CES SERVICES IN LIGHT OF ECONOMIC DOWNTURN IN THE REPUBLIC OF CROATIA

UN recognition: Total area km 2 -land km 2 -sea km 2 Population: Active labour force: 1.7 mil Employed: 1.6 mil The Republic of Croatia

CES History… 102 years of the existence of the employment service in Croatia - the first office for mediation between employers and job seekers was established in 1906 in Zagreb (the Work and Employment Mediating Office) 78 years of vocational guidance services at the employment service in Croatia - the first Vocational Counselling Centre was established at the Employment Exchange Office in 1931

Croatian Employment Service Today…  Central Office  22 Regional Offices  95 Local Offices  1,252 staff members

The Centre of Public Employment Services of Southeast European Countries

Unemployment in the Republic of Croatia from 1952 to 2008

Unemployment Rates from 1990 to 2008 Administrative Sources

Employment and Unemployment Rates, 1996 – 2008 Labour Force Survey

Situation in the Labour Market Today – Regional Differences.

Macroeconomic Indicators of the Situation in the Republic of Croatia in 2008  GDP per capita – EUR 10,682  GDP growth rate %  Industrial production growth rate – 1.6 %  Construction industry growth rate – 11.8 %  Tourism growth rate – 2.0 %  Foreign trade exchange - export growth rate – 4.7 % - import growth rate – 8.8 %  Annual inflation rate %

Labour Market Indicators in the Republic of Croatia (ø 2008)  Population (Census 2001): 4,437,460  Active population: 1,798,000 Activity rate: 63.7 %  Employed persons: 1,625,000 Employment rate: 57.4 %  Unemployed persons: 174,000 Unemployment rate: 9.9 %

Current Situation… Labour market: Employers are experiencing business difficulties and therefore are often forced to dismiss their workers. Employers are experiencing business difficulties and therefore are often forced to dismiss their workers. Employers need different, adjusted activities which are to be designed by the Croatian Employment Service. Employers need different, adjusted activities which are to be designed by the Croatian Employment Service. There is a growing demand for activities towards workers who are still under a work contract, but facing a dismissal. There is a growing demand for activities towards workers who are still under a work contract, but facing a dismissal. Croatian Employment Service increased inflow of new entrants into unemployment; increased inflow of new entrants into unemployment; growing need to work with employers; growing need to work with employers; growing need to work with long-term unemployed persons and specific target groups who are threatened by social exclusion. growing need to work with long-term unemployed persons and specific target groups who are threatened by social exclusion.

Labour Market Challenges Today…  to follow-up on employment trends, so that suitable measures can be undertaken on time, to proceed with the implementation of guidelines for growth and employment;  to apply flexibility principles while adjusting to new circumstances as well as to support the business security;  to help unemployed persons find a new employment, enter the education system in order to acquire knowledge and skills; help employed persons to retain their jobs;  to focus on stimulating employment and supporting activities, the aim of which is to shorten the unemployment period, whereby applying the flexsecurity principles;  to strengthen the access to education and training programmes as well as to active labour market policy measures;  to provide constant assistance with respect to occupation choice which should be in line with labour market needs and capabilities of individuals.

What is Expected from the CES…  a significant role in overcoming the crisis, identification of labour market changes as well as its needs and response to economic challenges;  interventions before the crisis hits the company (early intervention through mobile centres);  ability to adjust to quick changes and vulnerability of the labour market, with an increased inflow of job seekers and their needs (individualized counselling and assistance with job search, training programmes, co-financed employment, supporting of self-employment);  ensuring better and faster services towards employers, but also towards employed persons in order for them to retain their jobs;  key role in overcoming structural and long-term unemployment.

Measures and Services  Measures towards employers Mobile Centres/mobile teams Mobile Centres/mobile teams Business counselling/key account Business counselling/key account  Measures towards unemployed persons Services for employable persons Services for employable persons Services for hard-to-place persons Services for hard-to-place persons  Measures towards employed persons who are threatened by unemployment

Measures towards employers  Mobile Centres/Mobile Teams  Business counselling Specialized counsellors Key account counsellors  Active Labour Market Measures Supported employment Supported training

Measures towards Unemployed Persons Services towards Employable Persons  Increased job-matching services  Employment counselling  Information on vacancies Information via SMS Information via SMS Information via s Information via s Call Centre (in preparation) Call Centre (in preparation) Career Development Centres Career Development Centres  Job mediation services

Measures towards Unemployed Persons Services towards Hard-to-place Persons  Increased job-matching services  Employment counselling  Vocational guidance  Team treatment with the aim of identification of ”new occupation”  Training for acquiring job search skills  Training for acquiring professional skills  Co-financed employment  Public work programmes

Measures towards Employed Persons who are threatened by Unemployment  Co-financing of training, the aim of which is job retention  Co-financing of employment with another employer  Mobile Centres in companies - counselling services for workers in order to determine working potential of person - job mediation services - education for the labour market (active job search, business plan, vocational training) - education for self-employment and business start up - internal labour exchange

Modes of Measure Implementation  Local partnerships for employment with other labour market stakeholders in order to increase investments in training of unemployed  Partnership with social partners unions and employers to find suitable arrangements for work-sharing  Financing of projects from international resources  Cooperation in the field of implementation of public policies and national programmes

Cooperation in the field of Implementation of Public Policies and National Programmes  JAP – Joint Assessment Paper on Employment Policies  NPPZ – National Employment Implementation Plan  JIM – Joint Inclusion Memorandum  National Programme for Roma  National Action Programme for the Youth  National Strategy of Equalization of Possibilities for Persons with Disabilities  National Plan for Fight against Discrimination  National Gender Equality Policy  The Croatian Government programme ″Social Reintegration of Drug Addicts”  National Strategy for Creation of Stimulating Environment for the Development of Civil Society  Ect..