Conditions of labor market in Slovenia

Lisbon strategy

With Lisbon strategy Europe Union wants to make more work-places, this goal they are trying to achieve with guidelines, that enhance economic growth. This is why EU is renewed Lisbon strategy and with the same goal Slovenia made National reforms program, with which they will try to follow these new guidelines. Because this is a big deal for EU and for all the EU members, these changes are demanded on a long term, but with several mid-terms. First changes started in the year 2005 and first mid -terms were set for next 3 years and second for following 3 years until 2010. In these years European Commission made reports about progress and necessary changes for individual countries. In the year 2010 European Commission accepted new headline strategy for growth and work-places, that is named Europe 2020. In this strategy they set 7 major initiatives and 5 major goals.

Situation in Slovenia:

In January 2013 there were 2.058.821 habitants in Slovenia and out of them working age were 912.969 habitants. Labor force participation rate in year 2010 was 66,2 %. The graph down under shows rate of employment comparing between member countries of EU in year 2010.

Picture 1: Employment rate, age group 15-64, 2010 (%)

Zaposlenost od 15 do 64 leta

Source: http://epp.eurostat.ec.europa.eu/statistics_explained/index.php?title=File:Employment_rate,_age_group_15-64,_2010_(%25).png&filetimestamp=20111117142647

The unemployment rate in year 2012 had risen up for almost for 1 percentage point, which is a step back or a step closer to situation in Greece. In January 2013 the unemployment rate was 13,6 percent or more than 124 thousand unemployed. The graph below shows comparison of long-term unemployment between gender in Slovenia in years from 2000 until 2010.

Picture 2: Long-term unemployment rate by gender in Slovenia, 2000 – 2010.

Stopnja dolgotrajne brezposelnosti po spolu v Sloveniji

Source: http://www.umar.gov.si/fileadmin/user_upload/publikacije/pr/2011/SRS/4/PDF/stopnja%20dolgotrajne%20brezposelnosti.pdf

Minimal monthly gross salary for full-time work, which is set by The minimum salary act, for the year 2013 in 783,66 euros, which is 2 percent less than the year before. The average monthly gross salary for full-time work in January 2013 was 1523,80 euros, which is 0,34 percent less than in January 2012.

The European Commission set this following guidelines for Slovenia:

»Adapt legislation to protect jobs in terms of the sustainability of contracts in order to reduce labor market segmentation, in cooperation with the social partners and in accordance with national practice. In consideration should also be parallel job market, caused by the student’s work.«

European Union is forming goals and guidelines, but the individual member countries must form reforms and  solutions to achieve goals by themself. Of course European Commission is making reports of progress and at all-time supervising the work of coordinators, which countries set to lead their programs. The common report about employing is made by The European Council.

In the year 2010 Slovenia accepted Act for regulating labor force, but it does not include regulating The student’s work, which is a huge problem with employing or not employing in Slovenia, because for employers student’s work is a lot cheaper than full-time worker. The problem is that students are ‘stealing’ work-places to themselves and at the same time they are working but not contribution to country and neither to health insurance. With the referendum in the year 2011 we tried to get rid of student’s work with The Mini Jobs Act, which is a form in which students could work while studying, but it would be more regulated, more money would go for taxes and it would be a lot more supervised. But the proposal was rejected at referendum, so this question stays open still.

Because the countries are at different levels of development, different impairment from the crisis and have different problems with employing workers, European Union does not demand the same goals from all the member countries. This are the goals Slovenia has set for the year 2020 on National reform program 2011 – 2012:

  • To rise rate of work activity to 75 percent of habitants in the age of 20 to 64,
  • Reduce the number of people who have a high risk of poverty or social exclusion, namely by 40,000 persons compared to the base year 2008,
  • To reach that percentage of early school leavers will not exceed 5 percent and
  • To reach that 40 percent of young generation, from the ages between 30 and 34, will graduate from tertiary education.

Sources:

http://www.stat.si/novica_prikazi.aspx?id=4562

http://www.stat.si/novica_prikazi.aspx?id=5454

http://www.stat.si/novica_prikazi.aspx?id=5373

http://www.google.es/url?sa=t&rct=j&q=&esrc=s&source=web&cd=5&cad=rja&ved=0CFkQFjAE&url=http%3A%2F%2Fwww.um.si%2Fen%2Fquality%2Feua-evalvation%2FDocuments%2FA06%2520Labor%2520market%2520analysis%2C%25202013%2520%28only%2520in%2520SLO%29.pdf&ei=4wSBUcvPJvSp7AaxrYHgDA&usg=AFQjCNGYRGxnwjglvjzW6ZogZj7-wIztRA&sig2=WEKP25OTEREpnaJDu67k3g&bvm=bv.45921128,d.ZGU

All sources last accessed on 9. may 2013

Blaž Kralj, Alicja Falińska

One thought on “Conditions of labor market in Slovenia

  1. Nowadays there are problems in the economy in some countries. Slovenia has set big goals for the year 2020. Negative trends on the labour market show in the declining number of persons in employment and the rising number of unemployed and inactive persons. In 2012 there were on average 920,000 people in the labour force in Slovenia, 12% of them unemployed and 88% were employed.
    Because of the different developments, it is hard for countries like Slovenia to reach this goals alone. I think it is one advantage of Europe- no one stands alone and will be helped.

    Reply

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