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Page 1: Yearbook - HZZ · industry in 2008. There were only 1.0 per cent more arrivals and 2.0 per cent more overnights compared to the year before.The share of foreign tourists in the total

Yearbook

Croatian Employment Service

2 080

Page 2: Yearbook - HZZ · industry in 2008. There were only 1.0 per cent more arrivals and 2.0 per cent more overnights compared to the year before.The share of foreign tourists in the total

Cro

ati

an

Em

plo

ym

en

t S

erv

ice

Yearbook

ISSN 1331-2618

Zagreb, April 2009

2008

Page 3: Yearbook - HZZ · industry in 2008. There were only 1.0 per cent more arrivals and 2.0 per cent more overnights compared to the year before.The share of foreign tourists in the total

Imprint

Publisher:

On Behalf of Publisher:

Editor:

Text Reviser:

Graphic Design and Print:

Circulation:

English Translation:

Croatian Employment Service, Zagreb, Radnička cesta 1Phone: 00385 1 61 26 000Fax: 00385 1 61 26 038E-mail – Editorial: [email protected]: http://www.hzz.hr

Ankica Paun JarallahDirector General of the Croatian Employment Service

Marica Barić

Ines Macan

Birotisak d.o.o., Zagreb

400 copies

Abis d.o.o., Zagreb

Croatian Employment Service

Page 4: Yearbook - HZZ · industry in 2008. There were only 1.0 per cent more arrivals and 2.0 per cent more overnights compared to the year before.The share of foreign tourists in the total

Yearbook 2008

Economy and Labour Force

Unemployment

Labour Force Demand and Employment

Preparation for Employment

Annual Employment Incentive Plan 2008

Benefits from Unemployment Status

Projects Supported by the International Community

Main Responsibilities and Development Strategy

of the Croatian Employment Service

Organizational Structure and Employees

Sources of Financing and Structure of Expenditures

Internal Financial Control System

IT Support to Operations of the Croatian Employment Service

International Cooperation

Organizational Structure and Activities of the CES:

7

12

20

30

36

41

45

53

55

58

61

62

64

Content

Page 5: Yearbook - HZZ · industry in 2008. There were only 1.0 per cent more arrivals and 2.0 per cent more overnights compared to the year before.The share of foreign tourists in the total

4

Geographical Distribution of Regional and Local Offices of theCroatian Employment Service by Counties

I. Zagreb

II. Krapina-Zagorje

III. Sisak-Moslavina

IV. Karlovac

V. Varaždin

VI. Koprivnica-Križevci

VII. Bjelovar-Bilogora

VIII. Primorje-Gorski Kotar

IX. Lika-Senj

X. Virovitica-Podravina

XI. Požega-Slavonija

XII. Brod-Posavina

XIII. Zadar

XIV. Osijek-Baranja

XV. Šibenik-Knin

XVI. Vukovar-Srijem

XVII. Split-Dalmatia

XIX. Dubrovnik-Neretva

XX. Međimurje

City of Zagreb

XVIII. Istria

Croatian Employment Service

COUNTY REGIONAL OFFICE LOCAL OFFICE

Page 6: Yearbook - HZZ · industry in 2008. There were only 1.0 per cent more arrivals and 2.0 per cent more overnights compared to the year before.The share of foreign tourists in the total

5

Map of Regional and Local Offices of theCroatian Employment Service by Counties

Central office

Regional office

Local office

Yearbook 2008

Page 7: Yearbook - HZZ · industry in 2008. There were only 1.0 per cent more arrivals and 2.0 per cent more overnights compared to the year before.The share of foreign tourists in the total

6

Croatian Employment Service

Page 8: Yearbook - HZZ · industry in 2008. There were only 1.0 per cent more arrivals and 2.0 per cent more overnights compared to the year before.The share of foreign tourists in the total

Source: Central Bureau of Statistics of the Republic of Croatia* Jan – Sept 2008

2007 2008

Basic Economic Indicators in 2007 and 2008Growth Rates (per cent)

Basic Economic Trends

In 2008, Croatia recorded a significant decreasing trend as far as economic growth is concerned.The real compound annual growth rate of the Gross Domestic Product (GDP) equalled 2.4 percent, while in 2007 the GDP growth rate amounted to 5.5 per cent. The GDP growth was graduallydecreasing over the year: from 4.3 per cent in the first, 3.4 per cent in the second, 1.6 per cent in thethird, to 0.2 per cent in the fourth three-month period.

The physical volume of industrial production increased in 2008 by 1.6 per cent compared to 2007.According to the National Classification of Activities, industrial production covers three fields:manufacturing, electricity, gas and water supply, and mining and quarrying. The increase inproduction was recorded in manufacturing (by 1.5 per cent) and electricity, gas and water supply(by 3.5 per cent). At the same time, a decrease of 1.8 per cent was recorded in the mining andquarrying industry.

In 2008, positive developments were recorded in the field of construction activities. The annualgrowth rate of the physical volume of construction works equalled 11.8 per cent in 2008, whichrepresents a significant increase compared to 2007 when it amounted to 2.4 per cent.

In 2008, retail trade recorded a nominal increase of 6.0 per cent compared to the year before, yetthe real retail trade growth rate fell to –0.5 per cent due to the increase in consumer price indices.

A significant decrease in the number of tourist arrivals and overnights was recorded in the tourismindustry in 2008. There were only 1.0 per cent more arrivals and 2.0 per cent more overnightscompared to the year before. The share of foreign tourists in the total number of arrivals was 83.6

7

Economy and Labour Force

Yearbook 2008

Gross Domestic Product 5.5 2.4

Physical Volume of Industrial Production 5.6 1.6

Physical Volume of Construction Works 2.4 11.8

Nominal Retail Trade Turnover 8.4 6.0

Real Retail Trade Turnover 5.3 -0.5

Tourist Overnights 5.6 2.0

Exports – Total (HRK) 9.2 4.7

Imports – Total (HRK) 10.3 8.8

Average Monthly Net Salaries 5.2 7.0

Real Net Salaries 2.2 0.8

Consumer Price Indices 2.9 6.1

Total Number of Employed Persons 3.3 2.5

Total Number of Unemployed Persons -9.3 -10.5

Registered Unemployment Rate 14.8 13.2

LFS Unemployment Rate 9.6 8.3*

Page 9: Yearbook - HZZ · industry in 2008. There were only 1.0 per cent more arrivals and 2.0 per cent more overnights compared to the year before.The share of foreign tourists in the total

8

per cent and 88.7 per cent in the total number of overnights. Domestic tourists represented a shareof 16.4 per cent and 11.3 per cent in the total number of tourist arrivals and overnights respectively.

A deficit increase was recorded in foreign trade exchange. Total imports increased by 4.7 per centand exports by 8.8 per cent, reducing the export/import coverage ratio from 47.9 per cent, asrecorded in 2007, to 45.9 per cent in 2008.

The increasing average monthly net salary growth trend recorded in the past several yearscontinued. 2008 brought a nominal annual increase of 7.0 per cent. However, due to asimultaneous increase in the inflation rate, real net salaries actually grew only by 0.8 per cent,down by 1.4 pp compared to 2007.

The annual inflation rate, calculated on the basis of the consumer price index, amounted to 6.1 percent in 2008, representing a significant increase compared to the stable growth recorded in thepast several years (at the level of 2 to 3 per cent).

The relatively high economic growth recorded in 2007 (5.5 per cent) brought positivedevelopments in the labour market in 2008, i.e. increase in employment, decrease in registeredunemployment and decrease in unemployment rate.

According to the data recorded by the Central Bureau of Statistics based on administrativesources, the total number of economically active citizens (active population) increased in 2008 (by10,189 persons or 0.6 per cent). The number of employed persons increased as well (by 37,896 or2.5 per cent), whereas the number of unemployed persons decreased (by 27,707 persons or 10.5per cent).

Registered Employment and Unemployment, 2008AnnualAverage

Labour Force in Croatia

The annual average number of registered employed persons amounted to 1,554,805 in 2008,which represents an increase of 37,896 persons or 2.5 per cent compared to the year before. Thelargest number of employed persons was employed in legal persons, i.e. 1,252,089 or 80.5 percent (up by 3.3 per cent compared to 2007). 264,672 persons or 17.0 per cent (up by 0.3 per centcompared to 2007) were employed in craft businesses and free professions and there were38,044 or 2.5 per cent insured farmers (down by 7.0 per cent compared to 2007).

According to the National Classification of Activities, the largest number of employed persons wasrecorded in manufacturing (302,117 persons or 19.4 per cent) and wholesale and retail trade,

Croatian Employment Service

2007 2008

Active Population Based on Administrative Sources(Annual Average in 2007 and 2008)

Index

Source: Central Bureau of Statistics of the Republic of Croatia

Active Population 1,781,357 1,791,546 100.6

Employed Persons 1,516,909 1,554,805 102.5

- Employed in legal persons 1,212,221 1,252,089 103.3

- Employed in craft businesses and free professions 263,797 264,672 100.3

- Insured farmers 40,891 38,044 93.0

Unemployed Persons 264,448 236,741 89.5

Registered Unemployment Rate 14.8 13.2

Page 10: Yearbook - HZZ · industry in 2008. There were only 1.0 per cent more arrivals and 2.0 per cent more overnights compared to the year before.The share of foreign tourists in the total

repair of motor vehicles, motorcycles and personal and household goods (269,913 or 17.4 percent). Compared to the year before, the number of employed persons increased across almost allfields of economic activity (except in private households with employed persons and electricity,gas and water supply). The largest increase was recorded in real estate, renting and businessactivities (6.8 per cent), construction (5.6 per cent), other service activities (5.1 per cent), financialintermediation (5.0 per cent) and public administration, defence and compulsory social security(4.6 per cent) –Appendix 1, p.11.

In terms of economic sectors (agricultural, non-agricultural and service), the 2008 employedpersons structure shows that 63.9 per cent employed persons were engaged in service activities,31.1 per cent in non-agricultural and 4.8 per cent in agricultural activities. Compared to 2007, theshare of service activities increased (by 0.5 pp) and the shares of non-agricultural and agriculturalactivities decreased by 0.2 and 0.3 pp respectively.

The annual average number of registered unemployed persons decreased by 27,707 persons or10.5 per cent, i.e. from 264,448 persons recorded in 2007, to 236,741 persons recorded in 2008.

The simultaneous decrease in the number of unemployed and increase in the number ofemployed persons recorded in the Republic of Croatia resulted in a decrease in the annualaverage unemployment rate from 14.8 per cent recorded in 2007 to 13.2 per cent in 2008(according to the Central Bureau of Statistics).

Unemployment rates by counties are calculated on the basis of the data on pension insurancebeneficiaries registered with the Croatian Pension Insurance Institute (as registered employedpersons) and the data on registered unemployed persons from the CES register. According to theafore-mentioned data, the average unemployment rate at the state level amounted to 12.8 percent. In nine counties it was lower and in twelve counties higher.

Unemployment Rate Based onAdministrative Sources

9

12.8

0

5

10

15

20

25

30

10.7

11.2

12.1

12.4

15.5

16.7

17.0

17.4

18.2

20.7

21.5

21.8

23.2

24.1

24.8

26.0

9.8

9.3

9.2

5.5

5.3

Unemployment Rates By Counties, 2008 Annual Average

Yearbook 2008

City

of Z

agre

b

Istri

a

Vara

ždin

Prim

orje

-Gor

ski K

otar

Kra

pina

-Zag

orje

Međ

imur

je

Zagr

eb

Kop

rivni

ca-K

rižev

ci

Dub

rovn

ik-N

eret

va

Zada

r

Spl

it-D

alm

atia

Lika

-Sen

j

Pož

ega-

Sla

voni

a

Šib

enik

-Kni

n

Osi

jek-

Bar

anja

Bje

lova

r-B

ilogo

ra

Kar

lova

c

Bro

d-P

osav

ina

Viro

vitic

a-P

odra

vina

Sis

ak-M

osla

vina

Vuk

ovar

-Srij

em

Per

cent

age

%

Counties

Croatia's Average

Page 11: Yearbook - HZZ · industry in 2008. There were only 1.0 per cent more arrivals and 2.0 per cent more overnights compared to the year before.The share of foreign tourists in the total

10

Unemployment rates differed significantly across counties. The lowest unemployment rates wererecorded in the City of Zagreb (5.3 per cent) and the County of Istria (5.5 per cent). Theunemployment rates of the following counties were below the state average: Varaždin (9.2 percent), Primorje-Gorski Kotar (9.3 per cent), Krapina-Zagorje (9.8 per cent), Međimurje (10.7 percent), Zagreb (11.2 per cent), Dubrovnik-Neretva (12.1 per cent) and Koprivnica-Križevci (12.4per cent). The highest unemployment rate was recorded in the counties of Vukovar-Srijem (26.0per cent), Sisak-Moslavina (24.8 per cent), Virovitica-Podravina (24.1 per cent) and Brod-Posavina (23.2 per cent).

Compared to the year before, unemployment rates decreased across all counties, primarily in thecounties of Šibenik-Knin (by 2.6 pp), Brod-Posavina (by 2.4 pp), Lika-Senj and Virovitica-Podravina (by 2.2 pp), Karlovac (by 2.1 pp) and Dubrovnik-Neretva (by 2.0 pp). The lowestdecrease was recorded in the counties of Istria (by 0.6 pp), Sisak-Moslavina (by 0.8 pp) andPrimorje-Gorski Kotar and Požega-Slavonia (by 1.1 pp).

The Labour Force Survey is carried out by the Central Bureau of Statistics in accordance with themethodological rules and principles of the International Labour Organisation (ILO) and theStatistical Office of the European Communities (Eurostat). This source of data is thereforeinternationally comparable. The results are announced on a quarterly basis.

According to the Labour Force Survey, the average number of economically active citizens (activepopulation) in Croatia recorded in the period January – September 2008 amounted to 1,784,000,representing an activity rate of 48.6 per cent. The average number of employed citizens in thesame period amounted to 1,637,000 with the rate of employment of 44.6 per cent according to theILO criteria (15+) and 57.8 per cent according to the Eurostat criteria (15-64).

In the same period, a total of 147,000 unemployed persons were recorded, representing anaverage unemployment rate of 8.3 per cent. In terms of gender, the unemployment rate recordedin the case of men (7.0 per cent) is lower than the rate recorded in the case of women (9.8 percent).

Employment and Unemployment Based on the Labour Force Survey (Jan-Sept 2008)

Unemployment Rate Based on the Labour Force Survey

Active Population Based on the Labour Force Survey(Jan-Sept 2007 and 2008)

2007 2008 Index

Active Population

Employed Persons

Employment Rate (15-64)

Unemployed Persons

LFS Unemployment Rate

Source: Central Bureau of Statistics of the Republic of Croatia

Croatian Employment Service

100.2

101.6

-

86.5

1,781,000 1,784,000

1,611,000 1,637,000

56.9 57.8

170,000 147,000

9.5 8.3 -

Page 12: Yearbook - HZZ · industry in 2008. There were only 1.0 per cent more arrivals and 2.0 per cent more overnights compared to the year before.The share of foreign tourists in the total

11

Number of Employed Persons by Activities (National Classification of Activities)Jan – Dec, 2008 and comparison to Jan-Dec, 2007

Appendix 1

Source: Central Bureau of Statistics of the Republic of Croatia, Announcements No. 9.2.6, 2008 and 2009.

TOTAL Legal EntitiesCrafts and Free

Professions

Numberpercent

Number NumberIndex2008/2007

ActivityIndex2008/2007

Index2008/2007

32,188 2.1 103.5 26,892 102.0 5,296 112.3

4,711 0.3 102.3 1,809 107.9 2,902 99.1

38,044 2.4 93.0 - - - -

74,943 4.8 97.9 28,701 102.3 8,198 107.2

9,302 0.6 104.5 8,828 104.2 474 110.0

302,117 19.4 100.2 258,939 100.6 43,178 98.3

26,849 1.7 99.9 26,849 99.9 0 -

145,656 9.4 105.6 106,.427 107.2 39,229 101.3

483,924 31.1 101.8 401,043 102.3 82,881 99.8

269,913 17.4 102.2 224,256 103.6 45,657 96.0

90,680 5.8 102.4 50,327 105.3 40,353 99.1

99,112 6.4 100.3 81,988 100.6 17,124 98.9

38,354 2.5 105.0 36,685 105.0 1,669 104.7

116,402 7.5 106.8 92,967 108.1 23,435 102.0

110,060 7.1 104.6 106,542 101.7 3,518 948.8

100,850 6.5 103.4 100,394 103.5 456 93.2

94,076 6.1 103.0 81,389 103.4 12,687 100.4

65,180 4.2 105.1 47,797 106.7 17,383 101.0

8,315 0.5 91.2 - 8,315 91.2

0 0.0 - - 0 -

992,940 63.9 103.2 822,345 103.8 170,595 100.4

2,999 0.2 96.7 0 - 2,999 96.7

1,554,805 100.0 102.5 1,252,089 103.3 264,672 100.3

0

0

Yearbook 2008

Agriculture, hunting and forestry

Fishing

Individual farming

Agricultural Activities

Mining and quarrying

Manufacturing

Electricity, gas andwater supply

Construction

Non-agricultural Activities

Wholesale and retail trade, repair ofmotor vehicles, motorcycles,personal and household goods

Hotels and restaurants

Transport, storage and communication

Financial intermediation

Real estate, renting andbusiness activities

Public administration, defence,compulsory social insurance

Education

Health and social work

Other community, social andpersonal service activities

Unclassified

TOTAL

Household activities

Extraterritorial organizationsand bodies

Service Activities

Page 13: Yearbook - HZZ · industry in 2008. There were only 1.0 per cent more arrivals and 2.0 per cent more overnights compared to the year before.The share of foreign tourists in the total

Total Unemployment Trends

In 2008, seasonal factors influenced the number of unemployed persons registered with theCroatian Employment Service.At the beginning of the year, unemployment was high with a slightlyfalling trend. A significant fall ensued and continued until August. After the summer season,unemployment started to grow again and the growth trend continued until the end of the year.Therefore, the largest number of unemployed persons was recorded in January (261,129) and thesmallest inAugust (219,334).

In December 2008, the number of unemployed persons registered with the CES equalled240,455, down by 5.5 per cent compared to the same month the year before. Overall figures showthat in 2008 the number of unemployed persons decreased compared to the year before (seepicture).

Unemployment

The number of unemployed persons recorded at the end of 2008 is smaller than the one recordedat the end of 2007, as the number of the newly-registered persons (200,093) in the unemployedpersons register was less than the sum of registered employed persons and those deleted fromthe register for other reasons than employment (214,122). Therefore, unemployment fell becausethe number of persons deleted from the register exceeded the number of newly registeredpersons.

The average number of unemployed persons in 2008 decreased from 264,448 recorded in 2007 to236,741 in 2008, down by 10.5 per cent. A greater percentage decrease in unemployment wasrecorded in the case of men (12.6 per cent) than in the case of women (9.1 per cent). Thus, theshare of men in the total number of unemployed persons decreased, whereas the share of womenin the total number of unemployed persons increased (by 1.0 pp).

Unemployment Structure and Trends By Gender,Age and Educational Level

220

240

260

280

300

I II III IV V VI VII VIII IX X XI XII

Months

Nu

mb

er

of

Un

em

plo

yed

Pe

rso

ns

(in

th

ou

san

ds)

Number of Unemployed Persons in 2007 and 2008

12

210

230

250

270

290

310

2007

2008

Croatian Employment Service

Page 14: Yearbook - HZZ · industry in 2008. There were only 1.0 per cent more arrivals and 2.0 per cent more overnights compared to the year before.The share of foreign tourists in the total

2008

Structure

2007

Structure

2008/2007 Index

TOTAL Men

Average Number of Unemployed Persons by Genderin 2007 and 2008

Women

As far as unemployment by age is concerned, the average number of unemployed personsdecreased across all age groups except in the oldest ones. The number of unemployed personsgrew in the group from 54 to 59, and in the group 60+ especially. Their share in the total number ofunemployed persons increased accordingly (from 12.2 to 14.1 per cent) The most significantdecrease in unemployment was recorded in the youngest groups.

.

Average Number of Unemployed Personsby Age in 2007 and 2008

Index

2008/2007Age

per cent Number

2007 2008

13

236,741 89,540 147,201

100.0 37.8 62.2

264,448 102,482 161,966

100.0 38.8 61.2

89.5 87.4 90.9

15 - 19

20 - 24

25 - 29

30 - 34

35 - 39

40 - 44

45 - 49

50 - 54

54 - 59

60 +

TOTAL

Number

13,860

33,998

32,523

26,856

26,121

27,874

31,156

39,823

25,682

6,555

264,448

5.2

12.9

12.3

10.2

9.9

10.5

11.8

15.1

9.7

2.5

100.0

11,420

28,416

28,217

23,966

22,974

24,465

26,873

36,955

26,079

7,376

236,741

4.8

12.0

11.9

10.1

9.7

10.3

11.4

15.6

11.0

3.1

100.0

82.4

83.6

86.8

89.2

88.0

87.8

86.3

92.8

101.5

112.5

89.5

A decrease in the average number of unemployed persons was also recorded across alleducational levels. However, the average number of unemployed persons with uncompleted orcompleted basic school decreased to a lesser degree than the number of unemployed personswith secondary, non-university or university educational levels. Therefore, their share in the totalnumber of unemployed persons grew.

Yearbook 2008

per cent

Page 15: Yearbook - HZZ · industry in 2008. There were only 1.0 per cent more arrivals and 2.0 per cent more overnights compared to the year before.The share of foreign tourists in the total

UnemploymentStructure andTrendsAccording toActivity Related toPrevious Employment

If we exclude from the total number of unemployed persons those who had been previouslyemployed, their structure can be observed by the activity they had been engaged in duringprevious employment. The number of such persons recorded at the end of 2008 was 195,564,down by 3.6 per cent when compared to the number recorded at the end of 2007. Therefore, thetotal number of unemployed persons who had been previously employed decreased over theobserved period.

When classified by activity, the number of unemployed persons who had been previouslyemployed varies significantly. The number of unemployed persons who had been previouslyemployed decreased across most of the activity groups, whereas in some it grew. For example, thegreatest percentage increase was recorded in the number of persons who had previously beenemployed in real estate, renting and business activities (5.2 per cent). It is interesting to note that asignificant increase was recorded in the number of unemployed persons who had previously beenemployed in the field of public administration, defence and compulsory social security (by 4.4 percent).

Among the larger activity groups in which the number of unemployed persons decreased, weshould mention the group of unemployed persons who had previously been employed in themanufacturing industry, as it is the largest one. The number of unemployed persons in this groupdecreased by only 1.7 per cent. A more significant decrease was recorded in construction (by 5.1per cent) and trade (by 4.6 per cent).

The mentioned changes in the number of unemployed persons by activity related to previousemployment did not however produce a significant change in the structure of the total number ofunemployed persons. The share of unemployed persons who had previously been employed inmanufacturing slightly increased, exceeding one fourth, whereas the share of unemployedpersons who had previously been employed in trade remained slightly over one fifth. The group ofunemployed persons who had previously been employed in the hotel and restaurant industrycomes next, which is obviously a consequence of the fact that the analysis was made at the end ofthe year, i.e. outside the tourist season.

14

Average Number of Unemployed Persons by Educational Level and Gender in 2007 and 2008

Total

Noschooling

anduncompletedbasic school

Basicschool

1 to 3-yearvocationalsecondaryschool andschool forskilled and

highly skilledworkers

4 (or more)-year

vocationalsecondaryschool andgrammarschool

Non-university

degree

Universityand post-graduatedegrees

2007

Structure

2008

Structure

2008/2007 Index

Women 2007

Structure

Women 2008

Structure

2008/2007 Index

264,448 18,550 65,641 92,563 68,540 8,452 10,702

100.0 7,0 24,8 35,0 25,9 3,2 4,0

236,741 17,011 59,909 81,471 61,357 7,568 9,425

100.0 7.2 25.3 34.4 25.9 3.2 4.0

89.5 91.7 91.3 88.0 89.5 89.5 88.1

161,966 10,212 41,234 50,211 47,875 5,586 6,848

100.0 6.3 25.5 31.0 29.6 3.4 4.2

147,201 9,577 38,383 45,451 42,874 4,970 5,946

100.0 6.5 26.1 30.9 29.1 3.4 4.0

90.9 93.8 93.1 90.5 89.6 89.0 86.8

Croatian Employment Service

Page 16: Yearbook - HZZ · industry in 2008. There were only 1.0 per cent more arrivals and 2.0 per cent more overnights compared to the year before.The share of foreign tourists in the total

Unemployment Structure and Trends by Counties and Particular Features

As it has been noted before, the average number of unemployed persons in 2008 decreased by10.5 per cent compared to 2007. However, the trend analysis showed significant differences in theextent of that decrease among particular counties. The most significant percentage decrease ofaverage unemployment was recorded in the County of Krapina-Zagorje (15.5 per cent) and theCity of Zagreb (15.2 per cent). The smallest percentage decrease was recorded in the counties ofSisak-Moslavina (4.6 per cent), Bjelovar-Bilogora (7.7 per cent) and Osijek-Baranja (7.8 per cent).

The County of Split-Dalmatia recorded the largest average number of unemployed persons in2008, followed closely, just as the year before, by the City of Zagreb and the counties of Osijek-Baranja and Vukovar-Srijem according to the share in the total number of unemployed persons.Therefore, the structure of unemployment by counties did not change much.

15

2007 2008Activity

Number Share Number Share

Index2008/2007

Unemployed Persons According to Activity Related to Previous Employment(as of Dec. 31, 2007 and 2008)

9,345 4.6 8,851 4.5 94.7

484 0.2 382 0.2 78.9

502 0.2 437 0.2 87.1

50,080 24.7 49,207 25.2 98.3

844 0.4 772 0.4 91.5

16,334 8.1 15,500 7.9 94.9

41,270 20.3 39,374 20.1 95.4

27,537 13.6 26,315 13.5 95.6

8,070 4.0 7,549 3.9 93.5

1,961 1.0 1,847 0.9 94.2

12,092 6.0 12,722 6.5 105.2

4,182 2.1 4,365 2.2 104.4

3,960 2.0 3,972 2.0 100.3

3,758 1.9 3,611 1.8 96.1

10,914 5.4 10,125 5.2 92.8

11,324 5.6 10,391 5.3 91.8

164 0.1 144 0.1 87.8

202,821 100.0 195,564 100.0 96.4

Yearbook 2008

Agriculture, hunting and forestry

Fishing

Mining and quarrying

Manufacturing

Electricity, gas and water supply

Construction

Wholesale and retail trade, repair of motorvehicles, motorcycles and personaland household goods

Hotels and restaurants

Transport, storage and communication

Financial intermediation

Real estate, renting andbusiness activities

Public administration, defence andcompulsory social insurance

Education

Health and social work

Other community, social and personalservice activities

Household activities

Extraterritorial organizations and bodies

TOTAL

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In terms of gender, the greatest share of women in the total number of unemployed persons at theend of 2008 was recorded in the counties of Brod-Posavina (66.6 per cent), Istria (65.3 per cent)and Međimurje (65.2 per cent). The smallest share of women was recorded in the counties of Lika-Senj (57.5 per cent), Bjelovar-Bilogora (58.6 per cent) and Šibenik-Knin (58.7 per cent). Thelargest number of young unemployed persons was recorded in the counties of Požega-Slavonia(23.2 per cent), Koprivnica-Križevci (22.5 per cent) and Međimurje (22.4 per cent). Finally, thelargest number of qualified unemployed persons (with secondary school, non-university oruniversity degree) was recorded in the counties of Dubrovnik-Neretva (81.6 per cent), Split-Dalmatia (79.5 per cent), Primorje-Gorski Kotar (75.8 per cent) and the City of Zagreb (75.1 percent).

16

2007 2008County

Number Share Number Share Index2008/2007

Average Number of Unemployed Persons by Counties in 2007 and 2008

86.3

84.5

95.4

89.9

86.1

85.5

92.3

89.3

88.2

89.9

91.6

90.0

90.7

92.2

86.1

93.1

90.2

91.5

86.9

86.2

84.8

89.5

4.1

1.7

6.5

4.6

2.9

2.4

4.4

5.5

1.3

3.3

2.0

5.4

4.0

10.8

2.8

6.9

13.3

2.2

2.6

2.1

11.2

100.0

9,814

4,053

15,392

10,815

6,822

5,799

10,316

12,911

2,998

7,729

4,669

12,796

9,410

25,633

6,570

16,380

31,562

5,325

6,112

5,051

26,584

236,741

4.3

1.8

6.1

4.5

3.0

2.6

4.2

5.5

1.3

3.3

1.9

5.4

3.9

10.5

2.9

6.7

13.2

2.2

2.7

2.2

11.9

100.0

11,370

4,797

16,128

12,029

7,927

6,780

11,172

14,461

3,400

8,600

5,097

14,218

10,375

27,806

7,630

17,590

34,994

5,819

7,030

5,862

31,363

264,448

Croatian Employment Service

TOTAL

Zagreb

Krapina-Zagorje

Sisak-Moslavina

Karlovac

Varaždin

Koprivnica-Križevci

Bjelovar-Bilogora

Primorje-Gorski Kotar

Lika-Senj

Virovitica-Podravina

Požega-Slavonia

Brod-Posavina

Zadar

Osijek-Baranja

Šibenik-Knin

Vukovar-Srijem

Split-Dalmatia

Istria

Dubrovnik-Neretva

Međimurje

City of Zagreb

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Croatian War Veterans Unemployment Structure and Trends

UnemploymentStructure andTrends by DurationofUnemploymentandParticular Features

At the end of 2008, there were 19,743 unemployed Croatian war veterans listed on the CESregister of unemployed persons, of which 39.2 per cent with completed or uncompleted basicschool and 40.3 per cent with completed school for skilled and highly-skilled workers or avocational secondary school in the duration of up to three years. The share of unemploymentbenefit recipients in the total number of unemployed Croatian war veterans amounted to as little as0.1 per cent. In terms of their age structure, more than 42.8 per cent of unemployed Croatian warveterans were aged 50 to 65.

Registered unemployed persons can be classified according to the duration of unemployment. Atthe end of 2008, more than one third of unemployed persons had been waiting for employment forup to 6 months and 55.2 per cent for more than one year. In comparison to the year before, thenumber of unemployed persons who had been waiting for employment for up to 3 months grew,whereas the number of medium- and long-term unemployed persons decreased, especially in thecase of those who had been waiting between 1 and 2 years. The share of short-term unemployedpersons therefore grew, whereas the share of medium- and long-term unemployed personsdecreased.

17

Women Aged up to 24Total

Qualified Persons

Structure of Unemployed Persons by Counties (as of Dec. 31, 2008)

County

9,717

4,205

15,515

10,840

6,893

5,698

10,529

13,666

3,050

7,744

4,829

12,809

9,846

25,942

6,876

16,588

31,750

6,169

6,496

5,109

26,184

240,455

6,204

2,705

9,670

6,811

4,087

3,412

6,173

8,845

1,755

4,760

3,054

8,534

6,206

16,471

4,033

9,920

20,406

4,031

4,033

3,330

15,546

149,986

63.8

64.3

62.3

62.8

59.3

59.9

58.6

64.7

57.5

61.5

63.2

66.6

63.0

63.5

58.7

59.8

64.3

65.3

62.1

65.2

59.4

62.4

1,660

744

2,646

1,458

1,191

1,281

2,257

1,932

512

1,645

1,118

2,544

1,244

5,261

1,024

3,514

5,200

894

915

1,145

3,910

42,095

17.1

17.7

17.1

13.5

17.3

22.5

21.4

14.1

16.8

21.2

23.2

19.9

12.6

20.3

14.9

21.2

16.4

14.5

14.1

22.4

14.9

17.5

6,597

2,644

8,515

6,107

4,506

3,261

6,275

10,356

1,992

4,584

3,287

8,112

6,713

17,170

4,914

10,984

25,232

4,160

5,302

2,764

19,672

163,147

67.9

62.9

54.9

56.3

65.4

57.2

59.6

75.8

65.3

59.2

68.1

63.3

68.2

66.2

71.5

66.2

79.5

67.4

81.6

54.1

75.1

67.8

Yearbook 2008

TOTAL

Zagreb

Krapina-Zagorje

Sisak-Moslavina

Karlovac

Varaždin

Koprivnica-Križevci

Bjelovar-Bilogora

Primorje-Gorski Kotar

Lika-Senj

Virovitica-Podravina

Požega-Slavonia

Brod-Posavina

Zadar

Osijek-Baranja

Šibenik-Knin

Vukovar-Srijem

Split-Dalmatia

Istria

Dubrovnik-Neretva

Međimurje

City of Zagreb

Number Share Number Share Number Share

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18

Unemployed Persons by Duration of Unemployment(as of Dec. 31, 2007 and 2008)

IndeX

2008/2007

2007 2008

50,052 19.7 54,207 22.5 108.3

29,584 11.6 28,348 11.8 95.8

12,875 5.1 12,865 5.4 99.9

12,882 5.1 12,211 5.1 94.8

35,200 13.8 29,122 12.1 82.7

21,261 8.4 18,635 7.7 87.6

92,630 36.4 85,067 35.4 91.8

254,484 100.0 240,455 100.0 94.5

Unemployed Persons by Duration of Unemploymentand Gender (as of Dec. 31, 2008)

Total Men Share Women Share

54,207 22,761 25.2 31,446 21.0

28,348 11,029 12.2 17,319 11.5

12,865 4,688 5.2 8,177 5.5

12,211 4,528 5.0 7,683 5.1

29,122 10,248 11.3 18,874 12.6

18,635 6,407 7.1 12,228 8.2

85,067 30,808 34.1 54,259 36.2

240,455 90,469 100.0 149,986 100.0

As far as duration of unemployment by gender is concerned, the share of unemployed personswho had been waiting for employment more than 1 year in the total number of unemployed menwas 52.5 per cent and in the total number of unemployed women 56.9 per cent. Therefore, theshare of long-term unemployed persons in the total number of unemployed persons wassomewhat larger in the case of women than in the case of men.

Finally, if we observe duration of unemployment in terms of the educational level, it is evident thatthe duration of unemployment decreases proportionately to the increase in the educational level.Thus, the share of long-term unemployed persons (waiting over 1 year) in the total number ofunemployed persons with no schooling or uncompleted basic school amounted to 74.3 per cent,and 62.9 per cent in the case of unemployed persons with basic school, which is quite a difference.The share of long-term unemployed persons was even smaller in the groups of persons with three-or four-year secondary school (53.8 per cent and 48.4 per cent respectively) and non-universityand university degrees (42.8 per cent and 40.4 per cent respectively). Therefore, it can beconcluded that the level of education has a significant influence on the duration of unemployment.

Croatian Employment Service

Number Share Number Share

Duration ofUnemployment

Up to 3 months

From 3-6 months

From 6-9 months

From 9-12 months

From 1-2 years

From 2-3 years

More than 3 years

TOTAL

Duration of Unemployment

Up to 3 months

From 3-6 months

From 6-9 months

From 9-12 months

From 1-2 years

From 2-3 years

More than 3 years

TOTAL

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Short-term Unemployment

Long-term Unemployment

Structure of Unemployed Persons by Duration of Unemploymentand Educational Level (as of Dec. 31, 2008)

19

22.5 11.7 19.0 23.3 25.4 30.2 32.3

11.8 6.2 8.8 12.5 14.8 12.9 13.9

5.4 3.6 4.6 5.4 5.9 7.5 7.3

5.1 4.2 4.7 4.9 5.5 6.5 6.1

12.1 11.3 11.7 11.5 13.4 12.5 12.1

7.7 8.4 8.2 7.3 8.0 6.7 7.2

35.4 54.6 43.0 35.0 27.0 23.6 21.1

100.0 100.0 100.0 100.0 100.0 100.0 100.0

44.8 25.7 37.1 46.2 51.6 57.2 59.6

55.2 74.3 62.9 53.8 48.4 42.8 40.4

Yearbook 2008

Up to 3 months

From 3-6 months

From 6-9 months

From 9-12 months

From 1-2 years

From 2-3 years

More than 3 years

TOTAL

Total

Noschooling

anduncompletedbasic school

Basicschool

4 (or more)-year

vocationalsecondaryschool andgrammarschool

Non-university

degree

Universityand post-graduatedegrees

Duration ofUnemployment

1 to 3-yearvocationalsecondaryschool andschool forskilled and

highlyskilled

workers

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20

Registered Job Vacancies

In 2008, employers registered a total of 141,794 job vacancies to the CES, which represents anincrease of 0.2 per cent (307 job vacancies) compared to 2007.

According to the National Classification of Activities, the largest number of reported job vacanciescame from the manufacturing industry (25,398 or 17.9 per cent), followed by the wholesale andretail trade (24,082 or 17 per cent), hotel and restaurant (19,247 or 13.6 per cent), real estate(15,371 or 10.8 per cent) and construction (15,281 or 10.8 per cent) industries. Compared to theyear before, the largest increase in labour demand was recorded in education (by 64.7 per cent),followed by public administration, defence and compulsory social security (19.7 per cent) andhealth and social work (17.7 per cent).

As far as regional organisation is concerned, most job vacancies were registered in the City ofZagreb (23,469 or 16.6 per cent) and least in the counties of Lika-Senj (1,915 or 1.4 per cent) andPožega-Slavonia (2,450 or 1.7 per cent). Compared to the year before, the volume of registereddemand for workers increased in thirteen counties and decreased in eight. The largest increasewas recorded in the counties of Brod-Posavina (by 22.1 per cent), Bjelovar-Bilogora (21.7 percent), Požega-Slavonia (20.9 per cent), Zadar (17.6 per cent), Šibenik-Knin (14.0 per cent) andOsijek-Baranja (13.0 per cent) whereas the largest decrease was recorded in the counties ofDubrovnik-Neretva (by 21.8 per cent) and Virovitica-Podravina (11.8 per cent).

In 2008, employers mostly looked for workers engaged in elementary occupations such ascleaners, deliverers, transport workers, workers without occupational qualifications and similar(33,632 or 23.7 per cent), as well as workers engaged in service and trade occupations (33,061 or23.3 per cent). A significant share in the total number of labour force demand (23,980 persons or16.9 per cent) referred to workers engaged in craft businesses and individual production.

Appendix 2, p.23.

,

Appendix 3, p.24.

Labour Force Demand and Employment

Group of Occupations 2007percent 2008 Index

Registered Job Vacancies by Groups of Occupations in 2007 and 2008

169 0.1 241 0.2 142.6

11,972 8.5 15,813 11.2 132.1

15,305 10.8 16,261 11.5 106.2

9,229 6.5 9,569 6.7 103.7

33,176 23.4 33,061 23.3 99.7

858 0.6 810 0.6 94.4

27,369 19.3 23,980 16.9 87.6

10,188 7.2 8,427 5.9 82.7

33,221 23.5 33,632 23.7 101.2

141,487 100.0 141,794 100.0 100.2

Croatian Employment Service

(1) Legislators, senior officials and managers

(2) Professionals

(3) Technicians and associated professionals

(4) Clerks

(5) Service workers and shop and market sales workers

(6) Skilled agricultural andfishery workers

(7) Craft and related trade workers

(8) Plant and machine operators and assemblers

(9) Elementary occupations

Total

percent

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Employment of Persons from the CES Register

In 2008, a total of 128,228 persons from the records (register of unemployed persons) of theCroatian Employment Service were employed (down by 18,461 persons or 12.6 per centcompared to 2007). From the total number of employed persons, 75,684 people were women,making up a share of 59.0 per cent in the total employment compared to a share of 58.3 per centrecorded in 2007.

- The largest number of registered employmentrefers to people with secondary school education, including those who completed a three-yearvocational secondary school or school for skilled and highly-skilled workers (37.3 per cent) andthose who completed a four-year vocational secondary school or grammar school (30.6 per cent),followed by those with basic school education (16.7 per cent), university and post-graduateeducation (7.5 per cent), non-university education (5.9 per cent) and persons with no schooling oruncompleted basic school education (2.0 per cent). Compared to the year before, a decrease inregistered employment was recorded across all educational levels. The largest decrease wasrecorded in the group of persons with university and post-graduate education (15.2 per cent),followed by those who completed a three-year vocational secondary school or school for skilledand highly-skilled workers (14.3 per cent).

Educational Level and Groups of Occupations

2007

Structure

2008

Structure

2008/2007Index

Employed Persons from the CES Register of Unemployed Persons by Educational Levelin 2007 and 2008

21

146,689 2,820 23,621 55,839 44,755 8,342 11,312

100.0 1.9 16.1 38.1 30.5 5.7 7.7

128,228 2,612 21,422 47,833 39,213 7,559 9,589

100.0 2.0 16.7 37.3 30.6 5.9 7.5

87.4 92.6 90.7 85.7 87.6 90.6 84.8

What follows is the account of shares by groups of occupations (in accordance with the NationalClassification of Occupations) in the total registered employment:

• Elementary occupations (32,227 or 25.1 per cent);• Service workers and shop and market sales workers (31,179 or 24.3 per cent);• Technicians and associated professionals (17,013 or 13.3 per cent);• Craft and related trades workers (15,512 or 12.1 per cent);• Clerks (15,349 or 12.0 per cent);• Professionals (8,718 or 6.8 per cent);• Plant and machine operators and assemblers (7,083 or 5.5 per cent);• Skilled agricultural and fishery workers (1,006 or 0.8 per cent);• Legislators, senior officials and managers (90 or 0,07 per cent); and• Armed forces (51 or 0,04 per cent).

Yearbook 2008

Total

Noschooling

anduncompletedbasic school

Basicschool

1 to 3-yearvocationalsecondaryschool andschool forskilled and

highly skilledworkers

4 (or more)-year

vocationalsecondaryschool andgrammarschool

Non-university

degree

Universityand post-graduatedegrees

Year

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22

Work Experience –

Duration of Employment

Employment Activity

from the total number of employed persons, 104,012 persons (81.1 per cent)had prior work experience, whereas 24,216 persons (18.9 per cent) were employed for the firsttime.

– 104,287 persons (81.3 per cent) were employed on a temporary basis,whereas 23,941 persons (18.7 per cent) were employed on a permanent basis. Compared to2007, the share of temporary employment increased, while the share of permanent employmentdecreased (by 1.3 percentage points).

– it is a common thing that the register of unemployed persons with prior workexperience primarily includes persons from the manufacturing, trade, hotel and restaurant andconstruction industries, and that these four areas of activity are also the ones in which mostpersons are consequently employed. In 2008, the number of employed persons from these areasof activity looked as follows:

• Wholesale and retail trade: 26,446 persons or 20.6 per cent,

• Manufacturing: 21,224 persons or 16.6 per cent,

• Hotels and restaurants: 20,343 persons or 15.9 per cent

• Real estate: 12,658 persons or 9.9 per cent and

• Construction: 11,108 persons or 8.7 per cent.

Croatian Employment Service

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23

2Appendix

RegisteredJob Vacancies

Employed Personsfrom the CES Register

Activity (2002 NationalClassification of Activities)

Numberpercent

Number2008/2007

Index2008/2007

Indexpercent

Registered Job Vacancies and Employment of Persons from the CES Registerby Activities (National Classification of Activities) in 2008

4,185 3.0 104.1 5,370 4.2 93.1

176 0.1 105.4 251 0.2 104.6

300 0.2 99.0 279 0.2 85.6

25,398 17.9 84.0 21,224 16.6 78.6

518 0.4 105.5 532 0.4 88.7

15,281 10.8 94.8 11,108 8.7 86.7

24,082 17.0 93.4 26,446 20.6 84.8

19,247 13.6 98.9 20,343 15.9 91.5

4,264 3.0 92.7 4,630 3.6 90.4

1,469 1.0 103.3 1,664 1.3 97.0

15,371 10.8 103.9 12,658 9.9 89.6

4,671 3.3 119.7 3,116 2.4 105.9

13,827 9.8 164.7 8,194 6.4 93.2

7,769 5.5 117.7 4,985 3.9 96.0

5,179 3.7 100.5 5.948 4.6 89.6

42 0.0 127.3 1,445 1.1 75.1

15 0.0 750.0 35 0.0 68.6

141,794 100.0 100.2 128,228 100.0 87.4

Yearbook 2008

Agriculture, hunting and forestry

Fishing

Individual farming

Manufacturing

Electricity, gas andwater supply

Construction

Wholesale and retail trade,repair of motor vehicles,motorcycles, personal andhousehold goods

Hotels and restaurants

Financial intermediation

Real estate, rentingand business activities

Public administration,defence, compulsorysocial insurance

Education

Health andsocial work

Other community, social andpersonal service activities

Household activities

Extraterritorial organizationsand bodies

TOTAL

Transport, storage and communication

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24

3Appendix

Registered Job Vacancies and Employment of Personsfrom the CES Register by Counties in 2008

RegisteredJob Vacancies

Employed Personsfrom the CES Register

County

percent Number

2008/2007Index

7,903 5.6 104.3 5,258 4.1 81.6

3,147 2.2 89.8 2,458 1.9 86.0

4,957 3.5 95.0 6,782 5.3 96.1

3,362 2.4 108.8 4,383 3.4 83.9

6,762 4.8 100.3 4,564 3.6 80.4

3,857 2.7 103.3 3,191 2.5 81.6

4,356 3.1 121.7 5,784 4.5 91.2

12,255 8.6 89.6 8,175 6.4 84.5

1,915 1.4 97.6 1,581 1.2 88.1

3,037 2.1 88.2 4,568 3.6 87.6

2,450 1.7 120.9 2,987 2.3 92.7

4,740 3.3 122.1 5,560 4.3 89.3

6,006 4.2 117.6 4,909 3.8 100.1

10,584 7.5 113.0 13,655 10.6 93.6

4,995 3.5 114.0 4,282 3.3 90.2

6,032 4.3 103.8 8,666 6.8 91.7

12,197 8.6 103.4 16,258 12.7 88.9

10,318 7.3 98.2 5,341 4.2 87.9

4,180 2.9 78.2 4,168 3.3 87.6

5,272 3.7 103.2 3,108 2.4 80.9

23,469 16.6 91.6 12,550 9.8 76.5

141,794 100.0 100.2 128,228 100.0 87.4

Croatian Employment Service

TOTAL

Zagreb

Krapina-Zagorje

Sisak-Moslavina

Karlovac

Varaždin

Koprivnica-Križevci

Bjelovar-Bilogora

Primorje-Gorski Kotar

Lika-Senj

Virovitica-Podravina

Požega-Slavonia

Brod-Posavina

Zadar

Osijek-Baranja

Šibenik-Knin

Vukovar-Srijem

Split-Dalmatia

Istria

Dubrovnik-Neretva

Međimurje

City of Zagreb

Numberpercent

2008/2007Index

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25

Employment Rate by Educational Level and Occupation

The annual employment rate shows how many persons from the total number of unemployedpersons who looked for employment during the year actually found employment. In 2008, theemployment rate amounted to 28.2 per cent, which means that about one fourth of the personswho looked for employment during the year actually found it.

Significant differences were recorded in the employment rate among groups of unemployedpersons distinguished by educational level. In the case of persons with no schooling oruncompleted basic school, the employment rate equalled 10.6 per cent. It equalled 20.7 per cent inthe case of those with basic school, 29.8 per cent in the case of those with vocational secondaryschool in the duration of up to three years or school for skilled and highly-skilled workers, 31.2 percent in the case of those with four-year vocational secondary school or grammar school, 43.5 percent in the case of those with non-university degree and 42.6 per cent in the case of those withuniversity and post-graduate degrees. Therefore, the higher the educational level, the higher theemployment rate.

Within the same educational groups there are quite large differences in the employment ratebetween persons of different occupations. The table shows twenty occupations with the highestand twenty with the lowest rate of employment within the most frequent groups at secondaryschool level.

Employment Rate by Educational Level in 2008 (%)

0

10

20

30

40

50

A B C D E F

Educational Levels:A – no schooling and uncompleted basic schoolB – basic schoolC – 1 to 3-year vocational secondary school and school for skilled and highly skilled workersD – 4(or more)-year vocational secondary school and grammar schoolE – non-university degreeF – university and post-graduate degrees

10.6

20.7

29.831.2

43.5 42.6

Yearbook 2008

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26

The following table shows ten occupations with the highest and ten with the lowest rate ofemployment at the level of non-university or university degree.

Employment Rate by Occupation/Field of Study atthe Non-university and University Degree Level

Occupation/Field of Study Occupation/Field of Study

Employment Rate by Occupation at Secondary School Level

Occupationpercent Occupation

46.4 18.9

45.4 18.5

45.3 18.4

45.1 18.0

44.4 17.8

43.6 17.8

43.1 17.7

42.0 17.2

41.9 16.9

41.4 16.5

40.9 16.3

40.6 16.3

39.8 16.1

39.5 15.8

39.3 15.1

39.1 14.8

39.0 14.2

38.9 11.7

38.8 9.6

38.8 8.3

78.6 22.5

74.4 22.5

67.2 21.6

66.4 21.1

65.5 18.9

62.9 17.7

62.1

61.8 15.4

61.5 15.4

58.7 13.8

16.0

Croatian Employment Service

Forest Technician Farmer

Gasfitter Building Guard

Mechatronics Technician Assistant Shoemaker (upper part maker)

Automotive Construction Equipment Operator Assistant Tailor

Cook Textile Worker

Electro-mechanical Engineer Typist

Pharmaceutical Technician Assistant Florist

Clothes Designer Spinner

Motor Vehicle Technician House-painter

Nurse/Medical Technician Typist

Electro-mechanic Assistant Fancy Goods Maker

Hotelier Assistant Shoemaker

Geodetic Technician Tailor

Caretaker Painting and Finishing Worker

Ecology Technician Stenographer

Heating and A/C Fitter Telephonist

Agricultural Machines Mechanic Engine Electrician

Telecommunication Equipment Assembler Transport Worker

Cook Garment Worker

Cosmetician Administrative Assistant

percent

percent

percent

Art

Painting

Transport and TelecommunicationsEngineer

Graphics

Social Work

Shipbuilding

Marine Engineering

Nautical Engineering

Textile and Clothing Engineer

Work Organisation Engineer

Mathematics and Computer Science

Teaching

Croatian and English

Biology and Chemistry

Work Therapy

English and Italian

Croatian and Italian

Croatian Language and Literature

Marketing, Management

Library and Information Science,Croatian Language and Literature

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27

Seasonal Employment in Tourism

Mediation in seasonal employment in tourism is one of the more significant activities of theCroatian Employment Service. Continuing the practice pursued over the previous years, at thebeginning of 2008 the CES organised regular regional meetings with representatives of largerhotel and tourism companies for the purpose of reaching concrete agreements concerning theforecasting and meeting the demand for seasonal workers. The meetings were held in Croatiancoastal counties (Istria, Primorje-Gorski Kotar, Zadar, Šibenik-Knin, Split-Dalmatia and Dubrovnik-Neretva), which were getting ready for the then upcoming tourist season.

According to the forecasts by employers from the tourism, hotel and restaurant industry, theplanned number of needed seasonal workers in 2008 was estimated at 19,881 persons.

During the tourist season, a total of 14,798 workers were employed, mostly salespersons (1,617 or10.4 per cent), chambermaids (1,507 or 9.7 per cent), waiters (1,503 or 9,6 per cent), kitchen help(1,227 or 7.9 per cent), cooks (1,166 or 7.5 per cent), cleaning ladies (996 or 6.4 per cent),assistant cooks (667 or 4.3 per cent) and assistant waiters (418 or 2.7 per cent).

At the county level, most seasonal workers were employed in the counties of Split-Dalmatia (2,558persons or 17.3 per cent), Istria (1,706 persons or 11.5 per cent), Dubrovnik-Neretva (1,538persons or 10.4 per cent), Primorje-Gorski Kotar, (1,473 persons or 10.0 per cent) and Šibenik-Knin (1,203 persons or 8.1 per cent).

After some planning and selection of seasonal workers from unemployed domicile population,representatives of tourism, hotel and restaurant companies also conducted informative interviewswith candidates interested in seasonal employment and selected the most appropriate ones incooperation with regional offices of the Croatian Employment Service based in continentalcounties (Osijek, Bjelovar, Sisak, Vinkovci etc.) and referred them to the agreed job positions.

Through interregional mediation activities undertaken by regional offices of the CES fromcontinental regions of Croatia a total of 5,082 seasonal workers were employed, of which thelargest number was employed from the counties of Osijek-Baranja (1,197 persons), Vukovar-Srijem (983 persons), Bjelovar-Bilogora (594 persons), Sisak-Moslavina (565 persons) and Brod-Posavina (481 persons).

Interregional mediation is based on employer's report of a job vacancy received in the place ofemployment offered. If the relevant regional or local office is not in the position to execute therequest, it is then forwarded to the offices with registered labour force meeting the job-specificrequirements.

In 2008, through interregional mediation activities a total of 18,686 workers registered with theCES as unemployed were employed, mainly salespersons (1,610 persons or 8.0 per cent),waiters (904 persons or 4.5 per cent), cleaning ladies (842 persons or 4.2 per cent), cooks (812persons or 4.0 per cent), kitchen help (720 persons or 3.6 per cent), chambermaids (547 personsor 2.7 per cent), administrative clerks (503 persons or 2.5 per cent), production line workers (474persons or 2.4 per cent), assistant cooks (424 persons or 2.1 per cent) and workers with noqualifications (402 persons or 2.0 per cent).

Through interregional mediation, most workers were employed from the counties of Vukovar-Srijem (2,633 or 14.1 per cent), Osijek-Baranja (2,349 or 12.6 per cent), Sisak-Moslavina (2,271 or12.2 per cent) and Bjelovar-Bilogora (1,555 or 8.3 per cent).

As far as the employment activity is concerned, most workers who were employed in 2008 throughinterregional mediation found employment in the following industries: hotels and restaurants(5,848 or 31.3 per cent), wholesale and retail trade (3,017 or 16.1 per cent), construction (2,212 or11.8 per cent), real estate (2,022 or 10.8 per cent) and manufacturing (1, 965 or 10.5 per cent).

Interregional Mediation

Yearbook 2008

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Seasonalworkers

Medicaltechnicians

Guestworkers

Students

Sailors onforeignships

2007

2008

2008/2007Index

TotalYear

Number of Workers Employed Abroad in 2007 and 2008

Employment of PersonsAbroad and Their Return fromAbroad

In 2008, the CES mediated in employment of seasonal workers, medical technicians, 'guest workers'and students participating in summer practical training programmes in the Federal Republic ofGermany,aswell as in the employmentof sailorson shipsowned by foreign companies.

Through the mediation activities carried out by the CES, a total of 4,809 Croatian citizens wereemployed abroad, which is 273 workers less compared to the year before.

Employment of Croatian citizens abroad is subject to a working visa issued by the relevant state fora specific period of time.

5,082 4,757 19 109 24 173

4,809 4,589 15 125 38 42

94.6 96.5 79.0 114.7 158.3 24.3

On the basis of the Agreement on the Procedure for Employing Croatian Citizens in the FederalRepublic of Germany, the Croatian Employment Service handles the informing, selection andreferral of unemployed persons to work in Germany. Such employment is mainly seasonal incharacter. Most seasonal workers were employed in agriculture (3,284 persons or 71.6 per cent),while 1,305 seasonal workers (28.4 per cent) were employed in other activities (hotel andrestaurant business, entertainment).

Throughout the year, employers from the Federal Republic of Germany report their need forseasonal workers to the Croatian Employment Service. A significant number of such workers hadalready worked for the same employers during the previous years, but since German law allowsonly a four-month temporary working visa, they always returned home after the expiry of thatperiod. If the German employers are satisfied with the work performed by particular workers, theysend new employment agreements for the same workers through the Central EmploymentIntermediation Office in Bonn each year.

These agreements (together with the description of work, salary amount and other terms ofemployment offered and required by the employer) are received by the Central Office.They are madeout to a specific unemployed person (first and last name, date of birth and address). Such agreementsare called 'name-based agreements'. They are sent by the Central Office to be executed by therelevant regional office based on the place of permanent residence of the specified unemployedperson. Regional offices then contact the specified persons and serve them with the receivedagreements, after which the workers leave to work as seasonal workers in the Federal Republic ofGermany for the period specified in the agreement. If the German employer does not specify theperson by name, but only states certain requirements (such as gender, special knowledge and age),the Central Office then organises a selection of workers and proposes their employment inconsultation with the employer. Such offers by employers are nameless. The Croatian EmploymentService checked the received 'name-based agreements' and returned those that referred to eitherpersons residing outside of Croatia or those who changed their mind about seeking employment inthe Federal RepublicofGermany forany reason,asunexecuted.

Croatian Employment Service

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In 2008, a total of 5,304 offers for seasonal employment were received, of which 4,589 (86,5 percent) were executed and 715 were returned as unexecuted. From the total number of agreementsreceived, 5,191 were name-based and 113 nameless. The share of name-based offers in the totalnumber amounted to 97.8 per cent, up by 0.3 pp compared to the year before. Most of the seasonalworkers were employed from the counties of Brod-Posavina, Vukovar-Srijem and Osijek-Baranja.Most of the seasonal workers (2,757 or 60.1 per cent) were women.

Unemployed medical technicians were referred to work in the Federal Republic of Germanyexclusively through the mediation of the CES. 15 medical technicians were employed in 2008.

The Agreement between the Croatian Government and the Government of the Federal Republicof Germany on Employment of Workers for Professional Advancement and LanguageImprovement Purposes (Agreement on Temporary Employment, Official Gazette – InternationalAgreements 14/2002), envisages employment of 'guest workers' from Croatia in the FederalRepublic of Germany for the duration of up to 18 months. 125 workers of various occupations gotemployment on the basis of the said agreement in 2008.

In 2008, in cooperation with the Central Employment Intermediation Office in Bonn, the CESmediated in the case of 38 regular students who went to participate in summer practical trainingprogrammes in the Federal Republic of Germany (in the duration of up to three months).

All activities concerning the mediation in employment of sailors on foreign ships were carried outby the regional offices in Rijeka and Split, onto which the CES transferred its mediationresponsibilities in this matter. In 2008, a total of 42 sailors registered with the Croatian EmploymentService were employed on foreign ships.

In 2008, a total of 2,172 returnees from other countries registered with the CES, of which 1,127women. The following table shows the number of employed and deleted returnees from theregister of the CES.

Return of Workers from Temporary Employment PositionsAbroad

In 2008, 1,688 registered returnees found employment, whereas other 1,433 persons were deletedfrom the register for reasons other than employment. Thus, at the end of 2008 the CES register ofunemployed persons included 4,130 returnees (15.8 per cent less than at the end of 2007).The shareof women in the number of registered returnees was 59.2 per cent (or 2,446 persons). The largestnumber of returnees returned after working abroad for the period of up to 1 year, referring mainly toseasonal employment in the Federal RepublicofGermany in the duration ofup to fourmonths.

2007 2008

Returnees from Abroad in 2007 and 2008

Year Index

2,796 2,172

2,072 1,688

1,735 1,433

4,905 4,130

2,810 2,446

77.7

81.5

82.6

84.2

87.0

Yearbook 2008

Newly registered

Employed

Deleted due to other reasons

Unemployed persons at theend of the year (Dec. 31) - women

Unemployed persons at theend of the year (Dec. 31) - total

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Preparation for Employment

The Preparation for Employment provided by the CES includes a series of professionalprocedures aimed at raising the level of employability of unemployed persons and jobseekers andpreventively work on matching the supply and demand in the labour market by providingprofessional assistance to final year pupils and students at basic and secondary schools inchoosing further schools and occupations.

Within the CES, these activities are performed by counsellors in Vocational Guidance andEducation Divisions in 22 regional offices. The Central Office of the CES includes a EmploymentPreparation Department, whose activities include organisation, monitoring and evaluation ofactivities in regional offices, enhancement of the existing and creation of new activities andservices in accordance with the goals of the CES Strategic Plan 2008-2011.

The activities and services related to preparation for employment are contained and explained indetail in a document entitled

. During 2008, activities the goal of which was to overcome the difficulties inthe application of the said document and further enhance the services offered to the users werecarried out.

The development of a unified methodology for conducting workshops for unemployed persons inall regional offices, which started in 2007, was continued in 2008 through activities of four taskforces made up of vocational guidance and education counsellors. The mentioned activities wereco-ordinated by the representatives of the Employment Preparation Department. On the basis ofthe existing workshops and knowledge related to the basics of group work with the unemployed,the said four task forces developed proposals for a uniform content and delivery methodology forthe following workshops:

• Self-assessment methods,

• How to look for employment (writing CVs and Cover Letters),

• Preparation for a job interview,

• Workshop for unemployed people with disabilities.

With the aim of improving the vocational informing services provided to final year pupils andstudents at basic and secondary schools, as well as their parents and teachers, in 2007 five taskforces were formed for the purpose of creating five regional brochures related to the opportunitiesand possibilities of continuing education after the secondary school level. The preparation of thosebrochures started.

A task force that carried out the adjustment of the existing questionnaires entitled Vocand

was formed as well.

One of the very important and comprehensive sources of necessary information concerningvarious occupations made for students and adult users is a vocational guidance computerprogramme called . It has been in use since 2007 and the number of institutions thatapply the same grew substantially. At the end of 2008, the said programme was used in 169locations.

As the holder of the programme, the CES carried out the preparation activities for the creation ofthe third, enhanced version in 2008. The preparation of the new version presupposed the creationof new as well as checking and updating of the existing descriptions of occupations andinformation concerning education and employment.

Additional activities of the programme development holder that were carried out in 2008 included:education of 94 new users and creation of a manual and other promotional materials.Also, in order

Standards of Quality of Vocational Guidance and Selection Services

Provided by the CES

ational

Interest Survey Questionnaire for Final Year Pupils at Basic Schools Vocational Interest

Survey Questionnaire for Final Year Students at Secondary Schools

My Choice

Croatian Employment Service

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31

to improve the programme, a user satisfaction survey was carried out at the end of 2008, includingboth students and adult users. The results showed that the users were very satisfied. They alsoserved as the basis for making changes to and further improvement of the programme, the newversion of which will be put in function byApril 2009.

Raising the quality of services within the employment preparation programmes presupposesinvesting in development and improvement of the competencies of vocational guidance andeducation counsellors. During 2008, the counsellors participated in the training in the use ofvarious psychodiagnostic tools (CTI – a test for measuring general cognitive abilities; 16PF – a testfor measuring personality factors; DAT Battery - a test for measuring intellectual abilities) as wellas in the acquisition of presentation skills and conducting selection interviews.

Considering the need for applying a uniform methodology in rendering services within thePreparation for Employment Programme, an Introduction to Work Programme was preparedwithin the Employment Preparation Department in 2008. It is intended for vocational guidance andeducation counsellors working at the CES since January 1, 2007. The said programmepresupposes acquisition of knowledge in the field of preparation for employment, as well as gettingfamiliar with the existing legal framework concerning education and employment along with thestrategic documents and ethical framework of the CES.

The work on the improvement and restoration of psychodiagnostic tools and the standardisation ofthe same was continued in cooperation with the Slap Publishing House. In 2008, standardisationof the DOMINO test for measuring cognitive abilities was carried out, and standardisation of theBarOn EQI test for measuring emotional intelligence was started.

One of the methods of the preparation for employment system development is measuring of theresults made in working with target groups, in terms of both quality and quantity. Consequently,performance indicators for the assessment of activities related to the Preparation for EmploymentProgramme were tested in 2008. These indicators were identified at the end of 2007. Aftermonitoring the same during 2008, an audit will be carried out at the beginning of 2009 and themonitoring will continue through the work of Vocational Guidance and Education Divisions acrossregional offices.

In 2008, the Croatian Employment Service continued functioning as a partner organisation in theimplementation of a project supported by the Ministry of Economy, Labour and Entrepreneurshipand German Technical Assistance Association. The project is directed at enhancement ofeducation and employment in crafts and trades. It includes activities such as development ofschools for crafts and trades, training of teaching staff in vocational education and occupation-specific preparation programmes, as well as promotion of professional development of youngpeople. In cooperation with the experts employed by the CES, an instrument for matching supplywith demand concerning craft and trade occupations in the regional labour market was developed.So far, it has been tested in pilot locations, namely Nova Gradiška, Zadar and Velika Gorica.Continuing work on its enhancement and application in a larger number of regional offices isplanned.

The activities under the second project phase will refer to the development and implementation ofa local partnership model for vocational guidance of young people learning crafts and trades. Tenregional offices will be involved. On the basis of experiences from pilot locations, a uniform localpartnership model for vocational guidance of students learning crafts and trades will be designed.It will be based on cooperation among relevant stakeholders within the fields of education andemployment related to crafts and trades (regional offices of the CES, basic and secondaryvocational schools, employers, Croatian Chamber of Crafts and Trades, local administrative unitsand other).

Representatives of the CES Employment Preparation Department participated in 2008 in variousother programmes as well as domestic and international conferences related to education andemployment. They were also involved in the work of various task forces at the national level,

Yearbook 2008

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32

engaged in developing projects and programmes in the field of education and employment, suchas the Commission for the Development of the Croatian Qualification Framework; CARDS 2004Project: Adult Learning; Joint Memo on Social Inclusion; Joint Memo on Employment; NationalEmployment Implementation Plan etc.

In 2008, intensive regional and international cooperation among public employment services andorganisations such as the CEDEFOP, ETF, IAEVG and other was realised.

A project called, to be financed through the IPA Programme, was developed. The proposed project

envisages, among other, the establishment of a Career Development Informing and CounsellingCentre in seven locations in the Republic of Croatia; the establishment of a National Forum(partnership of stakeholders in the field of vocational guidance at all three levels, and a revision ofthe existing legislation related to vocational guidance as well as proposal of improvementsregarding the same).

The preparation for employment programme includes the following activities:

• Assessment of vocational interests of pupils and students,

• Vocational informing,

• Vocational counselling,

• Labour-market oriented education,

• Vocational selection,

• Vocational rehabilitation and employment of persons with disabilities and other low-employability factors.

Once a year the Croatian Employment Service carries out a Vocational Intentions Survey with finalyear pupils and students at basic and secondary schools, identifying in doing so the vocationalintentions of pupils and students, priority groups of the same and their needs for informing andcounselling services, as well as providing information about vocational interests of pupils andstudents to all relevant stakeholders at the local, regional and national level, thus ensuring a moreefficient planning of the education policy. In 2008, a total of 48,763 students were interviewed, ofwhich 30,944 pupils of basic schools and 17,819 students of secondary schools.

Vocational informing is a process through which particular user groups have the possibility toobtain information relevant to choosing an occupation and field of activity, i.e. planning furtherprofessional development.

Vocational informing can be oral and written. Depending on the needs of users of vocationalinforming services and the purpose of informing, oral informing can be performed individually or ina group. The central and regional offices of the CES handed out in 2008 over 131,000 variousprinted informative materials (brochures, leaflets, posters) intended for various user groups.

Over 47,264 persons were involved in direct (oral) informing sessions, mainly students of primaryand secondary schools, unemployed persons and jobseekers, as well as expert associates fromthe educational system. From the total number of informed persons, 28,214 persons wereinformed in group sessions and 19,050 individually.

CES User Services: Enhancement of Lifelong Vocational Guidance Services and

ICT Support

Preparation for Employment – Activities Carried out by Regional Offices of the CES

Vocational Intentions of Pupils and Students

Vocational Informing

Croatian Employment Service

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33

Vocational Counselling

Vocational Selection

Vocational counselling is a process through which the user is given an opportunity to form a pictureof his/her own possibilities with the aim of assisting him/her to make the most appropriatedecisions concerning education, employment and rehabilitation. This process encompasses priordetermination of relevant characteristics of the individual through the use of psychodiagnostictools (tests concerning personality, interests, motivation, health condition). Vocational counsellingprocedures differ depending on the purpose of counselling and the needs of users, and areconducted in groups or individually.

In 2008, a total of 34,570 persons (unemployed persons and jobseekers as well as final year pupilsand students at basic and secondary schools) participated in the counselling sessions provided bythe CES. Vocational counselling methods differ with respect to the needs of target groups incomplexity and performance style. The methods of vocational counselling intended forunemployed persons and jobseekers presuppose the application of highly professional andcomplex methods. Individual and group counselling activities encompassed a total of 19,939unemployed persons in 2008.

Compared to the methods used in working with pupils and students and providing assistance inselecting further education and occupation, counselling methods used for working withunemployed persons include a detailed assessment of the psychophysical condition ofcandidates as well as counselling work aimed at finding the most appropriate way of(re)integration into the labour market. It must be mentioned that to this particular group ofunemployed persons manifold and repeated vocational guidance services are offered, so that thenumber of services (20,780) exceeds the number of counselled parties.

One of the group counselling methods which is used in working with unemployed persons andjobseekers are workshops, whose purpose is to improve the competencies of unemployedpersons enabling them to find employment easier. Associate experts working for VocationalInforming and Counselling Divisions of regional offices of the CES conduct the followingworkshops: How to Look for Employment – Writing CVs and Cover Letters, How to PresentOneself to an Employer, Self-assessment Methods, as well as other workshops intended forspecific groups of participants (persons with disabilities, minorities, and similar). In 2008, a total of1,593 workshops were organised, encompassing 12,075 unemployed persons and jobseekers.

Vocational selection is a professional process of selecting the most suitable candidates foremployment or education according to given requirements. This process includes testing ofrelevant abilities, personal characteristics, interest and motivation of individuals and, if needed,testing of the health condition and specific knowledge and skills of unemployed persons andjobseekers. In 2008, 1,111 vocational selections were conducted, encompassing 6,969candidates.

The CES provides vocational selection services for the purpose of direct employment inaccordance with employer's requirements, but also for the purpose of occupation-specificeducation and training of unemployed persons. From the total number of vocational selectionscarried out, 627 were carried out for the purpose of direct employment and 484 for the purpose offurther education and training of unemployed persons. More specifically, a total of 3,237 personswere involved in selections for direct employment, whereas 3,732 persons were involved inselections carried out for the purpose of referring the candidates to appropriate educationalprogrammes. From the total number of selections for the purpose of direct employment, 383 wereconducted for the public and 244 for the private sector.

Besides vocational selection services, work with employers also included 747 informing andcounselling sessions in the field of human resources.

Yearbook 2008

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34

Labour-market Oriented Education and Training – Activities Conducted in Cooperationwith Local Government and Self-government Units, as Part of EU Projects and otherActivities and Initiatives

Vocational Rehabilitation and Employment of Persons with Disabilities and Hard-to-Place Persons

In 2008, the Croatian Employment Service participated in activities related to education ofunemployed persons for the purpose of adjusting their competencies to the current and forecastedlabour market demand.Apart from carrying out theActive Employment Policy Measures related tofinancing and co-financing of employment and education (execution of educational programmes),the CES participated in various other projects, initiatives and activities related to education andtraining of unemployed persons organised in cooperation with local government and self-government units, as well as those which are part of various EU projects.

Besides co-financing of educational programmes, the CES also organises and carries outvocational selection as well as informing and referrals to various programmes.

The educational programmes involving unemployed persons referred to unknown employers andwere aimed at increasing the competitiveness of unemployed persons in the labour market as wellas at enhancing their competencies and, consequently, employability and mobility. That is alsoone of the ways of monitoring regional labour markets and the active employment policy at thelevel of particular counties.

In 2008, through the afore-mentioned types of cooperation, 97 job-specific training programmesand various other education and training programmes in the acquisition and improvement ofknowledge and skills were carried out in 17 counties. A total of 1,365 persons participated in theprogrammes. These education and training activities usually lasted from two to four months.

• Computer education (ECDL, education for business software operators, computer operators,computer programmers, business software programmers, system and network administrators,graphicdesigners,PC repairmen,web designers,architectsusing computers, and other),

• Foreign languages (English,German and Italian),

• Trainings and re-training for the purpose of acquiring skills for occupations related to hotel andrestaurant industry (cook, waiter, assistant cook, assistant waiter, assistant baker, assistantconfectioner, assistant simple dishescook),

• Educational programmes for acquiring occupational skills for working in tourism (manager of arural familyestate,and other),

• Training in economy, trade and business administration (independent accountant, educationalprogrammes in entrepreneurship, training for sales representatives, assistant administrators,small-businessaccountants, and other) ,

• Training in the field of construction (assistant ceramist, assistant carpenter, assistant bricklayer,and other),

• Educational programmes in the field of textile and leather (training for seamstresses, training intraditional crafts– folk costumesand gold embroiderymakers),

• Training programme in the field of mechanical engineering, shipbuilding and metallurgy(recycling and processing of iron,electro-welding),

• Training in the field of personal services (wellness therapist, skipper, training in traditional crafts –ethno hairstylist, and other),

• Training in the field ofagriculture (berrygrower, fruit grower, and other).

On December 31, 2008 there were 5,579 unemployed persons with disabilities listed on the CESregister, of which 1,267 were employed during the year.

In all regional offices of the CES, counsellors for mediation in employment of persons withdisabilities were appointed. The purpose of the mentioned reorganisation was to enhance theactivities involving the said group of unemployed persons and facilitate their access to the labourmarket.

Croatian Employment Service

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35

In 2008, apart from being individually informed, unemployed persons with disabilities were alsoinformed through various information materials available at Information Centres establishedwithin all CES regional offices or through the CES website. 5,000 copies of information materialson the opportunities for vocational rehabilitation, employment of persons with disabilities and co-financing of their education were developed and printed.

In 2008, a total of 700 persons with disabilities participated in the vocational guidance activities, ofwhich 433 were individually counselled, and 267 participated in workshops. A total of 25workshops were conducted.

With the aim of increasing their employability level, 271 persons with disabilities attended somesort of educational activity in 2008.

With the aim of raising the level of public sensitivity and providing greater support to persons withdisabilities and hard-to-place persons, the Croatian Employment Service organised in 2008 aninternational conference entitled

, featuring lectures by renowned Croatian and international expertsin the field of education, vocational rehabilitation and employment of persons with disabilities. Thesaid conference also served as a platform for an exchange of experiences and education ofrelevant stakeholders in this field.

The Croatian Employment Service takes part in the implementation of the measures from the2007-2015. The

representatives of the CES participate in the task force working on the enhancement of efficiencyof vocational rehabilitation activities, establishment of regional offices for vocational rehabilitation,as well as other measures and activities envisaged by the National Strategy.

The CES continued its participation in the project entitledinitiated by the Office for Curbing Abuse and Misuse of Opiate Drugs of the Republic of Croatia.The activities of the CES under the project include vocational informing, assessment of workingability of project beneficiaries, their inclusion in educational and employment incentiveprogrammes, and intensive cooperation with other stakeholders.

As part of the UNDP Croatia project entitled, an opinion survey regarding employment in Croatia was carried out on a

sample of 600 unemployed persons with disabilities. The results of the said survey were publishedin the publication entitled . As part of thesecond phase of the project, individual plans for vocational rehabilitation and employment of 100persons with disabilities, believed to be highly motivated to find employment, were developed. Bythe end of the project, about 60 per cent of persons from the said group had found employment.

As a partner institution, the CES participated in the project calledthrough designing the award-winning criteria. Annual awards for Best Employer for

Persons with Disabilities were presented in various categories. The project is to be continued.

A project entitledwas developed within the IPA Programme. The commencement of the project is expected in thesecond half of 2009.

Four computers adjusted to the needs of blind and hard-of-seeing persons were procured for fourregional offices (Zagreb, Split, Osijek and Rijeka) in order to allow the said users equal access toinformation and the possibility to search the Internet, write and send CVs, cover letters, and other.

By participating in various task forces, the CES experts were involved in the making of the new andthe adjustment of the existing programme curricula intended for sight-impaired persons. TheVocational EducationAgency initiated the said activities.

The CES also co-operated with organisations of persons with disabilities and organisations thattend to their needs, participating so in the implementation of various projects (

and), workshops, round tables, and other.

Education and Employment of Persons with Disabilities:

Experiences, New Directions

National Strategy for Equalisation of Opportunities for Persons with Disabilities

Social Reintegration of Drug Addicts

The Right to Live in the Community: Social Inclusion of

Persons with Disabilities

Employability of Unemployed Persons with Disabilities

Best Employer for Persons with

Disabilities

Promoting Greater Inclusion of Persons with Disabilities in the Labour Market

10 Steps to

Individual Support in Employment Promoting Employment and Self-employment of Persons

with Disabilities in the Local Community

Yearbook 2008

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The Government of the Republic of Croatia adopted the 2008 Annual Employment Incentive Planon March 19, 2008. It encompasses a wide range of measures aimed at promotion ofentrepreneurship, development of cooperatives, co-financing of employment, education and self-employment.

The measures from the 2008 Annual Employment Incentive Plan were defined on the basis of theguidelines of the National EmploymentAction Plan 2005-2008.

The CES Managing Board adopted on its session held on March 27, 2008 a document entitled

.

The measures falling under the responsibility of the CES were directed at employment, educationand training of long-term unemployed persons, young persons with no work experience, olderpersons, persons with low education as well as persons who quit regular schooling. Furthermore,some of the operational measures were directed at promoting integration and fight againstdiscrimination of persons unfavourably positioned in the labour market (e.g. persons withdisabilities, persons with low-employability, unemployed single parents of underage children, andsimilar). These measures included co-financing of employment and involvement in public workprogrammes organised by local self-government units. Finally, under the Annual EmploymentIncentive Plan, the CES also carried out the measures directed at preparation for employment andself-employment as well as co-financing of employment of unemployed persons of Romaninationality in accordance with the National Programme for the Roma and the Action Plan for theDecade of Roma Inclusion 2005 – 2015.

In the period from March 25 to November 30, 2008, 4,874 requests were received, of which 3,892were approved. 3,869 contracts on allocation of assistance for employment and education,financing of educational activities for unemployed persons and co-financing of employment inpublic work programmes were signed. Most requests, 1,607, were received under Measure 2:

and 1,233 contracts on employment weresigned, involving 1,290 persons. Under Measure 1:

, 1,274 requests were received and 978 contracts on employmentsigned, involving 1,003 persons. Under Measure 3:

, 894 requests were received and 681 contracts signed,involving 706 persons. Although only 139 requests were received under Measure 5:

, the actual number of persons involved is 1,105, as we arereferring to organised training for a larger number of workers for the same employer.

The measures encompassed 7,531 persons from the register of unemployed persons. 3,350persons were employed through employment support measures, 1,105 were included ineducation for the known employer (assistance for professional advancement), 2,361 personswere included in education for an unknown employer, 699 persons were employed through the

programme (Measure 7) and 16 persons found employment through the programmecalled (Measure 8).

From the total number of persons encompassed by the measures in 2008 (7,531), 3,641 (or 48.3per cent) were women.

Since the commencement of the implementation of the said measures until December 31, 2008 anamount of HRK 132, 797,862.56 was disbursed.

The

Manner and Terms of Using the Funds for the Implementation of Active Policy Measures Falling

Under the Responsibility of the CES

Employment Co-financing of Long-term Unemployed

Employment Co-financing of Young Persons

Without Working Experience

Employment Co-financing of Women Above

theAge of 45 and MenAbove theAge of 50

Education

Co-financing for the Known Employer

Public Works

Public Works – Individual Projects

2008 Annual Employment Incentive Plan

36

Croatian Employment Service

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37

Planned and Actual Number of Persons Encompassed by Measuresfrom the 2008 Annual Employment Incentive Plan

Measure 1 - Employment co-financing ofyoung persons without working experience

Measure 2 - Employment co-financingof long-term unemployed

Measure 3 - Employment co-financingof women above the age of 45 andmen above the age of 50

Measure 4 - Employment co-financing ofspecial groups of unemployed

Measure 5 – Education co-financing forthe known employer

Measure 6 - Education financing for anunknown employer

Measure 7 – Public Works

MeasurePlanned Number

of Persons Index

Pursuant to the measures set out in the National Programme for the Roma and the 2008 ActionPlan for the Decade of Roma Inclusion 2005-2015 referring to employment, education and trainingof unemployed Roma, a total of 73 requests were received. 66 were approved and 64 contracts onco-financing of employment and training, financing of training of unemployed Roma and financingof employment in public work programmes were signed.

The measures encompassed 247 persons of Romani nationality registered with the CES asunemployed, of which 223 persons were employed and 24 participated in education for anunknown employer.

A total of HRK 4,259,721.22 was disbursed for the co-financing of employment, education andtraining of the Romani minority.

In accordance with the Labour Law , redeployment programmes must be drawn up by anyemployer that plans to terminate at least 20 employment contracts within the period of 90 days foreconomic, technical or organisational reasons. When drawing up such a programme, employersare obliged to consult with the workers' council and the authorised employment service.

Drawing up of a redeployment programme is a special measure the goal of which is to remove ormitigate the damage arising from the termination of employment contract for the worker. Namely, asituation where a large number of layoffs happens at the same time or within a short period of timehas substantially different social, economic and other consequences compared to individuallayoffs. The Croatian Employment Service actively participates in solving the so-arisen problem.

1

Redeployment Programme

TOTAL

Measure 8 – Public Works – Individual Projects

994

1,248

754

455

750

2,655

679

15

7,550

1,003

1,290

706

351

1,105

2,361

699

16

7,531

100.9

103.4

93.6

77.1

147.3

88.9

102.9

106.7

99.7

1 Labour Law (Official Gazette, No. 38/95 corrected, 65/95-corrected, 17/01, 82/01, 114/03, 142/03-corected, 30/04 and 137/04-cleared)

Yearbook 2008

Actual Numberof Persons

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38

Before they start drafting redeployment programmes, CES regional offices conduct counsellingsessions with employers, which include providing employers with information concerning their legalobligations, possibilities of employing surplus employees, function of mediation, implementation ofactive employmentpolicymeasures,opportunities for self-employment, and other.

Already during the counselling activities, the CES tries to help the redundant employees or thosefacing the threat of layoff by mediating during the notice period with the aim of securing otheremployment for them, referring such employees to retraining or upgrading programmes for thepurpose of obtaining some other position in the same company or for obtaining a positionsomewhere else.

In the implementation of the said activities concerning the handling of employee redeployment, theCES faces a series of objective problems, primarily the lack of job vacancies in the case of both thesame and other employers, followed by the psychophysical condition of persons involved in theprogrammes.

The end goal of the mentioned activities is to help persons facing the threat of layoff be reemployedas fast as possible, ensure the return of as many workers as possible to the world of labour andprevent long-term unemployment.

Redeployment is mainly caused by privatisation, restructuring, change of production programme,introduction of new technologies, inability to adjust to market demands, and other.

As far as structure is concerned, redundant employees are usually persons who are almostentirely unneeded in the labour market, i.e. low-employable persons such as women, olderpersons and persons with disabilities.

In 2008, the regional offices of the Croatian Employment Service received 33 RedeploymentProgrammes, encompassing 2,723 persons. Compared to 2007, both the number of theprogrammes received (by 15 or 83.3 per cent) and the number of persons involved (by 1,219 or81.1 per cent) increased.

By the end of 2008, counselling activities related to 31 of the programmes, involving 2,642 persons(1,334 women or 51.1 per cent and 1,308 men or 48.9 per cent), were conducted.

The persons covered by Redeployment Programmes came from the following industries:manufacturing (65.4 per cent), transportation, storage and communications (33.5 per cent) andelectricity, gas and water supply (1.1 per cent).

In 2008, the CES register of unemployed persons included 35,009 workers whose employmentwas terminated for economic or organisational reasons yet only a small number of workers listedon the register due to surplus of employees in companies are involved in the counsellingprogrammes.

The most frequent occupations of employees whose employment was terminated due toeconomic or organisational reasons include salespersons, administrative clerks, cleaning ladiesand waiters.

2006

2007

Year

Number of Redeployment Programmes Received and Persons Involvedin 2006, 2007 and 2008

48

18

2008 33

Number ofPersonsInvolved

Number ofProgrammes

Received

Number of NewlyRegistered PersonsWhose Employmentwas Terminated due

to Economic Reasons

3,394 37,935

1,504 32,718

2,723 35,009

Croatian Employment Service

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39

Co

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807

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432

351

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541,

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372

2,36

11,

259

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177

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As

follo

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Measu

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Appendix 4a

Yearbook 2008

TO

TAL

Zagre

b

Kra

pin

a-Z

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Sis

ak-

Mosl

avi

na

Karlova

c

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of Z

agre

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en

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40

Appendix 4b

Measure J: Public WorksMeasure O/N: Training for an unknown employerMeasure O/P: Training for the known employerMeasure Z: Employment co-financing of the Roma for the period of 24 months

County

Total Women

Total Measure J Measure O/N Measure O/P Measure Z

Employed Persons and Persons Encompassed by Education and Training Measures under theNational Program for the Roma and the Action Plan for the Decade of Roma Inclusion 2005-2015

in 2008

As follows:

TOTAL

23

8

27

7

17

107

50

8

247

2 23 2 0 0 0 0 0 0

3 6 2 1 1 0 0 1 0

10 27 10 0 0 0 0 0 0

1 6 1 0 0 0 0 1 0

0 13 0 3 0 0 0 1 0

28 96 25 1 0 0 0 10 3

9 32 7 11 2 0 0 7 0

3 0 0 8 3 0 0 0 0

56 203 47 24 6 0 0 20 3

Croatian Employment Service

Varaždin

Koprivnica - Križevci

Bjelovar - Bilogora

Brod - Posavina

Osijek - Baranja

Sisak - Moslavina

Međimurje

City of Zagreb

Total Women Total Women Total Women Total Women

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41

Pursuant to the provisions of the Act on Job Placement and Unemployment Insurance , benefitsfrom unemployment status include:

• unemployment benefit,

• pension insurance,

• unemployment assistance and reimbursement for expenses incurred in the course oftraining,

• a one-off lump sum reimbursement for travel and relocation expenses.

Unemployed persons acquire the right to unemployment benefit provided they had worked 9 out of24 months preceding the termination of employment. Women with children under 1 year of agewhose employment is terminated are exempt from this eligibility requirement.

In order to be eligible for unemployment benefit, an unemployed person must report to theauthorised employment service and submit a request for unemployment benefit within 30 daysfrom the date of termination of employment or sick or maternity leave following the termination ofemployment.

The person whose employment is terminated through his/her own fault or by consent is not eligiblefor unemployment benefit.

An unemployed person, depending on the total years of service, acquires the right tounemployment benefit for the period of 78 to 390 days. The exception to this rule is a woman whohad spent 30 years or a man who had spent 35 years in service, who can claim unemploymentbenefit until they are reemployed, i.e. until some of the cases prescribed by the afore-mentionedlaw resulting in termination of the right to unemployment benefit arises.

After the period for receiving the unemployment benefit ends, the right to the benefit may beextended for a maximum of three months during illness and, in the case of pregnancy, for the entireduration of pregnancy plus 1 year after the baby is born.

At the request of the unemployed person who has been granted right to unemployment benefit, thesame may be disbursed as a one-off lump sum. The terms and the method of payment aredetermined under the . The one-offlump sum of the unemployment benefit may be granted for opening a craft business, i.e. solebusiness, and for employment in a company in which the unemployed person has a non-majorityshare.

The amount of the unemployment benefit is determined on the basis of the average salary earnedin full-time employment in the last three months spent working reduced by statutory contributions.The unemployment benefit may not be lower than 20 per cent of the amount of the average salarypaid in the Republic of Croatia according to the latest data, or higher than the amount specified inthe Croatian Government's decision at the suggestion of the Labour Minister, taking into accountthe opinion of the Economic and Social Council and the Finance Minister. The lowestunemployment benefit amount in the period from January 1 to February 1, 2008 was HRK 976.60,from February 1 to August 1, 2008 it equalled HRK 1,026.20, from August 1 to October 1, 2008 itwas HRK 1,034.80, and from October 1 until the end of the year it equalled HRK 1,046.80,whereas the highest amount was HRK 1,200.00.

2

Unemployment Benefit

Decision on the One-off Lump Sum of Unemployment Benefit3

Benefits from Unemployment Status

2 No. 32/02, 86/02, 114/03, 151/033 No. 92/2003

Official Gazette,Official Gazette,

Yearbook 2008

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42

81,618 requests for unemployment benefit (initial requests and requests for extension) weresubmitted in 2008, of which 79,473 were approved. In the same year 12,484 decisions (uponrequests for extension) were approved. 222 complaints over the resolution of requests forunemployment benefit were submitted, of which 40 were approved. In 2008, 11 complaints werefiled with theAdministrative Court of the Republic of Croatia.

In 2008, 584 requests for the payment of unemployment benefit as a one-off lump sum werereceived, and 523 approved.

An unemployed person whose employment is terminated due to business or personal reasons hasthe right to the specified unemployment benefit and a one-off bonus in the amount of two, four, orsix highest monthly unemployment benefits if they had spent 20 or more, 25 or more or 30 or moreyears working for their last employer respectively.

2,937 persons claimed the one-off bonus in 2008, of which 2,676 received the same.

The Act on Job Placement and Unemployment Insurance prescribes the situations when anunemployed person is to be deleted from the register of unemployed persons. In 2008, 17,860 firstinstance resolutions on deletion of persons from the register of unemployed persons werereached. 180 appeals were submitted over the resolutions on deletion, of which 17 wereapproved.

The Act on Job Placement and Unemployment Insurance prescribes that a Croatian citizen whohad worked abroad is eligible for unemployment benefit during the period of unemployment inaccordance with the provisions of the international agreement.

A Croatian citizen who had worked in a country with which the Republic of Croatia has not signedan agreement regulating the benefits from unemployment status or a country in which he/she hadnot been secured for the event of unemployment, may claim the right to unemployment benefitaccording to the provisions of this Act if he/she had paid the employment contribution to theCroatian Employment Service for at least 9 out of 24 months preceding the termination ofemployment abroad.

The Croatian Employment Service applies the agreements on social security the CroatianGovernment has signed with other countries in determining the rights to benefits fromunemployment status as well.

Social security agreements containing provisions on unemployment have been signed with theRepublic of Austria, the Netherlands, the Check Republic, Bosnia and Herzegovina, FormerYugoslav Republic of Macedonia, Republic of Slovakia, Republic of Slovenia, Luxemburg, Serbiaand Monte Negro, Bulgaria and Italy, and are currently in force.

Based on Section III of the Constitutional Decision on the Sovereignty and Independence of theRepublic of Croatia, the Unemployment Insurance Agreement signed between the FormerFederal Republic of Yugoslavia and Federal Republic of Germany still applies. This agreementregulates the financial and legal protection of workers who had lost employment in Germany andconsequently returned to Croatia. This is the only agreement on the basis of which an unemployedperson that had stopped working abroad can, if meeting the requirements prescribed by theAgreement and the Job Placement and Unemployment Insurance Act, claim the right tounemployment benefit, regardless of the fact that their employment had been terminated outside

One-off Bonus

Deletion from the Register of Unemployed Persons

Claiming Benefits from Unemployment Status on the Basis of Having WorkedAbroad

Croatian Employment Service

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43

of Croatia. The Agreement also regulates the refunding of the paid benefit and the Republic ofCroatia sends out a request for refund to the Federal Republic of Germany twice a year. 7 suchrequests were submitted in 2008.

Under the social security agreements signed with other countries, only the periods during whichthe person was insured count when applying for unemployment benefit, provided that theemployment had been terminated in Croatia and that the unemployed person had been, prior tosubmitting the request, employed in Croatia for a certain period of time or insured for the event ofunemployment (for example, in the case of Slovenia: 9 months in the last 12 months, in the case ofAustria: 26 weeks in the last 12 months).

Apart from the terms set forth in these agreements, an unemployed person must also meet therequirements set forth in theAct on Job Placement and Unemployment Insurance.

An unemployed person referred to education and training by the CES is eligible for a financialassistance in the amount of the lowest unemployment benefit.

An unemployed person referred to education and training by the CES has the right tocompensation for travel expenses during such a programme in the amount of the real cost of(public) transportation, real cost of required books, food and prescribed protective clothes, shoes,and other items.

In 2008, 2,916 claimed unemployment assistance and reimbursement for expenses incurred inthe course of training.

Unemployed persons for whom the CES cannot find employment in their place of residence, andwho find employment in some other place, either through their own efforts or through the CESmediation services, have the right to a one-off lump sum reimbursement for travel and relocationexpenses (from the place of residence to the place of employment) for themselves, their spousesand children. The eligibility requirements have been determined on the basis of the

.

In 2007, 4,961 persons claimed the right to reimbursement for travel and relocation expenses and182 persons claimed the right to the one-off lump sum disbursement of the agreed amount.

Under the Act on Job Placement and Unemployment Insurance, the right to pension insurance isgranted to an unemployed person who has been granted right to unemployment benefit and is of acertain age, missing up to a maximum of 5 years of service to meet the requirements for age-basedretirement.

Also, the right to pension insurance is granted to an unemployed woman with a child under 1 yearof age at the time of termination of employment. This right the woman keeps until the child turnsone.

The following table gives an overview of the average number of financial insurance beneficiaries in2007 and 2008.

Unemployment assistance and reimbursement for expenses incurred in the course

of training

One-off lump sum reimbursement for travel and relocation expenses

Pension Insurance

Decision on

the One-off Lump Sum Reimbursement for Travel and Relocation Expenses4

4 No. 92/2002Official Gazette,

Yearbook 2008

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44

Unemployed Persons – Financial Insurance Beneficiaries

2007 2008Index

2008/2007

Average Number of Beneficiaries Per Month

Unemployment benefit - Total 59,603 57,258 96.1

Unemployment benefit – Croatian war veterans 26 20 76.9

Pension insurance 37 53 143.2

Number of Beneficiaries of the Right to the One-off Lump Sum

One-off bonus 2,359 2,628 111.4

Unemployment benefit disbursed as a one-off Lump sum 570 474 83.2

Unemployment assistance and reimbursement for expensesincurred in the course of training

2,972 2,916 98.1

Unemployment assistance and reimbursement for traveland relocation expenses

4,919 4,961 100.9

One-off lump sum 148 182 123.0

Croatian Employment Service

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45

CARDS 2004 PROGRAMME

CARDS 2004 - Local Partnerships for Employment – Phase 2

As part of the CARDS 2004 Programme, the CES executed a project entitled. It included two components: an agreement on the provision of services in

force from November 2005 until May 2007, and a grant programme.As part of the grant programme,ten contracts were signed in June 2007. The implementation of the said contracts was successfullycompleted in July 2008. The projects were carried out in 8 counties: Vukovar-Srijem, Sisak-Moslavina,Šibenik-Knin,Zadar,Požega-Slavonia,Brod-Posavina,Karlovacand Lika-Senj.

The objectives of the grant programme were:

• assisting target groups in finding employment (and self-employment) in local labourmarkets,

• support and strengthening of the capacity of local stakeholders to design and implementmeasures and projects in accordance with the local labour market demand.

The projects under the grant programme were directed at activities related to the enhancement ofknowledge and acquisition of new skills, recognised as the best and most useful way to increaseemployability. Education and training in writing CVs, presenting oneself to employers, increasingthe motivation, development of social skills and assessment of competencies were organisedalong with ECDL and foreign language courses. Some of the projects were directed at educationrelated to self-employment, basics of entrepreneurship, development of business ideas andcreation of business plans.

Education and training activities involved more than 400 persons, whereas more than 100persons found employment during or immediately after the implementation of the projects wascompleted.

These 10 projects were executed under the grant programme:

Project Holder:

Project Holder: Business Centre Pakrac

Project Holder: Centre for Entrepreneurship of Karlovac County Ltd

Project Holder: The Town of Nova Gradiška

Project Holder: Women's group Karlovac “STEP”

Project Holder: The Town of Senj

Project Holder: Organisation for Civil Initiatives

Project Holder: Šibenik-Knin County Chamber of Crafts

Project Holder: The Town of Pleternica

Project Holder: Ivora – School of Informatics

Local Partnerships forEmployment – Phase 2

1. Ricochet

PRONI – Centre for Social Education

2. SPONA– Sustainable Partnership and Operative Network

3. Partnership for Scholarship

4. Training in CNC Metal Processing

5. Next Step – Social Cooperative

6. Info Point for Entrepreneurs and Unemployed

7. With Knowledge to Work

8. Developing of the support system for the SKC labour market

9. YIPPEE - Youth Integration in Pleternica for the Prosperity of Economy and Employment

10. Lifelong Learning in the Field of Insurance and Management

Projects Supported by the International Community

Yearbook 2008

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46

PHARE 2005 PROGRAMME

PHARE2005 –Active Measures for EmploymentofPersons Threatenedby SocialExclusion

The overall goal of this project was to strengthen economic and social cohesion of the mostvulnerable groups in the Croatian society by increasing their employability level. At the same time,it served to increase the capacity of various stakeholders in the labour market to implement theactive employment policy measures intended for groups threatened by social exclusion. Theproject consisted of two components:

an agreement on the provision of services called

, startedonApril 10,2007andendedonDecember9,2008

a grant programme that lasted from December 2007 until December 2008, under which 11projects were successfully completed.

Activities defined under the agreement on the provision of services include 4 components:

Outputs:

Task Force 1 was formed under Component 1. It consisted of the CES representatives from bothcentral and regional level, as well as representatives of social partners and stakeholders (CroatianChamber of Commerce, Croatian Employers' Association, Union of Autonomous Trade Unions ofCroatia, Ministry of Economy, Labour and Entrepreneurship, Central Bureau of Statistics). TheTask Force drafted a research plan for the assessment of active labour market policy measuresimplemented by the CES. Both soft and hard data were used in the assessment research. A fieldresearch was conducted in 4 selected counties: the City of Zagreb, Međimurje, Šibenik-Knin andOsijek-Baranja. Focus groups with stakeholders were formed at the central level as well. 9personalized research instruments covering all measure beneficiaries were developed. 4,143questionnaires were sent (of which 1,286 to employers and 2,857 to individuals). Meetings offocus groups were held at both regional and national level. From the total number ofquestionnaires sent, 27.2 per cent was returned.

The results of the research were presented in the cities of selected pilot regions: Šibenik, Zagreb,Osijek and Čakovec. The presentations were attended by representatives of all CES regionaloffices and local stakeholders. The feedback from the regional workshops was used by theTechnical Assistance staff to create the first draft of the assessment report, i.e. inspection andcomplete assessment of the relevancy, efficiency and results of active labour market policymeasures.

Outputs:

Assessment, Preparation of Recommendations,

Capacity Strengthening and Grant Management Concerning Employment Incentive Measures in

the RepublicofCroatia

Inspection and complete assessment of relevancy, efficiency and results of active labour

market policy measures implemented by the CES.

Description and assessment of the management system and capacity of the CES to develop,

apply, monitor and assess active labour market policy measures.

A draft of recommendations for improving the active labour market policy measures

implemented by the CES was made.

Abrief on the cooperation of the CES and local labour market stakeholders was prepared.

1. Assessment of efficiency of current active labour market policy measures in the

Republic of Croatia and their implementation and management system

2. Preparation of recommendations for improving the existing active labour market policy

measures and proposal of new ones in cooperation with relevant stakeholders

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As part of Component 2, Task Force 2 was formed. It consisted of representatives from the centraland regional CES offices and other stakeholders (Croatian Chamber of Commerce, CroatianChamber of Crafts and Trades, Croatian Employers' Association, Ministry of Economy, Labourand Entrepreneurship, Ministry of Science, Education and Sports, and Union of AutonomousTrade Unions of Croatia).

Based on the results obtained through the assessment research, Task Force 2 drew up a draft ofnew measures that includes the recommendations for the implementation of the active labourmarket policy at the institutional level. The first draft of the recommendations was presented at fourregional workshops. The feedback obtained at regional workshops was included in the final draft.

As part of this component, a brief on the cooperation between the CES and local stakeholders wasprepared. It defines the guidelines for cooperation at the local and regional level with respect tofuture requirements of the European Social Fund concerning the programming andimplementation of active labour market policy measures.

Outputs:

As part of this component, a needs analysis concerning the education and training programmesfor the employees of the CES was conducted in all CES offices on the basis of target group-specific questionnaires, including persons responsible for active labour market policy measures,counsellors, analysts and trainers. On the basis of the results obtained, an adequate trainingprogramme was created. The following training seminars were organised: Grant ProgrammeManagement; Design, Planning, Monitoring and Assessment of Active Labour Market PolicyMeasures; and Working with Risk Groups.

Results:

In November 2007, the Central Office Financing and Contracting Department contracted 11projects. In cooperation with the Technical Assistance staff, an initial meeting was held for thegrant beneficiaries, at which the implementation package and their obligations were presented tothem. The Project Implementation Department organised workshops at which the reportingprocedures were explained to grant beneficiaries more closely. Together with the TechnicalAssistance Department, the Project Implementation Department visited all 11 project locations.Also, with the help of the Technical Assistance Department, employees working in the ProjectImplementation Department analysed and commented on the reports of grant beneficiaries. Theprojects were completed and fully implemented at the end of November 2008.

3. Strengthening the capacity of employees of the CES to manage and implement active

labour market policy measures

4. Assistance in the implementation of the PHARE 2005 Grant Management Programme

“Active Labour Market Policy Measures for Groups Threatened by Social Exclusion”

Trained employees of the CES at the national and regional level responsible for the

implementation of active labour market policy measures and grant management with the aim

of improving the active labour market policy measures.

The employees of the Project Implementation Department were trained in grant management.

Grant beneficiaries were made familiar with the principles, mechanisms, regulations and

procedures related to the implementation of EU projects under grant programmes.

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PHARE 2005 Grant Programme - Active Labour Market Policy Measures for Groups

Threatened by Social Exclusion

Croatian Employment Service

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3. The concept note of the Split and Dubrovnik Regional Offices and the cross-borderpartner, Herceg Novi Employment Service from Montenegro, is called

. The main objective is to raise thequality of tourism services by providing education and training opportunities for small andmedium-sized businesses and labour force.

The main activity of WP 2B was the development of an internal database of experts (analysts,demographers and experts in EU projects) modelled after the ROSTER database used in Italy,which was, after the test phase, implemented in the ICT system used by the CES. Computerequipment for regional offices in theAdriatic Region was procured, i.e. 6 computers, 6 projectors, 1info kiosk and a lap-top for the CES Central Office Project Implementation Department.

Under WP 3C, the CES employees got an opportunity to make two study visits. During the firststudy visit, the employees of the CES received information on the ROSTER database of theVeneto LavoroAgency. ROSTER is a database of experts in labour market and migration.Asimilardatabase was created within the CES.

The result of the activities carried out under WP 4B is a report on the most frequent occupationsrelated to employment abroad. The same was forwarded to the Veneto Lavoro Agency for thepurpose of creating a joint database on the mobility of workers.

The final project conference, planned under WP 5A, was held in Opatija on January 20, 2009. Therepresentatives of the Italian partner, Veneto Region, representatives of Montenegro andrepresentatives of Bosnia and Herzegovina attended the conference. Croatian representativesincluded directors and employees of the CES regional offices who attended the educationaltrainings organised under the project, the project team and experts from the Central Office whoparticipated in the implementation of project activities.Apart from the presentation of activities andproject outputs, a discussion of the possible continuation of the DILMA Project was held at theconference as well.

The IPAProgramme is a unique programme for the period 2007-2013 that will replace current pre-accession programmes, namely CARDS, PHARE, ISPA and SAPARD, as well as consolidate thecomponents of the same.

The main purpose of the IPA Programme is the provision of support to candidate countries in theharmonisation of national legislation with the and the preparation for usingthe structural and cohesion developmental funds after the accession into the EU.

The financial funds intended for Croatia under the components of the IPA Programme for theperiod 2007-2011 equal EUR 749.83 million.

To ensure a more efficient implementation of the main objectives, the IPA Programme was dividedinto five components:

1) TransitionAssistance and Institution Building;

2) Regional and Cross-Border Cooperation;

3) Regional Development;

4) Human Resources Development; and

5) Rural Development.

The Croatian Employment Service takes part in three components of the IPA Programme:Component 1- Transition Assistance and Institution Building; Component 2- Regional andComponent Cross-Border Cooperation; and Component 4- Human Resources Development.Project documentation for three projects was drafted under Component 1.

1. CES training centre

Raising the qualityof autochthonous tourist offer in the South Adriatic

acquis communautaire

Instrument for Pre-accessionAssistance (IPA)

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50

2. Preparation of the Croatian Employment Service for joining EURES network

3. Enhancing access to employment for vulnerable groups and workers of restructuring

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Yearbook 2008

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Organisational Structure and Activities of the CES

52

Croatian Employment Service

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Main Responsibilities and Development Strategy of theCroatian Employment Service

The Croatian Employment Service (CES) is a public institution of special significance to the RepublicofCroatia, its citizens,businessentitiesand institutions.The main responsibilities include:

Mediation in employment of jobseekers in the country and abroad;

Financial and legal protection of unemployed persons during unemployment;

Vocational counselling of unemployed and other persons in making career and occupationchoices;

Organisation of vocational education, additional training and retraining programmes;

Monitoring and analysis of labour market conditions and informing the public of the same;

Promotion of employment and self-employment through implementation of activeemployment policy measures.

The users of our services include:

Employers – companies, craft businesses, entrepreneurs, cooperatives and other;

Unemployed persons – persons actively looking for employment who are available forwork, who earn less than the highest amount of the unemployment benefit and areexercising their rights arising from the unemployment status;

Jobseekers – persons registered with the CES who are looking for employment but do notexercise the rights arising form the unemployment status, including employed persons,students and other;

Pupils, students and other – the CES is open to all persons who need informationconcerning employment and labour market.

Here is an overview of the services we offer to employers:

By providing insight into the most comprehensive database on unemployed persons andjobseekers, we mediate in the selection of candidates that, on the basis of theirqualifications, fit the needs of employers best;

We advertise the demand for employees free of charge (on our website, in bulletins, oninformation boards in regional and local offices);

We provide team (psychological, medical and pedagogical) assessment of candidate'scharacteristics, taking into consideration the job-specific requirements;

We conduct selection processes (pre-selection, selection) and refer an agreed number ofcandidates for particular jobs to employers;

We offer financial assistance for employment or education through our employmentincentive programme;

We provide legal assistance in the field of employment as well as professional andorganisational help in the process of restructuring and handling of redeployment;

On the basis of a contractual relationship, we offer the employers the mentioned and otherservices without involving a lot of administrative work.

Information about job vacancies from various sources as well as about the labour marketdemand,economic trends in particularCroatian regions, successful entrepreneursand other;

Who are the users of our services?

What services do we offer to employers?

What do we offer to unemployed persons and jobseekers?

53

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54

Info Desk services (the place for regular reporting, handling of administrative matters,arranging individual counselling and group informing sessions, obtaining legal adviceetc.);

Individual counselling – assistance in assessment of working, professional and personalpotential, assistance in drawing up a career and employment plan, mediation in findingtarget job positions, feedback on activities carried out and the results achieved;

Group informing – provision of information about the situation in the labour market in theconcrete region (unemployment structure, occupations in short or excess supply) as wellas about the CES services that can assist in job search and the rights and obligationsbased on laws and regulations, emphasising the importance of personal engagement injob search;

Various workshops the goal of which is the acquisition of knowledge and skills ensuring assuccessful orientation in the labour market as possible, as well as occasions for exchangeof experiences in the search for employment through informal activities and gatherings;

Financial and legal protection of unemployed persons pursuant to the valid laws andregulations (unemployment benefit and other types of assistance);

Vocational guidance sessions – assistance in additional (self)assessment of personalpossibilities and characteristics in choosing an education and training programme,determining the remaining working ability, and assessment of the working potential for aconcrete job position.

The basic factors related to work organisation and functioning of the CES include theorganisational structure and business processes, the technology used, the provision of services,and client satisfaction. Considering the continuous work on the improvement of services,numerous investments in the technological development and organisation as well as creation ofnew business processes, it is evident that the CES is putting efforts in ensuring high-standardservices for its clients.

At the beginning of 2008, therefore, the Managing Board of the CES adopted the Strategic Plan ofthe Croatian Employment Service for the period 2008-2011, defining its vision, mission andstrategic goals.

The Croatian Employment Service is the main actor in the development of the Croatian labourmarket, especially in matching the overall demand with supply for the purpose of achieving fullemployment.

To achieve efficient mediation in the labour market by raising the quality of services in accordancewith the needs of clients through developing knowledge, skills and abilities and promotion ofpartner relationships with other stakeholders in the labour market.

1. To develop the services of the CES for the purpose of increasing labour forcecompetitiveness and satisfying labour market demand.

2. To develop human resources and the administrative capacity of the Croatian EmploymentService for the purpose of creating and providing new services in the labour market.

3. To attain the leading position in the labour market by establishing partner relationships andstrengthening the impact of the CES on the making and implementation of public policy.

Strategic Development Plan of the CES

Vision Statement

Mission Statement

Strategic Goals

Croatian Employment Service

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Pursuant to the Act on Job Placement and Unemployment Insurance, the Croatian EmploymentService is organised as a public institution owned by the Republic of Croatia.

The CES operates through the following organisational units:

Central Office,

22 regional offices,

and 95 local offices,

thus making its services available across the Republic of Croatia.

The Central Office includes:

1. Director General's Office;

2. Employment Placement and Preparation Sector;

3. LegalAffairs, Personnel and GeneralAdministration Sector;

4. Economic, Financial andAccountingAffairs andAsset Management Sector;

5. Organisational Development and Project Implementation Sector;

6. PR and International Cooperation Department, Internal Audit Department, Departmentfor Financing and Contracting of EU Projects.

The listed sectors are divided in departments and departments in divisions.

The CES regional offices are differently organised depending on the regions they cover and thevolume of business. The regional offices in Zagreb, Split, Osijek and Rijeka include the followingdepartments: Employment Placement and Preparation Department; Analysis and StatisticsDepartment; IT Department; Legal Affairs, Personnel and General Administration Department;Finance andAccounting Department; and International Projects Implementation Department.

Other regional offices also include the Employment Placement and Preparation Department;Analysis, Statistics and IT Department; Legal Affairs, Personnel and General AdministrationDepartment; Finance and Accounting Department; and International Projects ImplementationDepartment.

The departments of regional services are further divided in divisions.

The CES is governed by the Managing Board composed of 11 members, i.e. representatives ofstate institutions, trade unions, employers, workers and unemployed persons organisations.These representatives are appointed by the Government of the Republic of Croatia. The CES isheaded by a Director General who has the authority to represent it and is responsible for thelegality of CES operations. Director General is also appointed by the Government. The scope ofresponsibilities and authorisations of the Managing Board, Director General and AssistantDirector General are defined on the basis of the CES Statute.

On December 31, 2008, the CES employed a total of 1,251 workers.

From the total number of employees, 1,136 (90.8 per cent) were employed in regional offices,and 115 (9.2 per cent) in the Central Office. The largest number of employees was recorded inZagreb (179), Split (137), Osijek (91) and Rijeka (77) Regional Offices, which represents 38.7per cent of the total number of employees of the Croatian Employment Service.

Organisational Structure and Employees

Yearbook 2008

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CES Employees by Educational Level As of December 31, 2008

645 (51.6 per cent) employees have university education, 211 (16.9 per cent) have non-universityeducation and 327 (26.1 per cent) employees completed a 4-year secondary school. 12 (0.9 percent) employees completed a three-year vocational school or school for skilled and highly-skilledworkers, whereas 56 (4.5 per cent) employees have basic school education only. Employees withnon-university and university education make the absolute majority (51.6 per cent).

The development and education of the employees of the Croatian Employment Service are thetwo elements that are inherent in all three strategic goals of the CES, although such activities aremainly carried out under Strategic Goal 2:

For the purpose of enhancing the competencies of the CES employees by providing opportunitiesfor the acquisition of knowledge and skills through internal educational activities, the EU projectproposal entitled has beendesigned under negotiation chapter 19 (Social Policy and Employment). The main goal of theproject is to strengthen the capacity of the CES allowing it to become a more efficient and moreeconomical labour market institution, whereas its purpose is to provide support in theestablishment of an employee education and development system in the field of activeemployment policy intended for the CES employees and representatives of other importantstakeholders in the labour market. The aim is to enhance the incentive structures and flexibility inthe labour market though active participation of all stakeholders (representatives of stateinstitutions, employers, unions and the civil society) in the execution of the project. Theeducational programmes will be designed and carried out jointly. The programmes will include the

To develop human resources and the administrative

capacity of the Croatian Employment Service for the purpose of creating and providing new

services in the labour market.

Croatian Employment Service Labour Market Training Centre

Employee Education

0.9

4.5

16.9

26.1

51.6

0

10

20

30

40

50

60

Universityand post-graduatedegrees

4 (or more)-yearvocationalsecondaryschool and

grammar school

Non-universitydegree

Basicschool

1 to 3-yearvocational

secondary schooland school for

skilled and highlyskilled workers

Perc

enta

ge %

Croatian Employment Service

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57

know-how and best experiences from the practice of all project participants. The main project andactivity holder is the Croatian Employment Service. The project proposal was adopted by theEuropean Commission in October 2008. It is expected that an agreement on financing will besigned by the end of 2009 and that the contracting will be executed at the latest two years after thesigning of the said agreement. The implementation of the project is expected at the latest twoyears after the contracting is completed.

In 2008, the implementation of educational activities in the CES was carried out on three mainlevels. It involved activities related to vocational guidance; activities envisaged and implementedunder international projects of the Croatian Employment Service; and activities related to humanresources development and education. Apart from the mentioned levels, specific knowledge andskills were acquired through participation at professional conferences, seminars and workshopsorganised within or outside the Croatian Employment Service (by partner institutions andorganisations from the country and abroad) or through outsourcing.

All CES regional offices and departments participated in the implementation of educationalactivities related to human resources development and strengthening of the institutional capacitythrough interactive team work (in the first place including Departments for Employee Developmentand Education, Personnel and General Administration, Mediation, Vocational Guidance, ProjectImplementation and International Cooperation, and Informing) and direct cooperation with the keystakeholders in the labour market.

In the process of implementation of Strategic Goal 2:

the CES and other institutions conducted a total of449 educational activities (trainings, seminars, workshops, professional gatherings and internaleducational modules based on specific individual and local needs) for 2756 people/day.

Educational activities designed for the purpose of enhancing the knowledge of occupationsrelevant in the work with the clients, intended in the first place for counsellors providing services tounemployed persons and employers, are conducted by a four-member team of trainers. Internaleducational activities primarily involve three types of five-day standard trainings: training inacquiring counselling skills, training in acquiring marketing skills and training in acquiring skills forhandling difficult situations; three-day standard trainings: Office for Employers; and one-daytrainings related to specific CES business processes and applications (active employment policy,working on info desks, candidate proposal, National Standard Classification of Education,National Classification of Occupations, professional plan, business letters, categorisation, groupand individual informing, etc.). In 2008, the team of trainers conducted 85 educational activitiesinvolving 638 persons, of which 15 standard five-day trainings involving 163 persons and 70 three-day trainings involving 475 persons.

Two new educational programmes were created in 2008, i.e. a five-day programme entitled(44 persons) and a three-day programme

entitled (31 persons).

Four trainers conduct trainings and seminars for the entire system, at the same time beingcontinuously engaged in the implementation of the educational programme at the local level,which is a practice to be implemented across all other regional offices during 2009.

During the year, a document calledwithin the CES was drafted and delivered to the Ministry of

Finance, Department for Curbing Irregularities and Frauds. So far, four educational trainings foremployees involved in the programmes financed from EU funds were conducted, in accordancewith the programme of the Department for Curbing Irregularities and Frauds.

;

To develop human resources and the

administrative capacity of the Croatian Employment Service for the purpose of creating and

providing new services in the labour market

Education in Active Employment Policy Measures

Education for Office for Employers

A Needs Analysis Related to Education of Employees Working

on EU Assistance Programmes

Yearbook 2008

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Sources of Financing

Structure of Expenditures

Pursuant to the provisions of the Job Placement and Unemployment InsuranceAct, the sources offinancing of employment-related activities include the employment contribution and othersources.

Pursuant to the Statutory Insurance Contributions Act, employment contribution is paid into theunique State Treasury account.

Under the Budget Act, the Croatian Employment Service is a non-budgetary beneficiary financedthrough the budget and other sources.

Pursuant to the Order of the Ministry of Finance, by cancelling the transfer account of the CroatianEmployment Service in 2007, income from other sources is now paid into the State Budget, so thatthe total expenditures of the CES in 2008 were included in the State Budget expenditures.

The total planned income of the CES for 2008 amounted to HRK 1,160,827,303, of which HRK1,153,991,531 from the State Budget and HRK 6,835,772 from international organisations andpre-accession EU funds.

The realised income from the State Budget amounted to HRK 1,151,049,276, i.e. 99.74 per cent ofthe planned income, while the realised income from international organisations' assistanceequalled HRK 8,254,079, i.e. 120.74 per cent compared to the planned figure.

In addition, in 2008 the CES realised income from financial assets in the amount of HRK 300 andincome from support and donations in the amount of HRK 297,611.

The funds for operating expenditures of the CES were disbursed in accordance with the 2008State Budget of the Republic of Croatia, the 2008 CES Income and Expenditure Plan and laws andregulations applicable to the operations of the CES.

In 2008, the total expenditures amounted to HRK 1,159,798,917, i.e. 0.08 per cent less thanplanned.

A total of HRK 814,725,306 (70.24 per cent of the total expenditures) was disbursed for materialand legal protection of unemployed persons. The largest portion of the funds, HRK 813,577,304,was spent on the payment of unemployment benefit to unemployed persons, including also thepayment of the one-off financial bonus to unemployed persons who had spent 25, 30 or moreyears working for their previous employer. HRK 109,288 was spent on pension insurancecontributions for unemployed persons, whereas a total of HRK 1.038.714 was used to cover otherexpenses related to material and legal protection of unemployed persons, including theunemployment assistance and reimbursement for expenses incurred in the course of training,compensation for relocation expenses, and other.

In 2008, the CES spent a total of HRK 137,057,584 (11.81 per cent of the total expenditures) onactive labour market policy measures from the 2008 Annual Employment Incentive Plan. Themeasures from the National Employment Action Plan 2005-2008 accounted for HRK132,797,863, while the measures from the Action Plan for the Decade of Roma Inclusion 2005-2015 accounted for HRK 4,259,721 of the total amount.

A total of HRK 2.449.923 (99.99 per cent of the planned figure and 0.21 per cent of the totalexpenditures) was spent on activities provided under the Preparation for Employment and Self-employment Programme (vocational guidance and rehabilitation, medical examinations andinforming of unemployed persons for the purpose of assisting them in finding employment).

Sources of Financing and Structure of Expenditures

58

Croatian Employment Service

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Employee-related expenditures amounted to HRK 134,758,876 (99.82 per cent of the plannedamount), accounting for 11,61 per cent of the total expenditures. Employee salaries and benefitsare paid in accordance with the CES Regulations on Employee Salaries, Collective EmploymentAgreement for Public Service Employees and Officers, and other legislation regulating thepayment of salaries in public services.

Material and financial expenditures ensuring regular operation of the CES accounted for a total ofHRK 50,117,127 (98.37 per cent of the planned amount), i.e. 4.32 per cent of total expenditures.

In 2008, an amount of HRK 10,778,684 was planned for capital investments, of whichHRK10,643,011 was actually used (98.74 per cent of the planned amount).

Expenditures incurred under projects co-financed through pre-accession EU funds (CARDS andPHARE Programmes) were also included in total expenditures of the CES.

A total of HRK 9,323,225 was spent on the PHARE project entitled. HRK 177,845 was spent on the Adriatic

Cross-Border Cooperation Programme 2004-2006 – DILMA Project, while a total of HRK 546,020was spent on projects entitled and , part of the Programme forthe Neighbourhood of Slovenia, Hungary and Croatia. These projects were financed from the EUfunds in the total amount of 8,422,169, of which HRK 8,254,079 was received in 2008 and HRK188,090 the year before. The difference was paid from the State Budget income.

The balance between the realised income and the realised expenditures in 2008 was recorded assurplus income in the amount of HRK 76,034. This surplus includes the funds on the DILMAProject designated foreign exchange account in the amount of HRK 75,495 and unused fundsfrom supports and donations in the amount of HRK 539.

Active Measures for

Employment of Persons Threatened by Social Exclusion

Herbal Network Pannonian Tourism

59

Yearbook 2008

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Appendix 5

Income and Expenditure AccountJan 1 - Dec 31, 2008 (HRK)

Index

(5:4)

1 2 3 4 5 6

Income from the State Budget

Assistance from International Organisations

Income from Financial Assets

Income from Supports and Donations

1. 664 1,153,991,531 1,151,049,276 99.7

2. 632 6,835,772 8,254,079 120.7

3.

3.1 641 300

3.2 633, 663 297,611

297,911

Material and Legal Protection of Unemployed Persons:

Unemployment Benefit 813,577,304

Unemployed Persons Pension Insurance Contribution 109,288

Other Expenses (transportation, education,relocation and similar for purposes of employment) 1,038,714

Other Income

INCOME

1,160,827,303 1.159,601,266 99.9

1. 3711

EXPENDITURES

Total Income (1+2+3)

ItemNo. Account Name of Account Planned Realised

815,085,000 814,725,306 100.0

2. 3721Vocational Guidance, Informingand Rehabilitation 2,450,000 2,449,923 100

3. 3722 Decade for Roma Inclusion Action Plan 4,590,000 4,259,721 92.8

4. 35, 3722 National Employment Action Plan 133,468,870 132,797,863 99.5

1,160,827,303 1,159,798,917 99.9

Total Income 1,160,827,303 1,159,601,266 99.9

Total Expenditures 1,160,827,303 1,159,798,917 99.9

Balance -197,651

9221 Surplus Income from Previous Periods

Surplus Income 76,034

5. 32CARDS 2004 Local Partnershipsfor Employment - Phase 2 939,772 0.0

6. 3721PHARE 2005 Active Measures for Employmentof Persons Threatened by Social Exclusion 7,353,000 9,323,225 126.8

7. 32, 42 INTERREG IIIA - Herbal Networkand Pannonian Tourism

9. 31

DILMA Project

134,998,283 134,758,876 99.8

10. 32, 34 Material and Financial Expenditures EnsuringRegular Operation of the CES

50,944,504 50,117,127 98.4

11. 4 Expenditures for the Purchase of Non-financial Assets 10,778,684 10,643,011 98.7

Total Expenditures

60

0

8. 32, 42

Employee-related Expenditures

273,685

219,190 546,020 249.1

177,845

Croatian Employment Service

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InternalAudit

Pursuant to legal regulations, internal audits are conducted within the CES for the purpose ofimproving its business operations.

The Internal Audit Department provides support to the budget user in the realisation of goals bydrafting strategic and annual internal audit plans based on objective risk assessment; throughperforming separate internal audits in accordance with the adopted plans; assessment ofadequacy and efficiency of the financial management and control system; as well as by givingrecommendations related to the improvement of business operations.

Four audits were conducted in 2008, of which three under the Annual Internal Audit Plan and oneextraordinary audit. 75 per cent auditor days were spent in the case of internal auditscarried out under theAnnual Plan and 25 per cent in the case of the audit.

Over the year, 28 recommendations were given, of which 25 were fully implemented and 3 onlypartly i.e. the implementation is currently in process. There are no non-implementedrecommendations. An action plan covering the adopted recommendations and the requiredactivities was prepared. Its implementation is monitored in accordance with the provisions ofArticle 29, Section 4 of the Public Internal Financial Control SystemAct.

On the basis of the recommendations specified in the audit reports, the existing internal controlsystem integrated into the processes designed and implemented by the management in therevised process was improved through updating of internal procedures, educational activities,teamwork and, most importantly, risk management. Thus, communication between theparticipants in the process was improved and transparency and efficiency of the process wereincreased, allowing smooth business process execution.

Supervision, monitoring and reporting, which make the foundations for a good internal controlsystem, are documented and later used in the decision-making process as well as to ensure abetter awareness of the possible problems related to business processes.

Pursuant to the Public Internal Financial Control System Act, an Annual Report on AuditsConducted and the Internal Audit Department Activities was drafted and delivered to the CentralHarmonisation Unit at the Ministry of Finance.

To ensure that internal audit is performed in accordance with international standards, it isnecessary that all employees responsible for conducting audits acquire professional certificationpursuant to the programme of the Ministry of Finance, Central Harmonisation Unit.

Currently, the CES Internal Audit Department employs two female internal auditors who havecompleted the training required to obtain professional certification as public internal auditors.Aftersatisfying all the requirements, they were certified by the Ministry of Finance.

ad hoc

ad hoc

Internal Financial Control System

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In 2008, the CES continued working on the development of the ICT support for its businessprocesses. An application module enabling delegation of job vacancies (TR Form), if the need forworkers cannot be satisfied in the relevant local office or if the employer requests for someonefrom a different region, was put into regular operation. Such delegation (TR Form) is possible at alllevels of the CES (in local offices, regional offices and the Central Office). An application moduleenabling counsellors to whom the need for workers is delegated (TR Form) to candidateunemployed jobseekers was also implemented. The andmodules were connected in order to enable monitoring of activities of candidate unemployedjobseekers and counsellors.

For the purpose of working with employers in a more efficient way and ensuring performancemonitoring, new types of activities and new times for working with employers were introduced(visits to employers, workshops for employers, and similar).

Application support for the creation of a daily bulletin listing job vacancies was installed onto CESinformation boards, thus equalising the manner of announcing job vacancies across all CESfacilities.

The active employment policy application module for monitoring the employment incentivemeasures was supplemented in 2008. The mentioned module supplements are related to the newconditions in agreements. Module supplements related to new contract terms were developed, themodule for education monitoring was upgraded and monitoring reports were drafted (according tothe number of persons involved and financial funds used, according to the types of measures: co-financing employment measures, unemployed persons education measures, and public works).

An intranet application enabling entering of labour market experts into a database and searchingthe same, was developed as part of the DILMAProject. It also provides the initial list of experts andis available on all computers of the CES.

An application module for monitoring the use of financial support received by the Department forFinancing and Contracting of International Projects (the so-called IPA Department) wasdeveloped and implemented. A new application module for documentation management,monitoring and filing of documents and cases, enabling connection with cases of otherdepartments was also implemented in the afore-mentioned department.

A module for the calculation of unemployment benefits, determination of rights and drafting ofresolutions in accordance with the new Job Placement and Unemployment Insurance Act wasdeveloped and activated on January 1, 2009.

Application modules for testing and pilot installation in the Central Office, for monitoring theexecution of travel requests and the implementation of the procurement plan pursuant to thePublic Procurement Act were prepared; and the personnel records report drafted. Theimplementation of these application modules is expected to happen in the first three-month periodof 2009.

To provide as efficient control of data entered as possible, the Central Office IT Departmentprepares a series of control reports (for the Mediation, Legal and Financial Affairs Departmentswithin regional offices). Performance indicators are collected on a monthly basis, whereas thewebsite is updated daily.

In 2008, the CES also worked on the development, standardisation, maintenance and upgradingof the software, technology and communications platform supporting the functioning of the ICTsystem used by the CES.

candidate proposal job search log

ICT Support to Operations of theCroatian Employment Service

Croatian Employment Service

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The ICT system used was accredited. The adopted projects required to obtain the confirmation ofaccreditation were elaborated and implemented. The level of communications support in thecritical locations was raised. IT support was provided for the new locations, and local computernetworks were developed in critical locations.

As a result of the accreditation of the ICT system, which was carried out by the EU AuditDepartment in order to check the level and safety of IT support for business processes of theDepartment for Financing and Contracting of EU Projects, the following projects, which will soonbe implemented throughout the CES system, were prepared:

1) Policy Security;

2) Disaster Recovery;

3) Business Continuity Plan;

4) Document Management Project.

The first phase of the ICT system consolidation was completed, during which some of the ITequipment was replaced (server and user). Thus, a higher standard support to the data processingprocess was ensured and the safety of work and archiving (data storing) increased. Thisimprovement was achieved through the application of new methodologies (server virtualisation),new system software and the implementation of a spare location covering some of the serverfunctions and data archiving. Some of the requirements defined under the accreditation procedurewere thus satisfied.

The level of communications support for the critical number of locations (extension of the CentralOffice capacity for data processing and Internet access, 9 regional offices and 35 local offices) wasraised. IT support was provided for the new local office locations (Popovača and VaraždinskeToplice).

Support for the implementation of information kiosks (self-service devices) installed in 8 Zagreblocal office locations outside the facilities (donated by the County of Zagreb) was provided. Theinfo kiosks offer CES services and access to other information, thus ensuring better disseminationof information and use of services.

The implementation plan for the 2009 E-Croatia Programme was developed, defining the type andmanner of provision of services to CES users via the Internet.

In cooperation with the Austrian Public Employment Service and for the purpose of enhancing theBusiness IT support used, an extensive analysis of the organisation of CES business processesrelated to client services was carried out. IT support was also analysed.An info kiosk was installedat the Zagreb Regional Office, a donation from the Austrian Public Employment Service, theimplementation of which enables clients to obtain better information through self-service.

IT support and equipment were also provided for the International Migration Centre establishedwithin the Zagreb Regional Office.

In addition to the activities mentioned, the CES continuously worked on the maintenance of theexisting system and provision of user support, and coordinated the work on system maintenancewith outside service providers.

Yearbook 2008

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International cooperation between the CES and its bilateral and multi-lateral partners wascontinued in 2008 as well.

involved a series of projects, seminars, workshops and studyvisits to employment services inAustria, Germany and Sweden.

Pursuant to an agreement made by and between the Ministry of Economy, Labour andEntrepreneurship of the Republic of Croatia and the Federal Ministry of Economics and Labour ofthe Republic of Austria on further labour market development, the CES successfully cooperatedwith the L&R Institute for Social Research through a series of activities, i.e. a study visit to theAustrian Public Employment Service Employee Education Centre in Linz and seminars entitledQuality Standards at the Employment Service: Methods and Experiences held in Vienna andExternal Associates of the Employment Service: Cooperation Procedures and Problems held inMošćenička Draga.

In cooperation with the Swedish National Labour Market Board, the CES held a seminar on thetopic of in Zagreb. The said seminar is part of the WorkLife Mobility Programme. It included representatives from Cyprus, Estonia, Lithuania, Macedonia,Sweden and Croatia.

The CES signed an agreement on cooperation with the Public Employment Service of the FederalRepublic of Germany. The two institutions wish to enhance their cooperation in the following fields:active employment policy measures (development, implementation and monitoring); mediation inthe labour market; client services; vocational informing and guidance; labour market forecastingand analysis; management techniques; performance measurement; human resourcesdevelopment; ICT support for business processes.

was continued through the membership in the WAPESManaging Board (World Association of Public Employment Services - WAPES). As one of the 16members of the WAPES Managing Board, the CES participated in the preparation of the workstrategy and the implementation of the WAPES Annual Action Plan. Through regular cooperationwith the WAPES Secretariat and Management, the CES organised the preparation activities forthe 8 WAPES World Congress on the topic of

, which is to take place, along with a number of accompanying events (ManagingBoard meetings, GeneralAssembly session) in Dubrovnik in the period May 26-30, 2009.

Under the Stability Pact and the regional cooperation process, the CES participated, as one of themembers of the Centre of Public Employment Services of Southeast European Countries, in theimplementation of a document entitled

on the basis of which Croatia, Bosnia andHerzegovina, Bulgaria, Macedonia, Montenegro, Romania, Serbia, Slovenia and Turkey operatejointly in the region's labour market.

In September 2008, the CES organised an international conference called, whereas an international

conference gathering public employment services of the countries of South-East Europe entitledwas held in

November.

The CES employees attended a number of professional conferences and seminars in the countryand abroad responding to invitations from international bodies, organisations and associations(governments of EU Member States, European Council, ETF, ILO, UNECE, UNDP, CEI, WAPES,and similar) received through the Ministry of the Economy, Labour and Entrepreneurship, Ministryof ForeignAffairs and European Integration or directly.

Bilateral international cooperation

Labour Market Forecasting and Analysis

Multilateral international cooperation

Public Employment Services – Efficient Labour

Market Actors

Operating Guidelines for the Centre of Public Employment

Services of Southeast European Countries

Education and

Employment of Persons with Disabilities: Experiences, New Directions

Working with Clients at Public Employment Services and Service Provision Channels

th

International Cooperation

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Croatian Employment Service

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As far as the accession of the Republic of Croatia into the European Union is concerned, theemployees of the CES participate in task forces formed for the purpose of preparation foraccession negotiations with regards to Chapters 2, 19 and 22. The task forces participated in thepreparation and implementation of the procedure for analytical review and assessment of theattained level of harmonisation of the Croatian national legislation with the ,i.e. the screening process. The main purpose of this process is to identify the existing differencesin negotiation chapters between the Croatian legislation and the withwhich the national legislation is to be harmonised before the accession into the EU is to take place.

acquis communautaire

acquis communautaire,

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Croatian Employment Service

Notes

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Croatian Employment Service

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ISSN 1331-2618


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