That is the lowest level since at least 2000.
On Friday, The Central Bureau of Statistics announced that the registered unemployment rate in Croatia dropped to 11.7 percent in May, down from 13.2 percent a month earlier, which is the fourth consecutive month of decline. Unemployment is currently at its lowest level since the year 2000, when the official statistics started following this indicator. Compared to May last year, the unemployment rate fell by 2.6 percentage points, reports N1 on June 23, 2017.
The fall in the unemployment rate on a monthly basis was expected because, according to previously published data from the Croatian Employment Service, there were 180,733 unemployed persons registered at the end of May. This was 11.5 percent or 23,583 people fewer than in the previous month, and 22.2 percent or 51,594 people fewer than in May last year.
A further decline in the unemployment rate is expected in June, as current data from the Croatian Employment Service (HZZ) website indicate that currently there are 170,852 unemployed persons, or 9,881 unemployed fewer than at the end of May. Also, 17,335 vacancies are currently registered with the HZZ.
“Although the unemployment rate continues to decline, its drop to 11.7 percent in May was only partly due to employment growth, which is strongly supported by seasonal work, while part of the decline can be explained by the reduction in workforce”, stated analysts from Raiffeisenbank Austria (RBA).
They also pointed out that the workforce reduction was the result of net migration fluctuations, which suppress potential for long-term sustainable growth. “Although the positive trends in the labour market are expected to continue with a slight increase in employment in the coming quarters, continued emigration of the most productive, young segment of the population is likely to continue this year,” said the RBA analysts.
They added that the partial reason for such trends, apart from the easier movement of people in the single EU market, was the slow pace of job creation, and also its structure, which mainly includes seasonal jobs and fixed-term contracts.
As far as the unemployment rate is concerned, the Central Bureau of Statics explains that the methodology was changed in January 2016, which makes comparisons with previous periods unreliable.
