The growth rate of employed persons in July (3.0 percent year-on-year) exceeded the average of the first half of the year (2.5 percent) and last year’s rate (which was 2.7 percent). Such data for July strengthens optimism regarding economic activities at the beginning of the third quarter of this year.
– As seasonally expected, tourism generated the most jobs in July (+9,785) and achieved one of the highest annual growth rates (+8.3 percent). Among other significant employment generators, construction stands out (+5.7 percent year-on-year). The manufacturing industry shows below-average employment growth (+1.3 percent year-on-year), while the above-average growth in capital goods segments (finished metal products, equipment and facilities, transport means, etc.) and pharmaceuticals as higher value-added branches is encouraging in terms of improving employment structure – states the weekly analysis by Hrvoje Stojić, chief economist of HUP.
Employment of Foreign Workers
At the same time, we are witnessing a decline in employment in the financial industry due to the digitalization of business processes and a decline in increasingly uncompetitive clothing production and related segments.
The growth in employment is significantly influenced by the employment of foreign workers. Since the beginning of this year, 124 thousand work permits have been issued (about 7.6 percent of average employment this year), which is 50 percent more permits issued year-on-year.
– Given the solid economic activity and continuous tension in the labor market, it is expected that the total number of work permits will significantly increase this year as well. The employment of foreign workers can be facilitated by expanding the list of deficit occupations for which it is not necessary to conduct a labor market test, as well as extending the duration of permits from one to two years and from 6 to 9 months for seasonal workers – states the analysis.
In the context of the European Commission survey, expectations regarding employment trends in the coming months present a mixed picture. On one hand, expectations in the service sectors are slightly below record levels and contrast with downward expectations at the EU level. Expectations for employment in industry have experienced a slight deterioration and lag behind the EU average, especially Germany, where employers continue to report an increased appetite for workers.
