IZDAVAČ: Agencija za rad i zapošljavanje Bosne i Hercegovine,
Transcription
IZDAVAČ: Agencija za rad i zapošljavanje Bosne i Hercegovine,
Labour and Employment Agency of Bosnia and Herzegovina BULLETIN No. 7 March 2012 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 IMPRESSUM PUBLISHER: Labour and Employment Agency of Bosnia and Herzegovina Đoke Mazalića 3 71000 Sarajevo Bosnia and Herzegovina Phone: (+ 387 33) 560-340 Fax: (+ 387 33) 209-475 E-mail: [email protected] Web: www.arz.gov.ba FOR PUBLISHER: Adnan Delić, Director BOARD OF EDITORS: Boris Pupić Siniša Veselinović Zvjezdana Jelić Zorica Babić Merima Planinčić ENGLISH TRANSLATION: Merima Planinčić COMPUTER GRAPHIC DESIGN: Zvjezdana Jelić Boris Pupić PROOFREAD AND CPOPY EDITED BY: Boris Pupić PRINTED BY: Labour and Employment Agency of Bosnia and Herzegovina CIRCULATION: 150 copies Reproduction of this material for educational and non-commmercial purposes is permitted upon publisher's agreement. Please refer to the source when using this publication. For all information concerning this publication, please contact the Domestic Labour Market Group of the Labour and Employment Agency of Bosnia and Herzegovina at (+387 33) 560-340. 2 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 CONTENTS: Foreword 4 Domestic labour market 5 International cooperation in the field of labour market 12 European Union and employment 17 Focus of the issue 20 Projects 23 Interesting facts about labour market 26 Statistical overview 29 Registered employment 29 Registered unemployment 31 Employment and unemployment – Labour Force Survey 41 Sources and notes on methodology 43 3 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 FOREWORD Dear readers, It is our pleasure to present you the seventh issue of the Bulletin of the Labour and Employment Agency of Bosnia and Herzegovina. The need to reduce the CO2 emissions has given rise to development of a new, ''greener'' economy which, in turn, creates a large number of new jobs. This is why the topic of green jobs is the focus of this issue. You can also read in our Bulletin all you would like to know about Europe 2020 strategy, the new strategy for jobs. Furthermore, here you can find information on activities of the Labour and Employment Agency of Bosnia and Herzegovina in the domestic and international labour markets, interesting information related to domestic and international labour markets and statistical data showing trends in the domestic labour market in 2011. Yours sincerely, Board of editors 4 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 DOMESTIC LABOUR MARKET 78,843 persons found jobs in 2011 through employment services The overview of the domestic labour market illustrates the labour market trends in Bosnia and Herzegovina in 2011 and a brief overview of activities of employment services Prepared by: Siniša Veselinović, Head of Department of Domestic Labour Market Macroeconomic framework General assessment of the economy in BiH in 2011 is that this was a very difficult year as only symbolic shifts were made in positive macroeconomic developments. BiH has maintained stability of nominal economic indicators (national currency, fixed exchange rate and policy of the currency board, low inflation rate) but negative trends in real economic indicators still remain revealing problems in the functioning of the economy (high unemployment rate, high deficits in trade and balance of payments, FDI fall, budget deficit, insufficient economic growth rate, etc.) Economic recovery, which started in 2010, is at risk of being sidetracked due to the outcomes of the debt crisis. Absence of progress in structural reforms, weak fiscal coordination and lack of articulate economic policy strategy have made BiH sensitive at times of adverse economic environment. Diminished borrowing opportunities, accompanied by reduced remittances inflow from BiH citizens abroad and 10 restraining of the labour market 6,2 6,1 recovery has affected domestic 6,3 5,7 spending and purchasing power of 3,9 2,4 citizens, and thus, the overall BiH 0,9 0 economic growth level. Due to reduced 2004 2005 2006 2007 2008 2009 2010 2011 opportunities of domestic financing and -2,9 very limited, minimal inflow of foreign direct investment, investment activities were also under strong pressure, -10 registering negative trends. BiH economy is expected to register stagnation in 2012 illustrated in expected real economic growth of 0%, given that all key factors which were drivers of mild economic recovery in 2010 and 2011 are vanishing. Due to expected recession in all major export markets of BiH in Eurozone (Germany, Italy, Austria, Slovenia) and countries in the region (Croatia, Serbia), there is a threat of sharp fall in demand, and thereby, a drastic slowdown of BiH export growth and exportoriented industrial production which were the key drivers of economic recovery in the FLUCTUATIONS OF GDP GROWTH RATES IN BIH IN 2004 – 2011 5 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 previous two years. Besides industry, other cyclic activities like construction, tourism, transport, as well as service sector activities, like financial sector, could be affected. Major trends in unemployment in the labour market of Bosnia and Herzegovina Labour market trends are closely related to trends in economic development and economy as a whole. In 2011, employment services in BiH registered an increase in unemployment, despite the fact that there was a positive growth trend in the number of persons employed through labour offices of public employment services. In comparison with the beginning of the year, the number of registered unemployed persons at the end of 2011 incresed by around 10,000, amounting to 536,781 persons. In 2011, women made up 50.3% (266,429) of the total number of unemployed persons. 538.000 According to qualification 536.781 536.000 structure of unemployment, the 534.000 largest share in 2011 was made 532.442 up of persons with third level of 532.000 530.976 530.893 educational attainment – skilled 530.055 530.000 529.989 529.423 workers 35.2%, unskilled workers 528.429 528.000 527.749 30.6% and workers with 526.616 526.701 526.000 525.877 secondary education 24.6%.OS 524.000 The number of persons entitled to unemployment benefits 522.000 also increased. In December 520.000 2011, 10,634 persons or 1.98% of the total number of registered unemployed persons received cash benefit. In comparison with December 2010, when entitlement to cash benefit was exercised by 7,686 persons, the number of beneficiaries increased by 2,948 persons or 38.4%. Entitlement to health care in December 2011 was exercised by 380,249 persons, which is 70.8% of the total registered unemployment in BiH. According to the Labour Force Survey (LFS), out of over 2.5 million working-age population, 1.1 million are classified LABOUR FORCE SURVEY 2011 - WORKINGas economically active, whereas AGE POPULATION IN BIH BY ACTIVITY over 1.4 million are economically inactive persons. The data indicate that less than half of the working2.560.835 Working-age population age population in BiH above 15 is (15+) 1.126.983 Active population active. According to international 816.036 standards, the activity rate of Persons in employment 310.947 44.0% is very low. Unemployed According to the 2011 LFS, 1.433.852 Inactive population the labour force (economically 0 1000000 2000000 3000000 active population) in BiH amounted to 1,126,983 persons, while the number of inactive persons totalled TRENDS IN REGISTERED UNEMPLOYMENT IN BIH IN 2011 6 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 1,433,852. Employment rate was lower by 0.6% in comparison with 2010, amounting to 31.9%. Unemployment rate increased in 2011, reaching 27.6% at the level of BiH. Table 1 Labour Force Survey – measures of population activity in BiH and entities (%) Activity rate (%) Employment rate (%) Unemployment rate (%) 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 BiH Federation of BiH Republika Srpska Brčko District BiH 43.1 43.9 43.9 43.6 44.6 44.0 29.7 31.2 33.6 33.1 32.5 31.9 31.1 29.0 23.4 24.1 27.2 27.6 43.1 42.3 42.4 41.6 42.9 42.1 29.1 29.2 31.8 30.9 30.4 29.8 32.4 31.1 25.0 25.7 29.1 29.2 43.3 47.0 47.0 47.4 47.9 47.8 30.9 35.1 37.3 37.2 36.6 36.1 28.5 25.2 20.5 21.4 23.6 24.5 37.6 39.0 36.8 38.1 40.6 37.4 23.7 23.4 25.1 27.0 25.8 22.9 37.1 40.0 31.9 29.2 36.4 39.0 Main activities of employment services in BiH in 2011 in the field of active employment policy Major indicators on labour market trends in 2011 were also strongly influenced by the consequences of the global economic crisis. The number of registered unemployed persons was on a constant upward trend. Under such circumstances, the employment services in BiH focused thir activities primarily on: Taking of measures aimed at alleviating effects of the world economic crisis reflected on the labour market, Strengthening the mediating role of employment services with a view to providing services to employers and unemployed persons more efficiently, Continuing to implement the existing, and defining new active employment policy measures through employment projects for target groups in the labour market, Preventing the long-term unemployment and increasing the activation level of unemployed persons towards successful engagement in job search, Continuing to improve organisation of work of employment services meeting the needs of up-to-date organisation of the labour market and labour force. 7 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 In 2011, the total of 78,843 registered unemployed persons found jobs through the Federal Employment Service, Employment Service of Republika Srpska and Employment Service of the Brčko District of BiH, up by 5,215 perosons or 7.1% in comparison with 2010. EXITS FROM UNEMPLOYMENT REGISTERS IN BOSNIA AND HERZEGOVINA DUE TO EMPLOYMENT 2004 - 2011 Special attention in implementation of active employment policy measures was given to 100.000 programs which aim to 90.995 90.257 90.000 78.843 support enhancement of 80.000 73.628 employability of vulnerable 67.903 groups in the labour market. 70.000 The employment programs 61.141 60.000 implemented in the 47.890 50.000 Federation of BiH were 42.499 mainly targeting 40.000 unemployed young persons 30.000 under 30 with no work 20.000 experience, women, returnees and persons who 10.000 need social care services. 2004. 2005. 2006. 2007. 2008. 2009. 2010. 2011. Table 2 Major active employment policy programs of the Federal Employment Service and cantonal employmnet services in 2011 • Employment subsidy program for youth with no work experience 400+ • Employment subsidy program for youth with no work experience • Youth self-employment subsidy program ''Young Entrepreneur'' • Employment and self-employment subsidy program for women • Employment and self-employment of returnees • Training, retraining and skills-upgrading programs • Roma employment and self-employment programs • Social security network and employment support project (SSNESP) (2010-2014) Employment programs in Republika Srpska involved youth with no work experience and Roma. It is important to emphasize that the Government of Republika Srpska implemented an employment incentive project for unemployed persons which was realized through two public calls involving 1,336 registered unemployed persons. Table 3 Major active employment policy programs of the Employment Service of the Republic of Srpska in 2011 • ''With knowledge to job'' - employment project for interns with higher educational attainment • Roma employment support project in Republika Srpska • Employment project for youth under 30 with secondary school education 8 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 Employment programs of the Employment Service of the Brčko District of BiH targeted long-term unemployed and older persons. Table 4 Major active employment policy programs of the Employment Service of the Brčko District of BiH in 2011 • Employment subsidy program for long-term unemployed persons • Roma employment program • Employment program for older persons (women and men) • Long-term employment of interns According to partial data, active employment policy measures in 2011 involved about 14,500 registered unemployed persons. The major problems in implementation of active labour market policies in the previous year were again financial difficulties as these policies are largely funded from the budgets of employment services. As to the funds earmarked for active employment policies in BiH, the 2010 data indicate that 0.14% of GDP was earmarked for this purpose which is an average for most of the Southeast European countries. Public expenditure for active labour market measures in BiH and Southeast European countries (% of GDP) Country 2010 Bosnia and Herzegovina 0.14 Bulgaria 0.11 Croatia 0.06 Macedonia 0.12 Romania 0.03 Slovenia 0.58 Serbia 0.12 Around 60% of the programs related to subsidy programs of new employment and self-employment involving mostly youth with higher educational attainment and no work experience. 9 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 INTERNATIONAL COOPERATION IN THE FIELD OF LABOUR MARKET First interstate employment agreements in the region Prepared by: Zorica Babić, Advisor for International Cooperation, Department of International Cooperation in the Field of Labour and Employment The Agreement between the Council of Ministers of Bosnia and Herzegovina and the Government of the Republic of Serbia on temporary employment of BiH citizens in the Republic of Serbia and vice-versa was signed on 09 June 2011 in Belgrade. The Labour and Employment Agency of Bosnia and Herzegovina and the National Employment Service of the Republic of Serbia were designated under this Agreement as bodies responsible for its implementation in their respective countries. The Ministry of Civil Affairs has entrusted the Agency to contact, in cooperation with entity employment services and the Employment Service of the Brčko District of BiH, the National Employment Service of Serbia and sign the necessary enactments in order to prepare the responsible implementation bodies for implementation of the Agreement upon its ratification. The Agency started with the realization of assigned activities within a short time and held a meeting with the representatives of the National Employment Service of Serbia in July 2011 when both parties concluded that this was the first international agreement in the region implying employment in line with the legislation of both signatory countries and guaranteeing protection of the citizens taking employment in both countries. The representatives of the Agency presented Draft Protocol on implementation of the mentioned Agreement which should regulate the mode of cooperation between the responsible bodies and define the procedure of appraising companies' financial standing. After making adjustments with entity employement services and the Employment Service of the Brčko District of BiH, the final version of the Protocol will be made. The Agreement between the Council of Ministers of Bosnia and Herzegovina and the Government of the Republic of Slovenia on employment of BiH citizens in the Republic of Slovenia was signed on 22 June 2011 in Ljubljana. As laid down by the Agreement, the responsible bodies for its implementation are the Labour and Employment Agency of Bosnia and Herzegovina in Bosnia and Herzegovina and the Employment Service of the Republic of Slovenia on Sloveninan side. In order to facilitate the smooth implementation of the Agreement, the Ministry of Civil Affairs of BiH has tasked the Agency to define together with the Employment Serce of Slovenia all activities necessary for its efficient implementation. A delegation of the Labour and Employment Agency of Bosnia and Herzegovina and representatives of the Employment Service of Slovenia and the Ministry of Labour, Family and Social Affairs held a working meeting in September 2011 in Ljubljana in order to discuss activities necessary for efficient implementation of the Agreement. The delegations agreed that the Agreement was of exceptional importance for both countries, especially for BiH, given its high unemployment rate and traditional interest of Slovenian employers in recruiting workforce from BiH. The parties agreed to draw up an Operational Protocol which would regulate procedures, deadlines and technical issues in exchanging of data and documents between the responsible bodies. Both delegations generally agreed on the selection procedure of BiH workers. After reaching an agreement with entity employment services and the Employment Service of the Brčko District of BiH, the final version of the Protocol will be created. 10 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 Employment: Turkey – Bosnia and Herzegovina Cooperation with employment institutions of the Republic of Turkey agreed Prepared by: Boris Pupić, Expert Assistant for PR, Information and Publishing In October 2011, a delegation of the Labour and Employment Agency of Bosnia and Herzegovina paid a working visit to the Turkish Statistical Institute, Turkish Employment Organisation (ISKUR) and Ministry of Labour of the Republic of Turkey. The reason for the visit was to improve the operation of the Labour and Employment Agency of Bosnia and Herzegovina through exchange of experiences and negotiate a cooperation protocol and agreement on employment issues. On the first day, the delegation of the Labour and Employment Agency of Bosnia and Herzegovina paid a visit to the Turkish Statistical Institute in order to get an insight into its organisation and information system. The meeting opened the door to signing of a cooperation protocol between the two institutions in order to improve statistical activities of the Labour and Employment Agency of Bosnia and Herzegovina. On 12 October 2011, the delegation held a meeting with representatives of the Turkish Employment Organisation (ISKUR). Information on labour market situations in both countries was exchanged in the meeting. As workforce training and retraining and labour market statistics and monitoring are well organised in Turkey, as well as the entire work system of the institution which numbers several thousand employees and handles more than a million unemployed persons, it was agreed to sign a cooperation protocol. On the same day, a meeting was held in the Ministry of Labour of the Republic of Turkey. The topic of the meeting was Draft Cooperation Agreement which was submitted to the responsible institutions in Bosnia and Herzegovina on 25 May 2008 without any feedback. It was agreed to urge BiH institutions to initiate the adoption process of the Draft Agreement as early as possible. It was also agreed to launch an initiative for modifications and amendments to the Social Insurance Agreement between the Republic of Turkey and Bosnia and Herzegovina which would allow the Turkish Employment Organisation and the Labour and Employment Agency of Bosnia and Herzegovina, which had not existed at the time, to become activity drivers in the employment-related part. The parties in the meeting also agreed to continue the cooperation in the future. On the last day of its visit to Ankara, the delegation of the Labour and Employment Agency of Bosnia and Herzegovina held a meeting with the Turkish Development Agency (TIKA). In the meeting held with the the head of the TIKA Department for the Balkans it was agreed to initiate joint acitivities with ISKUR regarding the establishing of retraining and education centres which will be further discussed at a latter stage. 11 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 Amendments to the Agreement on Social Insurance between Bosnia and Herzegovina and Republic of Slovenia Equal rights to BiH and Slovenian workers Prepared by: Zorica Babić, Advisor for International Cooperation, Department of International Cooperation in the Field of Labour and Employment Bosnia and Herzegovina and the Republic of Slovenia concluded the Agreement on Social Insurance which entered into force on 08 August 2007. This long awaited Agreement was initialed, after six rounds of bilateral negotiations, in March 2007 in Ljubljana. When it comes to exercising the unemployment rights, the Agreement originally envisaged payment of unemployment benefits only to unemployed persons residing in Slovenia on the basis of their permanent residence permit which deprived a large number of persons from Bosnia and Herzegovina at work in the Republic of Slovenia of this benefit. Upon their return to the country of origin, i.e. BiH, those persons could not exercise the above right either. They could only register with the responsible employment service. Such a situation caused a large number of workers at work in the Republic of Slovenia to end up in an unequal position which gave rise to the need for amending the Agreement in effect. The amended Agreement on Social Insurance between Bosnia and Herzegovina and the Republic of Slovenia entered into force on 02 September 2011 allowing payment of unemployment benefits to insured persons from Bosnia and Herzegovina who are in possesion of permit for temporary residence in the Repubic of Slovenia. In this way, the group of persons entitled to unemployment benefit under the Agreement was extended. This amendment to the Ageement is of exceptional importance for workers from Bosnia and Herzegovina who work in the Republic of Slovenia and are in possesion of a temporary residence permit because it entitles them to claim unemployment benefit which implies that after termination of their employment in the Republic of Slovenia they can register with the responsible employment office of the Republic of Slovenia and exercise their right to unemployment benefit on condition they meet requirements provided by Slovenian regulations. The entitlement to unemployment benefit used to be suspended to those persons who did not meet the requirement of permanent residence. After the amendments to the Agreement entered into force, the persons, who had already been issued the decision on suspension of unemployment benefit by the Employment Service of Slovenia (ESS), and who were unemployed and had permit of temporary residence in Slovenia at the time, could register with the ESS within 30 days from the day of the termination of the reason for suspension and claim the unused part of unemployment benefit. As long as they receive the unemployment benefit, the unemployed are included in mandatory pension and disability insurance, health insurance, child benefit and unemployment insurance scheme. In cooperation with the ESS, the Agency has announced in all print and electronic media in BiH that persons from BiH entitled to unemployment benefit should register with the ESS in order to be able to exercise their entitlement. 12 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 More efficient implementation of Social Security Agreements Prepared by: Zorica Babić, Advisor for International Cooperation, Department of International Cooperation in the Field of Labour and Employment Bosnia and Herzegovina - Serbia In order to achieve more efficient implementation of the Agreement on Social Insurance signed between Bosnia and Herzegovina and the FRY, the Labour and Employment Agency of Bosnia and Herzegovina has proposed to the National Employment Service of Serbia to exchange the data on insurance coverage periods realized in BiH and Serbia in the future electronically. This would substantially shorten the time required to administer the requests for verification of insurance period accumulated in the contracting countries in framework of implementation of the above Agreement. In December 2011 representatives of the Labour and Employment Agency of BiH and the National Employment Service of Serbia held a meeting in Belgrade when they jointly adopted the proposed Operational Protocol on electronic exchange of data prepared by the Agency. Besides the electronic data exchange, the Protocol provides for shortening of the deadline for administration of requests from 60 to 30 days, personal data protection, electronic document layouts, password exchange, document protection mode and persons responsible as administrative and technical contacts. Both delegations agreed that the implementation of the above Agreement will make a big step forward in handling the above requests and make it easier to the beneficiaries to execute their rights. Bosnia and Herzegovina – Slovenia Last year, the Labour and Employment Agency of Bosnia and Herzegovina drew up Proposal Operational Protocols on electronic data exchange in cooperation with the Employment Service of Republika Srpska and the Employment Service of the BiH Brčko District aimed at more efficient administration of requests for verification of insurance periods conducted in framework of implementation of the Agreement on Social Insurance between BiH and the Republic of Slovenia. This should enable the handling of the requests for verification of insurance periods accumulated in BiH and the Republic of Slovenia within 15 days, thus enabling the efficient execution of entitlement to unemployment benefit to a large number of workers from Bosnia and Herzegovina. After examining the IT and technical capacities of the Federal Employment Service, the Agency will make a protocol with this institution finalizing the activity which is very important for the labour market institutions in BiH from the point of view of efficient implementation of international agreements. The following step will be the signing of the mentioned protocols. 13 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 Labour and Employment Agency of BiH signs Cooperation Protocol with National Employment Office of Hungary Linking labour markets of Bosnia and Herzegovina and Hungary Prepared by: Boris Pupić, Expert Assistant for PR, Information and Publishing The Protocol on Bilateral Cooperation between the Labour and Employment Agency of Bosnia and Herzegovina and the National Employment Office of Hungary was signed on 28 June 2011 in Budapest. The Protocol was signed by the Director of the Labour and Employment Agency of Bosnia and Herzegovina, Mr. Adnan Delić, and the Director of the National Employment Office of Hungary, Mr. Róbert Komáromi. Given the similarities of labour market trends and the need to boost employment and reduce unemployment, and having regard to the common interest to develop amicable relationships and cooperation in the field of labour market, aware of the importance to foster the economic and social development in both countries through mutual cooperation, the contracting parties agreed on the need to deepen and strengthen mutual relationship through exchange of experience related to implementation of employment policies and experiences of the National Employment Office of Hungary. The Protocol covers the following: advancement of performance of employment services (mutual exchange of information, knowledge and experience in the field of labour market, improvement of employment policies, enhancement of methodologies in data collection and unemployment evaluation, and exchange of data in line with the EU, ILO and EUROSTAT methodologies, fostering cooperation related to the EU funds,...), provision of services to employers (exchange of experience on procedures for issuance of work permits, exchange of information on employers' labour force demands and on programs for laid off workers...) and provision of services to job seekers (exchange of training models, enhancing life-long professional training model, promoting employment of persons with disability, improving information and counselling services in the field of career guidance, exchange of experience in the field of vocational rehabilitation,...). The Protocol has been concluded for the period of five years with the possibility of an extension. 14 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 Jobs for BiH students in Germany over summer holidays Prepared by: Merima Planinčić, Translation and Interpreting Advisor The Central Placement Services (ZAV) of the Federal Employment Agency in Germany with the head office in Bonn each year places students from European and nonEuropean countries to jobs in Germany for the period of up to three months during their winter or summer holidays. Under this program, the students can work in five different branches: catering, chain catering, agriculture, office and facility cleaning services and, to a certain extent, manufacturing. The total number of international students per calendar year has been limited to 10,000. In countries where ZAV has partner organisations, the students apply through such organisations and the Labour and Employment Agency of Bosnia and Herzegovina is ZAV's partner in Bosnia and Herzegovina. The program has been implemented in Bosnia and Herzegovina for a number of years during the summer holidays only. The eligible applicants are full-time students (exclusive of the final year students) aged 18 – 35 who have good command of German. Additionally, the students have to be available for work for at least two up to a maximum of three months per calendar year. Due to students' great interest for the program, and on initiative of the Labour and Employment Agency of Bosnia and Herzegovina, the total quota for Bosnia and Herzegovina was increased from 100 to 250 students in 2010. Unfortunately, due to the general economic decline, which was reflected on the German labour market as well, only 60 students received job offers in 2010. In 2011, when the contingent was limited to 200 students, 98 job offers were received. This recruitment program for the so-called unspecified employer primarily aims at giving students an opportunity to earn money for their studies. Furthermore, students have the opportunity of improving their German and it is often the case that students from different countries work together, which is a culturally enriching experience. Among advantages of the program is the possibility of working for the same employer in subsequent years. Namely, the employers who are satisfied with hired students can demand them at ZAV in subsequent seasons by their name (Namentliche Anforderung). They have to register with ZAV and leave the name of the students they want to hire. In this way, a certain number of students who have applied for a job with unspecified employer through the Labour and Employment Agency of Bosnia and Herzegovina have worked for several seasons with the already specified or known employer. 15 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 EUROPEAN UNION AND EMPLOYMENT Europe 2020 Strategy New strategy for new age Prepared by: Siniša Veselinović, Head of Department of Domestic Labour Market Boris Pupić, Expert Assistant for PR, Information and Publishing The economic crisis gripping the entire world has also affected developed countries, even the giants like China, USA and the European Union. The problem is particularly visible in the EU comprising 27 still insufficiently integrated markets. The crisis has wiped out the years of economic and social progress and exposed structural weaknesses in Europe's economy. Meanwhile, the world is hastily moving forward and long-term challenges – globalisation, pressure on resources and ageing – intensify. Due to new challenges, the EU has put forward a new strategy – Europe 2020 strategy adopted in June 2010 which sets out a vision of Europe's social market economy for the 21st century. The European Union strategy for 2020 represents an ambitious and general document aimed at creating conditions for growth of competetiveness and employment. Faced with competitive lagging behind the USA, the European Union wants to speed up the economic processes and create better conditions for new employment. This entails serious structural challenges, above all in the context of the necessary reforms in national education systems and labour markets which need to be more adjusted to the needs of competitive market economy. In that context, a flexicurity model is proposed as the basis of creating compromise between the need for greater labour market flexibility while maintaining social security of workers and increasing active employment measures. The introductory part of the Europe 2020 strategy states that year 2010 marks a new beginning for the European Union given that short-term priority is the exit from the economic crisis. The European Commission puts forward five major mesurable targets: employment, R&D, climate change and energy, education and combating poverty. The Strategy sets out that the unemployment rate in the EU has reached 10% with deficits at 7% of GDP on average and debt levels at over 80% of GDP. Two years of crisis have erased twenty years of fiscal consolidation. The growth potential has been halved during the crisis and many investment plans, talents and ideas are wasted because of uncertainty, sluggish demand and lack of funding. The Euorpe 2020 strategy proposes three mutually reinforcing priorities: smart growth, developing an economy based on knowledge and innovation, sustainable growth, promoting a more resource efficient, greener and more competitive economy and inclusive growth, fostering a high-employment economy delivering a social and territorial cohesion. 16 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 The backbone of the Strategy is composed of five headline targets: 1. 75 % of the population aged 20-64 should be employed. 2. 3 % of the EU's GDP should be invested in R&D. 3. The „20/20/20“climate/energy targets should be met (including the increase to 30% of emissions reduction if conditions allow). 4. The percentage of early school leavers should be under 10% and at least 40% of younger population should have a tertiary degree. 5. 20 million less people should be at risk of poverty. To ensure that each Member State tailors the Europe 2020 strategy to its particular situation, the European Commission proposes that EU goals are translated into national targets and trajectories. These targets are representative of three priorities of smart, sustainable and inclusive growth, but they are not exhaustive: a wide range of actions at national, EU and international levels will be necessary to underpin them. The Commission is putting forward seven flagship intitiatives to catalyse progress under each priority theme: 1. „Innovation Union“ to improve framework conditions and access to finance for research and innovation so as to ensure that the innovative ideas can be turned into products and services that create growth and jobs. 2. „Youth on the move“ to enhance the performance of education systems and facilitate the entry of young people into the labour market. 3. „A digital agenda for Europe“ to speed up the roll-out of high-speed internet and reap the benefits of a digital single market for households and firms. 4. „Resource efficient Europe“ to help decouple economic growth from the use of resources, by decarbonising the economy, increasing the use of renewable sources, modernising the transport sector and promoting energy efficiency. 5. „An industrial policy for the globalisation era“ to improve the business environment, especially for SMEs, and to support the development of a strong and sustainable industrial base able to compete globally. 6. „An agenda for new skills and jobs“ to modernise labour markets by facilitating labour mobility and the development of skills throughout the lifecycle with a view to increasing labour participation and better matching labour supply and demand. 7. „European platform against poverty“ to ensure social and territorial cohesion such that the benefits of growth and jobs are widely shared and people experiencing poverty and social exclusion are enabled to live in dignity and take an active part in society. These seven flagship initiatives will commit both the EU and the Member States. EU-level instruments, notably the single market, financial levers and external policy tools, will be fully mobilised to tackle bottlenecks and deliver the Strategy goals. As an immediate priority, the Commission charts what needs to be done to define a credible exit strategy, to pursue the reform of the financial system, to ensure the budgetary consolidation for longterm growth, and to strengthen coordination within the Economic and Monetary Union. Stronger economic governance will be required to deliver results. Europe 2020 will rely on two pillars: the thematic approach outlined above, combining priorities and headline targets; and country reporting helping Member States to develop their strategies to return to sustainable growth and public finances. Integrated guidelines will be adopted at EU level to cover the scope of EU priorities and targets. Country-specific recommendations will be addressed to Member States. Policy warnings could be issued in case of inadequate response. The reporting of Europe 2020 and the Stability and Growth Pact evaluation will be done simultaniously, while keeping the instruments separate and maintaining the integrity of the Pact. 17 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 Possible scenarios Moving out of the crisis is the immediate challenge, but the biggest challenge is to escape the reflex to try to return to the pre-crisis situation. Even before the crisis, there were many areas where Europe was not progressing fast enough relative to the rest of the world. Europe's average growth rate has been structurally lower than that of its main economic partners, largely due to a productivity gap that has widened over the last decade. Much of this is due to differences in business structures combined with lower levels of investment in R&D and innovation, insufficient use of information and communication technologies, reluctance in some parts of our societies to embrace innovation, barriers to market access and a less dynamic business environment. In spite of progress, Europe's employment rates – at 69% on average for those aged 20-64 – are still significantly lower than in other parts of the world. Only 63% of women are in work compared to 76% of men. Only 46% of older workers (55-64) are employed compared to over 62% in the US and Japan. Moreover, on average Europeans work 10% fewer hours than their US or Japanese counterparts. Another big problem is that demographic ageing is accelerating. As the baby-boom generation retires, the EU's active population will start to shrink as from 2013/2014. The number of people aged over 60 is now increasing twice as fast as it did before 2007 – by about two million every year compared to one million previously. The combination of a smaller working population and a higher share of retired people will place additional strains on its welfare systems. Due to the above, Europe is left with clear yet challenging choices. It will either face up collectively to the immediate challenge of the recovery and to long-term challenges – globalisation, pressure on resources, ageing, – so as to make up for the recent losses, regain competitiveness, boost productivity and put the EU on an upward path of prosperity ("sustainable recovery"); or it will continue at a slow and largely uncoordinated pace of reforms, and risk ending up with a permanent loss in wealth, a sluggish growth rate ("sluggish recovery") possibly leading to high levels of unemployment and social distress, and a relative decline on the world scene ("lost decade"). 18 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 Education and labour market Inclusive growth means economy of high employment and knowledge and social and territorial cohesion. By 2020 the European Union wants to increase the employment rate of the workforce aged 20-64 to 75% which demands greater involvement of women, young and older persons and better integration of migrants into the labour market. The European education system should tackle the problem of early school leavers. Likewise, the share of highly educated population aged 30-34 should be increased to 40% relative to 40% in the USA and 50% in Japan. The links between education, business, research and development should be strengthened and mobility of students and formal recognition of informal education promoted. There is a mismatch between knowledge and skills on the one hand and labour market needs on the other creating disbalance between supply and demand and structural unemployment. Emphasis should be on entrepreneurship and creativity, innovation and engineering. Lifelong learning is increasingly becoming a necessity not only for highly educated population, but especially for youth whose unemployment rate is particularly high. The European Commission proposes the labour market flexicurity policies through increased flexibility of the labour market and education of workers and strengthening of the social security system and implementation of active measures for strenghtening skills through education programs for employment with a view to reducing structural unemployment and increasing participation in the labour market. As a social compromise model, the flexicurity model will contribute to the modernisation and liberalisation processes of the labour market and to achieving balance between the world of work and private life, as well as to ensuring the sustainable social model. Acquisition of new skills is crucial for adapting of workers to new conditions and raising labour productivity. References: Academic ranking of world universities (2009). Academic Ranking of world universities 2009 on http://www.arwu.org/ARWU2009.jsp Alesina, A., & Giavazzi, F. (2006). The future of Europe. Cambridge: MIT Press. European Commission (2010a). Europe 2020 – European strategy for smart, sustainable and inclusive growth. 19 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 FOCUS OF THE ISSUE Green jobs: New employment opportunity Prepared by: Boris Pupić, Expert Assistant for PR, Information and Publishing We have decided to put in focus of the issue the topic of green jobs, a new and dynamic economic sector which is increasingly creating new jobs across the world. Since jobs across the world are increasingly becoming ''green'', we invite you to find out more about them in the text below. What are the Green Jobs? Although there is no single definition, green jobs are new jobs in manufacturing and service activities which contribute to preserving the environment. This is why these jobs are sometimes also called Eco Jobs, Environment Jobs, Environment-Friendly Products and Services Jobs. This is a new category of jobs which has emerged together with the need to reduce the use of energy extracted from traditional sources (with high CO2 emissions) and increase the use of energy generated from renewable sources. A new manufacturing and service activity which is producing most new jobs in countries with developed economies has emerged from this need. The need to reduce the global warming has given rise to the need to reduce the harmful effects of greenhouse gases making space for until recently the ''alternative'' ways of energy generation. With new ways of energy extraction emerging, new useful technologies used in energy generation also develop. All this leads to creation of new jobs. According to the estimate of the International Labour Organisation, green jobs and green economy are the most promising economic sectors. Rapid development of green economy requires specific skills which can help in developing technologies and infrastructure necessary for transition to sustainable, low-carbon methods of energy generation. The results of the ILO study conducted in 21 countries which represent 60% of the world population show that the shift towards the green economy significantly accelerates creation of new jobs and structurally enhances the existing jobs. Although the Kyoto Protocol threatened that the reduction of industry based on high emission of greenhouse gases would lead to the loss of jobs, the introduction of new technologies and development of new skills is leading to quite opposite phenomenon in the green economy. What is more, the change in skills happens in different job profiles taking in account all levels of qualification and education across all existing sectors. New economy, new opportunities IT and nanotechnologies have ushered us into the knowledge-based economy. Simultaniously, another revolution is under way which is ushering us into the economy 20 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 based on pure energies or the so-called green economy. The basic principles of this economy are energetic efficiency, renewability and alternative transport fuels. Unlike the knowledge-based economy which insists on highly qualified workforce, the green economy leaves enough space for manual workers and for the less skilled workforce (with secondary education, skilled and highly skilled workers). This fact is underpinned by the titles of jobs created in the green economy which can be found at web sites specialized for green jobs: energy efficiency engineer, solar engineer, wind energy technician/mechanic, sustainable biomass and energy policy associate, adviser on climate and energy policy, green building architect, etc. Challenges and threats Notwithstanding many advantages, green jobs conceal a big threat of their sluggish development due to the lack of skilled workforce. As this is a new economic sector, it is necessary to introduce as early as possible specialized curricula in sufficent number of universities across the world in order to educate the workforce. Second and more efficient way is to upgrade skills of the existing workforce. This would enable the generation of new workers and new jobs in short time period but the disadvantage of skills upgrading is that it generally refers to persons with non-university education. When classifying green jobs, it is necessary to differentiate between three types of jobs – direct jobs (manufacturing and equipment maintenance), indirect jobs (in supporting industry) and induced jobs (new jobs emerging due to daily consumption of direct and indirect job holders). USA – biggest green market The USA is at present the biggest green market in the world. Although there is still no official data on how many people work in green economy, forecast predict that, by 2030, 1.3 million jobs in this economy should be created annually in the USA only which, in some opinions, could outrival the dot-com boom (IT sector jobs) from the 1990-s. According to 2008 data, more than 2.3 million people worldwide were employed in the renewable energies sector. Half of them were employed in the biomass and biofuels sector, over 600,000 in the solar thermal industry, 300,000 in the wind power industry, 200,000 in the solar photovoltaics sector,etc). Assessments show that in 2006 there were 8 million green jobs in the energy efficency-related activities in the United States only. The growth of employment in renewable energy sector equally occurs in the countries of developed world (260,000 employed in the renewables sector in Germany, 200,000 in Spain, 450,000 in the USA), and developing countries (one million employed in the renewables sector in China). According to the number of employed in the solar thermal energy, China is in the lead with 600,000 employed. European leader is Germay with 19,000 employed, followed by Austria (6,500) and Greece and Spain with 3,000 such jobs. 21 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 How to improve skills required for green jobs? A study of the International Labour Organisation has identified the development of skills necessary for green economy as the most important challenge. To this end, 6 challenges have been identified: 1. Lack of green skills is slowing down transition to green economy; 2. Green skills and environment protection-related policy have to be developed jointly; 3. Green economy creates deep structural changes in some sectors associated with the CO2 emissions; 4. As the economy grows ''green'', the occupations develop in a number of ways; 5. It is necessary to identify skills required by the green economy; 6. Trainings needed for development of green skills are urgently needed. Labour and Employment Agency of BiH and green jobs WAPES: Green jobs – opportunity for public employment services The workshop on the topic of ''green jobs'' was held from 30 November – 02 December 2012 in Beijing, China. Networking within public employment services in the area of ''green jobs'' and better understanding of this issue is among the greatest potentials for creation of new jobs. This was a conclusion of the workshop. It was also concluded that skills assessment, better matching of skills to jobs, modernisation of the labour market, up-to-.date labour market information and social responsibility are topics that appear on the green agenda and need to be tackled to make future policy approaches successful. Under new circumstances, public employment services have the opportunity to position themselves as managers of human resources needs in the green economy. In that regard, it is of the utmost importance to identify green skills and general information on the green labour market. Services to employers present a particular challenge to public employment services in the green economy, as the main demand is for the medium to high skills, and many countries have low share of these skills in their labour markets. Lower skilled workers can be at a disadvantage in the green economy, although there are opportunities for their employment in areas such as waste-recycling. Providing up-skilling programmes is one of the problems of public employment services. Close monitoring of fair work principle in the segment of the green labour market by public employment services is important to prevent exploitation and promote good jobs. In a nutshell, public employment services could be the main contacting point for all job seekers and employers when it comes to facilitating green jobs. The primary target group of the workshop were PES decision makers who deal with the ''greening'' of the profile of their organisation, i.e. contributing in making it an actor in the field of green jobs. As a second target group, this event addressed the representatives of the international organisations and other actors engaged in the field of green economy and environmental education. 22 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 PROJECTS Improving Active Labour Market in BiH - IALM Strengthened capacities of public employment services Prepared by: Siniša Veselinović, Head of Department of Domestic Labour Market In 2011, the Labour and Employment Agency of Bosnia and Herzegovina took part in implementation of the project ''Improving Active Labour Market in BiH (IALM)''. The Project was financed from the IPA funds for Bosnia and Herzegovina and its total value is 1,182,000 EUR. The project implementation started in April 2010 and the Lead Partner is the EPRD Consortium from the Republic of Poland. Besides the Agency, participants in the project were representatives of the Ministry of Civil Affairs of BiH, entity ministries responsible for employment, entity employment services and the Employment Service of the BiH Brčko District, as well as representatives of cantonal employment services. Overall objectives of the project are: • to develop better targeted and more efficient active labour market measures, • to enhance employability of unemployed persons, • to strengthen institutional capacities at all levels, • to improve the image of public employment services, • to emphasize the importance of motivation and positive thinking. The Project unfolded in framework of activities of three communication centres covering three topics: Labour Market Strategy, developing active employment policy measures, planning and monitoring (Communication Centre 1), procedural and legal framework (Communication Centre 2) and capacity building and training of staff (Communication Centre 3). The Agency representatives took part in the Project through the nomination of its representative as a member of the Project Steering Board and the appointed representative of the Agency in activities of the Communication Centre 1. The following training courses, attended by representatives of the Agency, were held in framework of the IALM Project: training courses for PES counsellors in BiH and training aimed at creating local partnerships in the field of active employment policy. The result of the Project is also the establishment of two pilot labour offices in Zenica (Public Employment Service of Zenica-Doboj Canton) and Zvornik (Employment Service of Republika Srpska – Bijeljina regional office), which have practically implemented the 23 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 operation process of a modern employment service and a new approach of counselling services to the unemployed. The training courses were organised for 333 persons from public employment services (PES) in BiH and emphasis was put on improving their counselling capacities and maintaining better relation with employers so as to have more jobs and more employment. Persons who wanted to support the development of entrepreneurship were also educated. Training courses in managerial skills and skills for setting up teams for so-called early intervention in case of mass layoffs were delivered to managerial staff. The information package aimed at improving communication within PES and between PES and unemployed persons and the public in general was also defined. The experts of the Project Lead Partner have drawn up a joint letter of intention which was sent to the EU Delegation to BiH, the BiH Council of Ministers and entity and cantonal authorities with a view to tackling the issue of health care of unemployed persons so as to remove the administration and financing of health insurance (in the Federation of BiH) from PES to responsible health insurance funds. A representative of the Labour and Employment Agency of Bosnia and Herzegovina, member of the Project Steering Board, took part in the study visit organized to the Republic of Poland from 15 – 20 May 2011. The purpose of the visit was to present to the labour market institutions at national and entity level the organisation of work in the Polish ministries and employment services at all levels. Poland is a country with decentralized labour market where organisation of employment follows the territorial organisation of the country (Poland is divided in 16 voivodeships which are subdivided in counties and these are further divided into municipalities). The Ministry of Labour and Employment exists at the state level which, among other 20 administrations, has the Administration for Employment responsible for enacting laws and sublegal frameworks in the field of employment, administering financial instruments (Labour Fund) and initiating and coordinating activities in this field. As of 2000, the employment services have been organized at the level of voivodeships and lower levels. Each voivodeship employment service is independent and reports to the respective 24 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 voivodeship marshal. The purpose of this organisation is to include local self-governments and communities in the process of labour market administration. The Labour Fund, established in line with the Labour Market Promotion Act, is the major source of funding of employment services in Poland. The Fund, deriving its revenues from contributions paid by employers pegged at 2.45% of the gross pay (total contributions are 38% of the gross pay), is used to finance active and passive employment policies in Poland. The resources from the Fund are distributed to voivodeship PES according to algorithm (formula) which make further distribution to county PES according to adequate algorithm. In line with the law, a maximum of 7% of resources from this Fund is allocated for material and other PES costs and the rest is funded from the voivodeships budgets. The Polish PES has the total of 26,000 employees and the staff-client ratio is 1 to 80, i.e. counsellor-unemployed person ratio is 1 to 550. About 2 million persons are officially registered as unemployed and, according to some estimates, about 1 million people work in the informal economy and 2 million in other EU countries. The registered unemployment rate is 12.6%, and according to the the LFS it amounts to 9.8%. The second source of funding is the European Social Fund which has earmarked 11.5 billion EUR for Poland in 2011 through 10 priorities, of which 3 billion EUR for employment and creation of new jobs. Besides PES, private employment agencies, NGOs and other institutions are elilgible to apply for these funds. Active employment policy measures (AEPM) mainly refer to incentives for creation of new jobs, training and skillsupgrading programs aimed at winning a better position in the labour market. Subsidies for self-employment and new employment amount to 6 average salaries (max. about 20,000 zloty). Programs for new startups involved 77,000 beneficiaries in 2010. It is worth noting that the active labour market programs involved many non-governmental institutions (NGOs, private employment agencies, entrepreneurship development agencies, CARITAS, etc.) which were largely engaged in trainining and skills-upgrading programs and programs of social inclusion in the labour market. PES cooperation with private agencies is poor, if any, the reason being the limited cooperation between public and private sector. Passive employment policy is implemented in the field of health care for the unemployed (covered by PES) and unemployment benefit (paid for the period of up to 6 months in the amount of about 300 EUR for the first three months and lower for the remaining months). If unemployment rate in a county is above the Polish average, the maximum entitled duration of unemployment compensation is 12 months. During their visit, the BiH delegation members had the opportunity of seeing the methodology applied by counsellors in working with the unemployed from their registration to the labour office to individual and group counselling. They were also introduced to the work of the association of employers and trade unions in Poland, collective bargaining, operation of economic and social councils at all levels of authority and the NGO ''Democratic Union of Women'' and other non-governmental labour market institutions. 25 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 INFORMATION – INTERESTING DETAILS Prepared by: Boris Pupić, Expert Assistant for PR, Information and Publishing 200 million people unemployed worldwide The ILO study reports that about 200 million people are currently unemployed worldwide, which is by 27 million more than before the outbreak of the economic crisis. In most of the countries the employment is still below pre-crisis levels. In 2011, only Austria and Germany from developed countries saw the increase in employment in comparison to the pre-crisis period. The biggest concern is that the most affected category are young workers who find it most difficult to get a job because new jobs are opened too slowly. With the exception of Germany and Austria, only Switzerland succeded to reduce the unemployment rate among youth to the pre-crisis level, reports the International Labour Organisation. (Source: agencies, 23 January 2012) Europe loses one million workers each year Workforce is projected to shrink from 325 to 275 million, reports the World Bank In its latest report, the World Bank warned that Europe would lose about one million workers each year over the next five decades. Solving the problem of workforce deficit will require a new social consensus, reports this institution in the report analysing 45 European countries. "With a rapidly ageing population and falling fertility and without changes in employment, immigration and pension policies, Europe will lose about one million workers each year for the next five decades. Europe's labour force is projected to shrink from 325 million to 275 million'', quotes the report ''Golden Growth: Restoring the Lustre of the European Economic Model'' published in Brussels. It is pointed out that despite that, the Europeans have been reducing how much they work and that Americans work an extra month compared with the Dutch, French, Germans, and Swedes, and work noticeably longer than less well-off Greeks, Spaniards, Hungarians, and Poles. "Men in Poland, Turkey, Hungary, and France retire more than 8 years earlier than in the mid-1960s ", reports the WB. This international financial institution has warned that this puts enormous pressure on public finances, already strained by the costs of servicing large public debt. ''Europe will have to work on many fronts to deal with impending labor shortages: increasing the competition for jobs, improving labor mobility, fixing how work and welfare are facilitated, and rethinking immigration policies. These changes will need a new social consensus'', concludes the WB report. (Source: agencies, 26 January 2012) 26 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 Bosnia and Herzegovina ranked 104th by economic freedom Bosnia and Herzegovina's economic freedom score is 57.3, making its economy the 104th freest in the 2012 Index. Its overall score is 0.2 point worse than last year, with a significant decline in business freedom. Bosnia and Herzegovina is ranked 38th out of 43 countries in the European region, and its overall score remains well below the regional average. The foundations of economic freedom are fragile and uneven across the country. Poor protection of property rights and widespread courruption discourage entrepreneurial activity. The rule of law is weak, and local courts are subject to substantial political interference and lack the resources to prosecute complex crimes effectively. Intrusive bureaucracy and costly registration procedures reflect a history of central planning. Inefficient and high public spending perpetuates fiscal burdens imposed by the government. After several years of strong economic growth, Bosnia and Herzegovina's economic performance has deteriorated, partly because of the global economic slowdown and also because of the generally slow pace of the transition to regulatory efficiency and open-market policies. The entrepreneurial environment remains one of the region's most discouraging. Quick Facts Population: 39 million GDP (PPP): $30.3 billion 0.8% growth in 2010 5-year compound annual growth 3.1% $7,782 per capita Unemployment: 43.1% Inflation (CPI): 2.1% FDI Inflow: $63.4 million Public debt: 39.7% of GDP 27 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 The ten economic freedoms Rule of law: Property registries are largely unreliable, leaving transfers open to dispute. Efforts are being made to update real estate property laws, annul previous conflicting laws, and develop new workable registries in the two sub-federal entities. The judicial system does not cover commercial activities adequately. Contracts are almost unenforceable, and implementation of laws protecting intellectual property rights is inadequate. Corruption remains prevalent. Rank Property rights – 20.0 143th Freedom from corruption – 32.0 93th Limited government: Bosnia and Herzegovina's various governing entities have different tax policies. The top income and corporate tax rates are 10%. Other taxes include a value-added tax (VAT), a sales tax, and a property tax, with the overall tax burden equivalent to 37% of total domestic income. Government expenditures amount to about half of total domestic otuput, resulting in chronic budget deficits and growing public debt. Rank Fiscal freedom – 84.3 48th Government spending – 24.4 158th Regulatory efficiency: The average time required to start a company is about 15 days less than in previous years. However, licensing requirements have become considerably more burdensome and costly. Labour regulations’s complex administrative structure has inspired a dual labour market. The unemployment rate, particularly high among the young, is one of the highest in the region. Inflation has been modest. Rank Business freedom – 85.2 133rd Labour freedom – 60.4 94th Monetary freedom – 80.7 44th Open markets: The trade weighted tariff is 2%, but non-tariff barriers persist. Myriad state and municipal administrations make up a nontransparent bureaucratic system that makes investment less appealing. About 80% of banking capital is privately owned, and aroud 90% of banks are foreign-owned. However, a lingering lack of contract enforcement and an insecure regulatory environment hamper credit availability. Rank Trade freedom – 86.0 39th Investment freedom – 70.0 36th Financial freedom – 60.0 39th Score changes Property rights 0 LIMITED GOVERNMENT Fiscal freedom +0.4 Freedom from corruption +2.0 Government spending +0.3 RULE OF LAW REGULATORY EFFICIENCY Business freedom -5.2 Labour freedom +0.2 Monetary freedom +0.1 OPEN MARKETS Trade freedom 0 Investment freedom 0 Financial freedom 0 28 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 STATISTICAL OVERVIEW Growth of unemployment in the labour market in 2011 The following pages present a detailed statistical overview of 2011 labour market trends in registered employment, unemployment and the Labour Force Survey for 2011. Prepared by: Zvjezdana Jelić, Senior Expert Assistant for data collection, processing and system programming, Department of Domestic Labour Market Registered employment TRENDS IN REGISTERED EMPLOYMENT According to the BiH Agency for Statistics, the average number of persons in employment in Bosnia and Herzegovina in 2011 was 691,548, of which 280,934 or 40.6% were women. The total number of persons employed in legal entities grew by 1.5% compared to the 2010 average. TABLE 1 No. of persons in employment in Bosnia and Herzegovina in 2011 / index Total in employment I /2011 II /2011 III /2011 IV /2011 V /2011 VI /2011 VII /2011 VIII /2011 IX /2011 X /2011 XI /2011 XII /2011 1 Index in relation to the previous month 693,885 693,366 691,803 691,511 691,759 692,834 693,282 690,054 690,942 691,548 689,671 687,917 101.5 99.9 99.8 100.0 100.0 100.2 100.1 99.5 100.1 100.1 99.7 99.7 Index in relation to the same month of the previous year 102.2 102.4 102.3 101.5 101.5 101.7 101.7 101.4 100.9 100.8 100.5 100.7 PERCENTAGE SHARE OF MEN AND WOMEN IN TOTAL EMPLOYMENT IN BIH IN 2011 women 40,6% men 59,4% men 1 women Source: BHAS 29 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 TABLE 2 No. of persons in employment in Bosnia and Herzegovina by activities January – December 2011 TOTAL A B C D E F G H I J K L M N O I II III IV V VI VII VIII IX X XI XII 693,885 693,366 691,803 691,511 691,759 692,834 693,282 690,054 690,942 691,548 689,671 687,917 17,271 17,089 17,187 17,211 17,266 17,306 17,462 17,506 17,289 17,160 16,943 16,752 447 426 443 442 435 424 423 417 400 413 412 411 19,290 19,304 19,352 19,460 19,485 19,518 19,581 19,463 19,352 19,331 19,243 19,066 133,707 133,237 131,981 132,037 131,902 132,484 132,849 133,102 134,139 134,065 133,703 132,912 23,382 23,285 23,274 23,320 23,300 23,358 23,343 23,293 23,315 23,328 23,357 23,212 38,274 37,309 37,191 37,051 37,276 37,505 37,585 37,589 38,083 37,933 37,769 37,178 130,424 130,566 130,287 130,497 130,938 130,529 130,440 129,765 128,163 127,716 127,346 127,399 29,039 29,076 28,371 28,185 27,336 28,050 27,793 27,974 27,920 27,731 27,660 27,710 49,960 49,909 49,943 50,123 50,111 49,862 49,658 49,672 49,593 49,239 49,061 49,005 16,551 16,411 16,368 16,367 16,365 16,358 16,432 16,368 16,292 16,254 16,255 16,355 27,730 27,827 27,919 28,152 28,199 28,183 28,137 28,069 28,655 28,770 28,783 28,663 71,888 72,047 72,164 71,992 72,039 72,127 72,174 72,083 71,828 71,841 71,732 71,762 59,641 60,107 60,230 60,396 60,258 60,050 59,617 57,034 59,563 61,473 60,725 60,823 46,699 46,982 47,057 47,240 47,305 47,263 47,421 47,427 47,445 47,444 47,455 47,420 26,156 26,196 26,288 26,273 26,294 26,662 26,798 26,784 26,126 25,840 25,960 26,003 NUMBER OF PERSONS IN EMPLOYMENT IN BIH IN 2011 BY ACTIVITIES (annual average) 140.000 120.000 100.000 80.000 60.000 40.000 20.000 0 A B C D E F G H I J K L M N O 30 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 Registered unemployment TRENDS IN REGISTERED UNEMPLOYMENT The average number of unemployed persons in 2011 was 529,661, which is an increase of 12,668 persons or 2.5% on 2010. TABLE 3 Registered unemployment in 2011 (as at the end of month) - BiH/entities I 2011 II 2011 III 2011 IV 2011 V 2011 VI 2011 VII 2011 VIII 2011 IX 2011 X 2011 XI 2011 XII 2011 526,701 527,749 530,055 529,423 526,616 525,877 528,429 530,976 529,989 530,893 532,442 536,781 Federation of BiH 367,180 366,481 367,255 366,658 365,322 365,029 367,113 369,644 367,512 367,975 368,922 371,090 Republika Srpska 147,912 149,459 151,076 150,911 149,573 149,110 149,573 149,765 150,669 150,971 151,576 153,535 Brčko District BiH 11,609 11,809 11,724 11,854 11,721 11,738 11,743 11,567 11,808 11,947 11,944 12,156 Bosnia and Herzegovina TABLE 4 Number of unemployed persons in Bosnia and Herzegovina in 2011 / index (as at the end of month) I /2011 II /2011 III /2011 IV /2011 V /2011 VI /2011 VII /2011 VIII /2011 IX /2011 X /2011 XI /2011 XII /2011 No. of unemplyed Index in relation to the previous month Index in relation to the same month of the previous year 526,701 527,749 530,055 529,423 526,616 525,877 528,429 530,976 529,989 530,893 532,442 536,781 100.9 100.2 100.4 99.9 99.5 99.9 100.5 100.5 99.8 100.2 100.3 100.8 102.0 101.6 102.1 102.6 102.8 102.8 102.4 102.6 102.5 102.6 102.6 102.8 31 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 KRETANJE REGISTROVANE NEZAPOSLENOSTI U 2010. I 2011. GODINI 540.000 536.781 530.000 527.749 530.976 530.055 529.423 526.616 526.701 528.429 532.442 529.989 530.893 525.877 520.000 2010. 510.000 500.000 UNEMPLOYMENT OF WOMEN Women made up 50.3% (266,429) in the total number of job seekers in 2011. The increase of unemployed women in 2011 was 2.7% on 2010, whereas it was slightly lower for men reaching 2.2%. TABLE 5 Average number of unemployed in BiH in 2010 and 2011 by gender share of women and men in %, index Total Women Men Ø 2011 529,661 266,429 263,233 % 100.0% 50.3% 49.7% Ø 2010 516,993 259,411 257,582 % 100.0% 50.2% 49.8% Index 2011/2010 102.5% 102.7% 102.2% ZAPOSLEN 32 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 GRAPHICAL OVERVIEW OF REGISTERED UNEMPLOYMENT HERZEGOVINA, ENTITIES AND BRČKO DISTRICT BIH IN 2011 IN BOSNIA AND TRENDS IN REGISTERED UNEMPLOYMENT IN BIH IN 2011 538.000 536.781 536.000 534.000 532.442 532.000 530.055 530.000 529.423 528.000 526.000 530.976 527.749 530.893 529.989 528.429 526.616 526.701 525.877 524.000 522.000 520.000 TRENDS IN REGISTERED UNEMPLOYMENT IN BIH FEDERATION IN 2011 372.000 371.090 371.000 370.000 369.644 369.000 368.000 367.000 366.000 365.000 368.922 367.180 367.255 366.481 366.658 365.322 367.113 367.512 367.975 365.029 364.000 363.000 362.000 361.000 33 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 TRENDS IN REGISTERED UNEMPLOYMENT IN REPUBLIKA SRPSKA IN 2011 154.000 153.535 153.000 152.000 151.000 151.076 150.911 150.000 149.459 149.000 148.000 149.573 149.573 149.110 151.576 150.971 150.669 149.765 147.912 147.000 146.000 145.000 TRENDS IN REGISTERED UNEMPLOYMENT IN BRČKO DISTRICT BIH IN 2011 12.300 12.200 12.156 12.100 12.000 11.947 11.900 11.809 11.800 11.724 11.700 11.600 11.854 11.609 11.721 11.738 11.944 11.808 11.743 11.567 11.500 11.400 11.300 11.200 34 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 REGISTERED UNEMPLOYMENT BY QUALIFICATION LEVEL When it comes to qualification structure of the unemployed in BiH in 2011, the largest share was made up of persons with third level of qualification – skilled workers with 35.2%, unskilled workers with 30.6% and workers with secondary school education with 24.6%. T ŽENA TABLE 6 Registered unemployment in BiH in 2011 by qualification level Share in total unemployment in % Professional attainment AS ON DATE Total: 31/1/2011 28/02/2011 31/03/2011 30/04/2011 31/05/2011 30/06/2011 31/07/2011 31/08/2011 30/09/2011 31/10/2011 30/11/2011 31/12/2011 Ø 2011 University degree Nonuniversity degree Secondary school education Primary school education Highlyskilled Skilled Semi-skilled Unskilled Total 526,701 22,341 7,292 128,549 2,025 4,144 187,092 14,104 161,154 Women 262,996 14,295 4,499 78,168 1,354 524 75,055 5,859 83,242 Total 527,749 22,285 7,275 128,895 2,025 4,125 187,615 14,103 161,426 Women 263,477 14,241 4,502 78,296 1,353 520 75,333 5,879 83,353 Total 530,055 22,668 7,282 129,681 2,003 4,117 188,360 11,665 164,279 Women 265,048 14,475 4,507 78,744 1,342 514 75,805 4,550 85,111 Total 529,423 23,189 7,341 129,672 2,004 4,112 187,707 11,640 163,758 Women 265,554 14,818 4,558 78,948 1,337 519 75,722 4,562 85,090 Total 526,616 23,412 7,283 128,828 1,992 4,099 186,339 11,606 163,057 Women 264,791 14,988 4,523 78,575 1,330 519 75,431 4,537 84,888 Total 525,877 23,651 7,244 129,488 1,986 4,053 185,694 11,524 162,237 Women 264,689 15,137 4,488 78,922 1,324 509 75,226 4,507 84,576 Total 528,429 25,497 7,431 130,273 1,976 4,023 185,962 11,490 161,777 Women 266,565 16,430 4,600 79,330 1,317 502 75,450 4,480 84,456 Total 530,976 27,495 7,802 130,686 1,971 4,013 186,133 11,463 161,413 Women 268,572 17,831 4,869 79,592 1,316 513 75,617 4,484 84,351 Total 529,989 26,405 7,465 131,894 1,938 3,968 185,771 11,427 161,121 Women 267,797 16,995 4,636 80,131 1,303 504 75,506 4,478 84,245 Total 530,893 27,523 7,435 132,451 1,921 3,944 185,500 11,380 160,739 Women 268,433 17,694 4,623 80,231 1,288 507 75,529 4,465 84,096 Total 532,442 28,553 7,465 132,695 1,909 3,915 185,696 11,351 160,858 Women 268,990 18,375 4,641 80,200 1,281 500 75,461 4,440 84,092 Total 536,781 29,591 7,508 133,454 1,913 3,936 187,199 11,395 161,785 Women 270,232 19,053 4,673 80,393 1,279 510 75,626 4,441 84,257 Total 529,661 25,218 7,402 130,547 1,972 4,037 186,589 11,929 161,967 Women 266,429 16,194 4,593 79,294 1,319 512 75,480 4,723 84,313 Ø 2011 Total % 100.0% 4.8% 1.4% 24.6% 0.4% 0.8% 35.2% 2.3% 30.6% % Women% 50.3% 64.2% 62.1% 60.7% 66.9% 12.7% 40.5% 39.6% 52.1% 35 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 Percentage share of women with university degree, higher non-university degree, secondary and primary school education and unskilled women in qualification structure of unemployed persons is higher from that of men, while there are fewer unemployed highly skilled, skilled and semi-skilled women than equvalent men. TABLE 7 Registered unemployment in BiH in 2011 by qualification level and gender share of women and men in % Professional attainment Ø 2011 Total: University degree Nonuniversity degree Secondary school education Primary school education Highlyskilled Skilled Semi-skilled Unskilled Total 529,661 25,218 7,402 130,547 1,972 4,037 186,589 11,929 161,967 Women 266,429 16,194 4,593 79,294 1,319 512 75,480 4,723 84,313 % 50.30% 64.22% 62.05% 60.74% 66.87% 12.68% 40.45% 39.60% 52.06% Men 263,233 9,023 2,809 51,253 653 3,526 111,109 7,206 77,654 % 49.70% 35.78% 37.95% 39.26% 33.13% 87.32% 59.55% 60.40% 47.94% PERCENTAGE SHARE OF MEN AND WOMEN IN TOTAL UNEMPLOYMENT IN BIH IN 2011 BY QUALIFICATION LEVEL 120,00% 100,00% 80,00% 60,00% 40,00% 20,00% 0,00% VSS VŠS SSS NSS VKV KV PKV NKV MEN 35,8% 38,0% 39,3% 33,1% 87,3% 59,5% 60,4% 47,9% WOMEN 64,2% 62,0% 60,7% 66,9% 12,7% 40,5% 39,6% 52,1% 36 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 EXITS FROM REGISTERS DUE TO EMPLOYMENT In 2011, 78,843 unemployed persons were removed from unemployment registers of the Federal Employment Service, Employment Service of Republika Srpska and Employment Service of the Brčko District of BiH due to employment. Compared to 2010, the number of these exits increased by 5,215 persons or 7.1%. TABLE 8 Exits from unemployment registers in 2011 due to employment - BiH/Entities I 2011 II 2011 III 2011 IV 2011 V 2011 VI 2011 VII 2011 VIII 2011 IX 2011 X 2011 XI 2011 XII 2011 Bosnia and Hercegovina 4,813 5,422 5,702 6,466 7,142 8,060 6,962 5,506 10,799 7,104 5,792 5,075 Federation of BiH 3,344 3,871 3,768 4,402 4,306 5,690 4,689 3,678 8,078 4,704 3,653 3,179 Republika Srpska 1,429 1,489 1,841 1,983 2,771 2,300 2,177 1,739 2,598 2,310 2,045 1,824 Brčko District of BiH 40 62 93 81 65 70 96 89 123 90 94 72 EXITS FROM UNEMPLOYMENT REGISTERS IN BIH DUE TO EMPLOYMENT BY MONTHS AND GENDER 2011 12.000 10.799 10.000 8.060 8.000 6.466 6.000 4.000 2.000 5.422 7.142 5.792 5.702 5.506 5.415 5.075 4.813 2.225 2.336 7.104 6.962 2.193 2.260 2.648 3.457 3.093 2.880 2.166 2.645 2.288 0 Total Women 37 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 TABLE 9 Exits from unemployment registers due to employment - BiH/Entities 2004 - 2011 Bosnia and Herzegovina 2004 2005 2006 2007 2008 2009 2010 2011 42,499 47,890 61,141 90,257 90,995 67,903 73,628 78,843 EXITS FROM UNEMPLOYMENT REGISTERS IN BOSNIA AND HERZEGOVINA DUE TO EMPLOYMENT 2004 - 2011 100.000 90.995 90.257 90.000 80.000 67.903 70.000 73.628 78.843 61.141 60.000 47.890 50.000 42.499 40.000 30.000 20.000 10.000 2004. 2005. 2006. 2007. 2008. 2009. 2010. 2011. EXITS FROM UNEMPLOYMENT REGISTERS IN BIH DUE TO EMPLOYMENT BY QUALIFICATION STRUCTURE AND GENDER 2011 35.000 30.000 25.000 20.000 15.000 10.000 5.000 0 VSS VŠS SSS NSS VKV KV PKV NKV TOTAL 12.726 2.197 23.863 143 567 29.133 794 9.420 WOMEN 8.160 1.349 11.714 81 77 8.614 217 3.394 38 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 MATERIAL AND SOCIAL SECURITY OF THE UNEMPLOYED In December 2011, 10,634 persons or 1.98% of the total number of registered unemployed persons received cash benefit. Compared to the same period of 2010, when there were 7,686 cash benefit recipients, the number has increased by 2,948 persons or 38.4%. TABLE 10 Material and social security of unemployed persons in Bosnia and Herzegovina Cash benefit recipients, indices Cash benefit recipients III 2011 VI 2011 IX 2011 XII 2011 Index XII 2011/III 2011 Bosnia and Herzegovina: 11,097 10,476 11,578 10,634 95.8 Federation of BiH Republika Srpska Brčko District of BiH 8,195 2,601 301 7,775 2,415 286 8,819 2,478 281 8,093 2,313 228 98.8 88.9 75.7 CASH BENEFIT RECIPIENTS IN BIH XII/2004 - XII/2011 16.000 14.000 12.000 10.000 8.000 6.000 4.000 2.000 0 XII /2004 XII /2005 XII /2006 XII /2007 XII /2008 XII /2009 XII /2010 XII /2011 BIH Total 8.547 8.223 8.453 8.359 8.812 14.102 7.686 10.634 BIH Women 3.682 3.419 3.465 3.431 4.087 4.335 3.181 4.377 39 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 Entitlement to health care in December 2011 was exercised by 380,249 persons, which is 70.8% of the total number of the registered unemployed in BiH. In year-on-year comparison, the number of health care beneficiaries increased by 28,615 persons or 8.1%. TABLE 11 Material and social security of unemployed persons in Bosnia and Herzegovina Health care beneficiaries, indices Health care beneficiaries III 2011 VI 2011 IX 2011 XII 2011 Index XII 2011/III 2011 Bosnia and Herzegovina: 362,902 363,802 370,434 380,249 104.8 Federation of BiH Republika Srpska Brčko District of BiH 216,523 139,621 6,758 216,540 140,401 6,861 220,856 142,555 7,023 226,206 146,708 7,335 104.5 105.1 108.5 HEALTH CARE BENEFICIARIES IN BIH XII/2004 - XII/2011 400.000 350.000 300.000 250.000 200.000 150.000 100.000 50.000 0 XII /2004 XII /2005 XII /2006 XII /2007 XII /2008 XII /2009 XII /2010 XII /2011 291.512 319.038 335.398 325.638 306.786 335.152 351.634 380.249 BIH Women 109.942 122.454 132.030 133.545 133.174 143.352 153.837 167.959 BIH Total 40 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 Labour Force Survey MATERIJALNA I SOCIJALNA SIGURNOST LABOUR FORCE BY ACTIVITY According to the results of the Labour Force Survey 20112, the labour force (economically active population) in BiH consisted of 1,126,983 persons, while the number of inactive persons totalled 1,433,852. The labour force comprised 816,036 persons in employment and 310,947 unemployed persons. The number of active and inactive persons which constitute the working-age population decreased in comparison to 2010. The labour force – economically active population decreased by 2.7%. The number of persons in employment was down by 3.2% and the number of unemployed persons decreased by 1.3% on 2010. LABOUR FORCE SURVEY 2011 - WORKING-AGE POPULATION IN BIH BY ACTIVITY 2.560.835 Working-age population (15+) 1.126.983 Active population 816.036 Persons in employment 310.947 Unemployed 1.433.852 Inactive population 0 1000000 2000000 3000000 RADNA SNAGA PO AKNOST PO A EMPLOYMENT AND UNEMPLOYMENT RATES Employment rate in 2011 was lower in comparison to 2010 by 0.6% amounting to 31.9%. EMPLOYMENT RATE IN BIH/ENTITIES ACCORDING TO LABOUR FORCE SURVEY IN 2010 AND 2011 32,50% 31,90% BIH 30,40% 29,80% FBIH 36,60% 36,10% RS 25,80% 22,90% BD BIH 0,00% 5,00% 10,00% 15,00% 20,00% 2010 2 25,00% 30,00% 35,00% 40,00% 2011 Source: BHAS, Labour Force Survey 41 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 Unemployment rate in 2011 was up by 0.4% on 2010 amounting to 27.6%. UNEMPLOYMENT RATE IN BIH/ENTITIES ACCORDING TO LABOUR FORCE SURVEY IN 2010 AND 2011 27,20% 27,60% 29,10% 29,20% 23,60% 24,50% BIH FBIH RS 36,40% 39,00% BD BIH 0,00% 5,00% 10,00% 15,00% 20,00% 25,00% 30,00% 35,00% 40,00% 2010 2011 According to this Survey, the unemployment structure by gender was following: 58.3% men and 41.7% women. STRUCTURE OF REGISTERED UNEMPLOYMENT IN BIH IN 2011 BY GENDER -Labour Force Survey women 41,7% men 58,3% Structure of unemployment by educational attainment shows that the largest share of 69.8% is made up of persons with secondary education, 21.9% are persons with primary and lower education and 8.3% persons with higher education (college, university, adacemy, master or doctoral degree). STRUCTURE OF REGISTERED UNEMPLOYMENT IN BIH IN 2011 BY EDUCATIONAL ATTAINMENT -Labour Force Survey higher education 8,3% primary education 21,9% secondary education 69,8% 42 Labour and Employment Agency of Bosnia and Herzegovina BULLETIN 7 Sources and notes on methodology: Data sources consulted in preparation of the Bulletin: Agency for Statistics of BiH, Federal Office of Statistics, Republika Srpska Institute of Statistics, Federal Employment Service, Employment Service of Republika Srpska and Employment Service of the Brčko District of BiH. Explanation of symbols and definitions Unemployed persons are able-bodied persons without work, aged 15 to 65 and registered in one of labour bureaus of employment services in Bosnia and Herzegovina. First-time job seekers are persons registered in labour bureaus of employment services in Bosnia and Herzegovina who have never been in employment. Unemployed persons due to cessation of businesses are persons registered in labour bureaus of employment services of Bosnia and Herzegovina who have lost their jobs due to cessation of an organization or a business. Cash benefit recipients are unemployed persons registered in municipal labour bureaus of employment services in Bosnia and Herzegovina who have become entitled to this benefit pursuant to legal provisions. Newly registered first-time job seekers are persons registering for the first time in municipal labour bureaus of employment services in Bosnia and Herzegovina with the purpose of finding employment. Persons employed through employment services are persons who have taken employment in the country or abroad during the reporting month and who were previously registered in employment services as unemployed. Labour demand implies the number of workers and interns demanded to fill vacancies and new job openings which are notified to labour bureaus of employment services in Bosnia and Herzegovina by organizations and employers. Realized applications for labour demand imply the number of recruited workers and interns according to employers’ notice to employment services in Bosnia and Herzegovina on newly recruited labour. . Abbreviations NKV PKV KV VKV unskilled worker semi-skilled worker skilled worker highly skilled worker NSS SSS VŠS VSS primary school attainment secondary school attainment non-university higher education university degree no occurrence corrected data average ... () 1) data not available estimated data remark symbol Symbols * θ Activity sectors according to CEA: A B C D Agriculture, hunting and forestry Fishing Mining and quarrying Manufactoring 43 Labour and Employment Agency of Bosnia and Herzegovina E F G H I J K L M N BULLETIN 7 Electricity, gas and water supply Construction Wholesale and retail trade; repair of motor vehicles and motorcycles and personal and household goods Hotels and restaurants Transportation, storage and communication Financial intermediation Real estate, renting and business services Public administration and defence; mandatory social security Education Health and social work activities 44