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The Committee notes the replies provided in the Government’s report received in December 2009 to the points raised in the 2007 direct request.

Articles 1 and 2 of the Convention. Employment trends and active labour market policies. The Government indicates in its report that the employment rate of adults increased significantly from 55.6 per cent in 2006, to 59.7 per cent in 2008. Following the retirement plan reform, measures taken to combat unregistered work and stronger action from labour inspection, a significant increase of registered employment was observed in 2007. The Unemployment rate decreased from 11.2 per cent in 2006 to 8.4 per cent in 2008. Based on the annual employment incentives plan – a plan which, inter alia, provides employment subsidies for enterprises employing vulnerable groups including unemployed youth, long-term unemployed and older unemployed persons – 4,869 registered unemployed persons were employed in 2006, 8,494 in 2007 and 7,531 in 2008. The Committee notes that according to the Croatian Central Bureau of Statistics, the registered unemployment rate reached 11.2 per cent in the first trimester of 2010 (197,000 persons unemployed). In this regard, it also notes that the National Employment Promotion Plan 2009–10 points out amongst the main challenges of the labour market in Croatia that the employment rate was significantly lower than the EU average: in 2009 the employment rate was 46.5 per cent in Croatia, compared with 64.6 per cent in the EU (27 countries) as the result of both low activity rates and high unemployment rates. Another significant problem that the Croatian labour market is facing are major regional disparities with regard to employment, unemployment, average wage, GDP per capita and level of education. The National Employment Promotion Plan 2009–10 was prepared to promote entrepreneurship and private investment. The key strategic objectives and priorities of the Plan include: increasing the employment rate; reducing long-term unemployment; bringing closer labour demand and labour supply; increasing investments in human capital through improved education and training; and balancing labour market flexibility with workers’ security. The Committee invites the Government to provide in its next report an evaluation of the measures implemented in the framework of the National Employment Promotion Plan 2009–10, as well as on the impact of the anti-crisis packages on the labour market. It also invites the Government to include information on the impact of the measures taken to address regional disparities with regard to employment.

Vulnerable categories of workers. The Committee notes that one of the objectives of the National Employment Promotion Plan 2009–10 is increasing the employability and participation rate of prime-age women (25–45) (especially those with a low level of skills), older workers and youth. The Committee invites the Government to provide information in its next report on the impact of the measures designed, especially in the framework of the National Employment Promotion Plan 2009–10, to encourage and support employment levels for vulnerable categories of workers including women, young persons, old workers and the long-term unemployed. It also requests the Government to provide information on the mechanisms put in place to monitor and evaluate these measures.

Education and training policies. The Committee notes that in the period 2008–11, the Government, in consultation with the social partners at the national and local levels, intends to develop lifelong and entrepreneurship learning. Moreover, within the planned Croatian Employment Service reform, its capacity to implement a lifelong learning approach will be strengthened to improve the employability of the long-term unemployed and other vulnerable groups. The Committee invites the Government to continue to provide information in its next report on measures taken in the area of education and training policies and on their impact on the employability and competitiveness of the labour force, as well as the involvement of the social partners in this process.

Business development. The Government indicates that in the period
2008–11, the following measures targeting business development will be implemented: removing barriers to entrepreneurial development with an aim to reduce business costs up to 25 per cent; enhancing the support to small and medium-sized enterprises (SMEs); improving grant schemes (strengthening the coordination and targeting of grant allocations for micro, small and medium-sized enterprises), improving the system for financing SMEs and facilitating access to subsidies for entrepreneurial projects; improving the quality of entrepreneurial infrastructure; continuing the development of business zones, with the aim of putting in operation at least 400 business zones; developing a more conducive business environment; and strengthening links between enterprises and research and development (R&D) institutions. The Government indicates that the measures for SMEs will be implemented after the adoption of the Government Programme for the Promotion of Small and Medium-sized Enterprises 2008–12. The Committee invites the Government to provide in its next report information on the impact and sustainability of these measures on long-lasting and productive employment. It also asks the Government to include information concerning the methods used by the Government to improve the success rate of young entrepreneurs and to involve social partners in informing small businesses of key labour market concerns and opportunities.

Cooperation between the public employment service and private employment agencies. The Government indicates several measures to be implemented in the period 2008–11. These include: reform the Croatian Employment Service to increase its capacity to identify labour market demands; improve its mediation and counselling services at the local level; improve the employability of unemployed persons; and facilitate the recruitment of young people. Regarding private employment agencies, the Government indicates that following entry into force, in January 2009, of the Act regulating Employment Mediation and Entitlements during Employment and the Ordinance regulating the carrying out of mediation activities, 30 employment mediation agencies were selected and became operational. The Committee recalls that in its General Survey of 2010 on employment instruments, it observed that Convention No. 122 calls for member States to build, or strive to build, institutions necessary to ensure the realization of full employment. To this end, the Employment Service Convention, 1948 (No. 88) and the Private Employment Agencies Convention, 1997 (No. 181), invite member States to establish employment services to assist workers and employers in achieving and maintaining optimal employment. Thus, the conjunction of these Conventions forms a necessary building block for employment growth. The Committee invites the Government to provide information in its next report on measures taken to encourage the collaboration between the public employment service and private employment agencies, as well as on other measures taken to build institutions necessary to the realization of full employment.

Article 3. Participation of the social partners in the formulation and application of policies. The Government indicates that social partners participated in the preparation of the National Employment Promotion Plan
2009–10, which foresees strategy development for the bipartite and social dialogue at the sectoral level and the establishment of criteria for the representativeness of social partners in economic and state councils and in collective bargaining. The Committee requests the Government to provide in its next report concrete examples on the manner in which the views of employers and workers representatives, as well as of other concerned stakeholders, are taken sufficiently into account in the development, implementation and review of employment policies and programmes.