Croatian Employment Service

2015Yearbook

Cro

atia

n Em

ploy

men

t S

ervi

ce2015 Yearbook

ISSN 1849-4420

Zagreb, May 2016

2

Croatian Employment Service

IMPRINT

Publisher: Croatian Employment Service, Zagreb, Radnička cesta 1Phone: 00385 1 61 26 000Fax: 00385 1 61 26 038E-mail – Editorial Office: marica.baric@hzz.hrWebsite: http://www.hzz.hr

On Behalf of Publisher:Ante Lončar,Acting Director General of the Croatian Employment Service

Editor:Marica Barić

English Translation:Abis d.o.o., Zagreb

Graphic Design and Print:Intergrafika TTŽ d.o.o., Zagreb

Circulation:50 copies

3

2015 Yearbook

Table of Contents

Summary 7

Economy and Labour Force 10

Unemployment 15

Labour Force Demand and Employment 22

Active Labour Market Policy 32

Unemployment Insurance 37

International Community Supported Projects 42

Organisational Structure and Operations of the CES:

Organisation, Governance and Human Resources 47

Vision, Mission, Goals and Responsibilities of the CES 51

Job Placement and Preparation for Employment 53

Sources of Financing and Structure of Expenses 62

Internal Financial Control System 67

ICT Support to CES Operations 69

Publicity of Operations and International Cooperation 70

4

Croatian Employment Service

Locations of CES Regional and Local Offices by CountyCOUNTY REGIONAL OFFICE LOCAL OFFICE

I Zagreb

City of Zagreb

Zagreb

Dugo Selo Velika GoricaIvanić-Grad VrbovecJastrebarsko Zagreb JugSamobor Zagreb ZapadSesvete ZaprešićSveti Ivan Zelina

Donja Stubica ZabokII Krapina-Zagorje Krapina Klanjec Zlatar Bistrica

Pregrada

III Sisak-Moslavina

Sisak

Dvor PetrinjaGlina SunjaGvozd TopuskoHrvatska Kostajnica

Kutina Novska Popovača

Duga Resa SlunjIV Karlovac Karlovac Ogulin Vojnić Ozalj

V Varaždin VaraždinCestica LudbregIvanec Novi Marof

VI Koprivnica-Križevci Križevci Đurđevac Koprivnica

VII Bjelovar-Bilogora BjelovarČazma GarešnicaDaruvar Grubišno Polje

VIII Primorje-Gorski Kotar Rijeka

Cres-Lošinj KrkCrikvenica OpatijaČabar RabDelnice Vrbovsko

IX Lika-Senj GospićDonji Lapac OtočacKorenica SenjNovalja

X Virovitica-Podravina ViroviticaOrahovica SlatinaPitomača

XI Požega-Slavonia Požega Pakrac

XII Slavonski Brod-Posavina Slavonski Brod Nova Gradiška Okučani

Benkovac ObrovacXIII Zadar Zadar Biograd Pag Gračac

Beli Manastir NašiceXIV Osijek-Baranja Osijek Donji Miholjac Valpovo Đakovo

XV Šibenik-Knin ŠibenikDrniš VodiceKnin

XVI Vukovar-SrijemVukovar Ilok

Vinkovci Otok Županja

XVII Split-Dalmatia Split

Hvar SolinImotski SupetarKaštela Trilj Makarska TrogirOmiš VisSinj Vrgorac

Buzet PorečXVIII Istria Pula Labin Rovinj Pazin Umag

XIX Dubrovnik-Neretva DubrovnikKorčula-Lastovo Ploče Metković

XX Međimurje Čakovec Mursko Središće Prelog

5

2015 Yearbook

Map of CES Regional and Local Offices by County

Central Office

Regional Office

Local Office

6

Croatian Employment Service

7

2015 Yearbook

Summary

Economic Environment - After six years of continuous decline, Croatia finally achieved an increase in Gross Domestic Product (GDP) in 2015. Compared to the year before, GDP grew by 1.6%. Positive indicators were achieved in industrial production, retail, tourism and foreign trade, and construction finally started recording positive shifts as well. The Consumer Price Index (CPI) once again recorded a negative growth rate (-0.5%), while average net salaries per employed person grew in both nominal and real terms.

Labour Market Trends - In 2015, Croatia recorded positive shifts in the labour market as well. The data obtained from administrative sources and the Labour Force Survey showed a slight increase in employment and a significant decrease in unemployment, which together resulted in a decrease in unemployment rate. The average annual number of registered employed persons (1,356,568) increased by 1.1% compared to 2014. The increase in the number of registered employed persons was recorded in the sector of legal persons (by 1.8%), accounting for 84.1% of total registered employment. The number of registered employed persons however decreased in the sector of crafts, trades and free professions (by 2.4%) and the sector of individual farmers (by 6.7%). The average number of registered unemployed persons decreased by 12.9% compared to 2014, dropping down to 285.906 persons. The decrease in registered unemployment was supported by a decrease in the number of newly registered unemployed persons (by 1.7%) and a simultaneous increase in the number of persons from the unemployment register who were employed in the course of the year (by 3.1%). Such decrease in unemployment and increase in employment together resulted in a 2.2 pp decrease in the average annual registered unemployment rate, i.e. from 19.6% recorded in 2014 to 17.4% in 2015.According to the Labour Force Survey (LFS), there were on average 1,589,000 employed and 309,000 unemployed persons in Croatia in 2015. Compared to 2014, the average number of employed persons increased by 1.5%, while the average number of unemployed persons decreased by 5.5%. As a result, the employment rate (15 – 64) increased to 55.8% (by 2.2 pp). In 2015, the average LFS-based unemployment rate was 16.3%. Compared to 2014, the LFS-based unemployment rate fell by 1 pp.

Registered Unemployment - In 2015, registered unemployment continued steeply declining. Monthly unemployment figures recorded in 2015 were significantly lower compared to those recorded in 2014, although the percentage difference was slightly greater during the first half of the year.The average number of unemployed persons decreased from 328,187 recorded in 2014 to 285,906 in 2015, representing a decrease by 12.9%. At the same time, the number of both unemployed men and unemployed women decreased as well (14.8% and 11.2% respectively). The largest percentage decrease in the average number of unemployed persons was recorded in younger age groups (from 20 to 24: 18.0% and from 25 to 29: 19.0%), while the oldest age group (60+) was the only group that recorded an increase in unemployment in 2015 (4.1%). The average number of unemployed persons decreased in all groups distinguished by the level of education as well. The largest decrease was recorded in the group of persons with secondary education (three-year programme: 14.7%; four-year programme: 12.7%). In 2015, unemployment fell in all areas of economic activity too. Compared to 2014, substantial decreases in unemployment were recorded in construction (18.9%), manufacturing (15.8%) and trade (13.7%), and unemployment also fell, albeit less significantly, in financial and insurance activities (4.2%) and information and communication (5.4%). 2015 was also marked by a decrease in unemployed persons in all counties. The largest percentage decrease in the average number of unemployed persons was recorded in the Counties of Varaždin (22.1%), Međimurje (21.4%), Koprivnica-Križevci (20.8%) and Slavonski Brod-Posavina (20.3%), while the smallest percentage decrease was recorded in the Counties of Dubrovnik-Neretva (4.8%), Lika-Senj (5.5%) and Šibenik-Knin (7.8%). At the end of the year, 53.9% of unemployed persons belonged to the category of short-term unemployed

8

Croatian Employment Service

persons (unemployed for the period of up to 1 year), whereas 46.1% belonged to the category of long-term unemployed persons (unemployed for more than 1 year). Since duration of unemployment greatly depends on the level of education and decreases proportionally with the increase in the same, persons with the lowest level of education accounted for the largest share of long-term unemployed persons (69.2%), while the smallest share of long-term unemployed persons was recorded in the group of persons with undergraduate university and post-secondary non-university education (30.8%) and those with graduate and post-graduate university or academy education (29.5%).

Labour Force Demand and Employment – In 2015, the CES received 202,468 notices of job openings from employers, i.e. 32.5% more compared to 2014.For the past six years, total employment of persons registered with the CES has been increasing proportionally with the increase in workforce demand, recording annual employment growth rates between 26.3% and 0.5%. Compared to 2014, the number of persons from the CES register of unemployed persons who found employment increased by 3.1% in 2015. In the course of the year, a total of 232,499 persons from the CES register of unemployed persons were employed, of which 206,590 (88.9%) on a work contract basis and 25,909 (11.1%) on the basis of other business activities (workplace training without a work contract, starting a company, craft or trade business, temporary service contracts, etc.). Compared to 2014, employment regulated on a work contract basis increased by 1.4%, while the number of persons employed on the basis of other business activities increased by 19.2%.In 2015, 41,467 persons found seasonal employment, accounting for 20.1% of the total number of persons from the CES register who were employed in 2015 on a work contract basis. Compared to 2014, the total number of seasonal workers increased by 1,130 or 2.8%. The largest number of seasonal workers was recorded in accommodation and food service activities (53.2% of total seasonal employment), trade (12.7%), administrative and support service activities (7.6%), manufacturing (5.3%) and agriculture, forestry and fishing (3.8%).

Active Labour Market Policy – In 2015, 64,773 persons participated in the measures defined under the Active Labour Market Policy (ALMP) falling within the scope of responsibility of the Croatian Employment Service, of which 23,178 active participants from 2014 and 41,595 new entrants in the course of 2015. Compared to 2014, the total number of participants increased by 14.4%, while the total number of new entrants increased by 46.8%.In 2015, most new entrants joined workplace training without a work contract (18,597 or 44.7%), which represents an increase of 30.4% compared to 2014. New entrants also participated in public works (9,961 or 23.9%) and took advantage of education incentives (6,603 persons or 15.9%), which represents an increase by 151.8% and 33.2% compared to 2014. A small number of new entrants took part in the following measures: start-up incentives (6.7%), job retention subsidies (3.8%), institutional training for unemployed persons (3.7%) and institutional training for employed persons (1.2%).The share of particular groups of new entrants in the average number of unemployed persons was most significant in the group of persons with graduate and post-graduate university or academy education (45.0%), followed by young persons up to 29 years of age (29.6%). As far as duration of unemployment is concerned, most new entrants belonged to the group of persons unemployed for up to 6 months (15.9%) and from 6 to 12 months (15.3%). In terms of gender, women accounted for a slightly larger share of new entrants compared to men, i.e. 15.8% compared to 13.1%. From the total number of new entrants in the course of 2015, 1,094 were persons with disabilities (15.8% of the average number of unemployed persons with disabilities), 1,935 persons were Croatian war veterans (7.1% of the average number of unemployed war veterans) and 480 persons were members of the Romani national minority.

Unemployment Insurance – In 2015, there were on average 48,442 unemployment benefit recipients per month, i.e. 17.0% less than in 2014. On average, 16.9% of the total number of unemployed persons claimed unemployment benefit in 2015 (0.9 pp less than in 2014). The share of male benefit recipients (17.4%) was somewhat greater than the share of female benefit recipients (16.5%), while persons above 55 years of age accounted for a significantly larger

9

2015 Yearbook

share (30.1%) in comparison with all other age groups. Other financial insurance was available to unemployed persons in 2015 as well. In the course of the year, the CES approved 1,422 requests for financial assistance during education and training; 18,579 requests for financial assistance during workplace training without a work contract; 1,267 requests for financial assistance submitted by persons whose pension insurance was extended on the basis of a temporary work contract for regular seasonal jobs; 9,680 requests for reimbursement for travel and relocation expenses; 21 requests for one-off financial assistance; and 59 requests for pension insurance.After Croatia joined the EU, social insurance agreements signed with the EU member states ceased to be effective, and the provisions of EU directives on coordination of social security systems (Directive (EC) no. 883/2004 and Directive (EC) no. 987/2009) began to be applied. In 2015, the CES thus carried out activities falling within the scope of coordination of social security systems, including issuance of 70 PD U2 forms for export of unemployment benefit, 51 SED U009 forms confirming that the person who earned the right to unemployment benefit in another member state has registered with the CES and 1,126 forms confirming the duration of insurance (PD U1), reason for termination of employment (SED U002) and the salary earned in the Republic of Croatia for the purpose of claiming unemployment insurance in another member state (SED U004). In the same period, the CES approved 524 requests for unemployment benefit with an element of coordination (cross-border workers and aggregation of periods of insurance).

International Community Supported Projects – Most of the project activities carried out by the CES are implemented under IPA Component 4: Human Resources Development. In 2015, the CES thus implemented the following projects: Agreement on Direct Non-Repayable Grant Awards, including Training for Employment of Workers Facing Unemployment and Long-term Unemployed Persons and Workplace Training without a Work Contract; New Approaches to Delivering Services to Clients; Strengthening the Croatian Employment Service Labour Market Training Centre; External Evaluation of Active Labour Market Policy Measures; and projects under five grant schemes involving regional CES offices. Under IPA Component 1, the CES implemented a project called Mechanisms of Cross-border Cooperation in EURES, and under IPA Component 2: Cross-border Cooperation (IPA CBC), Regional Office Dubrovnik participated in Adriahub, a project implemented as part of the CBC Adriatic initiative.Under the European Social Fund Programme for the second half of the period 2013 - 2014, the CES continued implementing the Agreement on Non-repayable Grant Awards for Implementation of Active Labour Market Policy Measures, and in March 2015 started implementing a project called Further Development of Occupational Standards. Under the Operational Programme: Human Resources Development for the period 2014 - 2020, direct grant award agreements were signed for seven projects in November 2015, and project applications for two new projects were submitted in December 2015.In the framework of the Social Protection System Modernisation Project for the Republic of Croatia, which is funded by the World Bank, the CES started carrying out preparation activities for developing a statistical prediction model in 2015. As part of the ERASMUS+ Programme, the CES participated in the execution of the Alpe Adria Working Mobility – Intercultural Competencies in Career Guidance project in cooperation with partners from Austria, Italy and Slovenia. The CES also participated, as a project partner, in the European Green Innovation Support Network – GREENET project implemented under the Community Programme for Employment and Social Solidarity (PROGRESS). As part of the Seventh Framework Programme 7 (FP7) for Research, Technological Development and Demonstration Activities, the CES participates in the implementation of two projects: Croskills Pillar II and Employ ID. In the framework of the Lifelong Learning Programme, Regional Office Karlovac participated in the e-Roma Resource project.

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Croatian Employment Service

Economy and Labour Force

Basic Economic MovementsAfter six years of continuous decline, Croatia finally recorded an increase in Gross Domestic Product (GDP) in 2015. Compared to 2014, GDP grew by 1.6%. In the first two quarters of the year, GDP was growing moderately (0.5% and 1.2%). It started rapidly increasing in Q3 (2.8%), only to slow down again in the last quarter of the year (1.9%). The increase in total economic activity was supported by a significant increase in the value of export of goods and services and a moderate recovery in domestic demand, consumer spending and fixed capital investments.

Basic Economic Indicators in 2014 and 2015, Growth Rates (%)

2014 2015

Gross Domestic Product -0.4 1.6

Physical Volume of Industrial Production 1.2 2.7

Physical Volume of Construction Works -7.3 -0.6

Nominal Retail Trade Turnover -0.4 1.4

Real Retail Trade Turnover 0.4 2.4

Tourist Overnights 2.6 7.7

Exports – Total (HRK) 8.7 11.0

Imports – Total (HRK) 4.3 7.7

Average Monthly Net Salaries 0.3 3.2

Real Net Salaries 0.5 3.7

Consumer Price Index -0.2 -0.5

Total Number of Employed Persons -1.6 1.1

Total Number of Unemployed Persons -4.9 -12.9

Registered Unemployment Rate 19.6 17.4

LFS-based Unemployment Rate 17.3 16.3Source: Croatian Bureau of Statistics

The growth trend in industrial production that began in 2014 continued in 2015 as well. The physical volume of industrial production thus increased by 2.7% compared to 2014. The increase in production is a result of positive shifts in manufacturing (3.8%) and mining and quarrying (5.0%), while production in the power, gas, steam and AC supply decreased (-5.7%).

In the course of 2015, the physical volume of construction works decreased by 0.6% compared to 2014. The volume of construction works on buildings increased (0.9%), while the volume of construction works on other infrastructural facilities decreased (-1.8%). A significant slowdown in the rate of decrease in construction activity was however recorded in 2015, in terms of both, other infrastructural facilities and total works (total works in 2014: -7.3%; other infrastructural facilities in 2014: -10.7%).

In 2015, both nominal and real retail trade turnover increased compared to 2014 (1.4% and 2.4% respectively).

Physical tourism indicators continued recording positive trends. In 2015, tourist arrivals and tourist overnights increased by 9.3% and 7.7% respectively. Domestic arrivals and overnights increased by 10.3% and 11.3%, while foreign arrivals and overnights increased by 9.1% and 7.4% respectively. Foreign tourists accounted for 88.4% of total arrivals and 92.0% of total overnights, while domestic tourists accounted for 11.6% of total arrivals and 8.0% of total overnights.

11

2015 Yearbook

In 2015, positive trends were also recorded in foreign trade, as a reflection of Croatia’s accession to the EU which has facilitated the exchange of goods with other EU member states. The value of exports from Croatia in HRK increased by 11% compared to 2014, while the value of imports into Croatia increased by 7.7%. The Export Import Coverage Ratio increased from 60.5% recorded in 2014 to 62.4% in 2015.The Consumer Price Index (CPI) recorded a negative rate in 2015 (-0.5%), which indicates the continued deflationary trend that began in 2014 when the Consumer Price Index was 0.2%.

In 2015, the average monthly net salary per worker employed in a legal person amounted to HRK 5,711. Compared to 2014, this represents an increase of 3.2% in nominal and 3.7% in real terms.

Labour Force in CroatiaIn 2015, Croatia recorded positive shifts in the labour market. The data obtained from administrative sources and the Labour Force Survey both indicate a slight increase in employment and a significant decrease in unemployment, which together resulted in a decrease in unemployment rate.

Registered Employment and UnemploymentAccording to the data from the Croatian Bureau of Statistics based on administrative sources, the total number of employed persons increased by 1.1% in 2015, while the total number of unemployed persons decreased by 12.9%. The total number of economically active persons (active population) thus decreased by 1.7%.

Active Population Based on Administrative Sources, Annual Average in 2014 and 2015

2014 2015 2015/2014 Index

Active Population 1,670,336 1,642,474 98.3

Employed 1,342,149 1,356,568 101.1

- employed in legal entities 1,120,507 1,141,222 101.8- employed in crafts, trades and

free professions 198,911 194,142 97.6

- insured private farmers 22,731 21,204 93.3

Unemployed 328,187 285,906 87.1

Registered Unemployment Rate 19.6 17.4 -

Source: Croatian Bureau of Statistics

In 2015, the average annual number of registered employed persons was 1,356,568, indicating an increase by 14,419 persons or 1.1% compared to 2014. In the sector of legal persons, which accounts for 84.1% of total registered employment, the number of employed persons increased by 1.8%, while the number of workers employed in the sector of crafts, trades and free professions and the sector of individual farmers dropped by 2.4% and 6.7% respectively.

According to the National Classification of Activities (Schedule 1, Page 14), the largest number of employed persons was recorded in manufacturing (227,863 or 16.8%), wholesale and retail trade, repair of motor vehicles and motorcycles (202,753 or 14.9%), education (111,727 or 8.2%), public administration, defence and compulsory social security (111,217 or 8.2%) and human health and social work (103,211 or 7.6%). Compared to 2014, the number of employed persons increased in nine areas of activity. A significant percentage increase was recorded in the following areas: other service activities (17.9%), arts, entertainment and recreation (10.4%), human health and social work (9.3%), administrative and support service activities (8.0%) and professional, scientific and technical activities (6.9%). At the same time, the number of employed

12

Croatian Employment Service

persons decreased in twelve areas of activity, mainly in activities of households as employers (12.6%), real estate activities (9.5%), mining and quarrying (7.2%), construction (4.1%) and agriculture (agriculture, forestry and fishing: 3.2% and individual farming: 6.7%).

As far as economic sectors are concerned (agricultural, non-agricultural and service sector), 69.7% of persons who were employed in 2015 found employment in service activities, 26.4% in non-agricultural and 3.8% in agricultural activities. Compared to 2014, the share of service activities increased (by 0.8 pp), while the share of non-agricultural and agricultural activities decreased (by 0.6 pp and 0.2 pp respectively).

Registered unemployment significantly decreased in 2015. Compared to 2014, the average number of unemployed persons decreased by 42,280 persons or 12.9%, i.e. from 328,187 persons recorded in 2014 to 285,906 in 2015. The decrease in unemployment was supported by a decrease in the number of newly registered unemployed persons (by 1.7%) and a simultaneous increase in the number of persons from the unemployment register employed in the course of the year (by 3.1%).

Unemployment Rate Based on Administrative SourcesA significant decrease in unemployment and a slight increase in employment recorded in 2015 resulted also in a 2.2% decrease in the national average annual registered unemployment rate, i.e. from 19.6% recorded in 2014 to 17.4% in 2015 (data obtained from the Croatian Bureau of Statistics).

Unemployment Rate by County - In order to present unemployment rate at the county level, the CES uses the data on insured employed persons registered with the Croatian Pension Insurance Institute and the data on unemployed persons registered with the Croatian Employment Service. The calculations made using the afore-mentioned data indicate a national average unemployment rate of 16.7%. Nine counties recorded an unemployment rate below the national average, whereas unemployment rates recorded in other twelve counties exceeded the national average.

20,3

47,1

79,9 81,287,0

102,4

120

100

80

60

40

20

0

A B C D E FRazina obrazovanja

Active participants at thebeginning of the year

New entrants(in the course of the year)

Total participantsin the year

2014

2014

400

380

360

340

320

300

280

260

240

2015

2015

7.5

8.7

9.3

13.7

14.5

15.7

16.7

16.7

19.1

20.0

18.8

21.1

21.1

20.7

24.0

24.6

26.6

31.9

29.7

31.2

34.1

34.7

34.7

8.4 10

.9

12.4

12.6 14

.3 15,9

16.0

16.5

16.7 18

.4

19.5

19.7 22

.0

22.3

22.7

26.7 27.9

28.4 30

.3 32.3

32.5

Rel

ativ

ni o

pseg

zap

ošlja

vanj

a (%

)

70.000

60.000

50.000

40.000

30.000

20.000

10.000

0

40.000

35.000

30.000

25.000

20.000

15.000

10.000

5.000

0

2014

28,2

931,

552

1,60

6

517

18,5

97

6,60

3 9,96

1

2,77

6

1,58

9

536

32,4

94

11,2

81

11,7

45

4,88

5

2,22

6

28,3

39

56,6

32

23,1

78

41,5

95

64,7

73

2015

Per

cent

age

%

Broj nezaposlenih osoba tijekom 2014. i 2015. godine

Months

Num

ber o

f Une

mpl

oyed

(000

)

New entrants (in the course of the year)

Total participants in the year

Institutionaltraining for theunemployed

Institutionaltraining for the

employed

Workplacetraining withouta work contract

Employmentincentives

Direct jobcreation (public work

programmes)

Start-upincentives

Type of Intervention

Out-of-workincome

maintenanceand support

Unemployment rate by Country, Annual Average in 2015 and 2014

Istri

a

City

of Z

agre

b

Vara

ždin

Prim

orje

-Gor

ski K

otar

Međ

imur

je

Zada

r

Dub

rovn

ik-N

eret

va

Kra

pina

-Zag

orje

Kop

rivni

ca-K

rižev

ci

Rep

ublic

of C

roat

ia

Zagr

eb

Šib

enik

-Kni

n

Lika

-Sen

j

Spl

it-D

alm

atia

Kar

lova

c

Pož

ega-

Sla

voni

a

Sla

vons

ki B

rod-

Pos

avin

a

Bje

lova

r-B

ilogo

ra

Osi

jek-

Bar

anja

Vuko

var-

Srij

em

Viro

vitic

a-P

odra

vina

Sis

ak-M

osla

vina

13

2015 Yearbook

Unemployment rate differed significantly among counties. The lowest unemployment rates were recorded in the County of Istria (7.5%) and the City of Zagreb (8.4%), while rates below the national average were also recorded in the Counties of Varaždin (10.9%), Primorje-Gorski Kotar (12.4%), Međimurje (12.6%), Zadar (14.3%), Dubrovnik-Neretva (15.9%), Krapina-Zagorje (16.0%) and Koprivnica-Križevci (16.5%). The highest unemployment rates were, on the other hand, recorded in the Counties of Sisak-Moslavina (32.5%) and Virovitica-Podravina (32.3%), followed by Vukovar-Srijem (30.3%), Osijek-Baranja (28.4%), Bjelovar-Bilogora (27.9%) and Slavonski Brod-Posavina (26.8%).

Compared to 2014, unemployment rate decreased in all Croatian counties. The largest decrease was recorded in the County of Slavonski Brod-Posavina (by 5.2 pp), followed by the Counties of Požega-Slavonia (by 3.9 pp), Vukovar-Srijem (by 3.8 pp) and Koprivnica-Križevci (by 3.5 pp). The smallest decrease was recorded in the County of Dubrovnik-Neretva (by 0.7 pp) and the City of Zagreb (by 0.9 pp), followed by the County of Lika-Senj (by 1 pp) and the County of Istria (by 1.2 pp).

Employment and Unemployment Based on the Labour Force SurveyThe Labour Force Survey (LFS) is carried out by the Croatian Bureau of Statistics in accordance with the methodological rules prescribed by the Statistical Office of the European Communities (Eurostat), which makes LFS an internationally comparable source of data.

According to the Labour Force Survey the average economically active population recorded in Croatia in 2015 was 1,898,000 (5.000 persons or 0.3% more than in 2014), of which 1,589,000 employed and 309.000 unemployed persons. Compared to 2014, the average number of employed persons increased by 23,000 persons or 1.5%, while the average number of unemployed persons decreased by 18,000 persons or 5.5%. The employment rate (15-64) thus also increased, from 54.6% recorded in 2014 to 55.8% in 2015.

Unemployment Rate Based on the Labour Force SurveyThe LFS-based average unemployment rate recorded in 2015 was 16.3%, which represents a decrease of 1 pp compared to 2014 resulting from a decrease in the number of unemployed and a simultaneous increase in the number of employed persons, i.e. active population.

Active Population Based on the Labour Force Survey, Annual Average in 2014 and 2015

2014 2015 2015/2014Index

Active Population 1,893,000 1,898,000 100.3

Employed 1,566,000 1,589,000 101.5

Employment Rate (15-64) 54.6 55.8 -

Unemployed 327,000 309,000 94.5

LFS-based Unemployment Rate 17.3 16.3 -

Source: Croatian Bureau of Statistics

The labour market data obtained from the Labour Force Survey show a slightly greater increase in employment (1.5% compared to 1.1%) and a slightly milder decrease in unemployment (5.5% compared to 12.9%) compared to the data obtained from administrative sources. LFS-based figures are also generally higher than the figures obtained from the administrative sources (active population: by 15.6%, employed: by 17.1% and unemployed: by 8.1%), which is a result of the different methodology used to measure employment and unemployment.

14

Croatian Employment Service

Schedule 1

Employed Persons by Activity Based on the National Classification of Activities (NCA),Annual Average in 2015

Activity(NCA)

TOTAL Legal EntitiesCrafts, Trades

and Free Professions

Number % 2015/2014 Index Number 2015/2014

Index Number 2015/2014 Index

Agriculture, forestry and fishing 30,935 2.3 96.8 22,196 96.7 8,739 97.0Individual farming 21,204 1.6 93.3 - - - -Agricultural Activities 52,139 3.8 95.3 22,196 96.7 8,739 97.0Mining and quarrying 5,114 0.4 92.8 4,923 92.6 191 96.7Manufacturing 227,863 16.8 99.9 199,153 100.5 28,710 95.7Electricity, gas, steam and air-conditioning supply 14,503 1.1 98.1 14,503 98.1 0 -

Water supply, sewerage, waste management and remediation activities

21,687 1.6 102.4 21,501 102.4 186 100.9

Construction 88,732 6.5 95.9 68,636 95.3 20,096 98.1

Non-agricultural activities 357,898 26.4 98.9 308,716 99.2 49,182 96.7Wholesale and retail trade, repair of motor vehicles and motorcycles 202,753 14.9 98.5 176,711 99.0 26,042 95.1

Transportation and storage 71,843 5.3 101.2 58,475 101.4 13,368 100.6

Accommodation and food service activities 87,830 6.5 98.9 55,394 99.5 32,436 98.0

Information and communication 34,481 2.5 99.3 33,046 99.1 1,435 103.0

Financial and insurance activities 36,957 2.7 100.6 36,041 100.7 916 96.4

Real estate activities 7,310 0.5 90.5 6,766 89.7 544 100.6

Professional, scientific and technical activities 74,036 5.5 106.9 58,553 109.5 15,483 98.3

Administrative and support service activities 45,306 3.3 108.0 40,998 108.6 4,308 102.5

Public administration and defence, compulsory social security 111,217 8.2 99.9 102,804 100.5 8,413 93.6

Education 111,727 8.2 101.5 111,175 101.4 552 109.3

Human health and social work activities 103,211 7.6 109.3 91,277 110.6 11,934 100.2

Arts, entertainment and recreation 24,695 1.8 110.4 21,988 112.3 2,697 97.0

Other service activities 31,689 2.3 117.9 17,074 135.6 14,615 102.2

Activities of households as employers, undifferentiated goods- and services-producing activities of households for own use

2,912 0.2 87.4 0 - 2,912 87.4

Service Activities 945,965 69.7 102.3 810,312 103.0 135,655 98.0

TOTAL 1,356,568 100.0 101.1 1,141,222 101.8 194,142 97.6

Source: Croatian Bureau of Statistics, Releases No. 9.2.6, 2015 and 2016

15

2015 Yearbook

Unemployment

Total Unemployment TrendsIn December 2015, the number of unemployed persons registered with the CES was 285,468, which represents a 9.9% decrease compared to the same month the year before. The total number of persons who registered with the CES as unemployed in 2015 (310,701) was less than the sum of the total number of persons from the unemployment register who were employed in 2015 and those removed from the register for other reasons (341,996), which resulted in a decrease in unemployment.Monthly unemployment figures were lower compared to the figures recorded in 2014. The percentage difference was, however, slightly greater in the first half of the year.

20,3

47,1

79,9 81,287,0

102,4

120

100

80

60

40

20

0

A B C D E FRazina obrazovanja

Active participants at thebeginning of the year

New entrants(in the course of the year)

Total participantsin the year

2014

2014

400

380

360

340

320

300

280

260

240

2015

2015

7.5

8.7

9.3

13.7

14.5

15.7

16.7

16.7

19.1

20.0

18.8

21.1

21.1

20.7

24.0

24.6

26.6

31.9

29.7

31.2

34.1

34.7

34.7

8.4 10

.9

12.4

12.6 14

.3 15,9

16.0

16.5

16.7 18

.4

19.5

19.7 22

.0

22.3

22.7

26.7 27.9

28.4 30

.3 32.3

32.5

Rel

ativ

ni o

pseg

zap

ošlja

vanj

a (%

)

70.000

60.000

50.000

40.000

30.000

20.000

10.000

0

40.000

35.000

30.000

25.000

20.000

15.000

10.000

5.000

0

2014

28,2

931,

552

1,60

6

517

18,5

97

6,60

3 9,96

1

2,77

6

1,58

9

536

32,4

94

11,2

81

11,7

45

4,88

5

2,22

6

28,3

39

56,6

32

23,1

78

41,5

95

64,7

73

2015

Per

cent

age

%

Broj nezaposlenih osoba tijekom 2014. i 2015. godine

Months

Num

ber o

f Une

mpl

oyed

(000

)

New entrants (in the course of the year)

Total participants in the year

Institutionaltraining for theunemployed

Institutionaltraining for the

employed

Workplacetraining withouta work contract

Employmentincentives

Direct jobcreation (public work

programmes)

Start-upincentives

Type of Intervention

Out-of-workincome

maintenanceand support

Just as every year, seasonal factors influenced the movements in the number of unemployed persons registered with the Croatian Employment Service in 2015 as well. The number of unemployed persons grew in January and February. It significantly decreased during spring and summer months and then started increasing again in September, continuing so until the end of the year. The largest number of unemployed persons was thus recorded in February (329,751) and the smallest in August (256,748).

Unemployment Structure and Trends by Gender, Age and Level of EducationThe average number of unemployed persons decreased from 328,187 recorded in 2014 to 285,906 in 2015 (by 12.9%). A decrease was recorded in both, the average number of unemployed men and the average number of unemployed women, although the decrease in the number of unemployed men (-14.8%) was somewhat greater than the decrease recorded in the number of unemployed women (-11.2%). Consequently, the share of unemployed men in the total number of unemployed persons decreased, while the share of unemployed women in the total number of unemployed persons increased (by 1.1 pp).

Average Number of Unemployed Persons by Gender in 2014 and 2015

Gender2014 2015 2015/2014

IndexNumber % Number % Men 153,485 46.8 130,698 45.7 85.2 Women 174,702 53.2 155,208 54.3 88.8 TOTAL 328,187 100.0 285,906 100.0 87.1

Number of Unemployed Persons by Months in 2014 and 2015

16

Croatian Employment Service

As far as unemployment trends by age are concerned, the average number of unemployed persons decreased in most age groups. The largest percentage decrease in the average number of unemployed persons was recorded in the youngest age groups. More precisely, the average number of unemployed persons aged 20 – 24 decreased by 18.0% and the average number of unemployed persons aged 25 – 29 decreased by 19.0%. The decrease in the number of middle-aged unemployed persons was smaller, but just as significant. For example, the number of unemployed persons aged 40 – 44 decreased by 11.9%. On the other hand, the oldest age groups recorded an increase in unemployment. More precisely, the number of unemployed persons aged 60+ increased by 4.4%, and their share in the total number of unemployed persons grew accordingly.

Average Number of Unemployed Persons by Age in 2014 and 2015

Age 2014 2015 2015/2014

IndexNumber % Number % From 15 to 19 16,683 5.1 14,814 5.2 88.8From 20 to 24 42,593 13.0 34,910 12.2 82.0From 25 to 29 43,207 13.2 35,001 12.2 81.0From 30 to 34 36,513 11.1 30,615 10.7 83.8From 35 to 39 33,440 10.2 28,940 10.1 86.5From 40 to 44 31,106 9.5 27,409 9.6 88.1From 45 to 49 33,900 10.3 29,664 10.4 87.5From 50 to 54 36,380 11.1 32,541 11.4 89.4From 55 to 59 39,304 12.0 36,334 12.7 92.460 + 15,061 4.6 15,678 5.5 104.1TOTAL 328,187 100.0 285,906 100.0 87.1

In 2015, the average number of unemployed persons decreased among all groups distinguished by the level of education. The average number of unemployed persons with no education decreased by 11.4%, and those with completed elementary school by 12.6%. The average number of unemployed persons with completed three-year secondary school decreased by 14.7% and of those with four-year secondary and grammar school by 12.7%. The decrease in the average number of unemployed persons with undergraduate university and post-secondary non-university and graduate and post-graduate university or academy education was less significant. The average number of unemployed persons who completed a university or academy programme decreased by 9.5%, and the average number of unemployed persons who completed an undergraduate university and post-secondary non-university programme decreased by 10.0%.

Average Number of Unemployed Persons by Level of Education in 2014 and 2015

Level of Education2014 2015 2015/2014

IndexNumber % Number % No education and uncompleted elementary school 17,688 5.4 15,664 5.5 88.6Elementary school 67,740 20.6 59,222 20.7 87.41 to 3-year vocational secondary school and school for skilled and highly skilled workers 107,823 32.9 91,985 32.2 85.3

4 (or more)-year vocational secondary school and grammar school 94,443 28.8 82,464 28.8 87.3

Undergraduate university and post-secondary non-university education 17,695 5.4 15,930 5.6 90.0

Graduate and post-graduate university or academy education 22,798 6.9 20,641 7.2 90.5

TOTAL 328,187 100.0 285,906 100.0 87.1

17

2015 Yearbook

Croatian War Veterans Unemployment Structure and TrendsIn 2015, the monthly average number of unemployed war veterans registered with the CES was 27,242 (10.8% less than in 2014), of which 38.1% with completed or uncompleted elementary school and 36.3% with completed three-year vocational secondary school or training for skilled workers. As far as their age structure is concerned, 62.4% of unemployed Croatian war veterans were aged 50 to 65.

Unemployment Structure and Trends by Previous Employment Activity

If unemployed persons who had previously been employed are analysed separately, they can be distinguished by previous employment activity. The average number of formerly employed persons recorded in 2015 was 233,652, representing a 13% decrease compared to 2014, which is in proportion with the total average number of unemployed persons.

Compared to 2014, the number of unemployed persons decreased in all groups of activities. In some, the recorded decrease was quite substantial too, particularly in the private sector. Thus, for example, the number of unemployed persons who had previously been employed in construction decreased by 18.9%, the number of unemployed persons who had previously been employed in manufacturing decreased by 15.8% and of those who had previously been employed in trade by 13.7%. Although less significant, a decrease was also recorded in the number of unemployed persons who had previously been employed in financial and insurance activities (by 4.2%). The number of unemployed persons who had previously been employed in public sector also significantly decreased. Thus, for example, the number of unemployed persons who had previously been employed in human health and social work activities decreased by 13.5%, and the number of those who had previously been employed in public administration, defence and compulsory social security fell by 10.6%.

Average Number of Unemployed Persons with Work Experience by Previous Employment Activity in 2014 and 2015

Activity (2007 NCA)2014 2015 2015/2014

IndexNumber Share Number ShareA Agriculture, forestry and fishing 11,949 4.4 10,378 4.4 86.9

B Mining and quarrying 695 0.3 614 0.3 88.3

C Manufacturing 52,708 19.6 44,355 19.0 84.2

D Electricity, gas, steam and air-conditioning supply 393 0.1 309 0.1 78.6

E Water supply, sewerage, waste management and remediation activities 4,401 1.6 3,685 1.6 83.7

F Construction 27,805 10.4 22,549 9.7 81.1

G Wholesale and retail trade, repair of motor vehicles and motorcycles 46,908 17.5 40,481 17.3 86.3

H Transportation and storage 8,777 3.3 7,652 3.3 87.2

I Accommodation and food service activities 31,983 11.9 29,553 12.6 92.4

J Information and communication 3,629 1.4 3,432 1.5 94.6

K Financial and insurance activities 2,896 1.1 2,774 1.2 95.8

L Real estate activities 1,539 0.6 1,387 0.6 90.1

M Professional, scientific and technical activities 9,260 3.4 8,143 3.5 87.9

N Administrative and support service activities 12,933 4.8 11,983 5.1 92.7

O Public administration and defence, compulsory social security 16,633 6.2 14,873 6.4 89.4

18

Croatian Employment Service

P Education 7,253 2.7 6,669 2.9 91.9

Q Human health and social work activities 8,452 3.1 7,313 3.1 86.5

R Arts, entertainment and recreation 3,628 1.4 3,172 1.4 87.4

S Other service activities 12,045 4.5 10,377 4.4 86.2

TActivities of households as employers, undiffe-rentiated goods- and services-producing activiti-es of households for own use

4,607 1.7 3,904 1.7 84.7

U Activities of extraterritorial organisations and bodies 54 0.0 49 0.0 90.7

TOTAL 268,548 100.0 233,652 100.0 87.0

Unemployment Structure and Trends by County, Gender, Age and Level of EducationCompared to the year before, the average number of unemployed persons decreased in all Croatian counties in 2015. The largest percentage decrease in the average number of unemployed persons was recorded in the Counties of Varaždin (22.1%), Međimurje (21.4%), Koprivnica-Križevci (20.8%) and Slavonski Brod-Posavina (20.3%). The smallest percentage increase was, on the other hand, recorded in the Counties of Dubrovnik-Neretva (4.8%), Lika-Senj (5.5%) and Šibenik-Knin (7.8%).

Average Number of Unemployed Persons by County in 2014 and 2015

County2014 2015 2015/2014

IndexNumber Share Number ShareZagreb 18,469 5.6 15,803 5.5 85.6Krapina-Zagorje 7,893 2.4 6,648 2.3 84.2Sisak-Moslavina 20,248 6.2 18,261 6.4 90.2Karlovac 10,781 3.3 9,592 3.4 89.0Varaždin 9,554 2.9 7,441 2.6 77.9Koprivnica-Križevci 8,154 2.5 6,462 2.3 79.2Bjelovar-Bilogora 12,782 3.9 11,559 4.0 90.4Primorje-Gorski Kotar 18,469 5.6 15,518 5.4 84.0Lika-Senj 3,661 1.1 3,461 1.2 94.5Virovitica-Podravina 10,216 3.1 9,179 3.2 89.8Požega-Slavonia 6,375 1.9 5,287 1.8 82.9Slavonski Brod-Posavina 15,936 4.9 12,700 4.4 79.7Zadar 9,729 3.0 8,107 2.8 83.3Osijek-Baranja 36,632 11.2 32,467 11.4 88.6Šibenik-Knin 7,725 2.4 7,122 2.5 92.2Vukovar-Srijem 20,189 6.2 17,047 6.0 84.4Split-Dalmatia 44,219 13.5 40,044 14.0 90.6Istria 7,953 2.4 6,664 2.3 83.8Dubrovnik-Neretva 8,150 2.5 7,762 2.7 95.2Međimurje 7,095 2.2 5,576 2.0 78.6City of Zagreb 43,957 13.4 39,206 13.7 89.2TOTAL 328,187 100.0 285,906 100.0 87.1

As far as the structure of unemployed persons by gender is concerned, the largest share of women in the total number of unemployed persons at the end of 2015 was recorded in the

19

2015 Yearbook

Counties of Osijek-Baranja, Slavonski Brod-Posavina, Primorje-Gorski Kotar, Split-Dalmatia, and Istria (ranging from 56.5% to 57.2%). The number of unemployed men exceeded the number of unemployed women in two counties, namely the County of Varaždin (50.7%) and the County of Bjelovar-Bilogora (50.3%). In terms of age, the largest share of young persons aged up to 24 in the total number of unemployed persons was recorded in the Counties of Požega-Slavonia (25.6%), Međimurje (22.7%), Lika-Senj (21.3%), Koprivnica-Križevci and Slavonski Brod-Posavina (21.2% each), and the smallest in the City of Zagreb (14.3%) and the Counties of Karlovac (15.1%), Istria (15.4%) and Primorje-Gorski Kotar (15.5%). Finally, if we look at educational qualifications, the largest share of qualified persons, i.e. persons with completed secondary or post-secondary education, was recorded in the Counties of Split-Dalmatia (84.4%) and Dubrovnik-Neretva (83.4%), and the smallest in the Counties of Međimurje (60.3%) and Sisak-Moslavina (63.9%).

Structure of Unemployed Persons by County (31 December 2015)

County TOTALWomen Persons aged up

to 24 Qualified Persons

Number Share Number Share Number ShareZagreb 14,686 7,838 53.4 2,977 20.3 10,908 74.3 Krapina-Zagorje 6,215 3,164 50.9 1,289 20.7 4,404 70.9 Sisak-Moslavina 17,599 9,703 55.1 3,045 17.3 11,238 63.9 Karlovac 9,310 5,236 56.2 1,403 15.1 6,253 67.2 Varaždin 6,717 3,310 49.3 1,099 16.4 4,634 69.0 Koprivnica-Križevci 6,048 3,123 51.6 1,284 21.2 3,915 64.7 Bjelovar-Bilogora 11,293 5,607 49.7 2,343 20.7 7,272 64.4 Primorje-Gorski Kotar 16,033 9,145 57.0 2,488 15.5 12,703 79.2 Lika-Senj 3,743 1,909 51.0 798 21.3 2,614 69.8 Virovitica-Podravina 9,098 4,900 53.9 1,844 20.3 5,931 65.2 Požega-Slavonia 5,228 2,810 53.7 1,338 25.6 3,829 73.2 Slavonski Brod-Posavina 12,055 6,883 57.1 2,552 21.2 8,184 67.9 Zadar 8,895 4,922 55.3 1,624 18.3 6,880 77.3 Osijek-Baranja 32,133 18,390 57.2 6,061 18.9 22,340 69.5 Šibenik-Knin 7,922 4,088 51.6 1,488 18.8 6,107 77.1 Vukovar-Srijem 16,722 9,410 56.3 3,483 20.8 11,921 71.3 Split-Dalmatia 42,102 23,878 56.7 7,236 17.2 35,542 84.4 Istria 8,044 4,546 56.5 1,239 15.4 6,152 76.5 Dubrovnik-Neretva 8,943 4,883 54.6 1,619 18.1 7,454 83.4 Međimurje 5,219 2,788 53.4 1,185 22.7 3,149 60.3 City of Zagreb 37,463 19,804 52.9 5,349 14.3 30,095 80.3 TOTAL 285,468 156,337 54.8 51,744 18.1 211,525 74.1

Unemployment Structure and Trends by Duration, Gender and Level of EducationRegistered unemployed persons can also be classified according to the duration of previous unemployment. At the end of 2015, 42.7% of the total number of unemployed persons had been unemployed for up to 6 months and 46.1% for more than one year. Compared to the end of 2014, the number of unemployed persons decreased in almost all groups distinguished by duration of unemployment. Only the number of persons who had been unemployed for more than three years increased, but not enough to result in an increase in the share of long-term unemployed persons (unemployed for more than one year).

20

Croatian Employment Service

Unemployed Persons by Duration of Unemployment (31 December 2014 and 2015)

Duration of Unemployment

2014 2015 2015/2014 IndexNumber % Number %

Up to 3 months 85,694 27.1 82,657 29.0 96.5From 3 to 6 months 41,802 13.2 39,240 13.7 93.9From 6 to 9 months 19,609 6.2 16,221 5.7 82.7From 9 to 12 months 19,559 6.2 15,813 5.5 80.8From 1 to 2 years 50,862 16.1 38,688 13.6 76.1From 2 to 3 years 32,166 10.2 25,078 8.8 78.0More than 3 years 67,071 21.2 67,771 23.7 101.0TOTAL 316,763 100.0 285,468 100.0 90.1

As far as duration of unemployment by gender is concerned, the share of long-term unemployed persons (unemployed for more than one year) in the total number of unemployed men was 45.1% and in the total number of unemployed women 46.9%. It is evident that long-term unemployment is slightly more frequent in women than in men. The share of persons unemployed for a period from 1 to 2 years is greater in the case of men than in the case of women, while women account for the greater share of persons unemployed for a period from 2 to 3 years and more than three years in particular.

Unemployed Persons by Duration of Unemployment and Gender (31 December 2015)

Duration of Unemployment Total Men % Women %Up to 3 months 82,657 38,438 29.8 44,219 28.3From 3 to 6 months 39,240 17,513 13.6 21,727 13.9From 6 to 9 months 16,221 7,204 5.6 9,017 5.8From 9 to 12 months 15,813 7,692 6.0 8,121 5.2From 1 to 2 years 38,688 18,145 14.1 20,543 13.1From 2 to 3 years 25,078 11,132 8.6 13,946 8.9More than 3 years 67,771 29,007 22.5 38,764 24.8TOTAL 285,468 129,131 100.0 156,337 100.0

Finally, if we consider duration of unemployment in terms of the level of education, it is evident that persons with lower levels of education account for a significant share of long-term unemployed persons. Thus, long-term unemployed persons (unemployed for 1 year or more) accounted for 69.2% of the total number of unemployed persons with no education or uncompleted elementary school in 2015, while those with completed elementary education accounted for 58.4%. The share of long-term unemployed persons was significantly smaller in the groups of persons with three- or four-year secondary education (45.9% and 40.4%). The smallest share of long-term unemployed persons was recorded in the groups of unemployed persons with undergraduate university and post-secondary non-university education (30.8%) and graduate and post-graduate university or academy education (29.5%). It can be concluded that the duration of unemployment very much depends on the level of education.

21

2015 Yearbook

Structure of Unemployed Persons by Duration of Unemployment and Level of Education(31 December 2015)

Duration of Unemployment Total

No education and

uncompleted elementary

school

Elementary school

1 to 3-year vocational secondary school and school for skilled and

highly skilled workers

4 (or more)-year vocational

secondary school and grammar school

Undergradu-ate university

and post- secondary

non- university education

Graduate and post-graduate

university or academy education

Up to 3 months 29.0 14.8 22.5 29.4 31.1 39.0 39.1 From 3 to 6 months 13.7 5.6 8.7 13.7 16.9 17.9 18.1

From 6 to 9 months 5.7 4.5 4.8 5.6 6.0 6.8 7.3

From 9 to 12 months 5.5 5.8 5.6 5.4 5.5 5.5 6.0

From 1 to 2 years 13.6 14.5 14.8 13.3 13.3 12.5 12.3 From 2 to 3 years 8.8 11.0 10.3 9.0 8.3 6.1 6.0 More than 3 years 23.7 43.8 33.2 23.7 18.8 12.2 11.2 TOTAL 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Short-term Unemployment 53.9 30.8 41.6 54.1 59.6 69.2 70.5

Long-term Unemployment 46.1 69.2 58.4 45.9 40.4 30.8 29.5

,

22

Croatian Employment Service

Labour Force Demand and Employment

Reported Job VacanciesIn 2015, the CES received 202,468 notices of job vacancies from employers, i.e. 49,599 or 32.4% more than in 2014, thus continuing the trend of increase recorded since 2010 with the average annual rate ranging between 2.3% and 8.7% and reaching two extreme values, namely 19.9% in 2011 and 32.4% in 2015.

According to the National Classification of Activities, the number of reported job vacancies (Schedule 2, Page 29) increased in all areas of activity. The largest increase in labour force demand was recorded in administrative and support service activities (50.2%), construction (49.9%), transportation and storage (49.5%), agriculture, forestry and fishing (48.7%), other service activities (42.3%) and public administration, defence and compulsory social security (42.2%). The smallest increase in (reported) labour force demand was, on the other hand, recorded in information and communication (6.8%), an area of activity in which workforce demand has been continuously increasing in the past five years achieving extremely high growth rates in 2013 and 2014 (30.8% and 49.9%).

As far as Regional Organisation is concerned, the number of reported job vacancies (Schedule 3, Page 30) increased in all counties, primarily in the Counties of Virovitica-Podravina (56.2%), Osijek-Baranja (49.9%), Korpivnica-Križevci (47.8%), Split-Dalmatia (42.5%), Zagreb (41.2%) and Primorje-Gorski Kotar (41.1%). The smallest increase in labour force demand was, on the other hand, recorded in the Counties of Šibenik-Knin (10.6%) and Međimurje (11.0%).

In 2015, employers largely looked for science and engineering professionals (55,048 or 27.2%) and service and sales workers (41,262 or 20.4%). The demand for these two categories of workers increased compared to 2014 (science and engineering professionals: by 25.3%; service and sales workers: by 32.3%). Workers qualified in elementary occupations, such as cleaners, deliverers, workers without qualifications, etc. and those working in crafts and related trades and individual production accounted for significant shares in total labour force demand (32,817 or 16.2% and 31,106 or 15.4% respectively). The demand for such workers increased by 41.9% and 45.1% compared to 2014. Labour force also increased in the group of plant and machine operators and assemblers (45.5%), clerical support workers (32.3%) and technicians and associated professionals (by 19.1%).

Reported Job Vacancies by Group of Occupations in 2014 and 2015

Group of Occupations(National Classification of Occupations 2010)

2014 2015 2015/2014 IndexBroj % Broj %

Managers (legislators, senior officials and chief executives) 245 0.2 195 0.1 79.6

Professionals (science, engineering and associated professionals) 43,931 28.7 55,048 27.2 125.3

Technicians and associated professionals 16,521 10.8 19,679 9.7 119.1

Clerical support workers 10,241 6.7 13,545 6.7 132.3

Service and sales workers 31,256 20.4 41,262 20.4 132.0

Skilled agricultural, forestry and fishery workers 410 0.3 511 0.3 124.6

Craft and related trades workers 21,433 14.0 31,106 15.4 145.1

Plant and machine operators and assemblers 5,713 3.7 8,305 4.1 145.4

Elementary occupations 23,119 15.1 32,817 16.2 141.9

TOTAL 152,869 100.0 202,468 100.0 132.4

23

2015 Yearbook

Employment of Persons from the CES Register

The increasing trend in labour force demand has for the past six years also been accompanied by an increase in the total number of persons from the CES register who found employment, albeit with fluctuating rates of increase. The highest rates of increase were recorded in 2010 (19.4%), 2011 (26.3%) and 2013 (16.7%), whereas 2012 was marked by only a slight increase of 0.5%. In 2014 and 2015, the number of persons from the CES register of unemployed persons who found employment increased almost equally, i.e. by 3.8% in 2014 and 3.1% in 2015.

In 2015, 232,499 persons registered with the CES as unemployed found employment (7,037 more than in 2014), of which 206,590 (88.9%) were employed on the basis of a work contract and 25,909 persons (11.1%) on the basis of other business activities (workplace training without a work contract, starting a company, craft or trade business, temporary service contract, etc.). Employment based on a work contract increased by 1.4% compared to 2014, whereas the number of persons employed on the basis of other business activities increased by 19.2%, which ultimately resulted in a total annual increase in employment of 3.1%.

From the total number of employed persons, 107,176 were women (accounting for a share of 51.9% in the total number) and 99,414 were men (accounting for a share of 48.1%). Compared to 2014, the number of employed men decreased (0.5%), while the number of employed women increased (3.2%).

The largest number of persons from the CES register who found employment in 2015 were employed on a work contract basis (206,590 persons or 88.9%). Compared to 2014, the number increased by 1.4%.

The structure of persons from the CES register who were employed on a work contract basis according to different features:

Employment Activity – As usual, the persons from the CES register of unemployed persons employed on a work contract basis (Schedule 2, Page 29) found employment in the key four areas of activity which usually record the greatest fluctuation of workers during a year (establishing or terminating a work relationship): accommodation and food service activities, manufacturing, wholesale and retail trade, and construction. In total, 121,969 persons or 59.0% from the total number of persons from the CES register employed in 2015 found employment in the mentioned four areas of activity, thus recording an annual rate of decrease of 2.3%. Nevertheless, compared to 2014, the number of persons from the CES unemployment register grew in most areas of activity. The largest percentage increase was recorded in the following areas of activity: public administration, defence and compulsory social security (81.1%), human health and social welfare (20.9%) and other service activities (11.7%). Somewhat lower rates of increase were recorded in water supply, sewerage, waste management and remediation activities (7.6%), arts, entertainment and recreation (4.9%), administrative and support service activities (3.2%) and financial activities (2.4%), and the relatively lowest rates of increase in employment were recorded in accommodation and food service activities (1.0%), education (0.5%) and agriculture, forestry and fishing (0.4%).

Regional Employment Structure – The structure of registered employment by county (Schedule 3, Page 30) shows that most persons who were employed on the basis of a work contract were again recorded in the County of Split-Dalmatia (27,285 persons or 13.2%), the City of Zagreb (24,191 persons or 11.7%) and the County of Osijek-Baranja (20,039 persons or 9.7%), while the smallest number of persons were employed in the Counties of Lika-Senj (2,591 persons or 1.3%) and Požega-Slavonia (4,026 persons or 1.9%). The largest percentage increase in employment was recorded in the Counties of Bjelovar-Bilogora (12.9%) and Virovitica-Podravina (12.5%), followed by the Counties of Osijek-Baranja (9.6%), Slavonski-Brod-Posavina (8.4%), Karlovac (7.6%) and Sisak-Moslavina (6.7%). At the same time, the largest decrease in registered employment on a work contract basis was recorded in the Counties of Istria (8.3%), Zadar (6.6%) and Međimurje (6.5%).

24

Croatian Employment Service

Work Experience – From the total number of persons from the CES register employed on a work contract basis 179,391 persons (86.8%) had prior work experience and 27,199 persons (13.2%) were employed for the first time. Compared to 2014, employment of persons with work experience increased by 1.0% and of those with no work experience by 3.9%.

Duration of Employment – 15,394 persons (7.5%) were employed on a permanent basis and 191,196 (92.5%) were employed on a temporary basis. Compared to 2014, permanent employment increased and temporary employment decreased by 1.7 pp.

Level of Education and Group of Occupations – Persons with secondary education accounted for the largest share of the total number of persons from the CES register employed on a work contract basis, including those who completed a three-year vocational school or school for skilled and highly skilled workers (35.6%) and persons who completed a four-year vocational school or grammar school (32.4%), followed by those with higher levels of education, i.e. persons with graduate and post-graduate university or academy education (10.2%) and persons with undergraduate university and post-secondary non-university education (6.7%), and those with lower levels of education, i.e. persons with completed elementary school (13.5%) and persons with no education (1.5%). Compared to 2014, registered employment of persons with higher levels of education, i.e. persons with completed graduate or post-graduate university or academy education decreased by 5.6% and persons with completed undergraduate university or post-secondary non-university education by 2.3%, while registered employment grew in all other groups distinguished by the level of education. The largest increase in employment was recorded in the groups of persons with the lowest levels of education, i.e. persons with completed elementary school (by 5.3%) and those with no education (by 4.7%).

Persons from the CES Register Employed on a Work Contract Basisby Level of Education in 2014 and 2015

Level of Education2014 2015 2015/2014

IndexNumber % Number % No education and uncompleted elementary school 3,043 1.5 3,187 1.5 104.7

Elementary school 26,511 13.0 27,909 13.5 105.3

1 to 3-year vocational secondary school and school for skilled and highly skilled workers

73,259 36.0 73,495 35.6 100.3

4 (or more)-year vocational secondary school and grammar school 64,303 31.6 66,992 32.4 104.2

Undergraduate university and post-secondary non-university education 14,196 7.0 13,863 6.7 97.7

Graduate and post-graduate university or academy education 22,409 11.0 21,144 10.2 94.4

TOTAL 203,721 100.0 206,590 100.0 101.4

Different groups of occupations (defined in accordance with the National Classification of Occupations) accounted for the following shares in total registered employment recorded in 2015: the largest share of persons employed belonged to the group of service and sales workers (49,469 or 23.9%), followed by the group of craft, related trades and individual production workers (31,615 or 15.3%), technicians and associated professionals (31,142 or 15.1%), elementary occupations (30,095 or 14.6%) and science, engineering and associated professionals (29,010 or 14.0%).

25

2015 Yearbook

Persons from the CES Register Employed on a Work Contract Basisby Group of Occupations in 2014 and 2015

Group of Occupations (NCO 10)2014 2015 2015/2014

IndexNumber % Number %

Armed forces occupations 31 0.0 15 0.0 48.4Managers (legislators, senior officials and chief executives) 28 0.0 22 0.0 78.6

Professionals (science and engineering professionals) 29,964 14.7 29,010 14.0 96.8

Technicians and associated professionals 30,021 14.7 31,142 15.1 103.7

Clerical support workers 21,553 10.6 22,869 11.1 106.1

Service and sales workers 48,714 23.9 49,469 23.9 101.5Skilled agricultural, forestry and fishery workers 989 0.5 1,164 0.6 117.7

Craft and related trades workers 33,065 16.2 31,615 15.3 95.6

Plant and machine operators and assemblers 11,734 5.8 11,189 5.4 95.4

Elementary occupations 27,622 13.6 30,095 14.6 109.0

TOTAL 203,721 100.0 206,590 100.0 101.4

Compared to 2014, the largest increase in employment was recorded in the group of elementary occupations (9.0%), clerical support workers (6.1%), technicians and associated professionals (3.7%), service and sales workers (1.5%), and primarily skilled agricultural, forestry and fishery workers, including hunters (17.7%), although their share in total employment is relatively small (only 0.6% of the total number of employed persons).

Volume of Employment by Level of Education and OccupationThe ratio between the number of persons employed in the course of a year on a work contract basis and the average number of unemployed persons at the end of the month may serve as an indicator of the relative volume of employment. In 2015, the relative employment volume indicator differed significantly among the groups of unemployed persons distinguished by level of education. In the group of persons with no education or uncompleted elementary school, the relative employment volume indicator was 20.3%. In the group of those who completed elementary school it was 47.1%, whereas in the group of those who completed vocational secondary school in the duration of up to three years or school for skilled and highly skilled workers it was 79.9%. In the group of persons who completed a four-year vocational secondary school or grammar school, the relative employment volume indicator was 87.0%, in the group of those who completed undergraduate university or post-secondary non-university education it was also 87.0%, and in the group of those with graduate or post-graduate university or academy education it was 102.4%. It can be concluded that the difference in the relative volume of employment between the persons with elementary education and those with secondary education is quite significant, as is the difference in the relative volume of employment between the persons with secondary education and those with undergraduate university or post-secondary non-university and those with graduate or post-graduate university or academy education. The largest relative employment volume indicator was recorded in the group of persons with university or academy education. In short, the higher the level of education, the higher the relative volume of employment.

26

Croatian Employment Service

20.3

47.1

79.9 81.287.0

102.4

120

100

80

60

40

20

0

A B C D E FLevel of Education

Rel

ativ

e V

olum

e of

Em

ploy

men

t (%

)

The relative volume of employment, however, differs significantly among the persons with the same level of education, depending on their occupation. The following table shows twenty occupations with the highest and twenty with the lowest relative employment volume indicators within the most frequent groups at secondary level of education.

Volume of Employment at Secondary Level of Education

Occupation % Occupation %Mechatronics Technician 143.2 Farmer 59.8Tourism and Hospitality Commercialist 139.2 Milling Machine Operator 59.2Medical Nurse / Medical Technician 134.9 Expert Economist 57.7Gas Fitter 131.4 Fruit-grower, Wine-grower and Wine-maker 56.5Automated Construction Machine Operator 130.2 Economist in Accounting and Finance 52.9

Forest Technician 126.8 Textile Enhancer 51.1Computer Technician in Mechanical Engineering 125.6 Chemical Lab Worker 50.7

Cook 122.2 House Painter 48.7Tourism and Hospitality Technician 117.3 Associate in Indok Department 48.3Computer Technician 117.1 Clothing Expert 47.6Waiter 116.2 Associate in Educational Process 47.3Heating and Air-condition Installer 115.6 Storage Keeper 46.7Mechanical Electrician 111.1 Expert Wood Technology Worker 46.0Electronics Technician 109.9 Shoe Upper Maker 45.3Commercialist 108.0 Shoemaker 45.1Plumber 105.3 Weaver 41.3Road Transport Technician 104.8 Assistant Cook and Confectioner 40.5Architectural Technician 104.3 Welder 39.8Motor Vehicle Driver 102.9 Expert Chemical Technology Worker 37.0Electrical Technician 102.8 Assistant Tailor 34.3

Note: the selection includes the groups in which there were on average 200 or more unemployed persons.

Levels of Education:

A – no education and uncompleted elementary school

B – elementary schoolC – 1- to 3-year vocational

secondary school and school for skilled and highly skilled workers

D – 4(or more)-year vocational secondary school and grammar school

E – undergraduate university and post-secondary non-university education

F – graduate and post-graduate university or academy education

Volume of Employment by Level of Education in 2015 (%)

27

2015 Yearbook

The following table shows ten occupations with the highest and ten with the lowest relative employment volume indicator at undergraduate university and post-secondary non-university and graduate and post-graduate university or academy level.

Volume of Employment by Occupation/Major at Undergraduate University and Post-secondary Non-university and Graduate and Post-graduate University

Occupation/Major % Occupation/Major %

Graduate teacher 366.3 Law 62.3

General medicine 272.7 Administration 57.3

Teacher education 256.3 Journalism 57.0

Preschool education 230.5 Agriculture 56.7

Croatian language and literature 160.2 Transport – road department 53.1

Early and preschool education 129.6 Economics 52.7

Nursing 121.8 Administrative and legal affairs 52.1

Hotel management 119.7 Transport – postal and telecommuni-cation services 42.3

Physical education 115.6 Political sciences 42.3

History 109.8 Farming – stock-breeding 42.1

Note: the selection includes the groups in which there were on average 100 or more unemployed persons.

Seasonal EmploymentIn general, seasonal employment accounts for a significant share of total employment of persons from the CES unemployment register. Seasonal employment mainly refers to tourism activities which, in addition to accommodation and food service activities, also include other related activities (trade, transportation, administrative and other service activities). Seasonal employment is also quite frequent in other activities as well, primarily agriculture, forestry and fishing, as well as some parts of manufacturing and construction.

Provision of job matching and placement services with regards to seasonal employment in tourism is one of important activities of the Croatian Employment Service. At the beginning of each year, the CES regularly organises regional meetings with the representatives of large hotel and tourism companies for the purpose of reaching concrete agreements with regards to demand forecast and manner in which the estimated demand for seasonal workers can be satisfied. The meetings are held in the coastal counties of Croatia (Istria, Primorje-Gorski Kotar, Zadar, Šibenik-Knin, Split-Dalmatia and Dubrovnik-Neretva) which are getting ready for the upcoming tourist season. After preparing the demand forecasts and selecting seasonal workers from unemployed domicile population, the representatives of the afore-mentioned companies conduct, in cooperation with CES regional offices based in continental counties, informative interviews with the interested candidates, select the most appropriate ones and refer them to the agreed job positions.

In 2015, 41,467 workers were seasonally employed, i.e. 20.1% of the total number of persons from the CES unemployment register employed on a work contract basis. Compared to 2014, the total number of seasonal workers employed increased by 1,130 or 2.8%. The largest number of seasonal workers was employed in accommodation and food service activities (22,054 workers or 53.2%), followed by trade (5,270 workers or 12.7%), administrative and support service activities (3,168 or 7.6%), manufacturing (2,198 workers or 5.3%) and agriculture, forestry and fishing (1,573 workers or 3.8%).

In 2015, most seasonal workers came from the coastal (61.6%) and Slavonian (23.3%) counties (Schedule 4, Page 31), i.e. coastal areas in which tourism represents the predominant activity and continental areas which typically provide a significant number of workers for employment in

28

Croatian Employment Service

coastal areas and on seasonal agricultural and manufacturing works. North-western and central Croatia account for a relatively small share in seasonal employment (15.1%).

As far as occupation is concerned, most seasonal workers belonged to the following groups: salespersons (4,070 or 9.8% of the total number of employed persons), waiters (3,797 or 9.2%), cooks (3,361 or 8.1%), chambermaids (1,818 or 4.4%), cleaning ladies (1,788 or 4.3%) and assistant cooks (1,615 or 3.9%).

Interregional EmploymentInterregional job matching and placement services are provided with the aim of meeting the employers’ demand for workers, especially in areas with insufficient workforce in certain groups of occupations, as well as for the purpose of encouraging migration of workers and providing opportunities for employment, particularly in areas recording high unemployment rates. If a certain regional office is not in the position to fill an opening by selecting an unemployed person registered in its county, the request is forwarded to other regional offices with registered workforce meeting the relevant job-specific requirements. Interregional job matching and placement services are especially important in the efforts to meet the demand for seasonal workers during the tourist season and the demand for workers trained in shortage occupations.

In 2015, 37,258 workers registered with the CES as unemployed were employed in the place outside of the territorial scope of the regional office to which the request had originally been submitted, which is 1.8% less than in 2014. If we analyse the structure of such persons by county (Schedule 4, Page 31), it is evident that most workers who were employed in the place outside the territorial scope of the regional office to which the request had originally been submitted came from the Counties of Osijek-Baranja (4,968 or 13.3%), Vukovar-Srijem (3,923 or 10.5%), Sisak-Moslavina (3,519 or 9.4%) and Slavonski Brod-Posavina (2,814 or 7.6%), while the largest relative increase in the number of workers who were employed in the place outside the territorial scope of the regional office to which the request had originally been submitted was recorded in the Counties of Koprivnica-Križevci (8.9%), Karlovac (8.0%), Dubrovnik-Neretva (6.4%), Osijek-Baranja (3.2%), Bjelovar-Bilogora (2.4%) and Split-Dalmatia (2.3%). In terms of employment activity, most such workers were employed in the key four areas of activity, i.e. accommodation and food service activities, wholesale and retail trade, construction and manufacturing (26,239 or 70.4% in total). Compared to the year before, the largest increase in workforce mobility was recorded in financial activities (18.3%), other service activities (11.9%), arts, entertainment and recreation (11.1%), human health and social work activities (5.5%) and water supply, sewerage, waste management and remediation activities (4.9%), although all these activities together account for a relatively small share (7.1%) in the total number of persons employed outside their county of permanent residence.

29

2015 Yearbook

Schedule 2

Reported Job Vacancies and Employment of Persons from the CES Register on a Work Contract Basis by Activity Based on the National Classification of Activities (2007) in 2014 and 2015

Activity (NCA 2007)Reported job vacancie

Number of persons from the CES register employed on a work contract

basis

2014 2015 2015 Share

2015/2014 Index 2014 2015 2015

Share2015/2014

IndexAgriculture, forestry and fishing 2,736 4,069 2.0 148.7 7,485 7,512 3.6 100.4

Mining and quarrying 61 82 0.0 134.4 223 196 0.1 87.9Manufacturing 17,810 24,459 12.1 137.3 34,044 32,833 15.9 96.4Electricity, gas, steam and air-conditioning supply

278 602 0.3 216.5 390 313 0.2 80.3

Water supply, sewerage, waste management and remediation activities

892 1,469 0.7 164.7 1,870 2,012 1.0 107.6

Construction 11,496 17,229 8.5 149.9 18,859 17,515 8.5 92.9Wholesale and retail trade, repair of motor ve-hicles and motorcycles

17,106 21,531 10.6 125.9 31,380 30,698 14.9 97.8

Transportation and sto-rage 3,953 5,911 2.9 149.5 7,116 6,866 3.3 96.5

Accommodation and food service activities 18,835 23,131 11.4 122.8 40,514 40,923 19.8 101.0

Information and commu-nication 2,534 2,707 1.3 106.8 2,374 2,314 1.1 97.5

Financial and insurance activities 1,396 1,810 0.9 129.7 1,723 1,764 0.9 102.4

Real estate activities 732 1,024 0.5 139.9 1,297 1,093 0.5 84.3Professional, scientific and technical activities 6,740 8,507 4.2 126.2 6,884 6,491 3.1 94.3

Administrative and support service activities 7,728 11,604 5.7 150.2 14,497 14,968 7.2 103.2

Public administration and defence, com-pulsory social security

14,608 20,771 10.3 142.2 4,652 8,426 4.1 181.1

Education 22,237 25,508 12.6 114.7 14,116 14,181 6.9 100.5Human health and social work activities 16,886 22,378 11.1 132.5 7,850 9,493 4.6 120.9

Arts, entertainment and recreation 2,315 3,238 1.6 139.9 2,818 2,956 1.4 104.9

Other service activities 4,478 6,371 3.1 142.3 4,842 5,410 2.6 111.7Activities of households as employers, undiffe-rentiated goods- and services-producing acti-vities of households for own use

41 56 0.0 136.6 754 603 0.3 80.0

Activities of extraterri-torial organisations and bodies

7 11 0.0 157.1 33 23 0.0 69.7

TOTAL 152,869 202,468 100.0 132.4 203,721 206,590 100.0 101.4

30

Croatian Employment Service

Schedule 3

Reported Job Vacancies and Employment of Persons from the CES Register on a Work Contract Basis by County in 2014 and 2015

County

Reported job vacanciesNumber of persons from the CES

register employed on a work contract basis

2014 2015 Share2015/ 2014 Index

2014 2015 Share2015/ 2014 Index

Zagreb 6,029 8,515 4.2 141.2 11,324 11,077 5.4 97.8

Krapina-Zagorje 4,314 5,562 2.7 128.9 5,455 5,505 2.7 100.9

Sisak-Moslavina 4,072 5,273 2.6 129.5 9,113 9,725 4.7 106.7

Karlovac 3,168 4,080 2.0 128.8 5,334 5,740 2.8 107.6

Varaždin 7,950 9,893 4.9 124.4 7,814 7,551 3.7 96.6

Koprivnica-Križevci 3,436 5,080 2.5 147.8 5,058 5,189 2.5 102.6

Bjelovar-Bilogora 3,497 4,531 2.2 129.6 7,164 8,089 3.9 112.9

Primorje-Gorski Kotar 11,891 16,774 8.3 141.1 13,901 13,430 6.5 96.6

Lika-Senj 1,943 2,542 1.3 130.8 2,495 2,591 1.3 103.8

Virovitica-Podravina 2,146 3,353 1.7 156.2 5,283 5,946 2.9 112.5

Požega-Slavonia 2,163 2,746 1.4 127.0 3,878 4,026 1.9 103.8

Slavonski Brod-Posavina 4,411 5,716 2.8 129.6 7,828 8,482 4.1 108.4

Zadar 6,110 8,079 4.0 132.2 7,829 7,315 3.5 93.4

Osijek-Baranja 10,786 16,173 8.0 149.9 18,284 20,039 9.7 109.6

Šibenik-Knin 5,489 6,071 3.0 110.6 6,135 6,322 3.1 103.0

Vukovar-Srijem 5,349 7,303 3.6 136.5 12,187 11,955 5.8 98.1

Split-Dalmatia 15,431 21,996 10.9 142.5 26,566 27,285 13.2 102.7

Istria 11,930 14,947 7.4 125.3 10,261 9,414 4.6 91.7

Dubrovnik-Neretva 4,814 6,638 3.3 137.9 7,315 7,549 3.7 103.2

Međimurje 5,551 6,161 3.0 111.0 5,526 5,169 2.5 93.5

City of Zagreb 32,389 41,035 20.3 126.7 24,971 24,191 11.7 96.9

TOTAL 152,869 202,468 100.0 132.4 203,721 206,590 100.0 101.4

31

2015 Yearbook

Schedule 4

Seasonal and Interregional Employment of Persons from the CES Register on a Work Contract Basis by County in 2014 and 2015

County

Seasonal employment Interregional employment

2014 2015 2015 Share

2015/ 2014 Index

2014 2015 2015 Share

2015/ 2014 Index

Zagreb 355 412 1.0 116.1 1,079 1,040 2.8 96.4

Krapina-Zagorje 235 310 0.7 131.9 1,849 1,679 4.5 90.8

Sisak-Moslavina 1,484 1,392 3.4 93.8 3,484 3,519 9.4 101.0

Karlovac 594 638 1.5 107.4 1,452 1,568 4.2 108.0

Varaždin 440 601 1.4 136.6 1,301 1,185 3.2 91.1

Koprivnica-Križevci 407 429 1.0 105.4 1,393 1,517 4.1 108.9

Bjelovar-Bilogora 1,233 1,375 3.3 111.5 2,517 2,578 6.9 102.4

Primorje-Gorski Kotar 2,842 2,415 5.8 85.0 1,126 1,031 2.8 91.6

Lika-Senj 705 583 1.4 82.7 387 388 1.0 100.3

Virovitica-Podravina 1,215 1,013 2.4 83.4 1,668 1,609 4.3 96.5

Požega-Slavonia 719 809 2.0 112.5 1,465 1,320 3.5 90.1

Slavonski Brod-Posavina 1,873 1,980 4.8 105.7 2,798 2,814 7.6 100.6

Zadar 2,822 2,378 5.7 84.3 692 641 1.7 92.6

Osijek-Baranja 3,033 3,094 7.5 102.0 4,813 4,968 13.3 103.2

Šibenik-Knin 3,108 2,999 7.2 96.5 959 897 2.4 93.5

Vukovar-Srijem 2,482 2,761 6.7 111.2 4,148 3,923 10.5 94.6

Split-Dalmatia 7,929 8,627 20.8 108.8 2,059 2,106 5.7 102.3

Istria 3,074 3,903 9.4 127.0 546 470 1.3 86.1

Dubrovnik-Neretva 4,536 4,629 11.2 102.1 738 785 2.1 106.4

Međimurje 311 250 0.6 80.4 798 762 2.0 95.5

City of Zagreb 940 869 2.1 92.4 2,666 2,458 6.6 92.2

TOTAL 40,337 41,467 100.0 102.8 37,938 37,258 100.0 98.2

32

Croatian Employment Service

Active Labour Market Policy

In 2015, the measures defined under the Active Labour Market Policy (ALMP) were carried out in accordance with the Guidelines for the Development and Implementation of Active Labour Market Policy in the Republic of Croatia for the period 2015 - 2017 adopted by the Croatian Government in December 2014. The Guidelines were drawn up respecting the ALMP priorities and objectives based on the analysis of the labour market and strategic employment documents of both, the Republic of Croatia and the European Union.

In accordance with the defined goals, the following measures were implemented under the ALMP: employment and start-up incentives for unemployed persons, institutional training for new hires and redundant employees, labour market oriented education for unemployed persons, workplace training without a work contract, co-financing or financing of direct job creation, i.e. employment in public work programmes, and job retention programmes.

In 2015, the affirmed ALMP measures were divided into packages intended for specific target groups of unemployed persons and employed persons facing the threat of lay-off, including:

• young persons up to 29 years of age,• long-term unemployed persons,• persons aged 50+,• persons with disabilities,• special groups of unemployed persons such as: single parents, young persons leaving

children’s homes, family abuse victims, Croatian war veterans, parents of four or more underage children, parents of children with special needs, asylum seekers, treated addicts, and other groups of unemployed persons facing the threat of social exclusion and long-term unemployment,

• members of the Romani national minority, and• employers facing difficulties in efforts to save jobs.

In 2015, the conditions for participation in particular measures, primarily public work programmes, were eased with the aim of ensuring involvement of as many young persons and persons above 50 years of age as possible. This particular measure targets homeless people as well. Over the year, the framework of the measure under which workplace training without a work contract is provided to unemployed persons was revised to include persons qualified in shortage occupations and those with specific competencies in a concrete workplace training with the aim of increasing their employability.

In 2015, 64,773 persons participated in the measures defined under the Active Labour Market Policy falling within the scope of responsibility of the Croatian Employment Service, of which 23,178 active participants from the previous year and 41,595 new entrants. Compared to 2014, the total number of participants increased by 14.4%, while the total number of new entrants increased by 46.8%.

33

2015 Yearbook

20,3

47,1

79,9 81,287,0

102,4

120

100

80

60

40

20

0

A B C D E FRazina obrazovanja

Active participants at thebeginning of the year

New entrants(in the course of the year)

Total participantsin the year

2014

2014

400

380

360

340

320

300

280

260

240

2015

2015

7.5

8.7

9.3

13.7

14.5

15.7

16.7

16.7

19.1

20.0

18.8

21.1

21.1

20.7

24.0

24.6

26.6

31.9

29.7

31.2

34.1

34.7

34.7

8.4 10

.9

12.4

12.6 14

.3 15,9

16.0

16.5

16.7 18

.4

19.5

19.7 22

.0

22.3

22.7

26.7 27.9

28.4 30

.3 32.3

32.5

Rel

ativ

ni o

pseg

zap

ošlja

vanj

a (%

)

70.000

60.000

50.000

40.000

30.000

20.000

10.000

0

40.000

35.000

30.000

25.000

20.000

15.000

10.000

5.000

0

201428

,293

1,55

2

1,60

6

517

18,5

97

6,60

3 9,96

1

2,77

6

1,58

9

536

32,4

94

11,2

81

11,7

45

4,88

5

2,22

6

28,3

39

56,6

32

23,1

78

41,5

95

64,7

73

2015

Per

cent

age

%

Broj nezaposlenih osoba tijekom 2014. i 2015. godine

Months

Num

ber o

f Une

mpl

oyed

(000

)

New entrants (in the course of the year)

Total participants in the year

Institutionaltraining for theunemployed

Institutionaltraining for the

employed

Workplacetraining withouta work contract

Employmentincentives

Direct jobcreation (public work

programmes)

Start-upincentives

Type of Intervention

Out-of-workincome

maintenanceand support

Total Participants in the Year by Type of Intervention – In 2014, more than half of the total number of participants attended workplace training without a work contract (32,494 persons or 50.2%). Although with smaller participation rates, the following measures were also used: public work programmes (11,745 persons or 18.1%), employment incentives (11,281 persons or 17.4%), start-up incentives (4,885 persons or 7.5%), out-of-work income maintenance and support (2,226 or 3.4%), institutional training for unemployed persons (1,606 persons or 2.5%), and institutional training for employed persons (536 persons or 0.8%).

20,3

47,1

79,9 81,287,0

102,4

120

100

80

60

40

20

0

A B C D E FRazina obrazovanja

Active participants at thebeginning of the year

New entrants(in the course of the year)

Total participantsin the year

2014

2014

400

380

360

340

320

300

280

260

240

2015

2015

7.5

8.7

9.3

13.7

14.5

15.7

16.7

16.7

19.1

20.0

18.8

21.1

21.1

20.7

24.0

24.6

26.6

31.9

29.7

31.2

34.1

34.7

34.7

8.4 10

.9

12.4

12.6 14

.3 15,9

16.0

16.5

16.7 18

.4

19.5

19.7 22

.0

22.3

22.7

26.7 27.9

28.4 30

.3 32.3

32.5

Rel

ativ

ni o

pseg

zap

ošlja

vanj

a (%

)

70.000

60.000

50.000

40.000

30.000

20.000

10.000

0

40.000

35.000

30.000

25.000

20.000

15.000

10.000

5.000

0

2014

28,2

931,

552

1,60

6

517

18,5

97

6,60

3 9,96

1

2,77

6

1,58

9

536

32,4

94

11,2

81

11,7

45

4,88

5

2,22

6

28,3

39

56,6

32

23,1

78

41,5

95

64,7

73

2015

Per

cent

age

%

Broj nezaposlenih osoba tijekom 2014. i 2015. godine

Months

Num

ber o

f Une

mpl

oyed

(000

)

New entrants (in the course of the year)

Total participants in the year

Institutionaltraining for theunemployed

Institutionaltraining for the

employed

Workplacetraining withouta work contract

Employmentincentives

Direct jobcreation (public work

programmes)

Start-upincentives

Type of Intervention

Out-of-workincome

maintenanceand support

New Entrants (participants who joined in the course of the year) by Type of Intervention – In the course of 2015, 41,595 persons joined the Active Labour Market Policy programmes. Most new participants joined workplace training without a work contract (18,597 persons or 44.7%), i.e. 30.4% more compared to 2014. New participants also took advantage of the following measures: public work programmes (9,961 persons or 23.9%) and employment incentives (6,603 persons or 15.9%). Compared to 2014, the number of new participants in the said measures increased by 151.8% and 33.2% respectively. A relatively small number of new participants took advantage of the following measures: start-up incentives (2,776 persons or 6.7%), out-of-work income maintenance and support (1,589 persons or 3.8%), institutional

Active Labour Market Policy Measure Participants in 2014 and 2015

New Entrants and Total Participants in ALMP Measures by Type of Intervention 2014 and 2015

34

Croatian Employment Service

training for unemployed persons (1,552 persons or 3.7%) and institutional training for employed persons (517 persons or 1.2%).

In the structure of new entrants, the share of women (58.9%) was significantly larger than the share of men (41.1%). As far as the age is concerned, young persons up to 29 years of age as usual accounted for more than half of new entrants in 2015 (60.2%), followed by persons aged 30 – 49 (middle working age) who accounted for a bit over one quarter of new entrants (28.1%), and persons aged 50+ who accounted for a bit more of one tenth of new entrants (11.7%). As far as the level of education of new entrants is concerned, the persons with completed secondary school accounted for the largest share (47.6%), followed by persons with completed graduate or post-graduate university or academy education (39.6%), while those with lower levels of education accounted for a significantly smaller share (12.5%). Short-term unemployed persons (up to one year) accounted for the largest share of new entrants who joined in the course of 2015 (54.4%).

The share of particular groups of new entrants in the average number of unemployed persons from the same group was most significant in the case of unemployed persons with graduate or post-graduate university or academy education (45.0%), young persons up to 29 years of age (29.6%) and short-term unemployed persons, i.e. persons unemployed for a period of up to 6 months (15.9%) and from 6 to 12 months (15.3%). As far as gender is concerned, women accounted for a slightly larger share of new entrants (15.8%) than men (13.1%).The total number of new entrants who joined in 2015 also included 1,094 persons with disabilities (15.8% of the average number of unemployed persons with disabilities), 1,935 Croatian war veterans (7.1% of the average number of unemployed war veterans) and 480 members of the Romani national minority.

New Entrants in ALMP Measures by Gender, Age, Level of Education and Duration of Unemployment in 2014 and 2015

Number StructureShare in the average

number of unemployed persons

Year 2014 2015 2014 2015 2014 2015

Total 28,339 41,595 100.0 100.0 8.6 14.5

Gend

er Men 11,304 17,086 39.9 41.1 7.4 13.1

Women 17,035 24,509 60.1 58.9 9.8 15.8

Age

15 - 29 19,010 25,050 67.1 60.2 18.5 29.6

30 - 49 7,256 11,671 25.6 28.1 5.4 10,0

50 + 2,073 4,874 7.3 11.7 2.3 5.8

Edu

catio

n

No secondary education 2,360 5,201 8.3 12.5 2.8 6.9

Secondary education 12,685 19,805 44.8 47.6 6.3 11.4Post-secondary education 13,293 16,463 46.9 39.6 32.8 45.0

Unknown 1 126 0.0 0.3 - -

Dur

atio

n of

U

nem

ploy

men

t Up to 6 months 9,006 16,282 31.8 39.1 7.4 15.9

6 - 12 months 6,649 6,380 23.5 15.3 11.8 15.3

More than 12 months 11,998 18,317 42.3 44.0 7.5 12.9Persons who were not unemployed before 686 616 2.4 1.5 - -

Persons with disabilities 734 1,094 2.6 2.6 10.6 15.8Members of the Romani national minority 705 480 2.5 1.2 - -

Croatian war veterans 1,071 1,935 3.8 4.7 3.5 7.1

35

2015 Yearbook

The total share of new entrants in ALMP measures in the average number of unemployed persons was 14.5% in 2015. At the county level, it ranged from 31.0% to 8.3% (Schedule 5, Page 36). The largest share of 31.0% (with the absolute number of new participants: 2,063) was recorded in the County of Istria. Above-average shares were also recorded in nine other counties, among which the County of Međimurje (26.0%), the City of Zagreb (22.9%) and the County of Varaždin (21.9%) accounted for the largest shares. The smallest shares of new participants were recorded in the Counties of Zagreb (8.3%), Sisak-Moslavina (8.6%), Karlovac (9.8%) and Split-Dalmatia (9.9%).

36

Croatian Employment Service

Schedule 5

Part

icip

ants

in A

ctiv

e La

bour

Mar

ket P

olic

y M

easu

res

by C

ount

y an

d Ty

pe o

f Int

erve

ntio

n in

201

5

Coun

ty

TOTA

LTy

pe of

Inter

venti

on

Num

ber o

f pa

rticip

ants

in th

e ye

ar

Shar

e in

the

aver

age

num

ber

of u

nem

ploye

d pe

rson

s, %

Educ

ation

Of w

hich:

Emplo

ymen

t inc

entiv

esDi

rect

job

creati

on -

Publi

c wo

rksSt

art-u

p inc

entiv

es

Out-o

f-Wor

k In

com

e M

ainte

nanc

e an

d su

ppor

tIn

stitu

tiona

l train

ing

for t

he u

nem

ploye

dIn

stitu

tiona

l train

ing

for t

he e

mplo

yed

Wor

kplac

e tra

ining

wi

thou

t a w

ork

cont

ract

New

entra

ntsTo

tal

partic

ipants

New

entra

ntsTo

tal

partic

ipants

New

entra

ntsTo

tal

partic

ipants

New

entra

ntsTo

tal

partic

ipants

New

entra

ntsTo

tal

partic

ipants

New

entra

ntsTo

tal

partic

ipants

New

entra

ntsTo

tal

partic

ipants

New

entra

ntsTo

tal

partic

ipants

New

entra

ntsTo

tal

partic

ipants

New

entra

ntsTo

tal

partic

ipants

Zagr

eb1,

317

2,24

78.

314

.266

91,

179

00

07

669

1,71

233

256

614

122

017

528

20

0

Krap

ina –

Zag

orje

1,21

82,

087

18.3

31.4

587

1,09

365

650

452

21,

024

282

510

260

314

8917

00

0

Sisa

k – M

oslav

ina1,

575

2,38

48.

613

.152

598

059

590

046

692

120

936

872

480

010

422

313

13

Karlo

vac

936

1,42

99.

814

.951

683

412

312

30

039

371

114

425

022

225

641

7413

15

Vara

ždin

1,63

02,

493

21.9

33.5

742

1,26

965

650

067

71,

204

316

504

339

411

127

201

106

108

Kopr

ivnica

– K

rižev

ci1,

069

1,71

816

.526

.656

888

789

890

047

979

816

225

229

446

445

115

00

Bjelo

var –

Bilo

gora

1,17

01,

753

10.1

15.2

501

868

4141

00

461

827

187

287

447

529

3469

00

Prim

orje

– Go

rski

Kota

r2,

452

4,11

415

.826

.51,

169

2,22

069

690

01,

100

2,15

154

789

645

249

522

242

762

76

Lika

– Se

nj44

466

812

.819

.318

733

810

107

717

032

146

7515

116

250

7510

18

Viro

vitica

– P

odra

vina

1,05

61,

543

11.5

16.8

440

783

22

44

434

777

107

171

468

478

4111

10

0

Pože

ga –

Slav

onia

813

1,30

015

.424

.647

485

570

700

040

478

513

721

217

218

130

520

0

Slav

onsk

i Bro

d –

Posa

vina

1,78

42,

322

14.0

18.3

490

852

4242

00

448

810

194

280

1,03

21,

067

6812

30

0

Zada

r1,

424

2,19

817

.627

.11,

023

1,64

013

813

80

088

51,

502

134

231

179

187

4983

3957

Osije

k – B

aran

ja3,

819

5,72

211

.817

.61,

319

2,30

80

00

01,

319

2,30

858

192

71,

542

1,79

337

669

01

4

Šibe

nik –

Knin

852

1,36

212

.019

.146

278

835

357

742

074

698

212

209

227

6710

716

28

Vuko

var –

Srije

m2,

386

3,48

014

.020

.483

71,

354

114

114

3030

693

1,21

022

539

31,

242

1,56

282

171

00

Split

– Da

lmat

ia3,

971

6,21

89.

915

.52,

084

3,48

339

9314

714

71,

898

3,24

359

61,

032

877

981

174

346

240

376

Istria

2,06

33,

220

31.0

48.3

754

1,20

462

620

069

21,

142

229

384

6710

713

626

087

71,

265

Dubro

vnik

– Nere

tva1,

192

1,70

015

.421

.944

265

150

500

039

260

113

522

126

629

416

329

918

623

5

Međ

imur

je1,

448

2,37

726

.042

.655

092

211

711

727

2740

677

839

774

441

851

383

198

00

City

of Z

agre

b8,

976

14,4

3822

.936

.86,

326

10,1

2836

236

229

530

35.

669

9,46

31,

545

2,76

645

970

462

080

926

31

TOTA

L41

,595

64,7

7314

.522

.720

,666

34,6

361,

552

1,60

651

753

618

,597

32,4

946,

603

11,2

819,

961

11,7

452,

776

4,88

51,

589

2,22

6

37

2015 Yearbook

Unemployment Insurance

Pursuant to the provisions of the Job Placement and Unemployment Insurance Act1, unemployment insurance includes:

• unemployment benefit,• pension insurance,• financial assistance and reimbursement of expenses during education and training,• financial assistance during workplace training without a work contract,• financial assistance for persons insured under an extended insurance scheme on the

basis of a temporary work contract for regular seasonal jobs,• one-off financial assistance and reimbursement for travel and relocation expenses.

The unemployment insurance claiming procedure is initiated at the request of the unemployed person. The requests are handled in accordance with the provisions of the General Administrative Procedure Act. The first-instance procedure is carried out by CES regional offices, while first-instance decisions concerning unemployment entitlements based on EU regulations on the coordination of social security systems are made by the Central Office. Appeals over first-instance decisions are resolved by the Ministry of Labour and Pension System.

Unemployment BenefitUnemployed persons acquire the right to unemployment benefit provided they had worked 9 out of 24 months prior to termination of employment and that such termination was not caused through their own fault or will. Furthermore, unemployed persons who decide to cease operating their sole business are also eligible for unemployment benefit, provided that they had worked 9 out of 24 months prior to such cessation of operation, and provided that such cessation is deemed justifiable pursuant to the Job Placement and Unemployment Insurance Act.In order to be eligible for unemployment benefit, an unemployed person must report to the CES and submit a request for unemployment benefit within 30 days from the date of termination of employment, cessation of operation of a sole business or end of sick or maternity/paternity leave. If an unemployed person fails to report to the CES within the specified deadline of 30 days due to justifiable reasons, he/she may report to the competent employment service and submit a request for unemployment benefit within 8 days from the date of termination of the reason that caused the failure to meet the deadline, however no later than 60 days from the missed deadline.Depending on the total years of service, an unemployed person may claim unemployment benefit for a period of 90 to 450 days. The exception to this rule are unemployed persons with 32 or more years of service missing up to 5 years to be eligible for age-based retirement who may claim unemployment benefit until re-employment or until one of the circumstances prescribed by the afore-mentioned act as justifiable grounds for terminating the right to unemployment benefit arises.Unemployed persons entitled to unemployment benefit may request to receive the approved amount in the form of a one-off payment. The terms and method of payment are determined under the Decision on Conditions and Manner of Making a One-off Payment of the Unemployment Benefit2. The one-off payment of the unemployment benefit may be granted for starting a craft (trade) or sole business, getting employed in a company in which the unemployed person participates with a share that does not exceed 25%, as well as for starting a company and getting employed in the same.The basis for determining the unemployment benefit amount for a person whose work relationship has been terminated is the average salary earned in the three-month period preceding the termination of employment reduced by statutory contributions. As far as persons who cease to operate a sole business are concerned, the average amount that served as the basis to calculate the statutory contributions payable by the same, as defined under special regulations, in the three-month period preceding the cessation of operation is used. If the basis cannot be determined in the above-described manner, the same will equal the amount of the minimum salary reduced by statutory contributions, depending on the years of service.1 Official Gazette No. 80/08, 121/10, 25/12, 118/12, 12/13 – purified text version; 153/132 Official Gazette No. 123/12

38

Croatian Employment Service

During the first 90 days, unemployment benefit amounts to 70% of the base amount. During the remaining period in which unemployment benefit is received, the recipients get 35% of the base amount. During the first 90 days, unemployment benefit may not exceed 70% of the base amount. In the remaining period, it may not exceed 35% of the average salary paid in the Croatian economy in the previous year according to the latest officially published data. The highest unemployment benefit in 2015 amounted to HRK 3,873.10, whereas the average unemployment benefit amount was HRK 1,817.00.

112,261 persons applied for unemployment benefit in 2015 and 106,976 applications were approved. 1,398 requests for extending the period in which unemployment benefit is received to long-term unemployed women until they meet the prescribed requirements for age-based or early age-based retirement were submitted, of which 1,324 were approved. Furthermore, 1,566 requests for one-off payment of the unemployment benefit were received and 1,411 approved.

In 2015, there were on average 48,442 unemployment benefit recipients per month, which represents a 17% decrease compared to 2014. The following groups accounted for the largest shares in the average number of unemployment benefit recipients: women (52.9%), persons aged 25 - 54 (61.7%), persons with secondary education (66.0%) and short-term unemployed persons (78.3%). On average, 16.9% of the total number of unemployed persons received unemployment benefit in 2015 (0.9 pp less than in 2014 when the share of unemployment benefit recipients in the total number of unemployed persons was 17.8%). The share of men (17.4%) was slightly greater than the share of women (16.5%), while persons above 55 years of age accounted for a significantly larger share (30.1%) compared to all other age groups. Although with almost negligible difference, persons with secondary level of education received unemployment benefit in more cases (18.3%) than those with higher (16.0%) or lower levels of education (14.2%). Finally, there were significantly more short-term unemployed (26.3%) than long-term unemployed persons (7.4%) in the structure of unemployment benefit recipients.

Unemployment Benefit Recipients by Gender, Age, Level of Education and Duration of Unemployment in 2014 and 2015

Average Number StructureShare in the

Average Number of Unemployed Persons

2015/2014 Index

2014 2015 2014 2015 2014 2015

Total 58,347 48,442 100.0 100.0 17.8 16.9 83.0Gender:Men 28,644 22,800 49.1 47.1 18.7 17.4 79.6

Women 29,703 25,642 50.9 52.9 17.0 16.5 86.3

Age:15 - 24 3,287 2,914 5.6 6.0 5.5 5.9 88.7

25 - 54 36,128 29,870 61.9 61.7 16.8 16.2 82.7

50 + 18,932 15,658 32.4 32.3 34.8 30.1 82.7

Education:No secondary education 13,308 10,604 22.8 21.9 15.6 14.2 79.7

Secondary education 38,678 31,978 66.3 66.0 19.1 18.3 82.7

Post-secondary education 6,361 5,860 10.9 12.1 15.7 16.0 92.1

Duration of Unemployment:Short-term (0-12 months) 44,257 37,922 75.9 78.3 26.2 26.3 85.7

Long-term (12+) 14,089 10,520 24.1 21.7 8.8 7.4 74.7

39

2015 Yearbook

Claiming Unemployment Insurance on the Basis of Having Worked AbroadThe Job Placement and Unemployment Insurance Act prescribes that a Croatian citizen who had worked abroad is eligible for unemployment benefit during the period of unemployment in accordance with the provisions of the relevant international agreement.

A Croatian citizen who had worked in a country with which the Republic of Croatia has not signed an agreement regulating unemployment insurance or a country in which he/she had not been insured for the event of unemployment, may claim the right to unemployment benefit according to the provisions of the Job Placement and Unemployment Insurance Act provided he/she had paid the employment contribution to the Croatian Employment Service for at least 9 out of 24 months preceding the termination of employment abroad.

In determining entitlement to unemployment insurance, the CES applies the agreements on social security the Croatian Government has signed with other states as well. Social security agreements containing provisions on unemployment signed with Bosnia and Herzegovina, Macedonia, Yugoslavia (Serbia), Montenegro and Turkey are currently in effect. Under the said social security agreements, only the periods during which the person was insured are taken into account when applying for unemployment benefit, provided also that employment had been terminated in Croatia and that the unemployed person had been, prior to submitting the application, employed in Croatia for a certain period of time or insured for the event of unemployment. The data concerning the period of unemployment insurance were exchanged with the mentioned countries in 877 cases. Apart from the terms set forth in these agreements, an unemployed person must also meet the requirements prescribed by the Job Placement and Unemployment Insurance Act.

After 1 July 2013, when Croatia became a full member of the European Union, social security agreements that the Republic of Croatia had previously signed with EU member states ceased to be in force and were replaced by EU regulations on the coordination of social security systems (EC Regulation No. 883/2004 and EC Regulation No. 987/2009).

Claiming Unemployment Insurance According to the Regulations on the Coordination of Social Security SystemsThe Act on the Implementation of EU Directives on the Coordination of Social Security Systems3 came into force on the date of Croatia’s accession to the EU. The said act defines the competent liaison authorities, institutions and bodies and their responsibilities in the implementation of EU regulations pertaining to the coordination of social security systems. Under the act, the CES has been appointed as the competent authority responsible for the provision of unemployment insurance in Croatia.The EU regulations provide guidelines for coordination of social security systems of EU member states and define the core principles and conditions related to unemployment insurance, particularly with respect to:

• export of unemployment benefit, • import of unemployment benefit, • aggregation of periods of insurance realised in different member states, and • entitlement to unemployment benefit of cross-border and non-cross-border workers.

In the course of 2015, on the basis of the regulations on the coordination of social security systems, the CES issued 70 PD U2 forms authorising export of unemployment benefit to unemployed persons who were granted right to unemployment benefit in the Republic of Croatia and moved to another member state in search of employment, while retaining their acquired right to unemployment benefit; 51 forms confirming that an unemployed person who was granted right to unemployment benefit in another member state and who came to the Republic of Croatia in search of employment has registered with the CES (SED U009); and 1,261 forms confirming periods of insurance, reasons for termination and last received salary in the Republic of Croatia for the purpose of applying for unemployment insurance in another member state (PD U1, SED U002, SED U004). In the same period, 676 unemployment benefit applications with an element of coordination were received (relating to cross-border workers and aggregation of periods of insurance) and 524 approved. 3 Official Gazette No. 54/13

40

Croatian Employment Service

In addition, every six months the CES applies for a refund of unemployment benefits paid out to cross-border workers. For the period of 1 July to 31 December 2014, Croatia submitted requests for refund to the Federal Republic of Germany (for 70 persons), Austria (for 34 persons), Slovenia (for 7 persons), Italy (for 3 persons), Sweden (for 1 person) and UK (for 1 person), in the total amount of HRK 979,859.77. Requests for refund were also submitted for the first six months of 2015 (the period from 1 January until 30 June 2015), including requests submitted to the Federal Republic of Germany (for 195 persons), Austria (for 49 persons), Slovenia (for 11 persons), Italy (for 3 persons), Sweden (for 1 person), Slovakia (for 1 person) and Ireland (for 1 person), in the total amount of HRK 2,549,204.96. In 2015, a total of HRK 2,407,682.20 was received with regards to refund requests submitted for the period from 1 July 2013 until 31 December 2014.

Pension Insurance Unemployed persons who are entitled to unemployment benefit and meet the age requirements for age-based retirement may apply for pension insurance. The right to pension insurance will last for the period until they meet the first pensionable service requirement for age-based retirement, which period may not exceed 5 years. In 2015, 59 applications for pension insurance were approved.

Financial Assistance and Reimbursement for Expenses during Education and TrainingAn unemployed person referred to an educational programme by the CES is eligible to receive financial assistance in the amount of the lowest unemployment benefit and reimbursement for real transportation expenses (real cost of public transportation), real cost of the required textbooks, food, prescribed protective clothes, shoes and other aids. Furthermore, an unemployed person referred by the CES to workplace training without a work contract has the right to financial assistance during such training in the amount determined under the decision of the Government of the Republic of Croatia (in 2015, the amount of financial assistance paid to unemployed persons referred by the CES to workplace training without a work contract amounted to HRK 2,400.00 per month). In 2015, 1,422 requests for financial assistance during education and training and 18,579 requests for financial assistance during workplace training without a work contract were approved.

Financial Assistance for Persons Insured Under an Extended Pension Scheme On the Basis of a Temporary Work Contract for Regular Seasonal JobsA person insured under an extended insurance scheme on the basis of a temporary work contract for regular seasonal jobs has the right to financial assistance to be received for a maximum of six months during the extended insurance period. The manner of determining the relevant amount is defined by the Government of the Republic of Croatia in a decision issued to that effect. In 2015, 1,267 requests for financial assistance submitted by persons insured under an extended insurance scheme on the basis of a temporary work contract for regular seasonal jobs were approved.

One-off Financial Assistance and Reimbursement for Travel and Relocation ExpensesIf the CES is unable to find employment for an unemployed person in his/her place of permanent residence and he/she finds employment in some other place either through his/her own effort or through interregional job placement services provided by the CES, such persons shall be entitled to a one-off financial assistance and reimbursement for travel and relocation expenses (from the place of residence to the place of employment) for themselves and their spouses and children. The eligibility requirements for receiving this type of unemployment insurance have been determined on the basis of the Decision on the One-off Financial Assistance and Reimbursement for Travel and Relocation Expenses4. In 2015, 9,680 requests for reimbursement for travel and relocation expenses and 21 requests for one-off financial assistance were approved.

4 Official Gazette No. 74/09

41

2015 Yearbook

Number of Unemployment Insurance Requests Approvedin 2014 and 2015

Type of Financial Insurance 2014 2015 2015/2014 Index

Unemployment benefit 116,933 106,976 91.5Extended unemployment benefit for women until they meet the requirements for age-based retirement 1,489 1,324 88.9

One-off unemployment benefit 1,249 1,411 113.0Pension insurance 9 59 655.6Financial assistance during education and training 1,800 1,422 79.0Financial assistance during workplace training without a work contract 14,538 18,579 127.8

Financial assistance paid to persons insured under an extended insurance scheme on the basis of a temporary work contract for regular seasonal jobs

745 1,267 170.1

Reimbursement for travel and relocation expenses 10,108 9,680 95.8One-off financial assistance 18 21 116.7

42

Croatian Employment Service

International Community Supported Projects

In 2015, co-financed by the European Union, the Croatian Employment Service implemented various projects within the scope of the following programmes: Instrument of Pre-accession Assistance (IPA), European Social Fund (ESF), Community Programme for Employment and Social Solidarity (PROGRESS), Seventh Framework Programme (FP7) and Lifelong Learning Programme (LLP).

Instrument for Pre-accession Assistance (IPA)The CES implements or takes part in the implementation of projects falling within the scope of three different components of the IPA Programme: Transition Assistance and Institution Building, Cross-Border Cooperation and Human Resources Development.Most of the project activities carried out by the CES are implemented under IPA Component 4: Human Resources Development. IPA projects implemented by the CES in 2015:

The implementation of the Agreement on Direct Non-Repayable Grant Awards included the following two measures - Training for Employment of Redundant Workers and Long-term Unemployed Persons and Workplace Training without a Work Contract. The measures are intended to provide training and retraining opportunities for redundant workers and long-term unemployed persons. In 2015, 15 round tables were held in CES regional offices on the topic of the mentioned measures, and 45 workers received training in the use of the application related to the same, which was also upgraded under the project. The project deadline has been extended to December 2016. The workplace training without a work contract programme, regulated under the mentioned Agreement on Non-repayable Grant Awards, ended in June 2015.

The implementation of the project called New Approaches to Delivering Services to Clients lasted until July 2015. Three goals were achieved: to increase the capacity of the CES for delivering better-adjusted and targeted services to employers; to develop an e-counselling model for users of CES services; to develop a new set of ALMP measures intended primarily for long-term unemployed persons and improve the existing system for delivery and management of ALMP measures. During the implementation, the CES developed new services for employers and long-term unemployed persons, a new e-guidance service was designed, i.e. the e-guidance portal, and CES employees received training in how to provide the newly developed services.

In the course of 2015, CES regional offices participated in the implementation or independently implemented a large number of projects under the grant schemes falling within the competence of CES.

CES Grant Schemes in 2015

Name of Grant Scheme Regional Office Project StatusImproving labour market access of disadvantaged groups

Bjelovar, Gospić, Karlovac, Osijek, Požega, Slavonski Brod, Zadar

implementation completed in 2015

Local employment initiativesBjelovar, Karlovac, Križevci, Osijek, Požega, Slavonski Brod, Varaždin, Virovitica, Vukovar and Zadar

implementation completed in 2015

Improving labour market access to persons with disabilities Bjelovar, Požega, Split and Zadar currently being

implemented

Local employment development initiatives – Phase 2

Bjelovar, Čakovec, Dubrovnik, Gospić, Karlovac, Krapina, Križevci, Kutina, Osijek, Požega, Pula, Sisak, Slavonski Brod, Split, Šibenik, Varaždin, Vinkovci, Virovitica, Vukovar, Zadar and Zagreb

currently being implemented

Improving labour market access to persons in unfavourable positions - tender evaluation /

contracting phase

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In 2015, the CES started implementing two new projects - Strengthening the Croatian Employment Service Labour Market Training Centre and External Evaluation of Active Labour Market Policy Measures. In 2015, an e-learning portal was set up under the Strengthening of the CES Labour Market Training Centre project. 23 trainers from the Labour Market Training Centre (LMTC) received training on the topic of e-learning and blended learning programmes. In the course of the year, the CES also started implementing a pilot training project intended for CES employees at the national and regional level. The purpose of the External Evaluation of Active Labour Market Policy Measures project is to evaluate the efficiency of ALMP measures carried out in the period from 2010 and 2013, as well as analyse the related user experience. By the end of 2015, the as is analysis was completed, the research plan and methodology were defined and the relevant data were collected. Data processing and report preparation activities also commenced.

In the course of 2015, in the framework of the twinning project called Development of Social Networks in the Croatian Employment Service, the CES conducted an analysis of the CES services provided on social networks and prepared a framework for future social network management process improvement. The capacities of employees for managing the content posted and communication conducted through social networks were improved. The CES also carried out a public campaign for the purpose of promoting the new services it plans to provide via social networks and the microblogging platform.

Under IPA Component 1, the CES implemented the project called Mechanisms for Cross-border Cooperation in EURES. The purpose of the project was to improve the activities concerning cross-border mobility and cross-border cooperation mechanisms at the regional level, as well as strengthen the capacities of the CES for cross-border cooperation in EURES and provision of services related to cross-border mobility. All the mentioned objectives were achieved. In addition, the existing and future cross-border workers and employers operating in cross-border regions were informed about the cross-border related possibilities, models and conditions.

Under IPA Component 2: Cross-border Cooperation (IPA CBC), the Regional Office Dubrovnik participated in Adriahub, a project implemented under the CBC Adriatic Programme.

European Social Fund (ESF)Under the European Social Fund Programme for the second half of the period 2013 - 2014, the CES continued implementing the Agreement on Non-repayable Grant Awards entitled Implementation of Active Labour Market Policy Measures, which provides funding for start-up incentives, workplace training without a work contract and employment incentives for young people – employment after workplace training. The implementation period has been extended until June 2016.

In March 2015, the CES started implementing a project called Further Development of Occupational Standards. In the course of the year, 47 out of the 50 planned occupations were surveyed in the course of the year. The results will serve as the analytical basis for developing occupational standards. Workshops on the topic of how to carry out occupational surveys were conducted for the benefit of institutions/stakeholders that intend to develop occupational standards and independently collect the required related data.

Under the European Social Fund Programme for the second half of 2013, the CES also implemented projects under the grant scheme entitled Social Services Network Expansion – Phase 2, Social Services Network Expansion – Phase 3 and Supporting Pupils with Specific Learning Difficulties in Elementary and Secondary Schools.

In 2015, the CES intensively worked on preparing project documents for projects implemented under the Operational Programme: Efficient Human Resources 2014 - 2020. As a result, agreements on direct grant award for 7 projects were signed in November 2015: Implementation of Active Labour Market Policy Measures for Young People; Implementation of Active Labour Market Policy Measures for Long-term Unemployed Persons; Implementation of Public Work

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Programmes for Low Employability Persons; Education, Training and Retraining of Unemployed Persons; Supporting Self-employment; Supporting Employment of Low Employability Persons; and Job Retention Programmes. In December 2015, two more project applications were submitted (Through Professional Rehabilitation to Full Integration of Persons with Disabilities into the Labour Market; Strengthening of Capacities for the Provision of Self-employment Support Services). In 2015, the CES started preparing project documents for another 5 projects whose implementation is expected in 2016.

In the framework of the Modernisation of the Social Protection System in the Republic of Croatia project, funded under a World Bank loan, the CES started preparing for the development of a statistical prediction model in 2015. By the end of the year, professionals responsible for conducting the process of statistical profiling and validation of the designed statistical model and the pilot model were selected. In October and November of 2015, CES employees made three study visits to Sweden, Ireland and the Netherlands in order to draw from the experience of the countries that already conduct statistically supported profiling.

In the framework of the ERASMUS+ Programme or, more precisely, the Alpe Adria Working Mobility – Intercultural Competencies in Career Guidance project implemented under the same, the CES performs activities in cooperation with partners from Austria, Italy and Slovenia. In the course of 2015, an analysis of labour markets in the Alpe Adria region and the related vocational guidance practices and methods, with an emphasis on cultural and linguistic competencies of counsellors, was carried out. Preparation activities concerning the training of counsellors on the topic of intercultural career guidance also commenced.

The implementation of the European Green Innovation Support Network – GREENET, implemented under the PROGRESS programme, in which the CES participated as a project partner, ended in September 2015. Until the end of the implementation period, the CES conducted an analysis of the current condition of the relevant green occupations, carried out a workshop on a national level intended for partners and key stakeholders, created a web platform with the related content, designed an e-learning workshop, developed a uniform framework for green job-specific qualifications and occupational standards in the target field, and performed activities aimed at raising the public awareness of green employment initiatives.

As part of the Seventh Framework Programme 7 (FP7) for Research, Technological Development and Demonstration Activities, the CES participates in the implementation of two projects - Croskills Pillar II and Employ ID. As part of the Croskills Pillar II Work Package 6 the CES is in charge of, two national qualifications platforms and one meeting of the thematic group, formed within the national qualifications platform, were held. The CES working group contributed by the preparation of the chapter on the basics of the psycho-sociology of labour. As part of the Employ ID project workshops in contextual research were carried out in 2015. The purpose of the same was to identify the challenges the CES counsellors tackle with in their everyday activities. On the basis of the research results, the CES started conducting preparation activities associated with the establishment of a communication platform for counsellors called Community of Practitioners whose purpose is to provide a place for an exchange of experiences and knowledge.

Under the Lifelong Learning Programme, the Regional Office Karlovac participated in a project called e-Roma Resource.

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Financial Management of EU Projects

Pursuant to the Act on Establishment of Institutional Framework for Utilisation of EU Structural Instruments in the Republic of Croatia (OG 78/12, 143/13, 157/13) and the Ordinance on the Bodies within the System of Management and Control of Utilisation of EU Structural Instruments in the Republic of Croatia (OG 97/12), the Department for Financing and Contracting of EU Projects of the Croatian Employment Service plays the role of an Intermediate Body Level 2 (IB2) within the Operational Structure for the implementation of the European Social Fund programme responsible for the implementation of Priority 1, Measures 2.1 and 2.3 under Priority 2, Priority 4 and Measure 5.1 under Priority 5 of the “Operational Programme: Human Resources Development” using the available allocations. For the financial period 2014 – 2020, the roles of the relevant bodies are defined under the Act on Establishment of Institutional Framework for Utilisation of EU Structural and Investment Funds in the Republic of Croatia 2014 – 2020 (OG 92/14) and the Ordinance on the Bodies within the System of Management and Control of Utilisation of the European Social Fund, the European Regional Development Fund and the Cohesion Fund in relation to Investing in Jobs and Growth (OG 107/14, 23/15, 129/15). In that regard, the Department for Financing and Contracting of EU Projects of the Croatian Employment Service plays the role of IB2 in the implementation of the “Operational Programme: Efficient Human Resources”, and is responsible for Priority 1: Employment and Labour Market (Better Workforce Employability and Mobility), Priority 2: Social Inclusion, Priority 4: Good Governance (Better Public Administration) and Priority 5: Technical Assistance.

From the total funds allocated for the “Operational Programme: Human Resources Development for the period 2007 – 2013”, amounting to EUR 179,309,591.00, the Intermediate Body Level 2 of the Croatian Employment Service is responsible for operations in the value of EUR 101,811,987. In 2015, the Department for Financing and Contracting of EU Projects participated in the preparation of project documents for 1 project within the scope of the mentioned allocation.

In 2015, the implementation and financing of 4 service agreements, 113 non-repayable grant award agreements, 2 direct grant award agreements and 1 supply of goods agreement continued. 243 new agreements were signed, of which 54 non-repayable grant award agreements in accordance with the rules defined in the Practical Guide to Contract Procedures for EC External Actions under the tenders announced prior to Croatia’s accession to the EU, and 181 non-repayable grant award agreements based on Shared National Rules. By the end of 2015, 53 non-repayable grant award agreements were fully implemented.

From the total amount of funds allocated to CES IB2 for the period 2007 – 2013, operations in the value of EUR 96,863,336.55 or 95.14% were arranged in 2015.

Total allocation for the “Operational Programme: Efficient Human Resources” for the period 2014 – 2020 amounts to EUR 1.85 billion. In 2015, the Croatian Employment Service arranged 7 agreements in the value of EUR 192,287,144.

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Organisational Structure and Operations of the CES

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2015 Yearbook

Organisational Structure, Governance and Human Resources

The Croatian Employment Service is a public institution established pursuant to the Job Placement and Unemployment Insurance Act (Official Gazette No. 80/08, 121/10, 25/12, 118/12, 12/13 – purified text version, 153/13).The CES is a legal person with rights, obligations and responsibilities defined under the said Act, the relevant legal documents, as well as under the Bylaws passed by the CES Managing Council. CES operations are public. The CES reports on its performance and activities to the Government of the Republic of Croatia and the competent ministry at least once a year. The legitimacy of activities and general documents of the CES are monitored by the Ministry of Labour and Pension System.The CES performs its operations through its:

• Central Office,• 5 regional centres,• 17 regional offices, and• 99 local offices,

thus making its services available on the entire territory of the Republic of Croatia.The CES includes the following organisational units:

• Director General’s Office,• Labour Market and Employment Policy Sector,• Financial Management Sector,• Legal Affairs Sector,• Analytics and IT Sector,• Independent departments.

The CES is governed by the Managing Council composed of seven members, i.e. representatives of state institutions, trade unions, employers, workers and associations of unemployed persons. These representatives are appointed by the Government of the Republic of Croatia. The CES is headed by a Director General who has the authority to represent it and is responsible for the legality of its operations. CES Director General is also appointed by the Government and has a deputy and assistants. The scope, authorities and responsibilities of the Managing Council, Director General, Deputy Director General and Assistants are defined under the CES Bylaws.

On 31 December 2015, the Croatian Employment Service employed 1,521 workers, of which 1,217 women (80.0%) and 304 men (20.0%).

Structure of CES Employees by Gender, 31 December 2015

20%

80%

WomenMen

The structure of CES employees by the level of education was as follows: 15 (1.0%) academic professionals or doctors of science, 1,034 (68.0%) employees with graduate or post-graduate university or academy education, 163 (10.7%) with undergraduate university

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or post-secondary non-university education, 263 (17.3%) employees who completed a 4-year vocational secondary school or grammar school, 18 (1.2%) employees who completed a vocational secondary school in the duration of up to three years or school for skilled or highly skilled workers and 28 (1.8%) employees without secondary education. Employees with undergraduate, graduate and post-graduate education make the relative majority of CES employees (1,212 employees or 79.7%).

Structure of CES Employees by Level of Education, 31 December 2015

�academic professional or doctor of science

�graduate, post-graduate and academy education�undergraduate university and post-

secondary non-university education�4-year vocational secondary school or

grammar school�3-year vocational secondary school

or school for skilled and highly skilled workers�elementary school

10.7%

17.3%

1.2%1.8%

1.0%

68.0%

From the total number of employees, 1,306 persons (5.9%) were employed in regional offices, and 215 (14.1%) in the Central Office, of which 74 (34.4%) in the Department for Financing and Contracting of EU Projects whose salaries are funded by the EU.

Employee EducationActivities related to employee education were carried out in accordance with the CES Strategic Goal 2: To develop human resources and the administrative capacity of the Croatian Employment Service for creating and providing new services in the labour market; the “Strategy for Organisational Development of the Croatian Employment Service Labour Market Training Centre”; and the “Guidelines for Employee Training and Advancement Procedures in the Labour Market Training Centre”. The activities focused on enhancing the knowledge and skills of both employees and trainers educated under the “CES Labour Market Training Centre” (CES LMTC) project in order to help them convey the acquired knowledge by conducting educational activities for CES employees.

In 2015, numerous educational activities were conducted. Most participants joined the training and advancement programme intended for CES trainers, mentors and employees, including the following training modules: Basic Orientation, Key Business Processes, Support Business Processes, Labour Market Related Knowledge and Skills, Advisory Skills Development, Working with Employers, Crisis Management Knowledge and Skills Improvement, Complaints Prevention, Trainer Skills Advancement, Negotiation Skills, Educational Programme Design, Providing Feedback Information (a series of workshops for trainers and mentors), Assertiveness, Categorization and Professional Plan, Structured Interview, Business Process Application Support (a series of workshops), National Classification of Occupations, National Standard Classification of Education Levels and the Bologna Process, Business Relationship Development in Working with Clients; and various other activities, presentations, mentorships and tutorials.

139 educational programmes were conducted in 2015 (trainings, workshops, seminars and presentations), involving 1,568 participants. The target participants were CES employees and participants in workplace training without a work contract, and other labour market stakeholders. The team of trainers from the Employee Development and Education Department conducts regular educational activities aimed at improving the knowledge and skills of trainers and mentors.

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Preparation of a strategic document that would regulate employee education, induction programme, glossary of related terms, internal rules of conduct and use of the e-learning portal is currently in process, and the process for selecting candidates who will participate in the next trainer education also started. The candidates who successfully finish the said trainer education will join the existing team of trainers. Thus, adequate capacity will be ensured to cover all CES departments and business processes. The trainer education will be conducted internally by the CES Employee Development and Education Department.

In December 2014, the CES started the 15-month implementation of the “Strengthening the CES Labour Market Training Centre” project under the “Operational Programme: Human Resources Development for the period 2007 – 2013”. The project was funded using the agreed ESF allocation in the amount of HRK 3,686,250.00. The project further develops and builds on the “CES Labour Market Training Centre” project under which 40 CES employees and 10 candidates from other labour market organisations had already received trainer education. The main goal and purpose of the project are to support further modernisation and strengthening of the capacities of the Croatian Employment Service in order to help develop a more efficient labour market in the Republic of Croatia. The project contributes to further strengthening of the CES LMTC through ICT support development, training opportunities intended for employees and trainers from the CES and other labour market stakeholders, as well as through the introduction of e-learning and blended learning methods. The CES developed an e-learning portal, the Training Register of the Employee Education and Development Department, and a trainer education programme on the topic of e-learning and blended learning. In addition, 13 educational programmes on the topic of e-learning and blended learning were designed for CES employees, while 20 trainers (of which three coming from other labour market stakeholders) were provided training in creating and implementing e-learning and blended learning programmes.

The training programme associated with the use of the Moodle virtual environment (Modular Object-Oriented Dynamic Learning Environment) and the methods for preparing and posting contents in the virtual classroom was attended, besides by trainers, by a group of 12 other professionals in order to ensure that all CES business processes were adequately represented.

In order to ensure efficient management of educational activities, the CES also developed an e-learning portal, allowing easier access to the relevant material and educational activities to a significantly larger number of CES employees and employees of other labour market stakeholders. The e-learning portal provides distance learning opportunities and creates a virtual e-learning environment which includes functionalities such as video conferences – online lectures, practice exercises and knowledge improvement opportunities, independent knowledge evaluation opportunities, schedule of current and future training programmes and the related information (time and place, start date, number of free places, possibility to apply or cancel participation), statistical reports at the level of participants, training programmes and the portal as a whole, as well as integration and exchange of data with other relevant CES information systems (User Directory – Microsoft Active Directory domain, e-work record card – Microsoft Sharepoint, Education Monitoring System – Microsoft CRM, and Personnel Records).

Since the regional and local offices of the CES are geographically rather dislocated, this model is expected to contribute greatly to further development of the employee education system and the related ICT infrastructure, implementation of e-learning methods, development of new, tailored educational programmes for trainers and employees of the CES and other labour market stakeholders.

13 e-learning and blended learning programmes have been developed, and the implementation of the related pilot programmes commenced in November 2015. The plan is to provide continuous e-learning and blended learning opportunities on the CES e-learning portal (https://elearning.hzz.hr) applying various methods. The newly developed modules include: Presentation Skills, Written Communication and Business Correspondence, EURES, EU Employment Policies and Examples of Good Practices, Time Management, Working with Long-term Unemployed Persons, Communication within the CES, The Bologna Process, National Classification of Activities and

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National Standard Classification of Occupations, EU Employment Project Financing Sources, Stress Management, Induction of New Hires and Participants in Workplace Training without a Work Contract, and Programme for Managers.

With the introduction of the e-learning method, the CES will provide to its clients an opportunity to take advantage of an educational model based on integrated learning methods, including standard teaching methods and computer-assisted activities. Continuous improvement of the labour market related knowledge and skills with the aim of strengthening the capacities of the CES LMTC will also result in more efficient CES client services.

With the aim of providing advancement opportunities and promoting lifelong learning, a significant number of training and advancement programmes intended for CES employees, mentors and trainers were also organised outside the CES and under other EU projects.

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2015 Yearbook

Vision, Mission, Goals and Responsibilities of the CES

Vision

To be the leading participant in the development of the Croatian labour market, especially in the process of matching the overall workforce demand with supply with the aim of achieving full employment.

Mission

To provide efficient job matching and placement services in the labour market by designing high-quality services adjusted to the needs of clients, further developing our knowledge, skills and abilities, as well as promoting partnerships with other labour market stakeholders.

Strategic Goals1. To develop services with the aim of increasing workforce competitiveness and meeting

workforce demand.2. To develop adequate human resources and administrative capacity with the aim of

designing and providing new services in the labour market.3. To achieve the leading position in the labour market by establishing partnerships and

strengthening the influence in the process of drafting and implementing public policies.

Main ResponsibilitiesThe Croatian Employment Service (CES) is a public institution of special significance to the Republic of Croatia, its citizens, business entities and institutions. The main responsibilities of the CES include:

• job matching and placement services provided to job seekers;• provision of unemployment insurance;• vocational counselling of unemployed and other persons in making career and

occupational choices;• organisation of vocational education, advancement and retraining programmes;• promotion of employment and education through implementation of Active Labour Market

Policy measures;• monitoring and analysis of labour market trends and the related public informing.

The users of CES services include:• employers – companies, crafts, trades, entrepreneurs, cooperatives and other;• unemployed persons – persons capable or partially capable of work, aged between 15

and 65, who are not employed but are actively looking for employment and are available for work;

• other job seekers – currently employed persons wishing to change their job, regular students or pupils, and other persons who wish to use CES services are not considered unemployed persons and may not claim unemployment insurance or participate in ALMP measures;

• pupils, students and other – the CES is open to all persons who need information concerning employment and labour market.

Here is an overview of CES services for employers:• having at our disposal the most comprehensive collection of data on unemployed persons

and job seekers, we select the candidates who best suit the needs of employers;• we advertise workforce demand free of charge (on our website, in bulletins, on information

boards in regional and local offices);• we provide team (psychological, medical and pedagogical) assessment of the candidate,

taking into consideration the job and workplace specific requirements;

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• we conduct selection (pre-selection, final selection) and refer the agreed number of candidates for particular positions to employers;

• we provide financial assistance for re-employment or further education through our employment incentive programme;

• we provide legal assistance in the field of employment as well as professional and organisational help in the process of restructuring and managing collective redundancy;

• provided the mutual (contractual) relationship is established, the employers may use the above mentioned and other services without too much administrative work.

To unemployed persons we offer informing, counselling and vocational guidance services, organise workshops and provide unemployment insurance, including:

• information about job openings obtained from various sources, workforce demand, economic trends in particular Croatian regions, successful entrepreneurs, and other;

• individual counselling – assistance in assessing the work, professional and personal potential, assistance in drawing up a professional job search/employment plan, target job matching and placement services, feedback on activities carried out and the results achieved;

• forums/informative meetings – on the topic of preparation for employment and active job search, ALMP measures, novelties associated with unemployment insurance, various CES services or services provided by other institutions/associations considered relevant for job search and employment;

• various workshops providing the participants the opportunity to acquire specific knowledge and skills with the aim of facilitating their participation in the labour market as much as possible, as well as to exchange job search related experiences through informal activities and gatherings;

• provision of financial and legal protection of unemployed persons pursuant to the valid laws and regulations (unemployment benefit and other types of assistance);

• vocational guidance activities – assistance in additional (self)assessment of personal possibilities and characteristics in choosing an adequate educational programme, determining the remaining working ability, and assessment of the work potential for a specific job position.

The CES makes continuous efforts in service enhancement, technological development and development and design of business processes. The financing sources made available by way of EU funds and new EU programmes, such as the Youth Guarantee initiative, require adjustment in the implementation of Active Labour Market Policy measures and development of systems for implementation monitoring and supervision under a changed funding scheme. A significant amount of attention is devoted to developing new services and activities for the users, both by introducing new service delivery channels as well as by creating new organisational structures, such as EU funded Youth Centres or Career Informing and Counselling Centres. Furthermore, the CES bases its work and activities on partnerships with other labour market stakeholders. Through cooperation with partners at all levels, efforts are made to raise the standards concerning the provision of services to all users, primarily unemployed persons and employers, but also other institutions in the related environment. The purpose of these activities is to increase workforce employability and meet labour force demand.

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2015 Yearbook

Job Placement and Preparation for Employment

Working with Unemployed PersonsJob placement services represent the main function of the CES aimed at developing new services based on the identified user needs. Job placement activities are carried out with the aim of increasing employability of unemployed persons, improving their labour market orientation skills and preventing their social exclusion. In the efforts to achieve this goal, individual counselling, individual consultations, forums/informative meetings and preparation of a professional job search/employment plan play a significant role. At the end of 2015, 501 CES employment counsellors performed the above mentioned activities.

Individual counselling is a method used by employment counsellors to assist the unemployed identify their transferable and other skills acquired through employment or education as well as define their work potential, which is expected to help them find employment in the open labour market in the shortest possible period. The counselling procedure is mandatory to all persons entered in the register of unemployed persons, and it is particularly important for persons who had previously been employed for a long time or young persons coming directly out of school. In 2015, employment counsellors held 412,145 individual counselling meetings with registered unemployed persons, which is on average 822 individual counselling meetings per counsellor.

Individual consultations refer to contacts between the employment counsellor and the unemployed person made with the aim of providing/obtaining information and advice concerning job vacancies, job application results and activities carried out for the purpose of preparing for employment and increasing employability. Individual consultations are provided in the form of personal meetings and phone or e-mail conversations, usually on a weekly basis, however no less than once every four weeks. In 2015, 3,794,847 individual consultations were performed, i.e. 631 individual consultations per counsellor per month, and 7,575 individual consultations per counsellor per year.

Besides conducting individual counselling meetings and consultations with unemployed persons, employment counsellors also help the unemployed create a professional job search/employment plan for the purpose of strengthening their competitiveness in the open labour market. Such a professional plan must include: a list of jobs/occupations that the relevant unemployed person is capable of performing on the basis of his/her professional, work-related and personal abilities and labour market needs, a list of activities the relevant unemployed person will carry out for purposes of finding employment, a list of activities that the relevant unemployed person will carry out to prepare for employment and deadlines for completion of the mentioned activities, along with the times set for contacts between the unemployed person and the employment counsellor for individual consultation purposes. All newly registered persons are required to draft a professional job search/employment plan within 60 days from the date of entry in the register of unemployed persons. Professional plans are reviewed in the event of new circumstances requiring changes in the list of jobs/occupations or activities the unemployed person plans to carry out for the purpose of finding employment. In cooperation with the newly registered unemployed persons, CES employment counsellors helped draft and approved a total of 293,356 professional job search/employment plans in 2015, i.e. a single counsellor helped draft and approved on average 580 professional plans in the course of the year.

Furthermore, employment counsellors also organise forums and informative meetings for unemployed persons on the topic of preparation for employment and active job search, ALMP measures, novelties in the field of unemployment insurance, various CES services or services provided by other institutions/associations considered relevant in terms of active job search and employment. In 2015, 426 forums/informative meetings involving 4,464 unemployed persons were organised.

In order to ensure the widest possible availability of its services to unemployed persons, the CES operates an Info Desk where unemployed persons can submit their applications for entry in the

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register of unemployment persons, as well as apply for unemployment benefit, obtain a certificate of unemployment, and receive information about job vacancies and other information provided by the CES. In 2015, a total of 308,174 applications for entry in the register of unemployed persons were processed, 112,251 applications for unemployment benefit were received and 531,275 certificates of unemployment issued using Info Desk services.

Depending on the assessed needs of an unemployed person, his/her abilities and employability and the estimated level of CES assistance required by the same in job search and drafting of a professional plan, a large number of users participate in vocational guidance activities, which include various types of individual and group vocational informing and counselling services as well as self-help services (provided in the form of brochures and other informative material, CES web tools and other tools for self-assessment of competencies, i.e. knowledge and skills). A special emphasis in working with the unemployed is placed on informing the users about the services provided by the CES, labour market conditions, in-demand qualifications and the possibilities for education and employment at the regional and local level, as well as the services of other institutions that might help them in their job search and career development efforts. In 2015, the largest number of unemployed persons participated in group activities (24,087), including workshops and group informing meetings. If we add to this group other unemployed persons who participated in group activities organised by Career Informing and Counselling Centres (CISOK), i.e. 5,881 unemployed persons and job seekers, we can conclude that the number of unemployed persons who participated in group activities in 2015 was significantly greater compared to 2014 (by 17%). The unemployed also have the opportunity to participate in workshops conducted on the following topics: improvement of active job search methods and techniques, writing applications and CVs, methods for self-assessment of interests, motivation and abilities, etc.

Unemployed people in need of more intensive professional assistance in the field of career planning and development participate in individual counselling and informing activities. Individual vocational counselling is a complex procedure performed by a multidisciplinary team of professionals and includes an assessment of competencies (knowledge, skills and potentials) of the unemployed person as well as counselling and support in job search and career development efforts. Where needed, unemployed person counselling services may include medical examination and psycho-diagnostic assessment process. In 2015, the above described individual counselling services were provided to 13,592 unemployed persons in CES regional offices.

A special emphasis in working with the unemployed is placed on the development of services for low-employability unemployed persons, i.e. long-term unemployed persons, the Roma and other groups facing difficulties in accessing the labour market.

In order to intensify the activities intended for long-term unemployed persons, the CES organised a series of activities adjusted specifically to their needs: counselling for purposes of activation, vocational guidance, team assessment in order to define a new occupation, workshops, job-specific training, job matching and placement services, co-financing of employment and public works programmes.

In 2015, the CES continuously worked on strengthening the persons with disabilities in order to prepare them for employment and ensure as successful integration of the same into the labour market as possible. In addition to regular consultation and counselling services provided by employment counsellors, additional individual informing and counselling services were provided to 681 persons with disabilities by counsellors specialized in professional rehabilitation and career development. 262 persons with disabilities were referred to medical and psychophysical examination for the purpose of assessing their work and general abilities. Furthermore, 456 persons with disabilities participated in workshops on the topic of improving job search competencies. With the aim of increasing their employability, employment and self-employment chances, 1,094 persons with disabilities took advantage of some form of ALMP measure. In the course of 2015, 2,613 persons with disabilities were employed. Although the employment

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trend in this group has for the past ten years been constantly growing, the largest increase was recorded after the implementation of the new Act on Professional Rehabilitation and Employment of Persons with Disabilities (OG 157/13, 152/14).

In addition, 143 treated drug addicts participated in the vocational informing and counselling activities organised by the CES for the purpose of finding employment and developing a career under a project called “Social Reintegration of Drug Addicts”. 41 treated addicts were referred to professional assessment of work-related and other abilities. In 2015, 89 treated addicts participated in ALMP measures. In the period from 1 January to 31 December 2015, 120 treated addicts found employment through participation in the “Social Reintegration of Drug Addicts” project, which represents an increase of 11.1% compared to 2014 when 108 treated addicts were employed. 71 treated addicts participated in the active job search and career development workshops, which were mainly organised within the CES. However, vocational guidance and rehabilitation counsellors also conducted workshops in cooperation with local partners in various associations and organizations providing therapy services.

With the aim of ensuring the preconditions for increasing the employability of the Roma, all registered unemployed persons belonging to the Romani national minority (at the end of December 2015 there were 5,043 persons of the Romani national minority registered with the CES, accounting for 1.8% of total unemployment) were involved in regular activities performed by the CES, as well as activities intended specifically for this target group. In 2015, 397 Roma participated in forums/informative meetings, of which 158 women, and 4,061 participated in individual counselling meetings. Furthermore, group informing meetings/forums on the topic of self-employment were organised for the Roma who expressed interest in self-employment, i.e. starting a company, craft or trade business (according to the information from the professional employment plan). In the course of 2015, informing and counselling meetings on the topic of self-employment were organised for 21 persons of the Romani national minority. Over the year, 399 Roma registered with the CES as unemployed found employment, of which 151 women (37.8%).

Special attention is devoted to encouraging and assisting the unemployed start their own business. With the aim of ensuring support to persons interested in self-employment, the CES introduced the function of a self-employment counsellor and designed the relevant services provided by the same. Self-employment counsellors are responsible for assisting unemployed persons who wish to start their own business define a business plan, for introducing the interested unemployed persons to the possibility of applying for start-up incentives (co-financing of self-employment) as well as for providing support to the same during their first year of operation. Self-employment counsellors make efforts to strengthen self-employment partnerships at the local level, gathering all stakeholders (local as well as regional self-government units, Croatian Chamber of Commerce, Croatian Chamber of Crafts and Trade, Croatian Employers’ Association, unions, development agencies) that can provide any kind of assistance to strengthen new entrepreneurs and help them overcome the initial challenges during the first year of operation. In 2015, self-employment counsellors held 5,910 individual counselling meetings with persons interested in self-employment.

By joining the EU, Croatia also agreed to implement the European Commission’s Youth Guarantee initiative, the purpose of which is to make all persons under 25 (under 30 in Croatia) active participants in the labour market in the shortest possible period. Quick activation means getting a quality employment offer within 4 months from the moment of leaving or completing school or becoming unemployed. In 2015, 109,606 young people registered with the CES as unemployed found employment, of which 56,807 within 4 months after entering the register, which represents 51.8% of the total number of employed young people.

Among other, special attention was devoted to young persons living in special institutions for children and youth without adequate parental care and in foster homes. 31 homes for children and youth without adequate parental care were contacted, and 32 meetings were held with the personnel working in the same in order to establish cooperation and present various services, such as vocational guidance services intended for pupils and professional worker selection

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services, as well as to provide information about the activities available under the preparation for employment programme and ALMP measures intended for institutions of this kind. The standard services provided by the CES have been adjusted to suit the specific needs of children and young persons raised in homes for children and youth without adequate parental care. Unlike the services intended for other children, such services are provided in the relevant homes for children and youth without adequate parental care. In this manner, the CES strives to prevent unemployment and help such children and young persons make adequate career and education choices in order to ensure successful completion of educational programmes and acquisition of qualifications, as well as provide assistance in finding suitable employment.

The number of users of the services provided by Career Informing and Counselling Centres (CISOK), organised within the Croatian Employment Service (11 in total), has been constantly growing. The centres were established precisely for the purpose of making lifelong vocational and career guidance services available to the widest possible groups of users. The Career Informing and Counselling Centre model has been recognized by the European Commission and other professional organisations and networks (CEDEFOP, ELGPN, European Network of Public Employment Services) as an example of good practice in vocational guidance, and as such it was presented at various professional gatherings across the EU and described in manuals drafted on the topic of employment and career development policies. In the course of 2015, career information and counselling services offered by CISOK centres were provided to 60,834 users, which represents a 46% increase in the number of service users and indicates an increased need for career informing and counselling services. CISOK services were primarily provided to young people under 15 years of age (16,141 services), and users between 15 and 19 years of age (11,292 services). 4,247 services were provided to users between 25 and 29 years of age, which confirms that CISOK centres are considered by the youth as important support organisations as well as that they play a significant role in the implementation of the Youth Guarantee programme. The results of the satisfaction survey carried out among CISOK centres’ service users (a total of 27,928 users) show a large percentage of satisfied users, i.e. 97.9% users are satisfied or very satisfied with the services provided by CISOK centres, while 95.4% users rate the services useful or very useful.

In 2015, the CES actively participated, in cooperation with other partners, in establishing a system for identification and activation of persons from 15 to 30 years of age who are not employed or involved in any kind of educational programme or training – NEET (Not in Education, Employment or Training). The CISOK centres have been recognized as the main places through which the NEET group can be reached and activated, and entities responsible for defining the type of cooperation and responsibilities of particular partners, and creation of prevention measures. In such places where CISOK centres have not yet been established, the centres’ role referring to the NEET group will be played by the Youth Centres active within CES regional offices. The purpose of identification and activation of inactive NEET persons is to encourage social inclusion of the same, primarily through education and employment related activities, career development informing and counselling activities with the aim of increasing their employability, facilitating their access into the labour market and preventing (long-term) unemployment of this target group. It should be pointed out in this context that an agreement between the Ministry of Labour and Pension System, Ministry of Science, Education and Sports, Croatian Employment Service and Croatian Pension Insurance Institute was signed prescribing the conditions, procedures and manner in which the data on the NEET group may be used. The purpose of the agreement is to allow the exchange of databases among the relevant institutions in order to ensure better identification and activation of this group through inclusion of the same in educational activities and the labour market.

Considering the large number of information and possibilities for education and employment, specific market needs and insufficient informedness of unemployed persons and other user groups (pupils, students and employers), the CES invests significant resources in creating new and improving its existing e-services. In addition to the existing e-tools available to users for independent search of information and assistance related to career development (“BurzaRada”

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– Job Exchange, LMI system, CISOK web portal, and other), in July 2015 the CES activated a new portal called e-guidance. The purpose of the portal is to gather all relevant information concerning job search, career development, possibilities for education and the broadest possible scope of information concerning the labour market in one place. The portal follows the so-called “Career Compass”, a tool allowing the user to search information by target groups (pupils, students, unemployed and employed). The portal sets the most relevant information concerning a particular group apart from others. It also offers career planning support content, such as advice about how to write a CV and conduct oneself during a job interview. This type of content is accompanied by short video clips in order to reach all groups of users, particularly young people searching for work. A section of the portal is reserved for self-assessment questionnaires, which help the users assess their own interests and competencies in order to be able to make the right career choice and assess whether they possess the abilities desirable in the labour market, such as communication skills, teamwork and similar. By the end of 2015, the portal was visited by 53,119 users, and it was viewed 253,222 times.

Since volunteering is a highly efficient method for acquiring work experience and can also be a simple and effective manner in which young persons can be activated in periods when opportunities for employment are meagre, the CES applies the practice of informing unemployed persons about the importance and advantages of volunteer work, and itself organises opportunities for volunteer participation. Volunteer work within the CES referred to persons helping users of CISOK centres and implementation of the Job Fair programmes. In the course of 2015, the CES engaged 8 volunteers in its regular activities as an organiser of volunteer programmes.

In 2015, the CES organised a Job Fair programme divided in two parts, in March and October. The spring job fairs were organised in nine towns: Prelog (Regional office Čakovec), Dubrovnik, Krapina, Osijek, Rijeka, Split, Šibenik, Varaždin and Vinkovci, while the autumn job fairs were organised in all other CES regional offices. A total of 1,242 exhibitors participated at the job fairs, of which 849 employers. According to CES regional office estimates, job fairs were visited by about 39,600 people. In addition to regular job fairs, two European Job Days were organised by EURES Croatia.

Working with EmployersIn order to ensure that services intended for employers are as efficient as possible, the CES has established a system of working with employers which includes clearly defined activities and responsible persons, objectives and measurable implementation indicators. The aim is to develop a business relationship with all employers offering employment to workers from the register of unemployed persons and thus increase the share of employers that use the services of the CES. The goal of the activities performed by the counsellors responsible for working with employers is to attract new clients to the CES. The best way to establish business cooperation is to visit the employers and carry out all the activities agreed at the agreed time. The goal of the CES is to visit each employer offering employment to workers from the register of unemployed persons at least once every two years. In the course of 2015, employment counsellors made 26,183 visits to employers. In spite of the problems the employers were faced with in 2015, 109,056 notices of labour force demand were received, offering employment to 202,468 workers. The counsellor referred 916,623 unemployed persons to the reported job vacancies. A total of 232,499 persons from the CES unemployment register were employed.

Special attention was devoted to activities associated with working with companies in the process of restructuring and companies that were forced to lay off a significant number of employees. In 2015, mobile team counsellors carried out individual informing activities in 51 companies involving 257 workers, while group informing activities were conducted for 596 workers. Mobile team activities were aimed at introducing and informing the redundant employees about the procedure for applying for entry in the register of unemployed persons and the required documentation for submitting the request for unemployment benefit, as well as regarding the possibility of ensuring employment using start-up incentives, etc.

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In cooperation with employers, the CES performs vocational informing and counselling activities as well as vocational selections, including a psychological testing of potential job candidates, for the purpose of ensuring competent workforce on the basis of identified competencies, knowledge, interests and skills, as well as job-specific requirements. In 2015, 2,538 persons participated in vocational psychological selections organised for employment purposes.

Collective Redundancy

According to the Labour Law5, any employer that intends to lay off a minimum of twenty workers in the period of ninety days, provided that at least five work contracts are terminated for business reasons, is required to consult the workers’ council in order to attempt eliminate or at least reduce the need for lay-offs, as well as inform about any such matters the competent public employment service. Redundant workers are those whose work contract will be terminated for business reasons or by agreement at the employer’s initiative.

Pursuant to Article 128 of the Labour Law, work contracts of identified redundant employees may not be terminated within the period of 30 days from the date of delivery of a notice concerning conducted consultations to the competent public employment service. The competent public employment service may, no later than by the last date of the deadline from Article 128, paragraph 1 of the Labour Law, send a written request to the employer to postpone termination of work contracts in relation to all or only some workers identified as redundant for a period of another 30 days, provided it is in the position to ensure such continuation of the work relationship.

The CES tries to help the redundant workers or those facing the threat of lay-off by providing placement services already during their respective notice periods with the aim of securing other employment for the same, either in the same company or elsewhere, by referring them to institutional retraining or further training programmes. In the implementation of the said activities associated with the manner of handling redundancy situations, the CES faces a series of objective problems, primarily the lack of job openings in the same or some other company, followed by the psychophysical condition of redundant workers.In 2015, the CES received 74 notices of collective redundancy from employers, involving 9,014 workers, of which 3,054 women (33.9%) and 5,960 men (66.1%). The workers affected by collective redundancy mainly belonged to the group of persons who completed a vocational secondary school in the duration of 4 (or more) years or grammar school (51.5%), followed by those who completed a 3-year vocational secondary school or school for skilled and highly skilled workers (18.3%) and workers with completed graduate or post-graduate university or academy education (16.6%). The affected workers mainly belonged to the older age groups. Almost a third (32.2%) of the workers affected by collective redundancy were aged 50+, and more than a quarter (27.3%) were aged 40 – 50. Workers aged 35 - 39 (23.5%) and those under 30 (17.0%) accounted for a relatively small share of redundant employees. Furthermore, the persons affected by collective redundancy mainly came from the following areas of activity: electricity, gas, steam and air-conditioning supply (33.5%), manufacturing (29.3%), financial activities (11.0%) and wholesale and retail trade (10.7%).

Compared to 2014, when the CES received 68 notices of collective redundancy involving 6,639 workers, the number of such notices received in 2015 increased by 6 (or 8.8%), and the number of workers affected by collective redundancy increased by 2,375 (or 35.8%).

In 2015, the number of persons registered with the CES directly following termination of their work contract for economic, technical or organisational reasons was 32,582. The figure shows that slightly more than a quarter of workers (27.7%) registered in 2015 as unemployed immediately after their work contracts had been terminated for economic, technical or organisational reasons, were actually covered by the collective redundancy procedure, which represents a relative increase compared to previous years.

5 Labour Law (Official Gazette, No. 93/14)

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Number of Collective Redundancy Programmes/Notifications Received, Number of Affected Workers, Number of Newly Registered Unemployed Persons whose Work Contract was

Terminated for Economic, Technical and Organisational Reasons, 2011 - 2015

Year

Number of programmes/notifications

received

Number of affected

workers

Number of newly registered persons whose work

contract was terminated for economic reasons

Share of newly registered unemployed persons in the total

number of persons covered by Collective Redundancy

Programmes (3:4)1 2 3 4 5

2011 44 3,457 49,452 7.0

2012 91 5,697 52,463 10.9

2013 107 12,843 49,700 25.9

2014 68 6,639 40,917 16.2

2015 74 9,014 32,582 27.7

Early Intervention and Prevention Activities Intended for Pupils and StudentsVocational guidance activities intended for elementary and secondary school pupils are an important employment policy tool. They include early interventions and are aimed at preventing (long-term) unemployment. The CES provides vocational guidance informing and counselling services to pupils of final grades of elementary and secondary schools, particularly those with developmental or health problems, which narrow down their window of opportunities relating to the selection of educational programmes, i.e. make their future access to the labour market more difficult, pursuant to the Regulation on Elements and Criteria for Enrolment of Pupils in the First Grade of Secondary School passed by the Ministry of Science, Education and Sports for academic year 2014/2015. On the basis of the said Regulation and the decision of the Ministry of Science, Education and Sports, CES regional offices issued during the academic year 2014/2015 a total of 4,939 expert vocational guidance opinions for pupils with developmental problems or major health issues. The opinions referred to 10.7% of the total eight grade population.

In 2014, 11,530 pupils of elementary and secondary schools were involved in various types of individual work (informing and counselling activities) organised in the regional offices of the CES. 6,081 pupils of elementary and secondary schools participated in group informing and counselling activities. In 2015, 60,834 career informing and counselling services were provided by CISOK centres, most of which referred to working with pupils and students.

The CES also introduced the possibility of using vocational information and counselling services via web portals, including “e-guidance”, which is mainly used by young people (www.e-usmjeravanje.hr).

Furthermore, in cooperation with regional chambers of crafts and trades and with the aim of promoting occupations in demand, CES regional offices carried out various activities aimed at promoting occupations in demand and financing of medical examinations for enrolment of pupils in the relevant educational programmes. In 2015, 486 pupils were examined for the purpose of enrolment in educational programmes relating to shortage occupations.

For the purpose of informing the pupils concerning secondary schools programmes available on the territory of the Republic of Croatia, each year the CES updates and publishes brochures called Where to after Elementary School? The brochures are issued for five Croatian regions, and each contains descriptions of occupations, information concerning enrolment requirements, scholarships, schools and educational programmes, boarding homes, occupations in demand and vocational guidance services provided by the Croatian Employment Service.

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International Job Placement ServicesPursuant to the principle of free mobility of workers, as of the date of Croatia’s accession to the EU Croatian citizens have been free to search for employment and get employed in EU member states without being required to provide any special approvals or work permits. This however does not apply to EU member states that have decided to subject the citizens of Croatia to a temporary transition period in the duration of up to seven years. Pursuant to the principle of reciprocity, the Government of the Republic of Croatia passed the Regulation on Temporary Application of Rules Relating to the Work of Nationals of EU Member States and their Family Members that came into force on 1 July 2013. After the initial two year period that lasted until 30 June 2015, the following countries have extended the application of free mobility restrictions for another three years: Austria, Malta, the Netherlands, Slovenia and the United Kingdom.

In 2015, the CES continued performing its activities within EURES, a network of European public employment services formed for the purpose of facilitating free mobility or workers through provision of information, advice and assistance in employment at the European level. EURES counsellors provide information, advice and job matching and placement services to both job seekers and persons looking to change their job, as well as employers and other persons interested in workforce mobility issues. More than 1000 EURES counsellors are ready to provide information to employers and offer them their assistance in matters pertaining to the labour market of the European Economic Area (EEA). On the territory of the Republic of Croatia, EURES activities are carried out by 8 certified EURES counsellors working in the regional offices in Osijek, Rijeka, Split, Varaždin and Zagreb. After Croatia’s accession to the EU, numerous other requirements concerning the treatment of job seekers from the EU were introduced in connection with social security and unemployment benefit coordination. EURES assistants, whose responsibilities include provision of basic information regarding the possibilities of employment in other EU member states to persons seeking employment in the EU and information about the rights arising in connection with the coordination of social security systems to employers, also play a role in international job matching and placement activities and have been appointed in CES regional offices. In 2015, 4,770 persons were removed from the CES register on the grounds of finding employment in one of the EU member states, of which most came from the Counties of Osijek-Baranja, Vukovar-Srijem and Split-Dalmatia. The major destination countries included Germany, Austria, Italy, Slovenia and Ireland.

In 2015, EURES counsellors carried out over 15,000 individual interviews with potential users of CES services, of which 90% inquiries came from job seekers, mainly concerning the provision of information about EURES and its role within the Croatian Employment Service, and the possibilities of employment and search for employment in EU member states.

In 2015, the mandatory horizontal activities performed by the CES and EURES Croatia included organisation of 2 European Job Days, i.e. job fairs. In March 2015, CES/EURES CROATIA organised the first complete online European Job Day called Seize the Summer. Its purpose was to offer the possibility of contacting a wide range of candidates from Croatia and other European countries to Croatian employers working in tourism and hospitality industry who, due to the specific nature of required skills, cannot fully meet the their workforce demand in the national labour market. At the same time, job seekers were introduced to the possibility of using a new communication channel to contact potential employers. The European Job Day called Winter Seasoning organised in Osijek in November 2015 gathered, besides job seekers, EURES counsellors and employers from other EU member states.

In 2015, selection procedures and activities related to employment projects, which EURES Croatia implements in cooperation with EURES offices from other EU member states, were performed as well. Selection procedures and employment projects were implemented in cooperation with representatives of EURES Germany and EURES Austria. The activities performed in cooperation with EURES Germany referred to employment of young persons participating in dual education/practice programmes, workers in the field of hospitality and system gastronomy and students, while the activities performed in cooperation with EURES Austria referred to employment of

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seasonal hotel and hospitality workers in Austrian winter holiday resorts in the Counties of Steiermark, Tyrol and Vorarlberg.

The Croatian Employment Service participates as a partner institution in the implementation of the “Your First EURES Job 4.0 2015 – 2017” project, organised by the Ministry of Labour of the Republic of Italy (EURES Italy National Coordination Department). The project consortium consists of 11 partner institutions and 19 project associates. Through this project, the CES provided support to young job seekers and companies interested in employing workers in the EU, outside their domicile countries, through informing, selection, intermediation and financing activities.

In April 2015, EURES Communication Excellence Awards were presented to members of the EURES Network at the ceremony organised in Brussels. EURES Croatia won an award in both categories in which it was nominated, i.e. “Best Campaign” and “Best Individual Story”. This was the first time that a single country, among 32 other countries, was honoured with two awards in the same competition, which is a tremendous recognition of the efforts made during a little less than two years of membership in the EURES.

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Sources of Funding and Structure of Expenses

Sources of FundingPursuant to the provisions of the Job Placement and Unemployment Insurance Act, employment-related activities are financed by employment contributions and other sources. Pursuant to the Statutory Insurance Contributions Act, employment contribution is paid into the unique state treasury account.

Within the meaning of the Budget Act, the Croatian Employment Service is a non-budgetary beneficiary funded by the budget and other sources. After the gyro account of the CES was closed in 2007, the Ministry of Finance issued an Order prescribing that income from other sources be paid into the state account as well. The planned total expenses for the CES (for 2015 as well) are also included in the state budget.

Total revenues planned for 2015 amounted to HRK 2,890,874,709, while total realised revenues amounted to HRK 2,474,436,983 (85.59% of the annual plan).

The realised income from the state budget amounted to HRK 2,291,262,994. The realised income from the state budget includes income for funding regular CES operations and income allocated to Croatia for national co-financing of EU projects.

Financial assistance received from international organisations and EU institutions/bodies amounted to HRK 181,041,740. The largest part of the same refers to the European Social Fund allocation for financing expenses related to projects implemented by the CES.

In 2015, the CES also realised income from financial aid and donations in the total amount of HRK 191,079, and earmarked income for financing the cost of workplace training without a work contract in the amount of HRK 1,880,535 (used by the CES itself). The mentioned sources of funding were not planned under the budget and were used up to the amount paid into the state account pursuant to the provisions of Article 50 of the Budget Act.

Income from the sale of non-financial assets in the amount of HRK 60,635 refers to long-term assets disposed of in accordance with the provisions of the Regulations on Budget Accounting and Calculation Plan.

Structure of Expenses

The funds for CES operating expenses were paid out in accordance with the Croatian State Budget for 2015, the CES Revenue and Expense Plan for 2015, and the laws and legal provisions applicable to CES operations.

In 2015, total planned expenses amounted to HRK 2,890,874,709 and total realised expenses amounted to HRK 2,474,535,032 or 14.4% less than planned.

In the structure of realised expenses, unemployment insurance expenses accounted for the largest share, i.e. HRK 1,644,382,025, of which HRK 1,077,458,822 was used for the payment of unemployment benefits to unemployed persons, including one-off benefit payments. HRK 1,928,135 was used for the payment of one-off financial assistance and reimbursement for travel and relocation expenses in case of workers referred to employment outside their place of permanent residence. HRK 564,995,068 was used for the payment of financial assistance and reimbursement of expenses incurred during education or workplace training without a work contract to which the unemployed are referred by the CES, and financial assistance to regular seasonal workers. From the total amount, HRK 112,377,827 was financed using ESF project allocations.

The CES spent HRK 911,706 from the total allocation for the “Training for Employment of Workers Facing Unemployment and Long-term Unemployed Persons” project and HRK 40,814,000 from the total allocation for the “Implementation of Active Labour Market Policy Measures” project, which are both being implemented under the “Operational Programme:

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Human Resources Development”. The CES also used HRK 52,186,625 from the total allocation for the “Implementation of Active Labour Market Policy Measures for Young Persons” project and HRK 18,465,496 from the total allocation for the “Active Labour Market Policy Measures for Long-term Unemployed Young Persons” project, which are both being implemented under the “Operational Programme: Efficient Human Resources”.

In 2015, a total of HRK 623,603,761 (25.20% of total expenses) was used for the implementation of ALMP measures.

HRK 526,306,560 allocated from the Croatian state budget was used for the implementation of ALMP measures defined under the “Active Labour Market Policy Implementation Guidelines for the period 2015 – 2017”, and HRK 10,354,374 was used for the measures defined under the “Action Plan for the Decade of Roma Inclusion for the period 2013 – 2020”. In addition, in 2015 the CES also paid out the funds allocated pursuant to the Decision on Providing Support to Employers and Individual Contribution Payers in Flood Affected Areas passed by the Government of the Republic of Croatia in the total amount of HRK 1,405,091. The state budget funds were also used to cover the expenses of public works organised to provide support to migrants, i.e. HRK 2,985,241 disbursed from the Budget Reserves pursuant to the Decision of the Government of the Republic of Croatia passed on 5 November 2015.

In the implementation of certain ALMP measures funded under the “Operational Programme: Human Resources Development”, the CES recorded negative expenses in the amount of HRK -26,256,741. The funds used for the implementation of the “Training for Employment of Workers Facing Unemployment and Long-term Unemployed Persons” project amounted to HRK 3,302,513. On the other hand, a refund in the amount of HRK -113,620 and a refund in the amount of HRK -791,350 were entered on the books in the case of the “Education and Workplace Training without a Work Contract” and “Implementation of Active Labour Market Policy Measures” projects respectively. Hence, a reduction in expenses in the amount of HRK -28,654,284 was recorded. The mentioned refunds were recorded in the books in accordance with the instructions received from the Ministry of Finance governing the recording of refunds of EU assistance programme allocations in the books. The reduction of expenses was carried out on the basis of the Decision of the Ministry of Labour and Pension System regarding the implementation of the Agreement on Non-repayable Grant Awards provided under the European Social Fund programme dated 28 December 2015 pursuant to which the funds in the amount of HRK 28,654,284, intended for the implementation of start-up incentives, are excluded from the said agreement. Considering the fact that such funds were paid out in 2014, and that they can no longer be justified as expenses incurred and covered under the “Operational Programme: Human Resources Development”, the same were reposted in 2015 from the funds allocated for the Operational Programme to the funds allocated for financing ALMP measures.

In 2015, the expenses incurred by implementing ALMP measures under the “Operational Programme: Efficient Human Resources” amounted to a total of HRK 108,809,238, of which HRK 71,217,500 from the total allocation for the “Implementation of Active Labour Market Policy Measures for Young Persons” project and HRK 37,591,738 from the total allocation for the “Implementation of Active Labour Market Policy Measures for Long-term Unemployed Young Persons” project.

A total of HRK 1,265,308 (0.05% of total expenses) was spent on vocational guidance activities.

CES employee expenses amounted to HRK 145,895,262 (5.89% of total expenses). Employee salaries and benefits are paid in accordance with the Master Collective Agreement for Public Service Employees and Officers, CES Collective Agreement, and other legislation regulating the payment of salaries in public services. Some of the employee-related expenses (HRK 801,693) were funded using allocations received for projects involving participation of CES employees.

The material and financial expenses required to fund regular CES operations in 2015 amounted to HRK 52,529,353, which represents 2.12% of total expenses.

Material and financial expenses incurred in the performance of regular activities of the CES amounted to HRK 45,881,223 and were funded partly under the state budget (HRK 43,796,014), partly from the earmarked allocation for workplace training without a work contract (HRK

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1,880,535) and partly using the funds received through financial aid and donations (HRK 157,178).

Material and financial expenses allocated under the “Operational Programme: Human Resources Development” in the amount of HRK 5,189,551 refer to the implementation of the “Supporting CES in the Implementation of the Operational Programme: Human Resources Development” project as coverage for some of the costs incurred by the Department for Financing and Contracting of EU Projects, the expenses incurred under the “External Evaluation of Active Labour Market Policy Measures”, “Strengthening the CES Labour Market Training Centre” and “Further Development of Occupational Standards” projects, and expenses incurred under other projects implemented in the framework of the relevant Operational Programme by regional offices.

The structure of material expenses of the Croatian Employment Service also includes the cost of other projects financed by the EU and other international institutions/bodies in the amount of HRK 1,506,075.

The CES spent HRK 6,644,317 (0.27% of total expenses) on the procurement of non-financial assets. The expenses related to the informatisation of the CES and other investments in equipment required to perform regular operations amounted to HRK 5,485,297, of which HRK 25,526 were financed through financial aid and donations.

Some of the expenses associated with the procurement of long-term non-financial assets in the amount of HRK 1,159,020 were financed from the allocations approved under the “Operational Programme: Human Resources Development”, i.e. the “Supporting the CES in the Implementation of the Operational Programme: Human Resources Development” project, as well as the grants awarded to CES regional offices.

In addition, in 2015 the CES financed the expenses incurred under projects intended for unemployed persons in the total amount of HRK 154,371 using the funds received under the grant schemes provided in the framework of the “Operational Programme: Human Resources Development”.

Pursuant to the provisions of the Regulation on Budget Accounting and Calculation Plan, the CES ledgers include the expenses related to donated long-term assets in the amount of HRK 60,635.

The difference between the revenues and expenses was recorded in the books as a deficit of HRK 98,049. Given the revenue surplus from previous years, the CES actually recorded a revenue surplus of HRK 135,471 available for use in 2016.

Public Procurement and Asset ManagementPublic Procurement - The Croatian Employment Service is subject to the Public Procurement Act (Official Gazette No. 90/11, 83/13, 143/13, 13/14) and the related subordinate regulations. In 2015, the CES planned and executed procurement operations related to the supply of goods, works and services pursuant to the said act and in accordance with the public procurement principles, while ensuring transparent participation and equal treatment of all economic entities as well as promoting market competition.

After adopting the budget and subordinate regulations pursuant to the Public Procurement Act, the CES drafted its Procurement Plan for 2015 and three Amendments to the same. The CES Procurement Plan is a document providing public insight into the list of all the needs for the procurement of goods, works and services of the CES within a given period in a transparent manner. The CES published its Procurement Plan for 2015 on its web pages and notified the central state administrative body responsible for the public procurement system about it, as stipulated under the Public Procurement Act.

In accordance with its Procurement Plan, the CES executed in 2015 a total of 65 lesser-value procurement operations (estimated procurement value (goods and services supply): from HRK 20,000.00 to HRK 200,000.00; estimated procurement value (works): from HRK 20,000.00 to HRK 500,000.00). Procurement operations in the value under HRK 20,000.00 are carried out without the tendering procedure, using order forms pursuant to internal instructions. The CES also executed 20 low-value procurement operations (estimated procurement value: from

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HRK 200,000.00 to HRK 1,558,544.00), of which 3 operations refer to the supply of services from Appendix II B, and 8 high-value operations (estimated procurement value: more than HRK 1,558,544.00), of which 2 operations refer to the supply of services from Appendix II B. Furthermore, on the basis of 45 previously signed master agreements, the CES signed 45 individual public procurement agreements in 2015.

The Act stipulates that low- and high-value procurement operations and the related notices be published in the Electronic Public Procurement Bulletin, and provides for the possibility of publishing notices of lesser-value procurement operations as well. Thus, in the course of 2015 the CES published a total of 100 announcements, including notices of lesser-value procurement operations, invitations to tender, notices of signed agreements, etc.

Pursuant to Article 44 of the Public Procurement Act, the CES published on its web pages 172 invitations to tender for the supply of services from Appendix II B with respect to four subject matters of procurement (medical services, medical and sanitary services for the unemployed, vocational training services and security services) and 21 invitations for the submission of offers for lesser-value procurement operations.

Furthermore, pursuant to Article 44, Section 5 of the Act, the CES also sent out 2 invitations to tender for the supply of legal services (services listed in Appendix II B). It was not required to publish the same on its web pages, but the relevant agreements were published in the Electronic Public Procurement Bulletin.

In 2015, the CES also kept a register of public procurement agreements and master agreements, made regular register updates at least every six months and published the same on its web pages.

The CES also keeps a record of public procurement procedures and signed public procurement agreements, and plans to prepare a statistical report on public procurement agreements signed in the previous year and submit the same to the management responsible for the public procurement system (report submission deadline: 31 March 2016).

CES Asset Management – The CES performs its regular activities in its own or leased commercial space. The CES owns 25,195.59 sq m of commercial space, which is used by the Central Office, 5 regional centres, 17 regional and numerous local offices. The CES also uses 4,851.54 sq m of leased commercial space. 43 commercial spaces are used on the basis of lease agreements including rent payments, while 25 commercial spaces have been allocated to the CES for rent-free use.

After the completion of bankruptcy and execution procedures, the CES acquired real property from 34 loan beneficiaries, of which 6 legal and 28 natural persons, in the total estimated value of approximately HRK 55,518,000.00. The CES is also in possession of real property acquired from 4 companies in the estimated value of HRK 34,705,104.38 and real property acquired from 16 natural persons in the estimated value of HRK 2,444,177.99 (the CES is co-owner of 2 of the 16 acquired real estates). The real property acquired from 2 companies in the total estimated value of HRK 16,604,214.93 (Cod d.d. and Kordun d.d. in the case of which eviction proceedings are being conducted before the High Commercial Court in Zagreb) and real property acquired from 12 natural persons in the total estimated value of HRK 1,765,215.24 are not in possession of the CES.

Furthermore, the CES owns 19 flats, of which 4 flats are allocated for temporary use on the basis of lease agreements in areas of special state concern pursuant to a decision issued by the Ministry of the Sea, Tourism, Transport and Development, Administration for Displaced People, Returnees and Refugees (Vukovar), 1 flat is used by a protected tenant, 1 flat is used by the Croatian Pension Insurance Institute, 5 flats are used by CES employees, and 7 flats are empty. The CES covers utility costs for the mentioned flats. 1 flat located in Šibenik was acquired through distraint and bankruptcy proceedings, but is still occupied by former owners. The CES is a shareholder in 16 stock companies and owner of business interests in 2 limited liability companies. Pursuant to the Act on the Management and Disposal of Assets Owned by the Republic of Croatia (OG 94/13), its shareholdings are managed by the Centre for Restructuring and Sales whose report on the CES account balance is due in 2016.

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Schedule 6

Statement of Revenues and Expenses for the period 1 January - 31 December 2015 (HRK)

No Acc. Account Name Planned Realised Index (5:4)

1 2 3 4 5 6

REVENUES1 671 Income from state budget 2,368,376,709 2,291,262,994 96.7

2 632 Assistance from EU institutions and bodies 520,585,000 180,927,347 34.8

3 632 Assistance from international organisations 1,813,000 114,393 6.3

4 633 Income from other budgets 161,600

5 652 Other unreferenced income 1,880,535

6 661 Income from the sale of products and services 100,000

7 663 Income from donations 29,479

8 7 Income from the sale of non-financial assets 60,635 Total Revenues 2,890,874,709 2,474,436,983 85.6

EXPENSES1 3711 Unemployment insurance 1,726,563,670 1,644,382,025 95.2

Unemployment benefit

1,534,954,670

1,077,458,822

100.0

Costs incurred during education and workplace training (financial assistance, travel expenses etc.) 441,536,157

Financial assistance for regular seasonal workers 11,081,084Other expenses (reimbursement for travel and relocation expenses and one-off financial assistance) 1,928,135Costs incurred during education and workplace training (financial assistance, travel expenses etc.) – EU funded

2 3 Active Labour Market Policy 949,855,839 623,603,761 65.7

Active Labour Market Policy Implementation Guidelines 567,819,000 526,306,560 92.7Action Plan for the Implementation of the National Roma Inclusion Strategy 11,296,000 10,354,374 91.7

Water damage restoration 1,410,000 1,405,091 99.7

Public works ensuring support to migrants 2,985,241

EU funded Active Labour Market Policy measures 369,330,839 82,552,495 22.4

3 3721 Vocational guidance 1,300,000 1,265,308 97.3

4 31 Labour cost 149,536,200 145,895,161 97.6

Employee expenses funded under the SB 147,892,200 145,093,569 98.1

Employee expenses funded under EU projects 1,644,000 801,693 48.8

5 32,34 Material and financial operating expenses 55,597,000 52,529,353 94.5

Material and financial operating expenses funded under the SB 45,732,000 43,796,014 95.8Material and financial operating expenses funded under financial aid, donations, earmarked income 100,000 2.073,713

Material and financial operating expenses funded under EU projects 9,765,000 6,695,626 68.6

6 4 Expenses associated with the procurement of non-financial assets 8,012,000 6,644,317 82.9

Procurement of non-financial assets funded under the SB 6,421,000 5,459,771 85.0

Procurement of long-term assets funded under financial aid and donations 25,526

Procurement of long-term assets funded under EU projects 1,591,000 1,159,020 72.87 37 Other project expenses 10,000 154,371 8 38 Expenses associated with donations made 0 60,635

Total Expenses 2,890,874,709 2.474,535,032 85.6Total Revenues 2,890,874,709 2.474,436,983 85.6

Total Expenses 2,890,874,709 2.474,535,032 85.6

Balance -98,049

9221 Revenue surplus from previous period 233,520

Revenue surplus 135,471

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Internal Financial Control System

Pursuant to the Public Internal Financial Control System Act (OG 141/06), the internal financial control system includes the financial management and control function and the internal control function. With the aim of improving its operations, both functions have been established within the CES.

Financial Management and ControlThe financial management and control function serves to ensure proper, cost-efficient, ethical, efficient and effective performance of operations and their compliance with the laws, regulations, policies and plans; to protect the assets from losses caused by poor management, unjustified spending and utilisation, irregularities and frauds; to increase the responsibility of all employees for successful achievement of the set goals; as well as to ensure timely preparation of financial reports and monitoring of business results.

The activities of the financial management and control function of the CES are divided into following five components: Control Environment, Risk Management, Control Activities, Information and Communication, and Financial Management and Control System Monitoring and Evaluation. The mentioned activities are performed in accordance with the Financial Management and Control System Establishment and Development Plan for 2015.

The Control Environment component was additionally strengthened in 2015 by the preparation of Integrated Instructions for Claims Collection, which covers the activities of all organisational units performing claims related operations, default interest calculations or defining performance standards.

Under the Control Activities component, the Central Office conducted regular control activities in eleven regional offices and four regional centres in order to conduct a comprehensive inspection of operations performed by the same. The Central Office also prepared and distributed to the relevant offices Condition Reports prescribing requirements and recommendations concerning future performance of operations. In 2015, the Central Office prescribed 165 requirements and issued 316 recommendations concerning future performance of operations to regional offices. The controls pertaining to activities associated with approving grant awards and unemployment benefits were intensified as well.

The Information and Communication component was strengthened in 2015 by the introduction and implementation of an application for registering claims, and preparation of a series of internal instructions referring to default interest calculation and determining the status of persons with disabilities, an employment incentives manual, instructions for working with young persons, instructions related to labour market oriented education, instructions for monitoring the Active Labour Market Policy issues. Pursuant to the Instruction of the Ministry of Finance, internal instructions defining the manner in which the Annual Listing of Assets and Liabilities (Inventory Listing) is to be conducted were updated.

Internal AuditPursuant to legal regulations, the CES performs internal audits with the aim of improving its operations.The internal audit function provides support to the CES in the efforts to achieve its goals by performing internal audits in accordance with the adopted plans, through assessment of the adequacy and efficiency of the existing internal controls, as well as by providing expert opinions and recommendations for improvement of operations, where appropriate.

Pursuant to the Annual Internal Audit Plan for 2015, 11 audits were conducted within the CES. The related audit reports with action plans, including 14 accepted recommendations and required measures, were also drawn up. The implementation of the same is monitored in accordance with legal provisions.

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On the basis of the recommendations specified in audit reports, the existing system of internal controls integrated into the processes under audit, designed and established by the management, are improved.

Furthermore, pursuant to the legal regulations, activities related to the preparation of an Annual Report on Audits and Activities Performed by the Internal Audit Function for the previous year were carried. The opinions of internal auditors concerning the financial management and control system associated with the processes under audit for purposes of the Fiscal Responsibility Statement were drafted. The internal audit function also prepared the Internal Audit Strategic Plan for the next 3-year period and the Internal Audit Annual Plan for the next year. In this manner, the CES ensures quality of activities carried out by its internal audit function.

Cooperation with internal audit functions established in other bodies and institutions was realised through meetings and events organised by the Central Harmonisation Unit of the Ministry of Finance and other institutions with the aim of exchanging information, experiences and good practices. The CES also continued internal cooperation on matters pertaining to internal auditing with public employment services of Germany, Austria, Norway, Belgium (VDAB) and the Netherlands through participation in the peer learning programme called “Internal Auditing”.

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ICT Support for CES Operations

Information and communication support for CES operations is based on the “Business Process ICT Support Development Strategy”. In 2015, besides performing regular system maintenance activities, the CES also improved the ICT support for its business processes in the field of working with users. The improvements on the user platform include the following planned activities:

• The “BurzaRada” portal, a job exchange platform, was upgraded to include an enhanced administrator interface (a dashboard for monitoring the condition of the portal was implemented, portal administration was connected to the central ICT system administration, and the security level was enhanced).

• The possibility of using a mailbox on the portal and creating a certificate were added. The user interface was modernised and now allows identification of the device used to log into the portal (personal computer, tablet, smartphone).

• The module for preparation and overview of requests for workforce intended for employers, which includes the possibility of searching the data from the CES database, was upgraded.

• The procedure for preparing CVs and viewing the available job openings (with the possibility of storing the search results and using them later) intended for job seekers was reorganised.

• The application module for monitoring the measures carried out in connection with the possibility to reserve the funds at the level of particular projects and/or state budget and the possibility of linking the payments to particular contracts and monitoring the same comparing the relevant amounts with the reserved funds was upgraded.

• The module for administrative control of contractual obligations and preparation of documents for certification of the amounts paid out under particular contracts, for particular types of costs and projects, including the monitoring of acceptable and unacceptable amounts in the certification process, was also developed. The module for monitoring claims and refunds under contracts was also created. In accordance with the requirements applicable to new measure funding projects, program support for micro-data monitoring was also prepared.

• Specific blocks containing data concerning unemployment benefits and employment incentive measures were created using a CubePlayer-based analytical application, and reports associated with employment incentive measures were created.

• The functionalities of the Preparation for Employment application with regards to the application of current vocational guidance standards (preparation of opinions, keeping a record of the vocational guidance and informing activities performed) were upgraded.

• The CISOK application was upgraded to include functionalities related to the role of CISOK centres as central places for reaching and activating the NEET group. In addition, the methodology for gathering data on unemployment and insured employed persons, designed under the project prepared by the Ministry of Labour and Pension System, was upgraded to ensure automated feeding of new data into the ALMIS database (BurzaRada portal).

• The support system for monitoring the execution of individual projects was upgraded to allow a structured and systematic overview of projects involving CES participation. In this manner, consistent and comparable statistical and qualitative data on the implementation and outcomes of such projects are obtained. It was therefore imperative to equip the CES with standardized tools for organising and storing information on projects in one place and in a systematic manner. The importance of this “information component” is even greater in the process of programming and planning new projects.

• The entire communication infrastructure was migrated to the production Data Centre (APIS), thus completing the process of forming Data Centres 1 and 2 within the CES.

• The system for video conferences and communication (Lync Platform) was implemented.

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Publicity of Operations and International Cooperation

Publicity of Operations

In 2015, the CES continued the activities aimed at improving the transparency of its operations and services in relation to unemployed persons, employers and the general public.

The transparency of activities and operations of the CES is ensured through everyday communication with the media, guest appearances in radio and television shows, preparation and publishing of media releases, organisation of press conferences, printing of leaflets, brochures, promotional material, organisation of round tables, public events and visits, provision of complete information to all institutions for purposes of their activities and analyses, and provision of information about its activities via its website and social networks. In this manner, the CES ensures that the public is timely informed about the novelties in the labour market and the related activities carried out by the CES.

In the course of 2015, the CES provided answers to 745 inquiries from journalists, including 403 radio/TV statements and 342 written answers. 58 requests for information submitted pursuant to the Access to Information Act were processed and an annual report on the implementation of the said Act was prepared and delivered to the Agency for Protection of Personal Information, as prescribed. Compared to 2014, the number of requests increased by 58.6%, which proves that the public is interested to learn about CES operations.

In 2015, the CES published 1,202 new texts on its website (www.hzz.hr), which represents an increase of 12.6% compared to 2014. 58 units of text were translated into English and one section of the website is now also available in English. In 2015, the CES also continuously worked on updating the data and the existing texts published on its website in order to make all important information and forms available to the users as quickly as possible.

In the course of 2015, the CES issued twelve Newsletters for partners, associates and employers in order to inform them about the most important developments within the CES. A special edition of the newsletter on the topic of the Youth Guarantee programme was also published in 2015.

Joining social networks, such as Facebook, Twitter and Linkedin, at the end of 2012 proved a good solution in terms of establishing communication with the users. At the end of 2015, the CES recorded around 25,000 followers/users on Facebook, the most frequented social network, which is 47% more compared to the end of 2014 (around 17,000) and 150% compared to the end of 2013. In addition to answering the inquiries that we receive daily, we also use social networks to inform our users on operations and activities performed by the CES.

International Cooperation

The CES continuously cooperates with its bilateral and multilateral partners. In 2015, international cooperation was carried out through projects, seminars, workshops, conferences, professional meetings and study visits to public employment services at the cross-border, regional, European and global level. In the course of 2015, the CES received eight delegations of representatives of institutions responsible for matters pertaining to employment and labour market, including delegations from Montenegro, Turkey, Georgia, Macedonia, Bosnia and Herzegovina, and Kosovo. So far, cooperation agreements have been signed with public employment services of Bosnia and Herzegovina, Montenegro, Hungary and Germany. Furthermore, the CES intensified its cooperation with public employment services of EU member states placing particular emphasis on working with young and long-term unemployed persons.

European affairs – The CES was actively and systematically involved in the activities of the bodies, committees and working groups responsible for matters pertaining to the European labour market and employment within the EU. CES representatives thus participated at the meetings of the Employment Committee and the working parties formed within the same, including the

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EMCO Indicators Working Party and the Data Analysis Working Party (formerly known as the Ad-hoc Working Party). The CES also participated in the preparation activities for meetings of the Employment, Social Policy, Health and Consumer Affairs Council (EPSCO), and the bilateral meetings with the European Commission.

As the First Vice President of the European Network of Public Employment Services (PES Network), the CES participated at two meetings of the PES Network presidency, and two meetings of the PES Network Managing Board. The main topics discussed at the meetings included the specific recommendations issued to member states, particularly referring to public employment services, the results of the survey on institutional capacities of the public employment services of members states, long-term unemployment, organisation of the Employers’ Day, migrant crisis and experiences related to benchlearning.

The CES also continued participating in the activities of the EURES Network whose purpose is to facilitate free workforce mobility and provide information, advice and assistance concerning employment in EU member states. In the course of the year, CES representatives participated at the meetings of the EURES Working Party, the EURES Coordinators’ Working Party, the EURES Traineeship, Internship and Apprenticeship Working Party, and the EURES Programming and Reporting Working Party.

Responding to the invitation received from the European Centre for Vocational Education Development (CEDEFOP), CES representatives participated at two conferences on the topic of participation of SMEs in internship schemes, improvement of skills required for particular vocations and increasing the number of jobs requiring skills acquired through vocational education.

In 2015, CES representatives also actively participated in the activities of the European Lifelong Guidance Policy Network (ELPGN). The CES has been a member of the ELPGN Network since 2011, performing the role of the national representative and operational coordinator for the Republic of Croatia.

Under the “Mutual Learning Programme”, an open communication model implementation tool developed in connection with the European employment policy, six different activities were organised in the course of 2015. The CES participated in the three that referred to improvement of skills of adult unemployed persons, inclusion of young persons who are not in employment, education or training (the NEET group) and reform of active labour market policy measures.

In the scope of its participation in European committees, groups and sub-groups responsible for matters pertaining to employment and labour market, the CES continued fulfilling its obligations arising from Croatia’s EU membership concerning the process of harmonising the Croatian labour and employment laws and regulations with those of the European Union.

The CES also cooperated with competent institutions on passing EU laws and regulations, including the following regulations, decisions, recommendations and directives:

1. Council Decision (EU) 2015/772 of 11 May 2015 on establishing the Employment Committee and repealing Decision 2000/98/EC;

2. Council Recommendation (EU) 2015/1184 of 14 July 2015 on broad guidelines for the economic policies of the Member States and of the European Union;

3. Proposal for a Council Recommendation of 24 September 2015 on the integration of long-term unemployed in the labour market ;

4. Council Decision (EU) 2015/1848 of 5 October 2015 on guidelines for the employment policies of the Member States for 2015.

Multilateral cooperation at the global level - Since it joined the World Association of Public Employment Services (WAPES), the CES has been actively involved in its activities. In 2015, after being reaffirmed as a member of the WAPES Managing Board at the 10th WAPES World Congress held on 4 - 6 May 2015 in Istanbul, the CES continued performing the said function. Until May 2015, the CES also performed the function of the co-presiding public employment

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service for the WAPES Region Europe (together with the French Pôle Emploi). In the framework of cooperation within WAPES, CES internal auditors once again participated, together with the representatives from Germany, Austria, Norway, Sweden, Belgium (VDAB) and the Netherlands, in the activities of the working group formed in connection with the peer learning programme called “Internal Auditing” with the aim of identifying good practices in the field of internal auditing, encouraging the exchange of experience and knowledge and establishing international cooperation between internal audit departments organised within public employment services.

In 2015, the CES also participated at two United Nations (UN) conferences. In March, CES representatives presented, as members of the delegation of the Republic of Croatia, the Initial Report of the Republic of Croatia on the Convention on the Rights of People with Disabilities. In July, the CES participated in presenting the Initial Report prepared in connection with the Convention on Elimination of All Forms of Discrimination against Women.

Multilateral cooperation at the regional level - Under the Stability Pact and the Regional Cooperation Process, the CES continued participating in the activities of the Centre of Public Employment Services of Southeast European Countries (CPESSEC). The purpose of the Centre is to encourage the exchange of experiences and good practices in order to enhance the possibilities for employment in Southeast European countries. Besides Croatia, the CPESSEC member states also include Bosnia and Herzegovina, Bulgaria, Montenegro, Macedonia, Hungary, Slovenia, Romania, Serbia and Turkey. In 2015, the Centre was presided by the Employment Service of Slovenia. In September of 2015, the presiding employment service organised 1 managers’ and 1 professionals’ conference involving active participation of the CES. Just as every year, the CES also took part in the preparation of the Statistical Bulletin that provides statistical data about working and finding employment in CPESSEC member states.

ISSN 1849-4420