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

2. 2 The enterprises’ view: BEEPS 2013 8 July, 2014

3. BEEPS 2013 in Slovenia 8 July, 20143 Fieldwork: February-September 2013 270 completed interviews, across manufacturing, retail and other services, establishments with at least 5 employees

4. 4 Main business obstacles in Slovenia 2013 Political instability Labour regulations Access to finance 2008-2009 Access to finance Informal sector Labour regulations 8 July, 2014

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

6. 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. 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. 8 The people’s view: LITS 2010 8 July, 2014

9. Connections viewed as very important or essential to get a good job in the government sector… 8 July, 20149 > 60%

10. … somewhat less so in the private sector 8 July, 201410 Almost 50%

11. People are more willing to move abroad for employment reasons 8 July, 201411

12. Labour market in Slovenia: Challenges 8 July, 201412 Activity rate decrease trend continued in Q1 2014 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

13. EPL reforms 2008-2013 8 July, 201413 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

14. Labour market reform is necessary, but not sufficient on its own 8 July, 201414 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