Directorate-General for Employment, Social Affairs and Inclusion Key findings of the Country Report for Slovenia 2018 – Labour Market and Social Policy Developments Ljubljana, 16 March 2018 Egbert HOLTHUIS, Directorate-General for Employment, Social Affairs and Inclusion

Labour market conditions improved for the third year in a row % - The economic recovery has been accompanied by job-creation - Employment continued to rise and unemployment further decreased - Wage growth remains moderate and in line with productivity - Situation of young people improved Challenges Activation of older workers remains at the bottom of EU Long term unemployment is still above pre-crisis levels There are signs of labour shortages in some vocational occupations Temporary employment remains an issue Data for 2017* is average of first 3 quarters Source: European Commission

Activity rates of older workers remain lowest in the EU % Although the employment rate of older workers is increasing (45.3% in 2017) it still lags significantly behind the EU average (60.4% in 2017). Challenges: A rapidly ageing society means the working age population and labour supply are shrinking This could hamper economic growth IMAD forecasts that in two years the working population could shrink by 8000 persons per year Old age dependency ratio is projected to double by 2060 Net migration after the economic crisis has been very low Data for 2017* is average of first 3 quarters Source: European Commission

There are signs of labour shortages Source: Manpower Talent Survey % The share of employers reporting skills shortages increased Some of the most wanted professions are: Drivers of heavy vehicles Workers in manufacturing Welders Masons Cooks Waiters Toolmakers Salesmen Challenges: Most workers are well matched with their current jobs but there are indications that the system is not fully able to provide in-demand skills Adjusting the education programmes and offering enrolment places could help reduce these gaps

Skills and Education % - Slovenian education system performs well in most areas and the country already surpassed the Europe 2020 targets in education - The participation rate of adults in learning is still slightly above the EU average but it's been falling since 2010 Challenges: Population ageing accentuates the need to increase participation in adult learning Adult learning is especially low among older workers and the low-skilled Source: European Commission

Active Labour Market Policies (ALMP) According to a study prepared by University of Primorska, Slovenian ALMP’s are performing well if judged by labour market impact and cost-effectiveness Three out of four examined programmes had positive short and longer-term effects. In 2017 Slovenia prepared two new ALMP measures aimed directly at older workers (Active until retirement and Support for companies for active ageing of the workforce) Challenges: The participation rate of unemployed in ALMP’s is among the lowest in the EU Long-term unemployment remains high Spending on ALMP programmes is low Older and low-skilled workers remain under-represented in ALMP and could benefit from implementation of the Upskilling Pathways Recommendation.  

Social conditions have improved further, but old-age poverty is frequent % The number of people at risk of poverty and social exclusion declined further in 2016, but it is still above the 2008 level. Challenges: The elderly have the highest risk of poverty or social exclusion, particularly women over 65 Also due to the low employment and activity rate of older workers Pensions are the principal source of income for elderly and are frequently below the poverty line Due to the economic crisis many workers are facing shorter careers and longer career breaks and could face pension adequacy problems in the future Delaying pension reform is a concern Source: European Commission

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