Employment Agency of Montenegro Unemployment in Montenegro Thessaloniki, May 2005 Branka Racković.

Employment Agency of Employment Agency of MontenegroMontenegro

Unemployment in Unemployment in MontenegroMontenegro

ThessalonikiThessaloniki, May 2005, May 2005

Branka RackoviBranka Rackovićć

Employment Agency of MontenegroEmployment Agency of Montenegro

YEARYEAR TOTALTOTAL WOMENWOMEN 19851985 40,00140,001 23,44623,446 19901990 53,74453,744 30,56630,566 19951995 56,61456,614 33,59333,593 20002000 81,06981,069 48,30448,304 20012001 79,96079,960 48,27748,277 20022002 76,29376,293 46,20846,208 20032003 68,62568,625 39,26439,264 20042004 59,00259,002 30,98030,980 May 2005May 2005 57,15557,155

28,28128,281

Unemployment in recent 20 yearsUnemployment in recent 20 years


Unemployment on May 23rd 2005Unemployment on May 23rd 2005

MontenegroWomen


Unemployment Unemployment trends in trends in municipalitiesmunicipalities

Number of

unemployed Index Nominal difference

MunicipalityMunicipality


Unemployment according to level of Unemployment according to level of qualification/educationqualification/education

Level of education/qualification

Unemployment in 2000 No. of unemp.

No. of unemp.

Unemployment in 2004 Differ.


Up to 1 year – 35.3%Up to 1 year – 35.3% over 1 year: 64.6% over 1 year: 64.6% 1 to 3 years – 18%, 1 to 3 years – 18%, 3 to 5 years – 12.3%3 to 5 years – 12.3% 5 to 8 years - 12.4%5 to 8 years - 12.4% over 8 years – 22% over 8 years – 22% Average time of job seeking is about 4 yearsAverage time of job seeking is about 4 years First time job seekers: 58.5% First time job seekers: 58.5% Average age: 32 yearsAverage age: 32 years

Unemployment according to job seeking time Unemployment according to job seeking time


Unemployment according to ageUnemployment according to age

IndexUnempl. in 2000 No. of unemp.

No. of unemp.

Unempl. in 2004

Differ.Age


General characteristics of Montenegrin labour General characteristics of Montenegrin labour marketmarket

(December 31(December 31stst 2004) 2004) 59,002 unemployed persons Unemployment rate: 22.6% 14% less then in December 2003 Participation of women: 52.7%

Structure of unemployed persons: Without qualification (I and II): 32% Qualified workers (III and IV): 61.8% VI and VII level: 6.2%

Supply of workforce 2 times bigger than demand Surplus workers: 13.57% Disabled persons: 4.6%


2000 – 32.7%2000 – 32.7% 2001 – 31.5%2001 – 31.5% 2002 – 30.45%2002 – 30.45% 2003 - 25.82%2003 - 25.82% 2004 – 22.6 %2004 – 22.6 % May 2005 – 21.8%May 2005 – 21.8%

Unemployment rateUnemployment rate

Feasibility Study for Serbia and Feasibility Study for Serbia and MontenegroMontenegro“… “… At the moment Montenegro is renewing labour legislative At the moment Montenegro is renewing labour legislative

in order to improve flexibility of the labour market. in order to improve flexibility of the labour market. Montenegro, as well, stimulates Montenegro, as well, stimulates with great success with great success opening opening of new job positions through reduction of taxes and of new job positions through reduction of taxes and contributions for employers, and in first 6 months in 2004 contributions for employers, and in first 6 months in 2004 unemployment was reduced for about 10%. …”unemployment was reduced for about 10%. …”


Participation of young persons up to 25 years Participation of young persons up to 25 years in total unemployment: 13,348 or 22.64% in total unemployment: 13,348 or 22.64% (March 2005)(March 2005)

QualificationQualification Up to 25 Up to 25 %%

II 2,929 2,929 4.974.97 IIII 330 330 0.560.56 IIIIII 5,1575,157 8.758.75 IVIV 4,5384,538 7.707.70 VV 10 10 0.020.02 VI1 272VI1 272 0.460.46 VI2 2VI2 2 0.0030.003 VII1 110VII1 110 0.190.19 VII2 -VII2 - / / VIII -VIII - / / TOTAL 13,348TOTAL 13,348 22.64 22.64

Young persons without education/qualificationsYoung persons without education/qualifications

In total employment participate with In total employment participate with 5.32%5.32%- with completed primary school: 2.777 or 4.71% - with completed primary school: 2.777 or 4.71% - without any grade completed: 87 or 0.015%- without any grade completed: 87 or 0.015%- completed 4 grades: 132 or 0.22%- completed 4 grades: 132 or 0.22%- completed 5-7 grades: 143 or 0.24%- completed 5-7 grades: 143 or 0.24%


Discord between supply of and demand for Discord between supply of and demand for workforceworkforceData basis according to:Data basis according to:

survey among employers; survey among employers; published job vacancies; published job vacancies;

structure of hired non-resident personsstructure of hired non-resident persons

Relation between supply and demand on EAM Relation between supply and demand on EAM recordsrecords

On EAM records exist 922 types of occupationsOn EAM records exist 922 types of occupations expressed demand for 750 occupations, from which:expressed demand for 750 occupations, from which: for 487 offered occupations demand exists,for 487 offered occupations demand exists, for 263 occupations expressed demand – no persons with such qualifications for 263 occupations expressed demand – no persons with such qualifications

(mostly III and IV level: 167 occupations; VII-1 and VII-1 level: 86 occupations ),(mostly III and IV level: 167 occupations; VII-1 and VII-1 level: 86 occupations ), for 435 existing occupations demand is not expressed for 435 existing occupations demand is not expressed


Relation between supply and demandRelation between supply and demand

The biggest surplus within III and IV level of The biggest surplus within III and IV level of qualificationqualification - - 1 1 demanddemand: 4,02 persons: 4,02 persons and and

among persons with I levelamong persons with I level - - 1 1 demanddemand: 3,66 : 3,66 persons. persons.

The biggest deficit of supply is within VII-1 level The biggest deficit of supply is within VII-1 level demand bigger than offerdemand bigger than offer - - 1 demand: offer of 1 demand: offer of 0.62 persons. 0.62 persons.

The less deficit is within VII-2 level: 0,13. The less deficit is within VII-2 level: 0,13.


Programs of the active employment Programs of the active employment

policypolicy Training Programs (professional training, pre-Training Programs (professional training, pre-

qualification, specialisation, courses)qualification, specialisation, courses) 1999 – 2004:1999 – 2004: realised 360 programs (114 for particular realised 360 programs (114 for particular

employer + 246 for labour market),employer + 246 for labour market), Included: 9,919 unemployed or employed persons (2,100 Included: 9,919 unemployed or employed persons (2,100

for particular employer - techno-economic surplus: 1,175 for particular employer - techno-economic surplus: 1,175 and 8,431 for the labour market),and 8,431 for the labour market),

2004:2004: 2,053 persons or 3.48% of total number of 2,053 persons or 3.48% of total number of unemployed unemployed

May 2005:May 2005: in course training programs for 1,164 persons in course training programs for 1,164 persons Two pilot-projects: “Training for Occupations in Catering Two pilot-projects: “Training for Occupations in Catering

and Tourism” and “Training of Craftsmen” and Tourism” and “Training of Craftsmen” Program of seasonal employment (Program of seasonal employment (2004 employed 2004 employed

4,507 persons) 4,507 persons) Employment program for trainees Employment program for trainees (IV, VI and VII level)(IV, VI and VII level) – –

on annual level includes about 1,000 persons/mostly aimed on annual level includes about 1,000 persons/mostly aimed for young persons for young persons


Program for self-employmentProgram for self-employment

In 2004 realised 63 public works In 2004 realised 63 public works Hired 879 unemployed persons (hard-to employ persons) Hired 879 unemployed persons (hard-to employ persons) Partners: local communities, institutions of culture, NGOs, Partners: local communities, institutions of culture, NGOs,

medical institutions, …medical institutions, …

Montenegrin Government Montenegrin Government realisesrealises Program through EAM from 1991, and continuously from 1999 Program through EAM from 1991, and continuously from 1999 Program goal: development of entrepreneurship and opening new job positionProgram goal: development of entrepreneurship and opening new job positionss From 1999 approved From 1999 approved 5,4715,471 programs in total value of programs in total value of 26,836,25426,836,254 € for opening of € for opening of 9,0009,000 new new

job positions job positions Most programs in agriculture, trade, crafts and personal services, production, …Most programs in agriculture, trade, crafts and personal services, production, …

Program of public works Program of public works


BEGINNING OF 2003 BEGINNING OF 2003 ““Regulation on Tax Exceptions for Newly Employed persons” &Regulation on Tax Exceptions for Newly Employed persons” & ““Regulation on Work of Non-resident Persons”Regulation on Work of Non-resident Persons” – enabled employment for 62,071 persons from which over – enabled employment for 62,071 persons from which over

25,000 on permanent basis25,000 on permanent basis

Realisation of 14 credit lines Realisation of 14 credit lines • approved 652 creditsapproved 652 credits• opened 1,424 job positionsopened 1,424 job positions• invested 9,629,044 €invested 9,629,044 €

AIMS:AIMS: LegalisationLegalisation of work within “grey economy”, of work within “grey economy”, DevelopmentDevelopment of economy and society through opening new job of economy and society through opening new job

positions (crediting self-employment and new employment).positions (crediting self-employment and new employment).

Government Program »Legalisation of Existing Government Program »Legalisation of Existing and Opening New Job Positions«and Opening New Job Positions«


MIGRATIONS of populationMIGRATIONS of population

Population in Montenegro:Population in Montenegro:

Census 2003Census 2003 Census 1991 Census 1991 AbsoluteAbsolute IndexIndex

MontenegroMontenegro 617,740617,740 591,269 591,269 591,269591,269 26,47126,471104.5104.5

Montenegrin population abroad:Montenegrin population abroad:

Census 2003Census 2003 Census 1991 Census 1991 AbsoluteAbsolute IndexIndex

MontenegroMontenegro 54,81654,816 23,766 23,766 31,050 31,050230.6230.6


Municipalities in which was recorded reduction of Municipalities in which was recorded reduction of

inhabitantsinhabitants Municipality

Census CensusAbsolute

Index


Growth of populationGrowth of population

Reduction of inhabitantsReduction of inhabitants


Mygrations of labour force in MontenegroMygrations of labour force in Montenegro low (small salaries, accomodation)low (small salaries, accomodation) from north to central and south partsfrom north to central and south parts seasonal character seasonal character to other countriesto other countries education, economic reasons education, economic reasons

HIRING NON-RESIDENT PERSONSHIRING NON-RESIDENT PERSONSSeasonal jobs Seasonal jobs tourism & catering (46.55%)tourism & catering (46.55%) agriculture (20.8%)agriculture (20.8%) civil engineering (14.3%)civil engineering (14.3%) trade (9.4%), ...trade (9.4%), ...

Countries of originCountries of origin Serbia (56%)Serbia (56%) Bosnia and Herzegovina (27%)Bosnia and Herzegovina (27%) Kosovo (11%)Kosovo (11%) Macedonia (3%)Macedonia (3%) Other – 3%Other – 3%


Hired non-resident persons in 2003 and 2004Hired non-resident persons in 2003 and 2004 Municipality

Number of persons with work permits

2003

Number of days 2003

Number of persons with work permits

2004

Number of days 2004


Financing and financial resourcesFinancing and financial resources According to the Law on Employment, measures of active employment According to the Law on Employment, measures of active employment

policy are financed from:policy are financed from: contribution for employment (1% calculated on gross salary)contribution for employment (1% calculated on gross salary) sold shares in privatised enterprises (approximately 6%) sold shares in privatised enterprises (approximately 6%) funds from the Republican Budget for trainees with university funds from the Republican Budget for trainees with university

education education

Additional source: Additional source: Tax for work of non-resident persons Tax for work of non-resident persons

Basic purpose:Basic purpose: Investment in training programs for deficit Investment in training programs for deficit occupations occupations

REMARK: REMARK: Budget is insufficientBudget is insufficient Low salaries – low contributionLow salaries – low contribution Privatisation/selling of shares in next years will be reduced – low Privatisation/selling of shares in next years will be reduced – low

income from this sourceincome from this source


Plans for 2005 Plans for 2005 Realisation of Realisation of Employment Employment Activity Plan Activity Plan for 2005 and development of Plan for 2006for 2005 and development of Plan for 2006 Foundation of Centre for Information and Professional AdvisingFoundation of Centre for Information and Professional Advising Participation in development of the Certificate Law and Law on National Qualifications (CARDS II)Participation in development of the Certificate Law and Law on National Qualifications (CARDS II)

and other laws and bylawsand other laws and bylaws Participation in development of particular training programs for: unemployed, illiterate persons, Participation in development of particular training programs for: unemployed, illiterate persons,

Roma population, persons with special needs (talents and disabled persons), ...Roma population, persons with special needs (talents and disabled persons), ...

Problems: Problems: Expected great number of techno-economic surplus workers, mostly olderExpected great number of techno-economic surplus workers, mostly older persons persons,, Professional treatment of persons with special needs, marginal groupsProfessional treatment of persons with special needs, marginal groups,, Funds, …Funds, …


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Employment Agency of Montenegro Unemployment in Montenegro Thessaloniki, May 2005 Branka Racković.

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