at thepresentation of the Employer of the Year for Persons with Disabilities award which took place at theend of January 2011.

The implementation of the grant scheme started in December 2010 when 14 grant contracts werealso signed.

The project entitled Women in the Labour Market consists of two components: a service contractand a grant scheme. The value of the project is €3,000,000 (service contract: €1,000,000, grantscheme: €2,000,000).

The main objective of the project is to increase the level of employability of unfavourablypositioned women and support their access to the labour market. The purpose of the project is tosupport the development of a more efficient labour market policy as a precondition for socialinclusion and access of unfavourably positioned women to the labour market.

The purpose of the call for proposals for grant schemes is the promotion of development andimplementation of more efficient active employment policy measures and specially designed workmethods for the groups of women unfavourably positioned in the labour market, respecting theprinciples of the gender aware policy.

The implementation of the service contract started in September 2010. The first project activity, i.e.AComprehensiveAnalysis of the Position of Women in the Labour Market, is in progress. Throughthis activity, a clear picture on the participation of women and their possibilities in the labour marketwill be obtained. Especially sensitive groups of women will be defined and analysed as well. Alabour market active policy adjusted to the needs of target groups will be based, among other, onthis analysis as well.

18 contracts were signed under the grant scheme.

The project consists of two components: a service contract and a supply contract. The total valueof the project is €3,730,000 (service contract: €2,430,000, supply contract: €1,300,000).

The main objective of the project is to support the development of the capacities of Croatian publicinstitutions and relevant non-government partners from the field of employment. The purpose ofthe project is:

1. To enhance the ICT system of the Croatian Employment Service based on the model ofintegration and exchange of data among the key labour market stakeholders for thepurpose of providing better services to clients.

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

The tender procedure for winning the service contract was cancelled in July 2010, while therepeated procedure is still in progress. The expected commencement of the implementation of theservice contract is June 2011. The tender procedure for the supply contract is in progress as well.

The EU Community Programme for Employment and Social Solidarity (PROGRESS) is designedfor the period 2007-2013 for the purpose of providing support to the realisation of EU goals in thefield of social inclusion and social protection, working conditions, gender equality and fight againstdiscrimination. The value of the programme is €743.25 million.

Women in the Labour Market

CES Services to Clients: Improving Lifelong Career Guidance and ICT Support

PROGRESS

48

Promoting Equality in the Croatian Labour Market

The Croatian Employment Service commenced on December 30, 2009 the implementation of a12-month project under the PROGRESS Programme. The CES is the holder of the project and thepartners include:

1. Office of Human Rights,

2. L&R Social Research,

3. Ivo Pilar Institute of Social Sciences,

4. Centre for Education, Counselling and Research, and

5. Selectio.

The main objective of the project is to contribute to the development and implementation of thenational policy aimed at curbing discrimination in the Croatian labour market based on gender,age, disability, religion or ethnicity.

The results of this project will contribute to the development of the national policy aimed at curbingdiscrimination in the Croatian labour market, as well as help all labour market stakeholders getsuccessfully involved in the measures aimed at curbing discrimination and promotion of diversityamong employers in Croatia.

The project target group were the labour market stakeholders at the national and regional levels,such as: unions, chambers, employers' associations, non-governmental organizations, counties,and cities.

The main project activities are defined on the basis of the following components:

The main goal of this component was to collect quantitative data, i.e. scientific (empirical)evidence, on the scope, nature and causes of discrimination in the field of employment in Croatia.The activity included 3 types of research: data analysis, a survey of unemployed persons, and asurvey of employers regarding the scope, nature and causes of discrimination. The results of theresearch were revealed in May at a round table organised in the Ivo Pilar Institute in the form of areport delivered to all the key stakeholders and published on the CES website.

Through this activity, the examples of good practice in the implementation of anti-discriminationmeasures in the labour market in the EU were identified, presented and discussed. The workinggroup developed a Collection of Good Practices aimed at curbing discrimination and promotingdiversity in the labour market. The Collection consists of examples of good practice that theworking group selected as the most appropriate to be applied in Croatia. Within the scope of thisactivity, the Guidelines for the Promotion of Diversity and Curbing Discrimination in the LabourMarket were developed as well. These guidelines will contribute to the raising of awareness aboutthe importance of curbing discrimination among all stakeholders in the process of designing labourmarket policies, strategies and activities. This document gives concrete recommendations forimprovement and more successful inclusion of anti-discrimination policy in the programming andimplementation of labour market policies, strategies and activities.

Within the scope of this component, the tools for the implementation of anti-discriminationmeasures and the diversity policy for employers were developed. The trainers received educationin how to apply the said tools. The trainers further educated the employers in the practicalapplication of the mentioned tools through 8 workshops conducted across Croatia. A Help Deskwas formed within the Croatian Employment Service providing help to employers in the

COMPONENT 1 – Identification of the most important features of discrimination based on

disability, gender, race, nationality, age, sexual orientation and religion in the Croatian labour

market

COMPONENT 2 – Providing support to labour market stakeholders to ensure a more successful

inclusion of anti-discrimination topics in the process of designing labour market policies and

activities

COMPONENT 3 – Promotion of diversity among employers in Croatia


49

Yearbook 2010

implementation of the principles of diversity and anti-discrimination measures. It will serve as amodel of permanent support to employers. The services provided by the Help Desk will beenhanced in accordance with the needs, concrete demands and problems of employers.

The project entitled Different Experiences – New Solutions was implemented from April 2010 untilMarch 2011.

Project partners include: Maribor Economic Institute as the main partner, AOF Nord fromDenmark, the European Development Agency from the Czech Republic and the CroatianEmployment Service.

The main project objectives include:

• Initiating a discussion on general guidelines and methods for a successful approach tosolving the current crisis in the labour market.

Raising awareness of the importance of attaining the objectives of the EuropeanEmployment Strategy and the Lisbon Strategy.

Exchange of experiences, practices and ideas concerning a successful and efficient policyon increasing the labour force supply in order to maintain the balance between active andnon-active population, and promotion flexicurity.

Inclusion of social partners and other important local stakeholders in the creation ofefficient structures for a successful implementation of active employment and socialpolicies.

The aim of the project is to initiate discussions, raise awareness, exchange good practices andnetwork through workshops at the national level, international forums, conferences and webforums. In the framework of the first project package called Networking of the Key Stakeholdersand Exchange of Good Practices, the CES formed a working group composed of the most relevantstakeholders in the field of employment and social policy. At a workshop conducted at the nationallevel, the working group discussed the situation in the labour market, the implementation of theemployment policy, and especially the active ageing policy and the concept of flexicurity. The mostcontemporary Report onActiveAgeing and Flexicurity Policy was created. In the framework of thiswork package, two transnational fora were held, one in Aalborg (Denmark) and one in Prague(Checz Republic), at which representatives of the relevant stakeholders from all countriesdiscussed the concept of flexicurity and active ageing, the so-called 'job-rotation' schemepresented in Aalborg, as well as the active labour market policy measures currently beingimplemented in partner countries, which could serve as the foundation for introducing the 'job-rotation' measure.

In February 2011, in the framework of the second work package, the final international conferencewas held in Slovenia (Maribor) the purpose of which was the exchange of solutions, initiatives andapproaches to employment with regards to the implementation of the flexicurity and active ageingpolicy. The promotion of the results, informing of the media and evaluation are being carried outcontinuously in the framework of the third and fourth work packages.

The Institute of Public Finance (Project Holder) and its partners (Croatian Employment Service,Croatian Trade Union Association, ZaMirNET Association, Forum for European JournalismStudents – Croatia, Most Association, SJAJ – Association for Social Affirmation of Persons withMental Disabilities, Croatian Women's Network, Association for Persons with Physical Disabilitiesand Trade Union Associations of Slovenia and Austria) commenced on January 1, 2009 a projectentitled Partnership for Social Inclusion which lasted until the end of 2010. The project resultshelped:

Different Experiences – New Solutions

Partnership for Social Inclusion

•

•

•

50

1. Improve coordination and cooperation among all stakeholders in the field of social welfare;

2. Improve employability as a precondition for improving social inclusion;

3. Improve provision of information concerning the rights and availability of rights in thesystem of social security and welfare;

4. Mitigate and prevent over-indebtedness of citizens and harmonise the supply and demandin the social welfare system through social planning at lower authority levels.

The implementation of the project activities resulted in a strengthened communication betweenthe representatives of different groups exposed to the risk of social exclusion, development ofinstitutional mechanisms for proposing and implementation of relevant documents, and greatersensitivity to the risk of social exclusion and poverty.

The preparation of project documents for the following 5 projects envisaged under the IPA 2010-2011 Programme is currently in progress:

1. New Approaches Applied by the CES in Delivering Services to Employers (ServiceContract).

2. Training for Employment of Workers Threatened with Unemployment and Long-termUnemployed Persons (Direct Grant).

3. Improvement ofAccess to the Labour Market for Threatened Groups (Grant Scheme).

4. Improvement of Access to the Labour Market for Highly Educated and Long-termUnemployed Persons (Grant Scheme).

5. Local Employment Initiatives (Grant Schemes).

Five forms for the identification of activities approved by the EU delegation were created. Theinstructions for applicants to the three grant schemes mentioned above, the application form forwinning a direct scholarship, and the job description for the service contract are currently beingprepared.

In cooperation with the consultants working on the PHARE 2006 project called Project Pipeline forIPA/EU Structural Funds, preliminary project documents for ESF projects have been prepared (3grant schemes and 1 direct grant).

In 2010, the staff of the Project Implementation Department worked on the preparation of the ESFHuman Resources Development Operational Programme.

Pursuant to the modified Human Resources Development Operational Programme, whichincludes the allocations under the IPA 2010-2011 Programme, a new Component 4 (HumanResources Development) Financing Agreement was signed at the end of 2010. The ratification ofthe Financing Agreement enables the Department for Financing and Contracting of EU Projects,which functions within the Croatian Employment Service as an implementation body of theoperational structure for the implementation of Component 4 of the IPA Programme, to contract,implement and finance activities from the field of employment, social inclusion and technicalsupport on the basis of the mentioned allocations. The Republic of Croatia will thus be allocatedadditional €37,294,129, which makes, together with the existing allocations granted under theOperational Programme 2007-2009, a total of €82.325.898. From the total amount allocated forthe Human Resources Management Operational Programme in the period 2007-2011, theimplementation body of the Croatian Employment Service will be in charge of operations in thevalue of €44,230,801 instead of the former €23,914,122.

IPA2010-2011

ESF

Financial Management of EU Projects


51

Yearbook 2010

In 2010, on the basis of the afore-mentioned available allocations, one procurement notice andtwo tenders for service contracts were published. The evaluation of the tenders receivedcommenced. The evaluation process regarding four tenders announced in 2009 is completed andthe following projects are now being implemented: Establishing Support for Social Inclusion andEmployment of Socially Threatened and Marginalised Groups, Promoting Greater Inclusion ofPersons with Disabilities in the Labour Market, Young Persons in the Labour Market and Women inthe Labour Market. The implementation of a service contract signed in 2009 under the projectcalled Local Partnership for Employment – Phase 3 continued. The tender procedure for winning aservice contract, for which the tender was published in 2009, was cancelled and two procurementnotices concerning 2 service contracts were cancelled.

In mid-2010 a tender for one supply contract was published. The contract was not signed becausethe tender procedure was stopped.

In order to inform the public on the situation in the sector, the tender conditions and the manner ofcompleting the application forms, additional informative workshops were held for the call forproposals for each grant scheme published in 2009 and 2010.At the beginning of 2010, a total of 9one-day and 7 two-day workshops were organised, out of which 4 with regards to the YoungPersons in the Labour Market tender, 3 with regards to the Promoting Greater Inclusion of Personswith Disabilities in the Labour Market tender and 9 for the Local Partnerships for Employment –Phase 3 tender.

At the end of 2010, 50 contracts on allocation of grant schemes were signed, i.e. 18 under theWomen in the Labour Market programme, 18 under the Establishing Support for Social Inclusionand Employment of Socially Threatened and Marginalised Groups programme and 14 under thePromoting Greater Inclusion of Persons with Disabilities in the Labour Market programme.

By the end of 2010, from the total amount of currently available funds allocated to theimplementation body of the CES, activities in the value of €11,828,289 or 49.46% had beencontracted, and 26.33% of the agreed funds disbursed to contractors in accordance withcontractual obligations.

After the system for curbing incidents of irregularities and frauds within the CES had beenestablished and the persons in charge of curbing incidents of irregularities and frauds in using EUfunds appointed, further development of the same was continued throughout 2010.

The persons in charge of curbing irregularities within the CES were educated on the basis of themethodology of the Ministry of Finance. Later, the educated persons organised 3 regulareducational seminars on the system for curbing incidents of irregularities and frauds foremployees of the CES involved in the EU-financed programmes.

In 2010, 4 quarterly reports on irregularities concerning the implementation of Component 1 of theIPA Programme were submitted to the Central Agency for Financing and Contracting, and 4quarterly reports were submitted to the Ministry of the Economy, Labour and Entrepreneurshipregarding the irregularities concerning the implementation of Component 4 of the IPAProgramme.

An analysis of the risk of appearance of incidents of irregularities and frauds, and the needsanalysis concerning the education of employees working on EU-financed projects within the CESwere carried out in accordance with the methodology determined by the Ministry of Finance,Independent Department for Curbing Incidents of Irregularities and Frauds.

System for Curbing Incidents of Irregularities and Frauds in Using EU

Funds

Organisational Structure and Operations of the CES

52


Main Responsibilities and Development Strategy of theCroatian Employment Service

The Croatian Employment Service (CES) is a public institution of special significance to the RepublicofCroatia, its citizens,businessentitiesand institutions.

The main responsibilities include:

Employmentmediation servicesprovided to job seekers in the countryand abroad;

Ensuring unemploymententitlements to unemployed persons;

Vocational counselling of unemployed and other persons in making career and occupationalchoices;

Organisation of vocational education,additional training and retraining programmes;

Promotion of employment and education through implementation of active employmentpolicymeasures;

Monitoring and analysisof labourmarket conditionsand informing the publicof the same.

The usersofour services include:

Employers– companies, craft businesses,entrepreneurs, cooperativesand other;

Unemployed persons – persons actively looking for employment who are available for work,who earn less than the highest amount of the unemployment benefit and unemploymentinsurance claimants;

Job seekers – persons registered with the CES who are looking for employment but are notclaiming unemployment insurance, including employed persons, studentsand other;

Pupils, students and other – the CES is open to all persons who need information concerningemploymentand labourmarket.

Here isan overview of the serviceswe offer to employers:

By providing insight into the most comprehensive database on unemployed persons and jobseekers, we conduct selection of candidates that, on the basis of their qualifications, fit theneedsofemployersbest;

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

We provide team (psychological, medical and pedagogical) assessment of the candidate'scharacteristics, taking into consideration the job and workplace specific requirements;

We conduct the selection procedure (pre-selection, final selection) and refer the agreednumberof candidates to employers forparticular jobs;

We offer financial assistance for reemployment or further education through our employmentincentive programme;

We provide legal assistance in the field of employment as well as professional andorganisational help in the processof restructuring and handling of surplusemployees;

On the basis of a contractual relationship, we offer the employers the mentioned and otherserviceswithout involving a lotofadministrative work.

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

Whoare the users ofour services?

Whatservices dowe offer toemployers?

53

Yearbook 2010

54

Whatdowe offer tounemployedpersons and job-seekers?

�

�

�

�

�

�

�

Information about job vacancies from various sources, along with information about thelabour market demand, economic trends in particular Croatian regions, successfulentrepreneurs,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 personalpotential, assistance in drawing up a career and employment plan, target job employmentmediation services, feedbackon activitiescarried outand the resultsachieved;

Group informing – provision of information about the situation in the labour market in theconcrete region (unemployment structure, occupations in short or excess supply) as well asabout the CES services that can assist in job search and the rights and obligations based onlawsand regulations,emphasising the importance ofpersonal engagement in job search;

Various workshops the goal of which is the acquisition of knowledge and skills ensuring assuccessful orientation in the labour market as possible, as well as occasions for exchangingexperiences in the search foremployment through informal activitiesand gatherings;

Financial and legal protection of unemployed persons pursuant to the valid laws andregulations (unemploymentbenefit and other typesofassistance);

Vocational guidance sessions – assistance in additional (self)-assessment of personalpossibilities and characteristics in choosing an adequate educational programme,determining the remaining working ability, and assessment of the working potential for aconcrete job position.

The CES performs its activities in accordance with the guidelines and goals prescribed under theStrategic Plan of the Croatian Employment Service for the period 2008 – 2011. The Plan defines thevision,mission and strategicgoalsof the CESas follows:

To be the main participant in the development of the Croatian labour market, especially in the processofmatching the overall demand with supply for the purpose ofachieving full employment.

To provide efficient employment mediation services in the labour market through the development ofhigh-quality services adjusted to the needs of clients, development of own knowledge, skills andabilitiesand promotion ofpartner relationshipswith other labourmarket stakeholders.

1. To develop the services of the Croatian Employment Service with the aim of increasing labourforce competitivenessand satisfying labourmarketdemand.

2. To develop human resources and the administrative capacity of the Croatian EmploymentService for creating and providing new services in the labourmarket.

3. To attain the leading position of the Croatian Employment Service in the labour market byestablishing partner relationships and strengthening the influence of the CES in the processofdrafting and implementation ofpublicpolicies.

The CES strives to continuously enhance its services and invests in the technological developmentand business process organisation and design. The CES pays attention to the quality of its servicesand strives to raise the standard of its client services. In order to monitor the realisation of the above-mentioned goals, indicators for monitoring the business processes related to employment mediation,vocational guidance and financial and legal protection have been defined.

Strategic DevelopmentPlanof the CES

VisionStatement

MissionStatement

Strategic Goals


55

The Croatian Employment Service is a public institution established pursuant to the Act onEmployment Mediation and Unemployment Rights .

The CES operates through the following organisational units:

• Central Office,

22 regional offices and

and 96 local offices;

thus making its services available across the Republic of Croatia.

The Central Office includes:

1. Director General's Office,

2. Employment Mediation and Preparation for Employment Sector,

3. Legal and General Affairs, Unemployment Insurance and Human ResourcesManagement Sector,

4. Economic, Financial andAccountingAffairs andAsset Management Sector,

5. Organisational Development and Project Implementation Sector,

6. PR and International Cooperation Department, Internal Audit Department, Department forFinancing and Contracting of EU Projects.

The sectors are divided in departments, and departments in divisions.

The regional offices of the CES are differently organised depending on the regions they cover andthe volume of business. The regional offices in Zagreb, Split, Osijek and Rijeka include thefollowing departments: Employment Mediation and Employment Preparation Department;Analysis and Statistics Department; IT Department; Legal, Personnel and General AffairsDepartment; Finance andAccounting Department; and Project Implementation Department.

Other regional offices also include the Employment Mediation and Employment PreparationDepartment; Analysis, Statistics and IT Department; Legal Affairs, Personnel and General AffairsDepartment; Finance andAccounting Department; and Project Implementation Department.

The departments of regional offices are further divided in divisions.

The CES is governed by the Managing Board composed of eleven members, i.e. representativesof state institutions, trade unions, employers, workers and associations of unemployed persons.These representatives are appointed by the Government of the Republic of Croatia. The CES isheaded by a Director General who has the authority to represent it and is responsible for thelegality of its operations. Director General is also appointed by the Government. The scope,authorities and responsibilities of the Managing Board, Director General and Assistant DirectorGeneral are defined under the CES Ordinance.

On December 31, 2010, the Croatian Employment Service employed a total of 1,257 workers: 682(54.3%) employees had university and postgraduate degree, 206 (16.4%) had non-universitydegree and 292 (23.2%) employees completed a 4-year secondary school. 24 employees (1.9%)completed a three-year vocational school and 53 employees (4.2%) had basic school educationonly. Employees with non-university and university and postgraduate degrees make the absolutemajority (54%).

7

•

•

Organisational Structure and Employees

7 Official Gazette No. 80/2008 and 94/09.

Yearbook 2010

56

Employees of the CES by Educational Level as of December 31, 2010

Employee Education

Under the Strategic Development Framework 2006 - 2013 adopted by the Government of theRepublic of Croatia at its session held on August 4, 2006 and the Strategic Plan of the CroatianEmployment Service 2008 - 2011 adopted in February 2008, the activities related to thedevelopment and education of employees of the CES are primarily associated with the realisationof Strategic Goal 2: To develop human resources and the administrative capacity of the CroatianEmployment Service for creating and providing new services in the labour market.

The implementation of the project called the Croatian Employment Service Labour MarketTraining Centre that commenced on October 11, 2010 contributes to the realisation of thementioned goal on a long-term basis. The purpose of the project is to support the establishment ofthe Croatian Employment Service Labour Market Training Centre for the purpose of providingeducation to employees of the CES and other key labour market stakeholders, i.e. ensure supportin the process of designing a system for employee education and development in the field of labourmarket, as well as active and passive employment policies. The Centre will ensure continuousimprovement of the knowledge and skills of employees of the CES and otherinstitutions/organisations – labour market stakeholders in accordance with their needs and theneeds of the users of the services provided by those institutions/organisations. The project strivesto improve the labour market incentive structures and flexibility through active participation of alllabour market stakeholders (representatives of state institutions, employers, trade unions and thecivil society) in the implementation of the project. Educational programmes will be designed andimplemented jointly, using the knowledge and best experiences from the practice of all projectparticipants. In this regard, the Department for Staff Development and Training of the CESparticipated together with the project team in numerous activities in order to determine the currentcondition of the CES educational system, as well as the potential for cooperation with other labourmarket related institutions.

1.94.2

16.4

23.2

54.3

0

10

20

30

40

50

60Perc

enta

ge

Universitylevel


4 (or more)-year

vocationalsecondary

schooland grammar

school

Post-secondary,

non-universitydegree

Basicschool


school


57

In 2010, the practice of conducting educational activities at three core levels was continued:education of unemployed persons as clients (vocational guidance and education of unemployedpersons), education of all labour market stakeholders (educational activities designed andimplemented under international projects of the Croatian Employment Service) and internaleducation (activities related to human resources development and education of employees of theCES). Within the scope of the employee development and education programme, the employeesof the CES participated had an opportunity to acquire or improve the specific knowledge and skillsby participating in professional conferences, seminars and workshops. Some of the mentionedactivities were organised within and some outside the Croatian Employment Service system(other labour market stakeholders, partner institutions and organisations from the country andabroad) or through outsourcing (contracts with third parties).

All regional offices and departments of the CES participated in the implementation of theeducational activities related to human resources development and strengthening of theinstitutional capacity of the CES through interactive team work (including in the first place thefollowing departments: Department for Staff Development and Training; Human ResourcesDevelopment, Personnel and General Affairs; Employment Mediation and Active EmploymentPolicy; Unemployment Insurance; and Project Implementation) and direct cooperation with keylabour market stakeholders.

3,589 employees from regional offices and the Central Office of the CES participated in a series ofeducational activities, including various types of training, seminars, workshops, professionalconferences and internal educational modules based on specific individual and group needs.

From those 3,589 participants in various educational activities, 37.5% participated in workshops,14.4% in internal educational activities (individual training, presentation activities, and similar),11% in seminars and lectures, 8% in conferences and congresses, and 3.9% in other trainingactivities.

The CES team of trainers conducted 102 educational activities (involving a total of 597 persons).From the total number of educational activities conducted, seven refer to standard types of training(training in acquiring counselling skills, training in acquiring marketing skills, training in acquiringskills for handling difficult situations, training for Info Desk clerks), involving 77 persons.

Internal education conducted within the CES primarily includes five-day standard types of trainingaimed at educating employees working in direct contact with the users of CES services (about 500counsellors from all regional and local offices of the CES). Through such trainings, continuousacquisition of counselling and marketing skills as well as skills for handling difficult situations isensured. Apart from the mentioned trainings, seminars aimed at improving the knowledge andskills required for implementing specific business processes and applications of the CES wereorganised as well.

Awhole series of one-day seminars aimed at improving the work activities associated with specificbusiness processes of the CES and personal development of employees working in variouspositions, including those who are not engaged in direct work with the users of services providedby the CES, were designed and conducted as well. Several new workshops were designed as aresponse to the novelties in the work methodology, and conducted in particular regional offices,e.g. online CES service called Labour Market Portal: Registration of Unemployed Persons, JobSeekers and Employers. In cooperation with the Unemployment Entitlements Department,several workshops for counsellors on the topic of unemployment entitlements andAmendments totheAct on Employment Mediation and Unemployment Rights were designed and conducted at theZagreb Regional Office.

In order to ensure adequate education to the employees of the CES, it is necessary to continuouslymonitor and analyse their needs. Therefore, an educational needs assessment questionnaire wasdesigned at the Rijeka Regional Office. 58 employees participated in the survey. On the basis ofthe analysis of the collected data, 7 new workshops were designed for the employees of thementioned office.

Yearbook 2010

58

Atesting of the knowledge of foreign languages was carried out at the level of the entire CES in order toassess the need for educational activities. The data were collected on the basis of self-assessment ofthe level of knowledge of foreign languages of all employees of the CES in accordance with theCommon European Framework of Reference for Languages.

Furthermore, the work on a comprehensive programme for introducing new employees to the workactivities of the CES was continued. In addition to a five-day educational programme referring to thegeneral part of the introduction to work activities intended for all new employees, including those withsecondary, non-university and university degrees, which was designed in 2009, the work on designinga special part of the introduction to work activities programme and the Regulations on Internship andthe Qualifying Exam Procedure, Method and Programme was continued in 2010. The idea is to checkthe knowledge and skills acquired by the new employees after internship by submitting them to thequalifying exam at the CES, depending on their educational background and the specificity of the workactivities they are to perform.


Sources of Financing

Structure of Expenditures

Pursuant to the provisions of the Act on Employment Mediation and Unemployment Rights, thesources of financing of employment-related activities include the employment contribution and othersources.

Pursuant to the Statutory Insurance Contributions Act, employment contribution is paid into the uniquestate treasury account.

Under the Budget Act, the Croatian Employment Service is a non-budgetary beneficiary financedthrough the budget and other sources.

Pursuant to the Order of the Ministry of Finance, by cancelling the transfer account of the CroatianEmployment Service in 2007, income from other sources is now paid into the state budget as well. Totalexpenditures of the CES for 2010 are thus also included in the state budget expenditures.

The total planned income of the CES for 2010 amounted to HRK 2,042,215,348, out of which HRK1,955,991,903 from the state budget and HRK 86,223,445 from pre-accession EU funds.

The total realised income amounted to HRK 1,925,334,859, i.e. 94.28% of the annual plan. Therealised income from the state budget amounted to HRK 1,899,234,680, i.e. 97.1% of the plannedfigure, while the realised income from international assistance amounted to HRK 25,684,682, i.e.29.79% compared to the planned figure. In addition, in 2010 the CES realised income from financial aidand donations in the total amount of HRK 392,698, and other income in the amount of HRK 22,799.

The funds for operating expenditures of the CES were disbursed in accordance with the State Budgetof the Republic of Croatia for 2010, the CES Income and Expenditure Plan for 2010, and the laws andregulations applicable to the operations of the CES.

In 2010, total expenditures amounted to HRK 1,922,278,404, i.e. 5.87% less than planned.

A total of HRK 1,505,388,828 (78.31% of total expenditures) was disbursed for unemploymentinsurance. The largest portion of the funds, i.e. HRK 1,486,124,319, refers to the payment of theunemployment benefit to unemployed persons, also including one-off payments of the unemploymentbenefit and the one-off bonus payment granted to unemployed persons who had spent 25, 30 or moreyears working for their last employer. HRK 14,133 was spent on pension insurance contributions forunemployed persons, whereas a total of HRK 19,250,376 was used to cover other expenses(unemployment insurance such as the financial assistance and reimbursement for education-relatedexpenses, reimbursement for travel and relocation expenses and other).

In 2010, the CES spent a total of HRK 200,404,808 (10.42% of total expenditures) on active labourmarket policy measures, out of which HRK 195,479,411 was spent on the measures covered by the2010 National Employment Incentive Plan, HRK 4,898,988 on the measures covered by the ActionPlan for the Decade of Roma Inclusion 2005-2015, and HRK 26,409 on the measures aimed atproviding assistance for retention of employment.

A total of HRK 1,784,592 (89.23% of the planned figure and 0.09% of total expenditures) was spent onactivities provided under the Preparation for Employment Programme (vocational guidance andrehabilitation, medical examinations and informing of unemployed persons for the purpose of findingemployment).

Employee-related expenditures amounted to HRK 137,152,055 (99.18% of the planned amount),accounting for 7.13% of total expenditures. Employee salaries and benefits are paid in accordance withthe CES Regulations on Employee Salaries, Collective Employment Agreement for Public ServiceEmployees and Officers, and other legislation regulating the payment of salaries in public services.

Material and financial expenditures of the CES accounted for a total of HRK 46,813,339 (98.48% of theplanned amount), i.e. 2.43% of total expenditures. A portion of material expenditures in the amount of

Sources of Financing and Structure of Expenditures

59

Yearbook 2010

60

HRK 297,837 was financed through financial aid and donations, and additional HRK 22,266 throughother income.

In 2010, a total of HRK 3,715,200, i.e. 0.19% of total expenditures, was spent on capital investments.These expenditures were covered partly through income from the State Budget of the Republic ofCroatia in the amount of HRK 3,701,637 (99.5% of the planned amount), and partly through financialaid and donations in the amount of HRK 13,563.

The expenditures related to the projects co-financed through pre-accession EU funds (CARDS,PHARE and IPAProgrammes) amounted to a total of HRK 27,019,582.

HRK 3,319,564 was spent on the implementation of projects under Component 1 of the IPAProgramme: Transition Assistance and Institution Building, of which HRK 1,977,906 was spent on theproject called Croatian Employment Service Labour Market Centre and HRK 1,341,658 on the projectcalled Preparation of the Croatian Employment Service for Joining the EURES Network.

HRK 473,379 was spent on the projects under the PROGRESS Programme (The CommunityProgramme for Employment and Social Solidarity), of which HRK 429,887 on the project calledPromoting Equality in the Croatian Labour Market and HRK 43,492 on the project called DifferentExperiences – New Solutions (DENS).

Atotal of HRK 345,794 was spent on the projects financed through the budget allocated for Component2 of the IPAProgramme: Cross-Border Cooperation and run by the regional offices of the CES.

The expenditures of the Croatian Employment Service for 2010 include the expenditures related to theimplementation of Component 4 of the IPA Programme: Human Resources Development in the totalrealised amount of HRK 22,880,845.

Surplus income recorded in 2010 was 3,056,455. Together with the surplus income from the yearbefore, the total surplus income amounted to HRK 3,489,567. It was allocated to 2011 and will be usedto finance the operations of the CES.

The Croatian Employment Service is an institution obligated to apply the Public Procurement Actpursuant to the Public Procurement Act (Official Gazette No. 110/07 and 125/08) and the Regulationson the List of Entities Obligated toApply the Public ProcurementAct (Official Gazette No. 83/09).

In accordance with the Public ProcurementAct and amendments to the saidAct effective as of January1, 2009, the Croatian Employment Service adopted at the beginning of the year the Procurement Planfor 2010. It was revised in the course of the year due to a re-allocation of budget funds. Theprocurement operations are planned for the purpose of ensuring coordinated implementation ofprocurement operations in regional offices and the Central Office, respecting the principles of publicprocurement and ensuring transparent participation and equal treatment of all economic entities in theprocess, while also encouraging market competition.

In accordance with the Procurement Plan, the CES executed in 2010 a total of 114 low-valueprocurement operations (up to HRK 300,000.00/500,000.00), and 20 high-value procurementoperations (over HRK 300,000.00/500,000.00). It also prepared 6 decisions on the commencement ofprocurement operations and agreements on procurement operations in the value of up to HRK70,000.00 which are not covered by the clause on mandatory application of the mentioned Act. As faras high-value procurement operations are concerned, the CES concluded 4 master agreements in2010.

The Public ProcurementAct stipulates that all procurement operations (low- and high- value operationsand concluded agreements) must be announced in the Electronic Public Procurement Bulletin. In2010, the CES published a total of 271 invitations to tender, notifications of commencement of a publicprocurement operation, notifications on concluded agreements, etc.

The CES keeps a record of its procurement operations and the signed procurement contracts. In 2010,it also prepared a statistical report concerning the signed procurement agreements for 2009 anddelivered it to the Public Procurement System Management by March 31, 2010.

Public Procurement


Appendix 5

Income Statement - January 1 – December 31, 2010 (HRK)

61

Yearbook 2010

No. Account Name of Account Planned RealisedIndex(5:4)

1 2 3 4 5 6

1. 664 Income from the State Budget 1,955,991,903 1,899,234,680 97.1

2. 631, 632Assistance from International

Organizations86,223,445 25,684,682 29.8

3. Other Income

3.1 652Income Claimed Pursuant to SpecialRegulations

22,799

3.2 633,663 Income from Financial Aid and Donations 392,698

0 415,497

2,042,215,348 1,925,334,859 94.3

1 3711 Unemployment Insurance

Unemployment Benefit 1,486,124,319

Pension Insurance Contribution forUnemployed Persons

14,133

Other Expenditures (Employment RelatedTransportation and Relocation Expenditures,etc.)

19,250,376

1,547,256,000 1,505,388,828 97.3

2 3721Vocational Guidance, Informing andRehabilitation

2,000,000 1,784,592 89.2

3 35,3722 National Employment Incentive Plan 195,579,806 195,479,411 99.9

4 3722 Action Plan for the Decade of Roma Inclusion 4,900,000 4,898,988 100.0

5 35 Subsidies for retention of employment 800,000 26,409 3.3

632, 36,38, 4

Component 4 of the IPA Programme: HumanResources Development

97,211,771 22,880,845 23.5

7 3237Croatian Employment Service Labour MarketTraining Centre

2,960,000 1,977,906 66.8

8 3237Preparation of the Croatian EmploymentService for Joining the EURES Network

1,361,600 1,341,658 98.5

9 32Projects under the IPA Programme: Cross-border Cooperation

600,000 345,794 57.6

10 32, 34 Projects under the PROGRESS Programme 473,379

11 31 Employee-related Expenditures 138,278,000 137,152,055 99.2

12 32, 34Material and Financial OperationalExpenditures

47,531,171 46,813,339 98.5

13 4Expenditures for Procurement of Non-financial Assets

3,737,000 3,715,200 99.4

2,042,215,348 1,922,278,404 94.1

Total Income 2,042,215,348 1,925,334,859 94.3

Total Expenditures 2,042,215,348 1,922,278,404 94.1

Income/Expenditures Balance 3,056,455

Surplus Income from Previous Period 433,112

Surplus Income 3,489,567

INCOME

EXPENDITURES

Total Income (1+2+3)

Total Expenditures

62

InternalAudit

Pursuant to legal regulations, internal audits are conducted within the CES for the purpose ofimproving its business operations.

The InternalAudit Department provides support to the budget user in the realisation of his goals bydrafting strategic and annual internal audit plans based on the objective risk assessment, byperforming separate internal audits in accordance with the adopted plans, assessment ofadequacy and efficiency of the financial management and control system, as well as by givingrecommendations related to the improvement of his business operations.

Seven audits were conducted in 2010, out of which 6 under theAnnual InternalAudit Plan and oneadditional, ad hoc audit.

An action plan was drafted on the basis of the fourteen accepted recommendations and steps tobe taken. Its implementation is monitored in accordance with the provisions of Article 29 of thePublic Internal Financial Control SystemAct.

On the basis of the recommendations specified in the relevant audit reports, the existing internalcontrol system, integrated into the processes, designed and implemented by the management inthe revised process, was improved.

Pursuant to the Public Internal Financial Control SystemAct, an annual report on audits conductedand the activities of the Internal Audit Department was drafted and delivered to the CentralHarmonisation Unit of the Ministry of Finance.

In order to be allowed to perform internal audit activities in the public sector, one must obtain acertificate of competence issued by the Minister of Finance pursuant to the programme andinstructions of the Ministry of Finance, the Central Harmonisation Unit. The auditors must also useall other available information and data for the purpose of enhancing their professional abilitiesand competencies.

The employees of the Internal Audit Department thus participated during 2010, for the purpose ofadvancing their knowledge, skills and competencies, in additional educational activities, optionalmodules, as well as annual and periodic seminars and workshops.

Cooperation between internal audit units and other state administrative bodies was maintainedthrough regular meetings and events organised by the Central Harmonisation Unit of the Ministryof Finance, as well as through mutual communication between internal auditors for the purpose ofexchange of professional experiences and discussing possible problems.

Internal Financial Control System


In 2010, the CES worked on the development and improvement of the ICT support to its businessprocesses related to working with unemployed persons. A new software support program wascreated to respond to the changes in the Act in the field of unemployment entitlements. A newsoftware support program was also designed for the purpose of monitoring the incentivemeasures related to employment and education in accordance with the Annual Programme of theGovernment of Croatia and in cooperation with the local community and other sources offinancing. The initiative for joining the PIN system was commenced and the application supportdesigned, so that in 2011 the agreements with the Ministry of Interior, Ministry of Justice andMinistry of Public Administration will be signed. The preliminary agreements have been sent forreview.

The employment mediation business process software support system now includes newapplication modules enabling a new approach to the categorisation of unemployed persons andjob seekers, as well as creation of a professional plan and monitoring of its implementation inaccordance with the commitments of the unemployed person/job seeker and the counsellor incharge. The full implementation of this module is expected in the first half of 2011.

The application module supporting the processes related to working with employers now includesnew features, such as vocational counselling and monitoring of redeployment programmes.

The module for the application of indicators for monitoring the activities within the scope ofbusiness processes related to preparation for employment, employment mediation andunemployment insurance was improved. On the basis of the advanced module, development ofprocedures for regular monitoring of data concerning the indicators, as the basis for creating newblocks in the data warehouse, was initiated as well. A data warehouse concerning unemploymentinsurance and employment incentive measures was created and activated.

With the aim of improving the informing services, new channels of communication with internaland external users were introduced (Intranet portal, SMS system for external users). Upgrades forboth services were developed during 2010 as well.

The ICT Consolidation Project (including the implementation of the following systems: a newtechnological production database system based on the virtual 64-bit technology; a new systemfor data warehousing, archiving and backup; a system for development and testing; a system foroperational monitoring and management of the client environment; and a spare system formaintaining the ICT system at minimum functionality level in a spare location) was completed inthe process of developing and upgrading the system/technology platform supporting the entireICT system.

Within the scope of the business information system, documents required pursuant to ICT safetypolicies were amended in accordance with the adopted safety policy.

Adocument called Operational Plan for ICT Support Development was drafted in 2010. It containsan analysis of the achieved ICT development level and the coverage of business processes of theCES with software support. On the basis of this document, the ICT Support Development Strategyfor a period of five years containing implementation priorities was prepared.

ICT Support to the Operations of the CES

63

Yearbook 2010

The Croatian Employment Service works continuously on the public perception of its services, bothin terms of the unemployed and in terms of the employers and the general public.

The transparency of CES operations and activities is ensured through published printed materials,participation in round tables, television appearances, media and public statements, as well asnotifications and news posted on the CES website.

Through the mentioned activities, the public was timely informed on the conditions and changes inthe labour market at both the regional and national levels, as well as on the novelties in the labourmarket and the CES.

Responding to the demands and needs of its users, the Croatian Employment Service designed andcreated a new CES Web Portal section related to the supply and demand of job vacancies called theJob Market ( ). The new section of the portal allows the job seekers to browse jobvacancies in a simpler, faster and better way, and the employers to browse the supply of availableworkers and CVs.

A system of internal instructions was set up as a unique place for transparent establishment of abusiness procedure applied to the entire system and a flow of information related to businessprocesses, providing the possibility to register, explain and define each change with the aim ofsimplifying the process of business process monitoring, conforming the activities of allorganisational units belonging to the system, and ensuring availability of information, facilitatedlearning and monitoring of business flows.

With the aim of improving internal communications and collecting all information required for theproper functioning and activities of the CES in one place, at the end of 2010 Intranet Website wasactivated. It enables better horizontal and vertical linking of divisions, departments, local andregional offices, easier flow of information, and posting of inquiries to and receiving answers fromauthorised departments.

International cooperation between the CES and its bilateral and multilateral partners was continuedin 2010 as well. Bilateral international cooperation involved a series of projects, seminars,workshops and study visits to employment services in Austria, Bosnia and Herzegovina, Finland,Kosovo and Germany.

Pursuant to an agreement made by and between the Ministry of the Economy, Labour andEntrepreneurship of the Republic of Croatia and the Federal Ministry of Economics and Labour ofthe Republic ofAustria on further labour market development, the CES successfully cooperated withthe L&R Institute for Social Research. In cooperation with the said institute and theBerufsförderungsinstitut Österreich, a training institution from Gradišće, it organised on May 26,2010 the 4 the Croatian Austrian Conference called Labour Market Development through Cross-Border Cooperation: Experiences and Examples. The conference was organised under the jointauspices of the Ministry of the Economy, Labour and Entrepreneurship of the Republic of Croatiaand the Federal Ministry of Labour, Social Affairs and Consumer Protection of the Republic ofAustria. The technical organisers of the conference were the Croatian Employment Service, theL&R Social Research from Vienna and the WIFI Croatia Institute. At the conference, successfulmodels of cross-border cooperation related to labour markets of EU member countries werepresented after the drafting of bilateral programmes of cooperation between Croatia as one of thebeneficiaries of the IPA Programme and its neighbouring countries was made possible underComponent 2 of the IPAProgramme, i.e. Cross-Border Cooperation.

Under the agreement on cooperation between the Croatian Employment Service and the Labourand Employment Agency of Bosnia and Herzegovina, the Agency organised a conference entitledPreparing and Designing Projects for Using the IPAFundsAllocated for Cross-Border Cooperation –Examples of Good Practice held in Sarajevo on September 22, 2010. The main conferenceobjective was the exchange of knowledge and experiences between participants with the emphasis

www.burzarada.hr

th

Publicity of the CES and International Cooperation

64


65

on preparing and designing projects for using the IPA funds allocated for cross-border cooperation.Apart from directors general of the Croatian Employment Service and the Labour and EmploymentAgency of Bosnia and Herzegovina, directors of regional employment offices from both countriesalso attended the conference. It produced conclusions supporting further cooperation between theCES and the Agency and the regional offices in the process of preparing and designing joint IPAProgrammes.

After a study visit to the Office of Employment and Economic Development of the Oulu Region in theRepublic of Finland, the CES was visited by Finnish experts. They were introduced to the operationsof the Central Office of the Croatian Employment Service, the employment mediation services andactive employment policy, the preparation for employment programme and the projects in which theCES participates. They were also made familiar with the operations of the Zagreb Regional Officewhere they had the opportunity to see how the CES operates in practice.

In March 2010, the CES was visited by the representatives of the Ministry of Labour and SocialPolicy of the Republic of Kosovo and the Kosovar Employment Promotion Agency. The purpose ofthe study visit was to introduce the delegation with the operations of the CES and exchangeexperiences and methodologies between the CES and the Kosovar Ministry of Labour and SocialPolicy and Employment Promotion Agency for the purpose of establishing and modernising theKosovar National Employment Promotion Agency. Apart from the Central Office, the Kosovardelegation also visited the Zagreb, Split and Dubrovnik Regional Offices.

The CES continued its cooperation with the Public Employment Service of the Federal Republic ofGermany on the basis of the previously signed agreement on cooperation. At the end of October2010, the CES was visited by the representatives of the Federal Labour Office, and the purpose ofthe meeting was an exchange of information between the representatives of the Federal Office andthe CES related to international and professional employment mediation. The representatives of theFederal Office also visited the Zagreb, Osijek, Slavonski Brod and Varaždin Regional Offices.

Multilateral international cooperation was continued through the membership in the WAPESManaging Board (World Association of Public Employment Services - WAPES). As one of the 16members of the WAPES Managing Board, the CES actively participated in the preparation of thework strategy and the implementation of the WAPES Annual Action Plan. It also participated indrafting and amending the WAPES Rulebook published in 2010. Direct cooperation with theWAPES Management (Pole Emploi, France) and Executive Secretariat (VDAB, Belgium) wascontinued as well. A WAPES Communication Team (the so-called 'Newsflash Team') was formedand the CES employees participated in its activities.

Under the Stability Pact and the regional cooperation process, the CES is one of the members of theCentre of Public Employment Services of Southeast European Countries (CPESSEC). Itparticipated in the activities of the said centre in accordance with the Operating Guidelines for theCentre of Public Employment Services of Southeast European Countries on the basis of whichCroatia, Bosnia and Herzegovina, Bulgaria, Macedonia, Montenegro, Romania, Serbia, Sloveniaand Turkey operate jointly in the regional labour market. The CES participated in the SixthManagerial Conference and Fifth Expert Conference of the CPESSEC organised by the BulgarianNational EmploymentAgency on May 27/28, 2010.

In October 2010, the CES was visited by UNDP representatives and a delegation from Macedoniafor the purpose of introducing the representatives of the Ministry of Labour and Social Policy of theRepublic of Macedonia with the operations and procedures of the CES, as well as the type of datathe CES publishes and delivers to the ministries in accordance with the Joint Memorandum onSocial Inclusion and the National Social Inclusion Implementation Plan.

The representatives of the CES attended a number of professional conferences and seminars in thecountry and abroad, responding to invitations from international bodies, organisations andassociations (governments of EU Member States, European Council, Union for the Mediterranean,ETF, ILO, IOM, UNECE, UNDP, CEI, WAPES, and similar) received through the Ministry of the theEconomy, Labour and Entrepreneurship, Ministry of Foreign Affairs and European Integration ordirect invitations to participate as moderators and presenters.

Yearbook 2010

66

Notes


Notes

67

Yearbook 2010

68

Notes


ISSN 1331-2618

PRELOM yearbook 2010 - Hrvatski zavod za zapošljavanje · Yearbook Croatian Employment Service...

Documents

Transcript of PRELOM yearbook 2010 - Hrvatski zavod za zapošljavanje · Yearbook Croatian Employment Service...