Daniel Markovič
Madrid 12/11/2016
Labour market in Slovakia
in the aftermath of the economic crisis
Madrid 12/11/2016
Today´s presentation
Situation in Slovakia after crisis
Changes in empolymentpolicy
Selectedmeasures
Madrid 12/11/2016
Facts about Slovakia
Madrid 12/11/2016
Meet Slovakia
Madrid 12/11/2016
State of Slovakia
• country bordering with Ukraine• 1% of EU population• 0.5% of EU GDP• automotive industry 1/6 of industry• 240 000 in Roma settlements– plus 160 000 other Roma
Madrid 12/11/2016
Labor market situation
• relatively high employment:– 66% SK vs. 69% EU vs. 72% target• moderately low unemployment– 10% SK vs. 10% EU • extremely high long-term unemployment– 9.3% SK vs. 5% EU– only in Greece, Spain, Croatia is higher• The unemployment rate for women is higher in
comparison to men in Slovakia (11.9% vs. 8.9% in 2015).
Madrid 12/11/2016
Development of employment and unemployment in Slovakia
Madrid 12/11/2016
Problems of Slovak LabourMarket
• Structural unemployment (industrial structureinherited from the pre-1989 command economy)
• inflexible educational system• exclusion of the low-skilled, poorly educated
Roma population• the combination of high social contributions,
which weaken labour demand, with tax-benefit system
Madrid 12/11/2016
Long term unemployment
Madrid 12/11/2016
Long term unemploymentstructure
• low education• social trap• regional concentration – 3 regions– 3.5% of SK population– 10% of SK long-term unemployed• low long-term unemployment →employment transition (less than 1%)• long term unemployed are not labour market
supply
Madrid 12/11/2016
Young people neither in employment, nor in education or training
Madrid 12/11/2016
Development of employment and poverty
• Slovakia has experienced a remarkable increase in the employment rate (from 54% in 2009 to 62.7% in 2015), accompanied by a moderate decrease in the unemploymentrate (from 14.5% in 2010 to 10 % in 2016).
• Long-term unemployment is a key challenge for the Slovak labour market, with most of the unemployed being long-term(65.8%).
Madrid 12/11/2016
Percentage of people at risk of poverty in Slovakia
Madrid 12/11/2016
Changes in Slovakia 1
• Slovakia has implemented several reforms and changes to its social and employment policies in the period 2014-2016.
• The statutory minimum wage has continuously beenincreased every year to a gross of 405 EUR per month in 2016.
• In 2015, in an effort to facilitate employment of the low-skilled, health insurance contributions were reduced for employees with low wages, which increased their net wages and decreased labour costs for their employers.
• Since July 2015 Slovakia has guaranteed minimum pension for retirees with low lifetime earnings, but who have reached a certain minimum employment history threshold.
Madrid 12/11/2016
Changes in Slovakia 2
• Since 2014, assistance to materially deprived people has been conditioned by their active participation in public “activation works”.
• work performed outside a regularemployment relationship
Madrid 12/11/2016
Roma community
• Educational inequality and widespread discrimination are the key factors behind the severe labour market segregation of the Roma population in Slovakia, whichcontributes to their social exclusion.Roma population.
• The Roma population in Slovakia is one of the most disadvantaged groups
Madrid 12/11/2016
Employment and unemployment gaps between Roma and Non-Roma
population in Slovakia
Madrid 12/11/2016
Wages in Slovakia, EUR
Madrid 12/11/2016
Living Wage in Slovakia (2016)
Madrid 12/11/2016
Graduate practise
since November 2015 covers the social contribution costs of all individuals staying in their job after completing the Graduate practice
Madrid 12/11/2016
Youth Guarantee umbrella:Right for the first job
• Supporting the creation of part-time jobs for unemployed young people under 29.
• Up to 95% of the labour costs of a part-time worker can be reimbursed together with a part of the labour costs of a mentor and further mentoring costs.
Madrid 12/11/2016
Dual education makes a comeback
• Slovakia is gradually returning to a so-called dual education scheme.
• While several companies across the country have launched programmes to train workers lacking in the market, the Education Ministry took steps to launch the nation-wide project at vocational schools as soon as September 2015.
Madrid 12/11/2016
RE-PAS
• jobseeker chooses accredited training course and the provider
• Labour Office pays her/him 100% ofcourse fee
Madrid 12/11/2016
Activation works