Enterprises’ and people’s perception of the Slovenian labour market Structural Challenges of the Slovenian Economy, Ljubljana, 8 July 2014 Helena Schweiger

2 The enterprises’ view: BEEPS July, 2014

BEEPS 2013 in Slovenia 8 July, Fieldwork: February-September completed interviews, across manufacturing, retail and other services, establishments with at least 5 employees

4 Main business obstacles in Slovenia 2013 Political instability Labour regulations Access to finance Access to finance Informal sector Labour regulations 8 July, 2014

Labour regulations are a more serious obstacle in Slovenia than in any other EU member country 8 July, 20145

6 Labour regulations are slightly more binding for old than for young enterprises Young enterprisesOld enterprises Political instability Access to financeLabour regulations Access to finance 8 July, 2014

7 Labour regulations become more binding as the business grows Small enterprisesMedium enterprisesLarge enterprises Political instability Access to financeLabour regulations Tax administration 8 July, 2014

8 The people’s view: LITS July, 2014

Connections viewed as very important or essential to get a good job in the government sector… 8 July, > 60%

… somewhat less so in the private sector 8 July, Almost 50%

People are more willing to move abroad for employment reasons 8 July,

Labour market in Slovenia: Challenges 8 July, Activity rate decrease trend continued in Q Labour productivity below the EU average Labour market segmentation Distortive use of student work High minimum wage can be a barrier to employment of youth and low-skilled workers Ineffectiveness of labour market policy and wage setting

EPL reforms July, Step in the right direction ―Stringent hiring and firing regulations tend to reduce the pace of job creation (and destruction) (Haltiwanger et al., 2014) Regular contracts: individual dismissals Temporary contracts

Labour market reform is necessary, but not sufficient on its own 8 July, Reforms in other areas also needed to help reduce labour market challenges: ‒ Mismatch between students’ field preferences and labour market needs ‒ Better business environment ‒ Better corporate governance and greater transparency ‒ Improvement of the efficiency of public administration