Home / Business and Politics / OVI for 2023: Demand for Labor Increased by 3.6 Percent

OVI for 2023: Demand for Labor Increased by 3.6 Percent

<p>vozač kamiona</p>
vozač kamiona / Image by: foto Shutterstock

The Online Vacancy Index (OVI) for 2023 shows that demand for labor increased by 3.6 percent compared to 2022, and although somewhat modest compared to previous years, it indicates further growth in labor demand, which is at historically high levels, reported the Economic Institute, Zagreb.

As highlighted in the announcement on the EIZ website, the cause of the certain slowdown is at least partially hidden in base effects. However, compared to the pre-crisis year of 2019, the total number of online ads in 2023 was higher by 37 percent, indicating that demand in the Croatian labor market is at historically high levels, the EIZ reported.

Almost the entire contribution to the annual growth in demand came from ads seeking workers with secondary education, while the demand for employees with higher education and low qualifications contributed only half a percentage point.

Therefore, the share of ads for secondary education increased by 1.2 percentage points to 61.9 percent, while the shares for higher education and low qualifications decreased during the past year.

Most Interest Declined for Programmers

Supporting this are the data on the five most sought-after occupations, which included positions for salespeople, waiters, cooks, warehouse workers, and drivers, which rose from sixth to fifth place compared to 2022, replacing the position of accountant.

The largest contribution to the overall annual growth in labor demand was recorded in ads seeking salespeople, warehouse workers, and drivers, while among the largest negative contributions were programmers, IT specialists, designers, and cooks.

On the ranking list of the most sought-after occupations, interest in programmers fell the most, dropping from 12th to 23rd place, while telemarketers and teachers rose four places – telemarketers from 23rd to 19th, and teachers from 14th to 10th place, the EIZ noted.

In 2023, there was a significant increase in both the number and share of indefinite contracts, primarily at the expense of fixed-term and seasonal employment. The share of indefinite contracts thus reached 48.2 percent, 4.5 percentage points higher than the previous year, they noted.

All Croatian Regions Recorded Growth in the Number of Ads

All Croatian regions recorded an annual increase in the number of ads, with central Croatia leading with a contribution of 2.4 percentage points and a share of 58 percent of the total number of ads. It was followed by the northern Adriatic with a growth of one percentage point, eastern Croatia with 0.7, and the southern Adriatic with 0.4 percentage points.

The only ads that pulled down were those from abroad, which, under the influence of the downward economic cycle in certain Eurozone countries, contributed to an overall increase in the number of ads with a negative sign of 0.6 percentage points, wrote EIZ analysts.

OVI – Online Vacancy Index is a monthly index of online job vacancy ads developed at the Economic Institute in collaboration with the MojPosao portal, aimed at providing timely information on the current state of labor demand.

The OVI index is compiled by simply counting the number of unique new ads whose application deadlines end in the month for which the index is calculated. Since only ads published through one portal are taken into account, the number of ads is expressed as an index (the base year is 2020).

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