Home / Media and Publications / Recovery of the Croatian Labor Market Only at the Beginning of 2011

Recovery of the Croatian Labor Market Only at the Beginning of 2011

In April, the number of unemployed in Croatia decreased on a monthly basis for the first time since June of last year, but the recovery of the labor market is expected only at the beginning of 2011 after the recovery of the real sector, analysts from Raiffeisen Consulting state in their analysis of labor market trends.

According to the latest data from the Croatian Employment Service, at the end of April, there were 308,675 registered unemployed persons, which is 9,983 persons, or 3.1 percent, less than in March, but 44,890 persons, or 17 percent, more than in the same month last year. A significant contribution came from employment in seasonal jobs, where 4,869 persons were employed in April, which is significantly more than in the first three months combined (1,969 persons), but also expected, given the start of the tourist pre-season, analysts from Raiffeisen Consulting note.

Accordingly, the highest number of persons employed was in the accommodation and food preparation and serving activities (3,621), followed by trade (2,281), manufacturing (2,270), and construction (1,530). The recorded decrease in the number of registered unemployed persons on a monthly basis in April is the first monthly decline since June 2009, which is expected, given the seasonal nature of the Croatian labor market, i.e., increased employment before the main tourist season, analysts from Raiffeisen Consulting state.

Similar trends are expected in the coming months as the central tourist season approaches, increasing the demand for seasonal workers. Since negative trends in the labor market intensified only at the end of 2009, the annual increase in the number of unemployed persons has continued. Although slightly lower than in previous months, the expected average unemployment rate for April of 17.8 percent is still relatively high, the highest since March 2006.

“By the end of this year, negative trends in the labor market should continue, and the beginning of recovery can be expected only at the beginning of 2011 after the recovery of the real sector. Since trends in the labor market largely determine personal consumption, its recovery could last as long as the recovery of the labor market,” analysts from Raiffeisen Consulting state in their analysis of labor market trends. (H)