ZAGREB, 6 March, 2021 - Croatia's 2030 employment target is to have 75% of adults in work, and currently only two thirds  (66%) of the adult population are employed, the Večernji List daily reported on Saturday.

The current Portuguese presidency of the Council of the European Union is organising a summit meeting on social affairs in May, and the EU is supposed to endorse new goals in this sector which should be accomplished until the end of this decade.

One of the goals is that at least 78 of 100 people aged 20 to 64 should be in employment by the end of this decade.

Three of four Croats aged between 20-64 to be employed

It is up to each member state to define its targets, and Zagreb plans to have three fifths people in the 20-64 age cohort in employment until 2030. For this target to be met, the country should create new 200,000 jobs in the coming years.

Currently, only Greece and Italy fare worse than Croatia in this regard, where only three fifths of adults (60%) are employed.

Sweden tops the EU ranking with 82 out of 100 adults being employed, and Germany follows with 80%.

ZAGREB, Sept 23, 2020 - The main objective of Croatia's economic policy should be to increase employment, and Croatia must make the transition from a holiday country to a great country for work, President Zoran Milanovic said on Wednesday while speaking at the Big Plans Day conference organised by the Lider weekly.

"We should strive to increase the share of highly educated people in the workforce because they are a key source of competitive advantage," the president said, adding that the Croatian society and economy needed to open up, because being closed led to being non-competitive and falling behind.

Commenting on the crisis caused by the COVID-19 pandemic and the lockdown in the first half of the year, Milanovic said that new possibilities were opening up now but an agreement had to be reached on what Croatia's new economic identity was.

He also said it was time Croatia focused on investment growth instead of personal consumption, adding that this should not be investment that mostly depends on EU funds, but greenfield investment that creates new jobs.

He warned that we should not be in a situation where the tax system stimulates rental activities and excise duties force production companies out of Croatia "no matter what they are producing, even if we do not like what they are producing."

"My vision of Croatia is a modern, innovative, open, healthy, green and sustainable country. That is the economic identity I will advocate during my term," he said.

Milanovic said that investment should focus on the sustainability of business models, adding that the European Green Deal was the basis for building economic competitiveness.

Diversification, sustainability, production, employment -- these are the goals on which we all must actively cooperate to ensure the growth of prosperity of our people, he said.

Economy and Sustainable Development Minister Tomislav Coric said that 2021 would be a year of recovery, but also a year of correcting economic mistakes. The government thought, he said, that the country's dependence on tourism was its main mistake, so one of the main priorities of this government would be to deal with this issue.

The main task of the government's economic policy next year will be digital transformation and strengthening production capacities and digital transformation, he underscored.

According to Coric, Croatia should make use of its comparative advantages and increase its competitiveness, and a fast economic recovery is possible if everyone works together in synergy -- the government, entrepreneurs, the industry and the financial sector.

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ZAGREB, September 18, 2020 - At the end of August 2020, there were 1.53 million persons in employment in Croatia, up 0.4% on the month but down 4% on the year, while the registered unemployment rate stayed at 9%, the national statistical office said on Friday.

In August 2020, the number of persons in employment was 1,534,912. Their number in legal entities was 1,315,534, up 0.5% on the month but down 3.9% on the year.

At the end of August 2020, there were 200,202 persons in employment in crafts and trades and freelancing, down 0.2% on the month and 4.9% on the year.

Registered unemployment 9%

At the end of August 2020, 151,368 persons were registered with the Croatian Employment Service, 65 fewer on the month. Year on year, their number jumped 32.2%.

The unemployment rate was 9% in both July and August. In August, it went up 2.2 percentage points on the year.

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As Poslovni Dnevnik/Lucija Spiljak writes on the 9th of September, 2020, the leading Croatian software design and development company, Infinum, in partnership with Porsche Digital, a subsidiary of Germany's Porsche, is opening a development centre for software design and development, artificial intelligence and machine learning called Porsche Digital Croatia. The centre wil be located in Zagreb.

Representatives of both companies announced at a recent press conference that Porsche Digital Croatia will start operating at the end of September and that Infinum and Porsche Digital will invest a massive ten million euros in the company and product development over the next three years. The company will, among other things, develop digital products and services that will improve the digital ecosystem of the Porsche Group. It will first work on expanding existing offers and creating new online ones designed for customers.

They have already started hiring employees in Zagreb in Strojarska, where Infinum is located, and where the headquarters of the new company will be, where about fifteen people are already working on projects. By the end of the year, that number will grow to thirty employees, and over the next three years they want to hire about one hundred experts across various fields.

The adaptation of the automotive industry to new technologies was a great opportunity for Infinum, said Tomislav Car, CEO and one of the company's founders. A car lover himself, he points out that the automotive industry was a step further for Infinum.

Porsche Digital Croatia plans to hire 100 experts in the next three years

''We have equal ownership shares In the new company with Porsche Digital. With fifteen years of experience in creating digital products and services on large projects, this is an opportunity to shape the digital future with Porsche,'' said Car. Infinum, which started with just two workers, employs about 250 professionals across ten countries around the world today. To recall, Infinum has stood out for several years in a row on Deloitte's prestigious list as the fastest growing technology company in Europe and beyond. The two companies are connected, the representatives of Infinum and Porsche Digital agreed, with the same business spirit and way of working.

Porsche Digital Finance Member Ralph Knoll said that Infinum is like ''what Porsche Digital was looking for”, thanks to Infinum’s awards and global projects, as well as their investment in employee satisfaction and education.

''We need an international network within which we can use all the possibilities of digitalisation, and with it good teams. The first step towards that is the strong partner we found in Infinum and the new office in Zagreb,'' said Stefan Zerweck, Chief Operating Officer of Porsche Digital. This new partnership is important for the competitiveness and placing Croatia as a desirable IT destination on the world map, but also for the opportunity to expand and strengthen the image in the automotive industry.

Zagreb is already considered one of the growing innovation centres in Europe with a strong technology scene and academic community, as well as very many talented young engineers and developers. In addition, as Knoll pointed out, their partnership will attract young talent to Zagreb and Croatia, especially since they offer employment opportunities to engineers, designers, project managers and more.

Engineers will develop process-oriented products in the new company Porsche Digital Croatia, as well as top quality for the Porsche and/or the VW Group, and some of the employees will focus on improving the user experience. Infinum also revealed that it will work on backend systems, data analysis, mobile and web applications, data science and user experience design, but didn't reveal much about the products at hand.

"It will be a similar principle as it was before in Infinum, but with a focus on the automotive industry," the company said.

Locations in Europe

Porsche Digital employs around 160 people in several locations around the world, and in addition to the Croatian capital city of Zagreb, the global innovation network consists of three other locations across Europe and four additional offices in Israel, China and across the Atlantic in the USA. They also have development centres in Ludwigsburg, Berlin, Tel Aviv, Shanghai, Atlanta and the famous Silicon Valley. This isn't the first investment of this German sports car manufacturer here in Croatia. It was huge news that Porsche bought a stake in Rimac Automobili two years ago, taking a 10 percent stake, and it was among the first Porsche investments ever and the first in the field of electric cars, with the aim of developing electric vehicles and their related technology. Last year, there was also talk of Croatia's involvement in a large investment by Volkswagen in the European southeast worth a billion and a half euros.

No conversation with the ministry took place, despite the claims that Croatia would ''fight for an investment like this''...

Then, Darko Horvat, the former Minister of the (former) Ministry of Economy, Entrepreneurship and Crafts (which is now the Ministry of Economy and Sustainable Development) announced that Croatia would fight for such an investment. Infinum stated plainly that there was no discussion of a new partnership with the Ministry of Economy and Sustainable Development on the matter whatsoever.

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ZAGREB, July 23, 2020 - Creating 100,000 jobs, increasing the average and minimum wages and further tax cuts are some of the goals of the programme of the new Croatian government that will be presented in parliament on Thursday.

The programme covers five main areas: social security, a prosperous future, economic sovereignty, stronger statehood and global recognisability.

The new government of Prime Minister Andrej Plenkovic aims to spend HRK 10 billion in creating conditions for opening 100,000 jobs and ensure an average monthly salary of HRK 7,600 and a minimum wage of at least HRK 4,250 by the end of the term.

It plans to spend HRK 3 billion in modernising the healthcare system, build a national children's hospital in Zagreb, revitalise the Institute of Immunology, and increase pensions by at least 10%.

Further tax cuts are also planned. The VAT rate on all food will be reduced from 25% to 13%, and income and profit taxes will also be reduced.

The education reform and digitalisation will continue. HRK 5 billion will be invested in modernising the education system and providing 50,000 scholarships.

Another HRK 5 billion will be invested in innovation, entrepreneurship and new products for the purposes of digital transformation of industry and increasing exports. Investment in research and development will be increased from the present 1% to 2.5% of GDP, and creative industries will be developed.

To promote demographic revitalisation and improve the status of families, the government will subsidise 20,000 housing loans for young families, provide a parental allowance in the amount of a full monthly salary, extend opening hours for another 200 kindergartens and regulate Sunday work.

The coronavirus pandemic and disruptions in the supply chain in the globalised economy have confirmed the need for self-sufficiency in food and energy production in order to achieve economic sovereignty.

To that effect, the government plans to increase agricultural production by 30% to HRK 22 billion, build 20 regional fruit and vegetable centres, double the area of land under irrigation, and adopt a new strategy for development of sustainable tourism.

With the number of cabinet ministries already reduced, the government aims to halve the number of local government officials and ensure the functional linking of municipalities. It will continue the judicial reform, adopt a new enforcement law and continue the uncompromising fight against corruption.

The government will insist on balanced regional development, planning to invest HRK 30 billion for that purpose.

In cooperation with the City of Zagreb and adjacent counties, the government will continue to address the consequences of the March 22 earthquake and adopt an effective legislative framework for reconstruction with the aid of domestic and international financing sources.

The government pledged to continue working on the political positioning and economic strengthening of Croatia. It will promote the national interests, protect the dignity of the Homeland War and veterans, and strengthen the Croatian military and police.

The achievement of the strategic goals - accession to the Schengen area, euro area and OECD - will make the national sovereignty and influence of Croatia in Europe and the world stronger, the government said in its programme, pledging further support for the Croatian diaspora.

The government said it was aware of the challenges facing it over the next four years, including the economic recovery from the consequences of the coronavirus pandemic, the post-earthquake reconstruction of Zagreb and its environs, and the transformation of the national economy.

The government's priority will be to use the €22 billion from the new EU budget and the New Generation EU instrument for a speedy recovery of the economy and for investment in the priority areas defined by its programme.

(€1 = HRK 7.527377)

ZAGREB, May 19, 2020 - At the end of April, there were 1.527 million employed people in Croatia, or 0.8% more than in March, and the registered unemployment rate also rose by 0.8 percentage points to 9.4%, according to figures provided by the national statistical office (DZS).

At the end of April, the number of employed Croatians rose by 1.5% compared to the end of April 2019.

The DZS says that "in April 2020, the total number of persons in paid employment in legal entities in the Republic of Croatia amounted to 1,325,632, out of which 631,442 were women."

Broken down by business activity, employment rose month on month in almost all activities, with the highest rise of 2.9% in accommodation and food service activities.

The activity section categorised as "public administration and defence; compulsory social security" saw a monthly drop in hiring of 0.4%. The only other section with fewer employees was  "Electricity, gas, steam and air conditioning supply" with a 0.3% drop.

Unemployment rate rises to 9.4% 

The total number of unemployed persons increased by 11.0% in April 2020, as compared to March 2020. The total registered unemployment rate in April 2020 was 9.4%.

As Poslovni Dnevnik writes on the 23rd of April, 2020, the Croatian Employers' Association (HUP) welcomes the government's plan to relax the current anti-epidemic measures and allow for the opening of more extensive business activities, as this is an important step on the road to the country's economic recovery following the coronavirus pandemic, which is still being carefully monitored.

''Today's decision from the government provides a clear direction for the intensification of business activities and people's return to their jobs, which is a prerequisite for generating income and securing funds for workers' wages. Additionally, an important dimension is this psychological moment for all of us, in which we've been given a clear indication that the situation is getting better,'' they said in a statement.

"We urge employers to receive clear and unambiguous instructions on how to engage in their work safely, and as soon as possible. Precise instructions are needed for companies to be able to do whatever is necessary to operate in these new conditions, in accordance with the instructions of the epidemiologists. In this way, the conditions that guarantee the safety of employees, as well as of clients, customers and consumers, and the continuation of economic activity without the threat of fines and closures due to possible unclear interpretations, will be ensured quickly. We think that it's important for us, together with the government, to ensure that the measures that are being sought are applicable and practicable,'' said HUP's Davor Majetic.

HUP also urged the Croatian Government to draw up, as soon as possible, criteria according to which epidemiological indicators will allow for the re-opening of prohibited sectors. Based on this criteria, businesses will be able to monitor the situation and prepare for a possible re-start. In addition, when the government publishes such sector-specific guidance, business owners will be able to assess whether it is possible for them to operate profitably or sustainably at all under such conditions.

Autumn will more than likely be met with a large number of unemployed people across Croatia, we need urgent measures to address this.

With this anti-coronavirus measure relaxation phase, the strong focus of HUP's efforts are focused on measures to stimulate the economy again and launch a new economic cycle as Croatia now needs to create the preconditions and solutions for economic momentum in the coming year. Conservative estimates predict that by the end of the year, there will be 300,000 unemployed people in Croatia, so solutions to boost the economy are urgently required.

Here are nine essential prerequisites that HUP proposes to revitalise the domestic economy in the wake of the coronavirus pandemic:

The maintaining of company liquidity

The urgent analysis of all para-fiscal levies - reducing the fees for who pay the most, urgently, and for at least a fixed amount of time, and then permanently reducing and eliminating fees where it is possible when further analysis is carried out

The reorganisation of public administration and territorial organisation of the state

The digitisation of the state

A change to Croatia's labour legislation

Continued procurement and public investment processes

The strengthening of private sector investment and better cooperation between local entrepreneurs/businesses and local government units

The payment of VAT upon realisation

The issue of self-sufficiency to be taken as a national security issue, primarily in regard to food and medicine

The strategic development of the food and medicine industry in Croatia to achieve a higher level of self-sufficiency in general

As a result, HUP will continue to talk intensively with the Croatian Government in order to prepare everyone together to re-start the Croatian economy

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As Poslovni Dnevnik writes on the 16th of April, 2020, the Croatian Chamber of Commerce (HGK) announced that 1,478 people re-registered a jobseekers on Tuesday, and those individuals are mostly from the trade, accommodation, hospitality/catering and manufacturing sectors, which the ongoing coronavirus pandemic has hit the hardest.

Despite government subsidies of four thousand kuna per worker, with paid contributions on top of that, 10,385 former workers remained unemployed in Croatia this month, leaving 153,122 unemployed people registered as jobseekers on Wednesday, Novi list reports.

Since mid-March, when most economic activity was frozen due to the coronavirus crisis, especially in hospitality and services, the official number of unemployed people in Croatia has increased by 19,122, an increase of almost fifteen percent, which is more than enough reason for alarm. More than 560,000 workers received the first payment of government aid of 3,250 kuna in wages for the month of March, and that number is likely to be higher for April's installment of that government-paid wages.

As previously stated, on Tuesday alone, the Croatian Chamber of Commerce said in a statement that 1,478 people had arrived to register themselves as unemployed, mostly from the trade (243), accommodation and hospitality/catering (235) and manufacturing (217) sectors.

Those same activities are also in the (unfortunately) leading positions when it comes to the two-week increase of unemployed people in Croatia, and the sad statistic here is that people from these industries account for as much as 74 percent of newly unemployed people registered in April.

As these are jobs where the average wages typically aren't significantly higher than the state support offered, employers either estimated that after three months they wouldn't start production again, or they decided to ''deal with'' these former workers in a rather brutal fashion. This is more than likely because the Croatian Government didn't make retaining all workers a condition for receiving this economic aid, but instead noted that that the number of employee dismissals must not exceed a certain percentage, and this then depended on the size of the company.

The Croatian Chamber of Commerce pointed out that the Croatian Employment Service's daily data showed a declining trend in the daily unemployment rate last week, which was influenced by the second round of anti-coronavirus job retention measures introduced at the state level.

However, in April, this data altered once again, and the Croatian Chamber of Commerce has concluded that April will be the first month to break the declining annual trend in unemployment after 72 long months. Croatia's employment patterns are very seasonal in their nature, and at this time of year it's very common to see a dramatic drop in unemployment as Croatian employers the tourist industry snap up waiters, chefs, bartenders and more. The IMF now predicts that Croatia will have an unemployment rate of 11.5 percent this year owing to the coronavirus pandemic.

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As Frenki Lausic/Novac writes on the 10th of August, 2019, the number of insured persons exceeded 1.6 million at the end of July and reached the figure of 1,600,405, according to data from the Croatian Pension Insurance Institute. This means that compared to pre-recession July 2008, when the figure stood at 1.639 million, there are only 39,000 insured persons less.

Thus, the total number of insured persons at HZMO increased by 0.4 percent on a monthly basis and 2.4 percent on an annual basis, meaning that compared to July 2018, the number of insured persons increased by 37 thousand.

The number of insured persons at HZMO has in recent years almost taken the lead in determining the number of employees in Croatia, although two other methods are officially used, and both of them show employment growth.

According to data from the Croatian Central Bureau of Statistics, according to the so-called “administrative method” used by the Croatian Tax Administration, the number of employees in June stood at 1,451,541 and in June 2018, it stood at 1,432,701, which means that in June 2019, the number of employees increased by 19 thousand at the annual level.

However, due to changes in the method, it isn't possible to compare 2008 and 2019 according to the above-mentioned statistics. According to a third method, a labour force survey, also conducted by the CBS, which is also the official statistical method recognised by the European Union, ie the Eurostat umbrella statistical authority, the number of employees is increasing.

According to the labour force survey, for the first quarter of this year, the number of employees on Croatian territory stood at 1.66 million, while in the same quarter of 2018, it was 1.61 million. According to this method, the number of employees increased by 50 thousand. Still, there remains a big difference in the recording of employment growth between the CBS, HZMO and the labour force survey.

For example, in June this year, the number of HZMO insured persons increased by 40 thousand and the number of employees under the CBS administrative method increased by 19 thousand. This is partly explained by the fact that one who is unemployed can pay for his/her own pension, or simply work abroad.

Thus, at the end of June, of 1.59 million HZMO policyholders, 1.36 million were employed by legal entities, 122,193 were employed by natural persons, 66,933 were employed in an obrt (craft), 19,628 were insured farmers, 19,314 were insured in independent professional activities, 88 of them were insured persons employed by international organisations abroad and Croatian nationals employed on the territory of the Republic of Croatia with employers based abroad, while 4715 had extended insurance.

Croatia reached the level of gross domestic product from 2008 this year, and in all likelihood, it will reach the same level of policyholders as back in 2008. This, despite the differences compared to the dynamics of growth provided by the CBS administrative method, nevertheless speaks of a positive dynamic in the the labour market, especially when looking at the labour force survey, but it would be good for CBS and HZMO to finally do something about too much "discrepancy" when it comes to their respective numbers and methods.

RBA analysts, who analyzed HZMO data for July this year, noted that, despite seasonal fluctuations in the labor market, positive annual rates of growth in the number of policyholders have been present since the second quarter of 2015, reflecting the recovery in economic activity and, consequently, the strengthening of labor demand. The growth of insured persons on a monthly basis of 6822 persons is a consequence, they note, of growth in many industries.

However, they emphasise that the noticeable and expected growth in the number of insured persons in the provision of accommodation and food preparation and services is a mere consequence of seasonal employment and an increasing orientation towards tourism-related activities.

In these sectors, the monthly growth of insured persons amounted to 4343 or 3.4 percent, while, on the other hand, the education sector (as it has in previous years) recorded a sharp decrease in the number of insured persons in July, totaling 2656 or 2.4 percent less, but their numbers are likely to increase in September with the turning of a new academic year.

At the annual level, the largest contribution to the growth of insured persons came from the construction industry, in which the total number of insured persons in July amounted to 114,438 persons, which marks 7.5 percent growth on an annual basis.

“In the first seven months of 2019, the average number of insured persons amounted to 1.549 million, which is 2.3 percent or 34,487 more than in the same period in 2018. The largest contribution to the growth of the average number of insured persons in the first seven months came from the construction industry whose share in the total of insured persons is 7.2 percent. With an average annual growth of 7.3 percent in the January-July period, a relatively high contribution to the overall increase of 22 percent is in line with present positive trends in construction,'' RBA's analysts said.

The largest number of employees, ie insured persons, are still in the manufacturing industry (16 percent, or 248,324), but after a slowdown in 2018, the annual number of policyholders since January 2019 has recorded a decrease in the number of policyholders annually in this industry (manufacturing participates with 80 percent in the overall Croatian industry).

Moreover, as the analysts point out, there is also a slight acceleration in an unfavourable trend, and in July the fall in the number of policyholders in the manufacturing industry was one percent per year. Thus, on average, 2.8 percent fewer persons were insured in manufacturing in the first seven months of 2019 compared to the same period last year.

"This is very likely due to the fall in manufacturing output in 2018 and its modest growth in 2019. The growth in the number of policyholders will continue in the coming months, so according to this indicator, employment growth could amount to about two percent," the RBA analysts concluded.

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As Poslovni Dnevnik writes on the 7th of June, 2019, Venice is sinking, the Berlin metro is going to collapse into the earth, and the surface of the earth has risen in some places by up to two metres after the earthquake in Japan and the nuclear disaster in Fukushima - all this is what we know today thanks to the European Space Agency and the European Commission - Copernicus, worth more than ten billion euros, and presented recently at the premises of the Croatian Employers' Association in Zagreb.

This ambitious program monitors the atmosphere, the oceans, and the earth's land surface, it is based on a satellite system designed for observing the earth, and the use and application of its data open up great opportunities for the Croatian economy.

At the program's presentation, prof. dr. sc. Željko Bačić from the Zagreb Geodetic Faculty highlighted the fact that the European Commission's studies show that by the year 2030, in terms of jobs directly related to Copernicus, as many as 48,000 work positions will be opened.

"By 2035, EO-based business and services will be worth 131 billion euros. Since Croatia represents 1 percent of the EU, we can draw a parallel and say that in Croatia alone, this segment of digital business should amount to 1.3 billion euros, which is now the volume of the total IT business in Croatia,'' Bačić said.

"We're well aware that information today is extremely important, but information that is spatially defined is of particular importance and concerns the geodetic profession. Geoinformatics is taking on an increasingly important role and combines classical geodesy and information technology, and geodetic and information technology companies are increasingly growing.

The interest of our profession is the faster development of geoinformatics. Here I see the potential and the prosperity for the economy and for the general population. We're happy to be involved in this project and we gladly responded to it. Collaboration with academic institutions is of utmost importance, so, we can see the importance of this project,'' said Željko Perić, president of the HUP Association of Geodetic Geoinformatics.

According to Boris Dril, President of the HUP Association for Information and Communication, this program is an excellent fit to the national coalition for digital skills and jobs, with the aim of developing an information and communication economy in Croatia. "It's not a scientific project in a lab that is only relevant to a narrower circle of people, but a research product to be applied to real life and show its value," Drilo stated.

To briefly recall, Copernicus was initially created to develop earth-based information services, satellite and in-situ data analysis, and the various services it provides helps to correctly address some of the most difficult environmental challenges we face today, such as food safety, sea levels rising, natural disasters, urbanisation, glaciers melting, and the comprehensive topic of climate change.

This Zagreb conference was taken from Estonia's shining example, which used its data to check if farmers were actually following the basic conditions for the use of agricultural subsidies. In this way, Copernicus helped to reduce the misuse of subsidies, and the savings yielded from that side of things alone amounted to about 500,000 euros a year.

It was also used for the mapping of groundwater floods in Ireland. Thanks to Copernicus, flood data can now be collected at a level that was previously considered inaccessible and thus provided timely information to the relevant bodies. Sentinel satellites used in the program can also be useful in discovering hidden cultural heritage sites for which we've searched for decades, as well point to hidden archaeological artefacts.

"Unlimited ways of applying this fascinating data that can strongly affect the future of the earth will soon be able to be contributed to by Croatian developers, entrepreneurs, and professionals of various profiles, as well as students and students through Copernicus Hackathon, a 24-hour contest where teams will create applications for data use,'' said Copernicus Hackathon's organiser, Zvonimir Nevistić, from the Zagreb Geodetic Faculty.

The aforementioned contest will be held on October the 23rd and 24th this year, with the aim of creating content that can significantly improve the quality of life, the economy, or the environmental protection in the chosen area of ​​application.

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