Table of contents

Introduction ................................ ................................ ................................ ................................ ....... 1 1. Problem of unemployment................................ ................................ ................................ .......... 2 1.1. 1.2. Types of unemployment................................ ................................ ................................ ...... 2 Costs of unemployment ................................ ................................ ................................ ...... 4 Individual................................ ................................ ................................ .................... 5 Social ................................ ................................ ................................ .......................... 5 Socio-political ................................ ................................ ................................ ............. 6

1.2.1. 1.2.2. 1.2.3. 1.3. 2.

Relationship to Economy ................................ ................................ ................................ .... 6

Croatia and unemployment ................................ ................................ ................................ ......... 7 2.1. 2.2. 2.3. 2.4. Historical view................................ ................................ ................................ .................... 7 Unemployment of Croatian youth ................................ ................................ ....................... 8 Unemployment rate................................ ................................ ................................ ............. 9 JAP - Joint Assessment of the Employment Policy Priorities of the Republic of Croatia .... 10 The content of JAP ................................ ................................ ................................ .... 11 Monitoring the implementation of the JAP ................................ ................................ 12 National Employment Promotion Plan 2009-2010 ................................ ..................... 12

2.4.1. 2.4.2. 2.4.3.

Conclusion ................................ ................................ ................................ ................................ ....... 13 Literature ................................ ................................ ................................ ................................ ......... 14 List of Tables ................................ ................................ ................................ ................................ ... 15

Introduction

The problem of unemployment is the existential problem for every individual. In addition to the theoretical assumption that all individuals are able to work with democratic freedoms it provides conditions that would qualify for their labor power, still this fact at the end comes down to is that successful individuals can achieve that goal, but will still be the overwhelming majority of those who cannot. Because the media work for its quantity and content of today's stage of development is limited, then the employment opportunities are limited too. The legality of the economic trends leads to unemployment as one of the biggest problems of society and the individual. In this seminar we would talk about unemployment in Croatia. First part of the seminar would be about unemployment in general, we would be introducing the types of unemployment, costs of unemployment and its relationship with economy. In the second part of the seminar we would talk about unemployment in Croatia, with an review of unemployment of Croatian youth as a major and growing problem in Croatia, about rate of unemployment and finally we would mention JAP - Joint Assessment of the Employment Policy Priorities of the Republic of Croatia. The conclusion provides a brief summary of the findings arising under investigation.

1. Problem of unemployment

Unemployment occurs when a person is available and willing to work but currently without work 1 . The prevalence of unemployment is usually measured using the unemployment rate, which is defined as the percentage of those in the labor force who are unemployed. Mainstream economics believes in the main that unemployment is inevitable, and a necessary evil to prevent inflation; this is disputed by some schools of heterodox economics. The causes of unemployment are disputed. Keynesian economics emphasizes unemployment resulting from insufficient effective demand for goods and services in the economy (cyclical unemployment). Others point to structural problems and inefficiencies inherent in labor markets; structural unemployment involves mismatches between demand and supply of laborers with the necessary skill set, sometimes induced by disruptive technologies or globalization. Classical or neoclassical economics tends to reject these explanations, and focuses more on rigidities imposed on the labor market from the outside, such as unionization, minimum wage laws, taxes, and other regulations that may discourage the hiring of workers (classical unemployment). Yet others see unemployment as largely due to voluntary choices by the unemployed and the time it takes to find a new job (frictional unemployment). Behavioral economics highlights phenomena such as sticky wages and efficiency wages which may lead to unemployment. There is also disagreement on how exactly to measure unemployment. Different countries experience different levels of unemployment; traditionally, the United States experiences lower unemployment levels than countries in the European Union, although there is variant there, with countries like the UK and Denmark outperforming Italy and France and it also changes over time throughout economic cycles.

1.1.

Types of unemployment

Economists distinguish between various types of unemployment, including cyclical unemployment, frictional unemployment, structural unemployment and classical unemployment. Some additional types of unemployment that are occasionally mentioned are seasonal unemployment, hardcore unemployment, and hidden unemployment. Real-world unemployment may combine different types. The magnitude of each of these is difficult to measure, partly because they overlap2. Though there have been several definitions of voluntary and involuntary unemployment in the economics literature, a simple distinction is often applied. Voluntary unemployment is attributed to the individual's decisions, whereas involuntary unemployment exists because of the socio-economic environment (including the market structure, government intervention, and the level of aggregate demand) in which individuals operate. In these terms, much or most of frictional unemployment is voluntary, since it reflects individual search behavior.

1 2

Internet: wikipedia, http://en.wikipedia.org/wiki/Unemployment Ibidem

On the other hand, cyclical unemployment, structural unemployment, and classical unemployment, are largely involuntary in nature. However, the existence of structural unemployment may reflect choices made by the unemployed in the past, while classical (natural) unemployment may result from the legislative and economic choices made by labor unions and/or political parties. So in practice, the distinction between voluntary and involuntary unemployment is hard to draw. The clearest cases of involuntary unemployment are those where there are fewer job vacancies than unemployed workers even when wages are allowed to adjust, so that even if all vacancies were to be filled, there would be unemployed workers. This is the case of cyclical unemployment, for which macroeconomic forces lead to microeconomic unemployment. Frictional unemployment occurs when a worker moves from one job to another. The time period between jobs is considered frictional unemployment. Frictional unemployment is an example of a productive part of the economy, increasing both the worker's long term welfare and economic efficiency, and is also a type of voluntary unemployment. Frictional unemployment is always present in an economy, so the level of involuntary unemployment is properly the unemployment rate minus the rate of frictional unemployment, which means that increases or decreases in unemployment are normally under-represented in the simple statistics 3. Classical or real-wage unemployment occurs when real wages for a job are set above the market-clearing level, causing the number of job-seekers to exceed the number of vacancies. Cyclical or Keynesian unemployment, also known as demand deficient unemployment, occurs when there is not enough aggregate demand in the economy. It gets its name because it varies with the business cycle, though it can also be persistent, as during the Great Depression of the 1930s. This is caused by a business cycle recession, and wages not falling to meet the equilibrium level. Cyclical unemployment rises during economic downturns and falls when the economy improves. Keynesians argue that this type of unemployment exists due to inadequate effective aggregate demand. Demand for most goods and services falls, less production is needed and consequently fewer workers are needed, wages do not fall to meet the equilibrium level, and mass unemployment results. Some consider this type of unemployment one type of frictional unemployment in which factors causing the friction are partially caused by some cyclical variables. For example, a surprise decrease in the money supply may shock participants in society. In this case, the number of unemployed workers exceeds the number of job vacancies, so that if even all open jobs were filled, some workers would remain unemployed. This kind of unemployment coincides with unused industrial capacity (unemployed capital goods). Keynesian economists see it as possibly being solved by government deficit spending or by expansionary monetary policy, which aims to increase non-governmental spending by lowering interest rates. In contrast, Austrian economists argue that government spending and policies are the root cause of economic cycles and cyclical unemployment and should be reformed or removed. Classical economics rejects the conception of cyclical unemployment, seeing the attainment of full employment of resources and potential output as the normal state of affairs. Structural unemployment occurs when the number of jobs in a labor market are unable to provide substantial jobs for everyone who wants one. Structural unemployment is hard to separate empirically from frictional unemployment, except to say that it lasts longer. As with frictional unemployment, simple demand-side stimulus will not work to easily abolish this type of unemployment. Structural unemployment may also be encouraged to rise by persistent cyclical unemployment: if an economy suffers from long-lasting low aggregate
3

Mrnjavac, .: Alternativni pokazatelji nezaposlenosti, Ekonomska misao i praksa, Zagreb,1997, No.1, 75.

demand, it means that many of the unemployed become disheartened, while their skills (including job-searching skills) become "rusty" and obsolete. Problems with debt may lead to homelessness and a fall into the vicious circle of poverty. This means that they may not fit the job vacancies that are created when the economy recovers. Much technological unemployment (e.g. due to the replacement of workers by machines) might be counted as structural unemployment. Alternatively, technological unemployment might refer to the way in which steady increases in labor productivity mean that fewer workers are needed to produce the same level of output every year. The fact that aggregate demand can be raised to deal with this problem suggests that this problem is instead one of cyclical unemployment. Seasonal unemployment may be seen as a kind of structural unemployment, since it is a type of unemployment that is linked to certain kinds of jobs (construction work, migratory farm work). The most-cited official unemployment measures erase this kind of unemployment from the statistics using "seasonal adjustment" techniques. Hidden, or covered, unemployment is the unemployment of potential workers that is not reflected in official unemployment statistics, due to the way the statistics are collected. In many countries only those who have no work but are actively looking for work (and/or qualifying for social security benefits) are counted as unemployed. Those who have given up looking for work (and sometimes those who are on Government "retraining" programs) are not officially counted among the unemployed, even though they are not employed. The same applies to those who have taken early retirement to avoid being laid off, but would prefer to be working. The statistic also does not count the "underemployed" - those with part time or seasonal jobs who would rather have full time jobs. Because of hidden unemployment, official statistics often underestimate unemployment rates. Full employment; in demand based theory, it is possible to abolish cyclical unemployment by increasing the aggregate demand for products and workers. However, eventually the economy hits an "inflation barrier" imposed by the four other kinds of unemployment to the extent that they exist. Some demand theory economists see the inflation barrier as corresponding to the natural rate of unemployment. The "natural" rate of unemployment is defined as the rate of unemployment that exists when the labor market is in equilibrium and there is pressure for neither rising inflation rates nor falling inflation rates. No matter what its name, demand theory holds that this means that if the unemployment rate gets "too low," inflation will get worse and worse (accelerate) in the absence of wage and price controls (incomes policies). Others simply see the possibility of inflation rising as the unemployment rate falls. Another, normative, definition of full employment might be called the ideal unemployment rate. It would exclude all types of unemployment that represent forms of inefficiency.

1.2.

Costs of unemployment
Costs of unemployment are various. They can be individual, social and socio-

political.

1.2.1. Individual

Unemployed individuals are unable to earn money to meet financial obligations. Failure to pay mortgage payments or to pay rent may lead to homelessness through foreclosure or eviction. Unemployment increases susceptibility to malnutrition, illness, mental stress, and loss of self-esteem, leading to depression. Even those who tend to be optimistic find it difficult to look on the bright side of things when unemployed. Some hold that many of the low-income jobs are not really a better option than unemployment with a welfare state (with its unemployment insurance benefits). But since it is difficult or impossible to get unemployment insurance benefits without having worked in the past, these jobs and unemployment are more complementary than they are substitutes. (These jobs are often held short-term, either by students or by those trying to gain experience; turnover in most low-paying jobs is high) Unemployment insurance keeps an available supply of workers for the low-paying jobs, while the employers' choice of management techniques (low wages and benefits, few chances for advancement) is made with the existence of unemployment insurance in mind. This combination promotes the existence of one kind of unemployment, frictional unemployment. Another cost for the unemployed is that the combination of unemployment, lack of financial resources, and social responsibilities may push unemployed workers to take jobs that do not fit their skills or allow them to use their talents. Unemployment can cause underemployment, and fear of job loss can spur psychological anxiety.

1.2.2. Social

An economy with high unemployment is not using all of the resources available to it. Since it is operating below its production possibility frontier, it could have higher output if all the workforce were usefully employed. However, there is a tradeoff between economic efficiency and unemployment: if the frictionally unemployed accepted the first job they were offered, they would be likely to be operating at below their skill level, reducing the economy's efficiency. During a long period of unemployment, workers can lose their skills, causing a loss of human capital. Being unemployed can also reduce the life expectancy of workers by about 7 years. High unemployment can encourage xenophobia and protectionism as workers fear that foreigners are stealing their jobs. Efforts to preserve existing jobs of domestic and native workers include legal barriers against "outsiders" who want jobs, obstacles to immigration, and/or tariffs and similar trade barriers against foreign competitors. Finally, a rising unemployment rate concentrates the oligopoly power of employers by increasing competition amongst workers for scarce employment opportunities.

1.2.3. Socio-political

High levels of unemployment can be causes of civil unrest, in some cases leading to revolution, and particularly totalitarianism. The fall of the Weimar Republic in 1933 and Adolf Hitler's rise to power, which culminated in World War II and the deaths of tens of millions and the destruction of much of the physical capital of Europe is attributed to the poor economic conditions in Germany at the time, notably a high unemployment rate of above 20%. Note that the hyperinflation in the Weimar republic is not directly blamed for the Nazi rise the Inflation in the Weimar Republic occurred primarily in the period 192123, which was contemporary with Hitler's Beer Hall Putsch of 1923, and is blamed for damaging the credibility of democratic institutions, but the Nazi party only assumed government in 1933, 10 years after the hyperinflation but in the midst of high unemployment.

1.3.

Relationship to Economy

Unemployment is a struggle that is nationwide and affects many people all over the world. With a high number of people unemployed, less people are willing to go out and spend their money on unnecessary causes and become more frugal with their income. This affects the economy as a whole for the reason that, less people spending money will cause businesses to have a lower number of sales and hurt many major companies. While people are not working it decreases the amount of goods and services that can be produced which lowers the nations GDP. People will continue to lose their jobs until necessary changes are made to the economy. On the other hand when unemployment decreases, the GDP increases and the output of companies increase. This is a good thing unless it happens at too fast of a rate. If the GDP increases too quickly then the prices of products and services will raise leading to inflation. The economy tends to continue in an ongoing cycle of this and will continue in the future. Unemployment rates in rural areas tend to be much higher than the unemployment rates in urban areas. Reasons for this are because there are not as much employment opportunities and when the economy struggles the smaller businesses that usually exist have a hard time to maintain their income. Another cause of unemployment in these smaller towns is the small businesses get overrun by major corporations and franchises that enter. The small business cannot compete with these businesses because they do not have the capital to contend with them. Unemployment is not good for the economy or the direct individual that is currently being affected by being unemployed. When a person loses his job they have a hard time to take care of themselves and their family. This is known to be harmful to the persons self esteem and in many cases can cause a person to feel unaccomplished and depressed.

2. Croatia and unemployment

Unemployment is currently a big problem in Croatia. Unemployment as sociological and economic category causes negative occurrences in development of economics of every community. It is in close correlation with the level of entire development and most directly is connected with realization of gross domestic product per capita. The most developed countries of the world achieved the level of their development exactly by the help of high level of employment of population. The level and relation of employment of population in economy, both in states and their institutions, is connected with distribution of gross domestic product. Up on this relation depends investment potential of economy and by this employment and entire development. Employment of population of less than 35 percent leads to crisis and stagnation4. Right now Croatia is under a huge problem of recession and the rate of unemployment is very high and also ascending. It is a problem whose

2.1.

Historical view

In an economy traditionally based on agriculture and livestock, peasants comprised more than half of the Croatian population until after World War II. Pre-1945 industrialization was slow and centered on textile mills, sawmills, brick yards, and food-processing plants. Rapid industrialization and diversification occurred after World War II. Decentralization came in 1965, allowing growth of certain sectors, like the aforementioned prosperous tourist industry. Profits from Croatian industry were used to develop poorer regions in the former Yugoslavia, leading to Croatia contributing much more to the Yugoslavian economy than it ever got back. This, coupled with austerity programs and hyperinflation in the 1980s, led to discontent in both Croatia and Slovenia that fueled the independence movement. Foreign remittances contributed $2 billion annually to the economy by 1990. Before the dissolution of Yugoslavia, the Republic of Croatia, after Slovenia, was the most prosperous and industrialized area, with a per capita output more than one-third above the Yugoslav average. Privatization under the new Croatian Government had barely begun when war broke out. As a result of the Croatian War of Independence, the economic infrastructure sustained massive damage during the period, particularly in 1991 and 1992. By the end of the 1990s, Croatia faced considerable economic problems stemming from: y damage during the internecine fighting to bridges, factories, power lines, buildings, and houses; y the large refugee and displaced population, both Croatian and Bosnian y the disruption of economic ties; and y mishandled privatization
4

Kljai , A.: Research of unemployment problem in Croatia with possible proposal for solution (Istra ivanje problema nezaposlenosti u Hrvatskoj s mogu im prijedlogom rje enja), Ekonomski pregled, Zagreb, 2001., str. 125.

The Republic of Croatia, along with the remainder of the former Yugoslavia, experienced a serious depression. President Franjo Tu man initiated the process of privatization and de-nationalization in Croatia; however, this was far from transparent and fully legal. The fact that the new government's legal system was inefficient and slow, as well as the wider context of the Yugoslav wars, caused numerous incidents known collectively in Croatia as the "Privatization robbery". Nepotism was endemic and during this period many influential individuals with the backing of the authorities acquired state-owned property and companies at extremely low prices, afterwards selling them off piecemeal to the highest bidder for much larger sums. This proved very lucrative for the new owners, but in the vast majority of cases, this, along with the separation from the previously secured Yugoslav markets, also caused the bankruptcy of the firm, causing the unemployment of thousands of citizens, a problem Croatia still struggles with to this day.

2.2.

Unemployment of Croatian youth

Youth are our most valuable asset, our future.... We are all familiar with these declarations; however, the factual situation proves that the relationship of the society towards the position of young people at the labor market lacks adequate and true interest and the will to finally take concrete measures aimed at improving the situation of youth. Eighty -eight million unemployed young persons around the globe and a 30% youth unemployment rate in Croatia are a clear and worrying sign of that lack of will. Such a high unemployment rate, although among the lowest in the region but double the EU average, in years marked with slowing employment growth, has made youth an increasingly vulnerable group of society, depriving them of decent work opportunities. A large number of young persons work on fixed-term employment contracts (85% of all newly-employed persons in Croatia are employed on such contracts), in seasonal jobs or in temporary work. Large numbers of young persons work in the grey economy 9% occasionally; 7% only in the grey economy. They are trapped in precarious and underpaid, atypical jobs, and they accept longer working hours, unpaid overtime work, undeclared work, with little or no social protection and without possibilities of vocational training and career progress. The fear of losing their jobs prevents them from demanding decent working conditions and respect of workers and social rights. They are very often abused as a cheap labor force, being treated as a mere commodity. Due to their bad financial situation, young persons are reluctant to form their own families, which leads to clear demographic problems and consequences for the pension and social insurance systems. Meager prospects also lead to a brain drain. The high unemployment rate among the youth and their lack of income translate into a lack of savings, contributions and loss of investments in economic growth and development as well as in education. Youth unemployment breeds poverty in the nation and is a possible cause of social exclusion, unrest and insecurity5. The globalization processes and introduction of new technologies impose the need to adjust ever more hastily. The employers have to be ready to respond to the challenges of the market. These trends demand a qualified and adaptable workforce, and young persons could
5

Internet: http://youth.ituc-csi.org/Croatian-Youth-Need-a-Real-Chance

successfully respond to those challenges thanks to their huge potential, motivation and fresh ideas and insights, as well as enthusiasm. There are numerous different causes of unemployment: insufficient economic growth, an inadequate education system and lack of vocational training and lifelong learning. The Croatian education system and policy is not flexible and is insufficiently aligned with the labor market needs. The education system does not "produce" an employable workforce. Enrolment quota at some schools and universities are not adjusted to labor market needs, and it often happens that young persons entering the labor market lack outgoing competencies and skills that make them employable. Furthermore, youth lack opportunities of gaining experience and entrepreneurial skills during their education, and they lack information on the labor market needs. Investing in workers is expensive, but an uneducated workforce is even more expensive. A high-quality of education and investment in human capital are essential if we are to succeed in the globalized world. If employers and the state want to have a competitive advantage, then investment in education is critical. This kind of policy contributes also to the eradication of poverty. The correlation between educational and social outcomes is striking. Countries in which dropout rates are high and educational systems underperforming are the most exposed to increases in income and social insecurity. It is only through investment in knowledge and skills that young people will become flexible and employable, thus ensuring economic sustainability. However, the measures undertaken by the government of the Republic of Croatia to reduce and alleviate the problem of youth unemployment have not given the desired results. Those measures referred to include co-financing of labor costs, promotion of entrepreneurship among youth, etc. A measure that was rather popular among the employers, "from faculty to work," co-financed labor costs and facilitated the employment of young persons with employers by reducing their labor costs. However, the majority of people who were employed using this measure did not stay with the same employer because the majority of employers used this measure to obtain a cheap workforce for a certain period of time. We must not forget that these measures and strategies are about people and that people should be at the heart of every effort we make. There is no sustainable development if there are still people who are unable to exercise their fundamental rights and who do not have access to decent work. These objectives can only be achieved through social dialogue. In the light of Croatian accession to the European Union and the objective of the European Social Model, the role of social partners has to be stronger. Youth employment promotion should be a part of a comprehensive national employment strategy, providing concrete answers and thus preventing the isolation of one segment of society to the detriment of others. Decent work in that regard should not be a policy option but a priority and fundamental element of each and every employment and development strategy and policy. Workers should be given the possibility to attain, and maintain, a work that offers them decent income, security and protection at work. The lack of decent employment from the very outset perpetuates the cycle of low productivity employment and poverty, shaking the fundamentals of every society. Youth are the future, but the future has to be built on the ethical postulates of the ILO concept of decent work to which there is, and should be, no alternative.

2.3.

Unemployment rate

The issue of relatively high unemployment rates has frequently been addressed in the analysis of the Croatian economy.

Table 1: Unemployment rate in the period from, 2001.-2010. Year Jan.

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
23,0 24,0 21,7 19,5 19,3 18,3 17,0 14,8 14,3 17,6

Feb.
22,9 23,8 21,3 19,2 19,3 18,3 17,0 14,7 14,8 18,2

March
22,9 23,8 21,0 19,1 19,2 18,1 16,6 14,5 15,0 18,2

Apr. May
22,5 23,4 20,4 18,6 18,7 17,6 15,9 13,9 14,8 22,0 22,7 19,6 18,0 18,0 16,7 15,1 13,2 14,4

Jun

July

Aug.
21,5 21,8 18,2 17,2 16,9 15,7 13,8 12,3 14,2

Sep.
22,0 21,7 18,3 17,6 17,2 16,2 14,0 12,6 14,7

Oct.
22,3 21,7 18,6 18,1 17,5 16,8 14,3 12,9 15,5

Nov.
22,5 21,6 18,9 18,4 17,8 16,9 14,5 13,2 16,1

Dec.
23,1 21,5 19,1 18,7 18,0 17,0 14,7 13,7 16,6

21,5 21,5 22,2 22,0 18,9 18,5 17,4 17,2 17,4 17,0 16,0 15,7 14,3 14,0 12,5 12,4 14,0 14,0

Source: http://www.moj-posao.net/jseeker_wiki.php?wikiName=StatistikaStopaNezaposlenosti

From this table it is evident that unemployment is the biggest in November of 2001. After that, the unemployment rate started to decline continuously, until the September 2007. when it begins to grow again. A reduction in rates came in April 2009., but thereafter, in August 2009. it starts again with the growth. Growth of the rates of unemployment now is way bigger than in previous fluctuations and the question is whether to match the rate in 2001. or even more, which can be assumed due to the stagnation of solving this problem.

2.4.

JAP - Joint Assessment of the Employment Policy Priorities of the Republic of Croatia

Joint Assessment of the Employment Policy Priorities of the Republic of Croatia (JAP), is a document prepared within the framework of the EU Pre-accession Strategy for Croatia and in alignment with the provisions of the Accession Partnership in the area of Employment and Social Inclusion, and was created in co-operation between the European Commission (Directorate General for Employment, Social Affairs and Equal Opportunities) and the Government of Croatia (Ministry of the Economy, Labour and Entrepreneurship).
10

JAP is a bilateral agreement, very important in the preparation of Republic of Croatia for participation in the open method of coordination in the field of employment. Open method of coordination is a method by which the EU member states, through the adoption of similar national strategic documents, in the common market and employment field achieve common goals in line with the Lisbon strategy. JAP, by its signing and approval, has made commitments for action, but also opened the possibility to use financial aid, which is currently enabled through the use of pre-accession funds (IV component of the IPA program), and after Croatia's EU Accession by the Structural Funds. The signing of the Joint Assessment of the Employment Policy Priorities of the Republic of Croatia (JAP) and its effective implementation represented one of the important steps for the closure of Chapter 19 (Social policy and employment).

2.4.1. The content of JAP

The JAP provides an analysis of the state of the economy and the labor market, as well as Croatian employment policies and, on this basis, identifies employment challenges and priorities for action in Croatia. The process of developing the JAP started in 2006, and therefore the reference period of data used in document is year 2006. This document presents an agreed set of employment policy goals, which are necessary to further the transformation of the Croatian labor market and the preparation for the process of accession to the EU, especially by adjusting the employment system, so we would be able to implement the European Employment Strategy in the future. Priorities for action identified in the JAP are:
y y y y y

Attract and retain more people in employment, increase labor supply and modernize social protection systems; Improve adaptability of workers and enterprises; Increase investment in human capital through better education and skills. By promoting the principles of good governance, include the social partners in the implementation of the JAP. Participants and social partners

In the process of developing JAP participated representatives of all relevant institutions in Croatia (the Ministry of the Economy, Labor and Entrepreneurship, the Ministry of Health and Social Welfare, the Ministry of Science, Education and Sports, the Ministry of Finance, the Ministry of Foreign Affairs and European Integration, the Croatian Employment Service and the Central Bureau of Statistics) and representatives of the European Commission's Directorate General for Employment, Social Affairs and Equal Opportunities. The final version of the JAP was presented and discussed in detail with the social partners at a joint meeting held in December 2007, when the final version of the JAP was endorsed by the social partners. At the session held on 24 April 2008, the Government of Croatia adopted a Conclusion on adopting the Joint Assessment of the Employment Policy Priorities of the Republic of Croatia (JAP), and on 28 May 2008, the JAP was signed in Brussels by the highest representatives of the Croatian Government and the European Commission.

11

2.4.2. Monitoring the implementation of the JAP

The co-operation between the European Commission and the Government of Croatia on the preparation of the JAP continues through monitoring the implementation of the priorities agreed in the JAP, also, financial support will be provided for the implementation of JAP through the Instrument of Pre-accession Assistance (IPA). In accordance with that, on 21 May 2009 the Government of Croatia adopted a Conclusion on adopting the first Report on the implementation of the Joint Assessment of the Employment Policy Priorities of the Republic of Croatia (JAP) for the period May 2008 March 2009. The following report on the implementation of the JAP for year 2009 the Government of the Republic of Croatia is obliged to submit to the European Commission in June 2010. Furthermore, with the purpose of monitoring the implementation of JAP, the first JAP follow-up seminar on the activities related to the implementation of the measures defined by the JAP was held on 10 December 2008 in Zagreb. This seminar dealt with the progress of the JAP process, which also involves social partners, and laid a special emphasis on their role in JAP implementation. The second JAP follow-up seminar was held on 28 April 2009 in Zagreb, and it discussed the Report on the Implementation of the Joint Assessment of the Employment Policy Priorities (JAP) for the period May 2008 March 2009. On the proposal of the European Commission, on 11th February 2010 the joint JIM / JAP Conference (third in line for JAP process, the fourth for Jim) on the continuation of activities and implementation of measures from the Joint Assessment of the Employment Policy Priorities of the Republic of Croatia (JAP) and Joint Memorandum on Social Inclusion (JIM) was held, entitled "Impact of the Economic Crisis on the Republic of Croatia". The reason for maintaining a joint conference is to focus on better connecting two parallel processes: JIM and JAP, with respect to the fact that the Joint Assessment of the Employment Policy Priorities of the Republic of Croatia (JAP) and Joint Memorandum[a2] on Social Inclusion (JIM) have some common goals and priorities. The conference was organized in collaboration of the Ministry of Health and Social Welfare, the Ministry of the Economy, Labor and Entrepreneurship and the DG Employment, Social Affairs and Equal Opportunities, with the technical assistance of TAIEX.

2.4.3. National Employment Promotion Plan 2009 -2010

The adoption of the Joint Assessment of the Employment Policy Priorities of the Republic of Croatia (JAP) actually launched a new cycle of active employment measures in Croatia. Ministry of the Economy, Labor and Entrepreneurship, as the governing body for coordination and implementation of the JAP, appointed a working group for drafting a plan for the implementation of measures from the JAP. The working group developed the National Employment Promotion Plan 2009-2010 (NEPP), and at the meeting held on 21 May 2009 the Government of the Republic of Croatia adopted the Decision on the adoption of National Employment Promotion Plan 2009-2010. The National Employment Promotion Plan 20092010 identifies responsibilities and defines tasks of competent government bodies and public institutions in implementing the Plan, and encourages their joint actions and co-operation.

12

Conclusion

Unemployment, according to the results of this research is certainly a continuous risk factor, whether the cause or the consequence of exclusion from the labor market. In fact, most of the unemployed registered at the Employment Service by such institutions do not receive significant support in addressing the status of unemployment, the psychosocial support, etc. Also, more people are being fired from work, and there is a less hope for a bright future. For each individual, working has a different meaning. But we shouldn't not forget primary meaning of working - livelihood and surviving. The calming of situation on the Croatian labor market is not yet at a sight. In this situation, the Croatian Government must act quickly and efficiently, it is necessary to alleviate this situation, since the growth rate greatly affects the economy. Unemployment is a huge and evolving problem in Croatia. With currently active recession problem, it is questionable when and how would it be solved. It is a priority of Croatian Government to take that problem seriously and work on solving it nearly in the future cause economy of Croatia depends on it.

13

Literature

1. Kljai , A.: Istra ivanje problema nezaposlenosti u Hrvatskoj s mogu im prijedlogom rje enja, Ekonomski pregled, Zagreb, 2001. 2. Mortimer, J. T.: Individual differences as precursors of youth unemeployment. In J.T. Mortimer & A.C. Peterson, Youth Unemployment and Society, Cambridge University Press, Cambridge, 1994. 3. Mrnjavac, .: Alternativni pokazatelji nezaposlenosti, Ekonomska misao i praksa, Zagreb, 1997. 4. Warr, P.: Work, unemployement and mental health. Oxford: Clarendon Press, 1987. 5. Internet: http://en.wikipedia.org/wiki/Unemployment http://youth.ituc-csi.org/Croatian-Youth-Need-a-Real-Chance http://www.mojposao.net/jseeker_wiki.php?wikiName=StatistikaStopaNezaposlenosti

14

List of Tables

Table 1: Unemployment rate in the period from, 2001.-2010. ................................ ............... 10

15

16