Analysis of labor market needs

Employer Survey

Fast changing needs of the labor market require higher education institutions to monitor closely

trends on the labor market and to adapt their curricula and admission policies to these needs. So far,

this has not been part of the practice of educational institutions and providers in Montenegro.

Namely, they did not take into account the problems, trends, needs and the information from the

labor market in defining their admission policies and curricula. The admission policy in secondary

vocational and higher education in the past 3 to 4 years have led to constant decrease of the labor

force of secondary (vocational) levels needed by the economy, and increase in the number of those

obtaining higher education qualifications which are not needed in this number by the economy.

Employers have also expressed dissatisfaction with the skills and competencies of their employees,

especially of the young generations coming from the formal education system. All these problems and

facts impose the need to further investigate the issues of labor and employment in order to find

solutions to the above problems. Recognizing the above stated problems, the University of

Montenegro, within the Tempus project Development of the Lifelong learning Concept at the

University of Montenegro, defined as one of the activities Elaboration on Analysis of the Labor market

Needs. The aim of the elaboration is to define, in cooperation with the social partners, primarily the

Employment Agency and the Chamber of Commerce, the needs of specific professions in Montenegro

and to conduct interviews with enterprises to define exact needs and lacks.

The basis for conducting the analysis and producing an elaboration of the labor market needs was the

Employer Survey, which was conducted in cooperation with the Employment Agency of Montenegro.

The Employment Agency of Montenegro is among other, in charge of organizing preparation for

employment, which is taking place particularly through participation in development and delivery of

education/training programmes, for the purpose of matching demand and supply in the labour

market. In addition to that, the Employment Agency takes part in the development of special

programmmes to combat the increase of unemployment or to reduce registered or potential

unemployment, while also dealing with the prevention of long-term unemployment. The EAM also

monitors and analyses current trends in labour demand.

The underlying need driving the labor market analysis conducted by the Employment Agency is the

situation at the labor market which is complex and showing unfavourable trends. Structural

misbalance between demand and offer of labor force is only increasing and becoming more complex.

The admission policies are not changing, thus improvements in this respect cannot be expected.

Unemployment is gaining new dimensions and characteristics. The most important and most

unfavourable is reflected in the increase of unemployed university graduates, with the number of

those recorded at the Employment Agency being 3 500 and a share of around 15% with good

prospects for this trend to continue. Economic crisis has affected deeply the economy of Montenegro,

especially employment. Demand for labor force is low and it is increasing slowly. On the other side,

problems in a number of companies, especially big ones, have led to dismissals, which had as a

consequence the reduction of overall employment, which was lower by 15 000 in the period January –

December.

The aim of the Employer Survey is to obtain as much information as possible on the views and the

behavior of employers regarding various development issues, in particular their views of the current

crisis in the context of how they see the future. Concrete aims of this research are to obtain

information on:

• How realistically have employers envisaged the negative effects of the crisis on employment,

redundancies.

• What have the employers learned about the crisis and how has crisis affected their perception

of the crisis i.e. whether they look optimistically on the future development, with a reserve or

pessimistically,

• Weather reduced demand for labor force in the time of the crisis has caused increased

mobility of labor force and better filling of work positions

• Whether verbally expressed views that labor force is a decisive factor in business doing and

development of companies are accompanied by concrete behavior of employers in terms of

sending employees to follow programmes of training and professional development and more

concretely: how much they allocate for training and professional development

The survey covered a respectable group of employers, predominantly those that are active and fight

for survival and which employ around 50% of employees in Montenegro and whose behavior and

opinion will significantly influence the future of employment and resolving of different problems

related to the work force.

Apart from the Employment Agency and the Government and state institutions in charge of labor,

employment and education, the beneficiaries of information obtained through this survey will also be

educational institutions and other providers of education, faculties, secondary schools and other

education providers for defining of their admission policies, curricular reform and preparation of

standards of training and knowledge, which should be based on meeting the needs of the labor

market and meeting the needs of employers for skills, knowledge and competencies at concrete work

positions. At the moment educational institutions in Montenegro have little knowledge about the

labor market and do not seriously consider these needs. Students and their parents should also

benefit from this survey in making the decisions on enrolment and choice of profession, and the

unemployed in making the decision on employment.

Methodology

The Employer Survey 2010/2011 was done on a sample including 1 470 employers from 21

Montenegrin municipality thus accounting for 4.97% of active employers and 40% of total number of

employees. In conceiving the survey, an effort was made to obtain as much information on the labor

force as possible, problems related to employment, trends in employment, surplus work force, lacking

professions, qualifications and degree of training of employees. That is why in planning the survey a

kind of modified stratified sample (disproportional) was used. This means that the sample included

large companies as well. Apart from the principles of bigger representation of employers with higher

number of employees, an effort was made to respect the principle of proportional representation

according to other characteristics as well, in particular adequate representation according to activities

and regions i.e. municipalities.

The survey was conducted in the period 15/01/2011 to 15/02/2011 in all the municipalities of

Montenegro (21) and 57 pollsters were engaged for its implementation. Experienced and trained

pollsters were engaged, who passed additional training before starting field work.

In terms of structure, the survey was divided into thematic wholes. The introductory chapter gave an

overview of the investigation history, the objectives, benefits of the research and explained the

methodology used. The first chapter described the construction of the sample and presented the

structure of the employers according to various characteristics. The second part analyzes several

thematic wholes – characteristics of employees per various categories of employment, the relation of

the employers to education of employees and types of trainings, then changes that happened in

employment in 2010 and problems of lacking professions and surplus work force. The third part

presents employers forecast on new employment – in total and per various characteristics.

Part I

1. General data

The main characteristics of employers included in this sample

The main criterion applied in the construction of the sample is employment i.e. as big as possible

coverage of the employed. The application of this principle defines to a large extent other structures

of the sample as well. This means that the “image” of employers in the sample cannot be considered

as the image of all employers, especially not of the employers in economy i.e. the image of companies

and entrepreneurs. For example, application of the number of employees as the principle/criterion

eliminates from the sample the largest number of small companies and employers, and it is well

known that micro and small enterprises make around 95% of the total number of companies and

entrepreneurs. Application of this principle determines to a large extent also the sector structure of

employers in the sense that those sectors and activities in which micro and macro companies

dominate, and different companies according to size, age in various sectors and activities have

different problems in finding new work force, surpluses, trained work force, and need for additional

training and education. At the same time, the fact that the sample, for objective reasons, does not

include big companies that are in problems for a number of years means that the image of the state is

not complete. This is why in analyzing and interpreting phenomena and trends, and especially in

making the decisions, recommendations and proposing policies this must be taken into account. Still,

by applying the method of stratified sample the structure of employers was obtained which quite

realistically represents the picture of entire economy, so that, with the needed caution, it is

acceptable to make generalizations and make general conclusions and recommendations.

The number of employees in the sample this year was 73 955, which makes 46.88% of the total

number of employees in the data base of 157.765.

Application of the above described principles and rules gave a picture of employers according to

various characteristics – manner of organization, size of employers according to the number of

employees, age of employer and regional and sector structure, where every characteristic is

represented by a separate graph.

Data base of employers in the sample and the given classifications according to five different

characteristics, provide great opportunities for crossing per characteristics of employers, and

accordingly, provide great opportunities for very detailed and subtle analyses. Still, more detailed

crossings in this research have been prepared only for the most important characteristics, such as

sector structure and the size of the company.

1.1 Structure of employers according to the manner of organization

The graphs below gives a clear picture of the employers structure in the sample.

Graph 1: Employers structure according to the form of organization

Graph 1 shows that in the existing sample, according to organizational structure, limited liability

companies prevail with a share of 55%. The second place is occupied by institutions (around 25%)

and the third by shareholders companies (10%). Entrepreneurs and state bodies are represented

among other forms of organization; there are entrepreneurs and state bodies.

1.2 The structure of entrepreneurs in the sample according to the forms of ownership

The structure of employers according to the form of ownership corresponds to a large extent to

the structure according to manner of organization. Private employers absolutely dominate the

sample (around 67%), but the share of those in state ownership (around 23%) is still significant.

The reason for such participation of employers in the state sector is primarily such because big

companies are owned by the state.

Graph 2: Employers structure according to the forms of ownership

1.3 Employers according to the type of ownership

Application of the principle pertaining to the number of employees as the basic criterion in defining

the sample affected crucially the structure of employers according to age (Graph 3).

Graph no. 3 Structure of employers according to the age/duration of operation

The most numerous by far (around 55%) are the oldest employers, i.e. those with the largest number

of years in operation. The remaining ones are distributed according to the same logic – the older the

more represented. Such a structure confirms the economic logic of phase growth and development of

the company, which means that company growth – bigger number of employees - takes time.

1.4 Employers according to activities

From the viewpoint of this investigation, the structure of employers according to activities is the

most important. That is why in composing the sample an effort was made to include as many

activities as possible as they are classified according to internationally adopted standards. Besides,

as the graph shows, in the structure of employers dominate those from the area of trade (around

27%). Six activities with approximately balanced representation follow (from 5 to 10%), and the

third group made up of three-four activities with small representation.

Graph no. 4 Structure of employers according to activities

1.5 The structure of employers according to size

In this case, an extended/more detailed variant and classification of companies accepted

throughout the world to micro-micro, micro, small and medium size companies was applied. Even

though the structure of employers in Graph 5 departs largely from the structure of employers in

economy as a whole, where micro and small companies dominate, still the obtained structure

provides a good base for adequate analysis. Even though this is not obvious from the graph, a

quite balanced representation of all categories of companies/employers was obtained.

Graph 5. Structure of employers according to size

Part II

EMPLOYMENT IN 2010

11. State the number of employees in each category of employment in your company

Practice has shown that employers increasingly prefer employment for a definite time period.

With the aim of considering possible duration of employment, apart from those employed for a

definite time period, categorization for a definite time period in this question was divided into

several segments, i.e. sub-items such as: work engagement due to increased scope of work,

trainees, seasonal jobs, replacement of temporarily absent employee, implementation of

particular projects and other.

Observed according to municipalities, just as in the previous investigations, the largest number of

employees was present in the central and southern region of Montenegro, which can be seen

from the graph below:

Graph no. 6: Number of employees in 2010 per municipalities

Apart from Podgorica (39.24%), Nikšić (10.07%) and Herceg Novi (8.78%) have the biggest work

engagement.

This fact indicates that work engagement in the central and southern part of Montenegro still

significantly differs from muncipalities belonging to the northern part. This can be an indication

that Montenegrin economy is slowly recovering from the consequences of global economic crisis.

Gender strucutre of employees and category of employment

According to the gender strucutre of employees, the conclusion is reached that representation of

genders is rather balanced, with slightly bigger employment of men – 37.682, i.e. 54.24% of men

are employed, while 31.792 i.e. 45.76% of women.

Graph no.7 Structure of employees according to gender

The balance of gender structure can be observed with employees with whom a Work Contract for

an indefinte time period has been concluded. The employers concluded a Work Contract for an

indefinte time period with 52.730 employees i.e. 83.07% of the total number of employees in the

companies included in the survey, of which 24.440 are women (35.18%), which is by 10.35% less

in relation to the previous period.

Work engagement of women is the highest in the area of health protection and social work

(20.18%), retail and wholesale (17.56%) and education (16.83%).

Category of employment

Out of 16 744 of those employed for a definite time period, only 2315 are engaged during the

main tourist season, which indicated that during that period employment increases drastically in

relation to the other months of the year. Only 3.33% of the total number of employees are in

seasonal months.

It is surprising that most seasonal workers are engaged in the companies doing business in the

area of agriculture (30.62%), which indicates the awareness of employers of the importance of

agricultural activity in Montenegro. Hotels and restaurants had the leading role in seasonal

employment.

Together with the work engagement for reasons of increased scope of business, these two

categories of employment together employ 42% of the total number of employees for a definite

time period and mostly so in municipality Podgorica (49.27%).

Employment according to activities

The highest work engagement is noticed within wholesale and retail trade – 14.81%, of which as much

as 61.73% have a Contract on Work for an indefinite time period. Only 1.87% are engaged seasonally,

which indicates a relatively balanced business activity throughout the year, whith a slight increase of

business doing, which is also supported by the fact that 10.99% of employees are engaged by Contract

on Work for a definite time period due to increase in the scope of work.

Health protection and social work follow, with 9001 (12.96%) of employees and education with 7974

(11.48%), where an incrase of 1.03% is recorded in relation to the previous year. Significant reduction

of 3.78% in the number of employees in relation to the previous year is recorded by the processing

industry, when this activity was in the second place according to the number of employees.

12. Educational structure of employees on the polling day

The structure of employees according to the degree of education has not changed in relation to the

previous years. In 2010 the highest number of employees have completed IV degree of vocational

education – 25 607, or 36.92%. In relation to the same period of the previous year there has been a

reduction in engagement of persons with this degree of education by 0.24%.

Reduction in participation of employees without professional qualification of 0.92% on one side, and

an increase with II and III degree of vocational education (by 0.43% in employees with III degree and

0.19% with II degree of vocational education) on the other side, in relation to the previous year, can

indicate an improvement of qualification structure of the existing employees with the aim of obtaining

adequate knowledge.

The sample included also 23.08% of employees with VII and VIII degree of education, where an

increase in participation of these employees in relation to the previous year of 1.58% can be noticed,

while participation of employees with V and VI degree is represented with a smaller percentage with

10.41% in 2009, to 9.37% in 2010.

Therefore, based on the obtained results, the conclusion is reached that adequate work force is not

missing in Montenegro. Qualification structure of employees is continuously increasing. Those

employed having IV, V, VI, VII and VIII degree of education together make 69.37% of totally employed,

which is by 0.3% more in relation to the previous period.

Educational structure per areas

IV degree is the most represented degree of education with employees in most activities - 51% in

wholesale and retail trade and 50% in health protection, which is not surprising, since a large number

of work positions in these activities are performed precisely with this qualification structure of

employees.

In the mining and stone extraction activities, higher number of employees with III degree of

qualifications (36%) is preferred, though participation of IV degree (28%) is not negligible within this

activity.

It is not surprising that almost one half of employees in activities of education, state administration

and financial mediation are employees with completed VII degree of qualifications as follows 49.5% in

education, 48.3% in state administration and 47.6% in financial mediation. Together with VIII degree,

employees with these two degrees make 53% within education, 50% in state administration and 48%

in financial mediation.

Interestingly enough, in relation to the previous period the representation of I degree of qualification

(8%) decreased, while representation of II degree (17%) increased by approximately the same

percentage in relation to the reducation of representation of I degree of qualifications, which can

indicate additional qualification of existing work force, i.e. a change in the awareness of employees

with regard to lifelong learning.

Observed within the activity, in wholesale and retail trade, it is intersting to point out that the relation

between II, III and IV degree of qualifications significantly differs in relation to the previous period

when these three degrees were represented in this activity in approximately the same percentages.

Data from this year point to significant increase by 30% of representation of IV degree of qualifications

with 51% of slight increase (2%) of III degree with 25% and very signficant reduction by 15% of

representation of II degree of qualifications.

Educational structure of employees per municipalities

Observed per municipalities, IV degree prevails in most municipalities, which is identical with the data

obtained at the national level, with a reduction in relation to the previous period, but with still

significant differeneces between municipalities ranging between 32% in Kolašin to 42% in Podgorica

(differences in the previous period ranged from 29.96% in municipality Šavnik to 49.19% in

municipality Budva.

Only in municipality Budva VII degree appears with higher degree of participation (29.7%), which is by

2.5% more than in 2009.

It can be noticed that in municipality Cetinje representation of VI degree remained unchanged in

relation to the previous period, while representation of VI and VIII degree (20%) reduced by as much

as 12%, which can indicate an outflow of work force with these degrees of qualifications to other

municipalities. Both data indicated stagnation of economic development in these two municipalities.

A postitive move in relation to the previous period can be noticed in municipalities Plav and

Andrijevica, where in 2009 dominated representation of I and II degree of education and in 2010

prevailed II degree in both municipalities, with no employees with I degree of qualifications in

municipality Andrijevica in the sruveyed companies. Since this is an underdeveloped municipality with

a very large number of economic entities, it can be concluded that the existing unqualified work force

in the meantime obtained professional qualifications.

The same conclusion can be made for municipality Mojkovac, where in distinction from the previous

period when III degree was more represented than the others, in 2010 the most represented degree

is IV degree (41%), while the biggest participation of III degree of education can be noticed in

municipalities Plužine and Herceg Novi, as in the previous period.

Table no. 1: Educational structure according to municipalities

13. Have your organized some kind of additional education through trainings for your employees

during 2010?

Through this question we tried to obtain answers to the question how much are employers in

Montenegro ready to invest into human resources.

For the purpose of obtaining better quality data, and deeper analysis, the general question of

„additional education through training“ was divided into three wholes, through which we obtained

answers to the questions:

• For which professions1

1 Prequalification is aimed at changing profession, i.e. means education and training for other professions

(economic technician into commercial technician or cook into waiter)

• For which special knowledge and skills2 and

• For which internal employment, for the needs of the work postition“.

Out of the total number of interviewed employers (1470), 21.56% of them stated their employees

passed some kind of education through trainings during 2010.

The past period was marked by a significant decrease in the investments into human resources in the

area of additional education of employees. In 2010 we record a growth in this area by more than 5%

in relation to 2009, which gives an optimistic picture, not only when investment into additinal

education is concerned, but also in economy as a whole.

Graph no. 8: Additional education of employees

Observed according to regions, Podgorica is in the fore with 28.14%, which is to be expected since it is

considered the most developed region.

When investments into additional education of employees are concerned, observed according to

activities, reatail and wholesale trade dominate with a share of 20% of the total number of those

involved in educational process through training, education with 12.74% and activities related to real

estate with 10.83%, while the remaining activities are represented wtih less than 10%.

Graph no. 9: Percentage of those trained in relation to the size of the company

2 Additional qualification means innovation of knowledge within the same profession (cook for cook, commercial technician for kom technician, modernizing the knowledge in this way in line with the current needs of that profession). Specialization is education and training within the same profession for obtaining special knowledge and work skills, with the aim for candidates to reach the maximum level of knowledge of the profession they are specializing for. These are narrow professional specializations for professions of V, VI and VII degree. Study programmes: can be specialist, master, master degree Employees skills (foreign languages courses, computer courses, business communication courses, skills for communication with clients)

In order to be successful, companies should invest more into additional education since this will help

them become more competitive on the market. Frequently, employers think that they will make

savings if they do not invest into education, making thus big mistakes and damage, frequently much

greater than potential investment into human resources. Prejudice that no one but themselves can

know their idea and their business is still present with a large number of employers, even those big.

Those who realize in time that investment into human resources is not an „expenditure“ but „captial

investment“, will certainly be one step ahead of their competition.

13.a) For which professions

935 employees within 125 professions passed additional education.

The table below presents professions for which employers organized some form of additional

education for professions in 2010, where the number of employees per profession is higher than 10.

Table no. 2: Number of employees sent to additional education for particular professions

Profession TOTAL

Technician in the steel rolling and forgning plant 14

Assistant in the plant for thermal processing of metal 10

Plant producer (III degree) 11

Butcher 27

Fine cast producer 12

Upholster 12

Mason 13

Salesman (III degree) 15

Photograph 10

Service car-mechanic 12

Accountant 12

Computer operator 62

Self-protection technician (IV degree) 10

Fireman 11

Nurse 62

General qualifications level 25

Waiter - specialist 16

Electrical engineer for computer technique (VI/1 degree) 15

Commercialist 21

Manager (VI/1 degree) 22

Graduated economist 19

Financial planner - analyst 12

Graduated lawyer (VII/1 degree) 52

Informatician 22

Chamical technician 10

Mathematics – specialist degree 15

Medical doctor (VII/1 degree) 49

Organizer of health protection 11

Social sciences higher education 43

Technical education higher education 11

Professor 19

Researcher of biology 15

Doctor of agricultural sceinces for cattle-breeding and poultry farming 10

OTHER 680

TOTAL MONTENEGRO 935

We single out computer operators and nurses who particfipate with 6,32% in the total number.

Observed according to degrees of qualifications, most of those trained were in the VII (36.80%), IV

(24.70%) and III degree of qualifications (16.90%). The smallest number of those trained were in the I

and VIII degree of qualifications.

Out of the activities, the largest number of trainings for profession was in activities Education, Trade,

Financial mediation and Activities related to real estate.

For a total of 935 participants in some form of training, employers singled out 16.285 working days.

Out of this number 79.40% belong to those with higher education degree.

13.b) For which special knowledge and skills

Not only educational institutions, but employers as well are increasingly realizing that acquisition of

addtional knowledge and skills is a significant manner of raising the quality of work force and

following the needs of lifelong learning, as a necessity in the development of each employee.

On the other side, additional knowledge and skills within particular professions, are increasingly a

deficit of our labor market, so many eg. economists cannot find employment today, if they are not

proficient in a foreign language, if they are not computer literate, do not have the licence of an

accountant or a broker.

In 2010 most employees passed training in the sphere of information technologies konwledge and

skills (59.20% of the total number of participants) and foreign languages (13.84%).

Table no. 3: Review of the number of employees per programmes of new knowledge and skills

Knowledge Total

Course for tourist guide 58

Course for managers 10

Course for accounting affairs in the company 6

Course for accountants 21

Course for computer operator 370

Course for MS Excel 16

Course for Oracle 40

Course of informatics for business system managers 40

Course for application programmers 186

Course for Windows NT 30

Course for data base – DBASE 7

Beginners course of computer literacy 5

Course for certified fireman 22

Course for bodyguard 22

Seminar for rational – emotional psychological therapy 20

Phychological seminar on the communication skills (workshops) 48

Public relations course 8

English – beginners level 53

English – intermediate level 12

English – advanced or conversation level 8

Italian – intermediate level 5

Other languages 32

Course for mountain rescue service 24

Course for quality introduction and control according to ISO9000 standard 148

Professional exam passed 7

Computer literacy 277

English language proficiency 106

TOTAL MONTENEGRO 1640

Most investments into human resources were made in the activities Health Protection and Social

Work, when acquisition of new knowledge and skills is concerned and it accounts for 33.28% of those

trained in total. Education (17%) and Public Administration (12.20%) follow.

For all the executed forms of training, employers renounced 4 914 working days, which is three

working days on average per employee. Most working days in the training for acquisition of new

knowledge and skills had employees who passed the „Course for Accountant“ (28 working days).

13.c) For which internal training , for the needs of the work position

Most employees pass shorter or longer informal training in order to start doing their job

independently so we identified them in our survey as a special group, in order to obtain a clear and

more accurate picture of those who passed some form of training on the account of their employers

for a profession or additional knowledge.

Out of 2261 empoloyees within 123 work positions (presented through adequate profession for that

work position) in the table below we singled out those positions where we have a large number of

educated people.

Table no. 4 Overview of the number of employees who have passed some form of preparation for

work position

Profession TOTAL

Baker 33

Bucher 40

Wood processor and carver (III qualification level and qualified) 34

Metal processor (III qualification level and qualified) 129

Salesman (III degree of secondary qualification and qualified) 304

Textile garment worker 20

Technician of PTT transport (IV qualification level) 17

Trade technician (IV degree of secondary qualification 130

Administrative technician (IV degree of secondary qualification) 227

Technician of property protection 22

Liquidator of damages 53

Educator 53

Nurse 39

Manager (VI/1 17

Pre-school educator 21

Class teacher 76

Airplante pilot – specialist 30

Accounting planner – analyst 35

Customs inspector 25

Class teacher 59

Professor 85

Special teacher 34

Medical doctor (VII/1 qualification level) 42

Higher qualification level 26

Higher qualification in social sciences 294

Other 1845

TOTAL MONTENEGRO 2261

In training employees for the purpose of their work porcess, employers spent a total of 5056 working

days, which is on averge 2.24 working days. Again, accounting – book-keeping jobs turn to be most

complex, so the employers allocated per one accountant almost 80 working days in order to train

him/her for the work process. Apart from them, employers invest more time in the prepration of

employees for the work position of a „diplomat“, „road transport engineer“, „special teacher“,

„doctor“ and other.

13.d) Expressed in percentages, how much have you spent on training and professional

development of employees in 2010 in relation to gross salaries?

Employers in Montenegro, according to what they say, allocate 0.62% of their gross salary for some

form of additional education through training. That percentage is significantly higher than last year,

but is still far from the standard of modern business doing where you first invest into human

resources and only then in technology and infrastructure.

Most resources for additional education of employees have been spent by employers doing business

in municipality Podgorica and mosly in the areas of Trade and Education.

Interestingly enough, in smaller municipalities employers have not, or have only in a minor

percentage, allocated resources for some form of additional education through training, which leads

to the conclusion that employers in smaller towns are not yet aware of the fact that resrouces

allocated for these purposes, in the long run, bring profit, so frequently, insufficient interest or lack of

financial resources affect lower level of quality of business doing of companies.

However, we have to take into consideration the fact that our economy is still developing,

insufficiently strong and competitive within itself to invest to a larger extent into human resources.

This is the reason why the Employment Agency of Montenegro (from the budget funds) invests

considerable resources into additional education of work force on offer,, assisting in this manner the

private sector.

On the other side, evidence on additional education is not sufficiently systematized and monitored in

many companies, due to lack of services for human resources, so these indicators have to be taken

with a certain degree of reserve. Here we should add that a certain number of employers are not

willing to give data on this investment, as a discretion of their business policy.

14. Changes in employment in 2010

Change in employment can best be followed through the ratio between the newly employed and

dissmissed persons in a particular time period and dynamics of filling in or impossibility to fill in

particular work positions, which indicated economic recovery or crisis.

In the survey 2010/2011 the number of new employed persons is by 1.031 higher in relation to the

previous year, when this number was 8. 694, which gives hope that one can speak about optimistic

changes at the labor market and stopping of economic crisis.

Inflow of work force

Even though inflow of work force in the Survey 2010/2011, is slightly higher and amounts to 8.694

persons in relation to the previous year (7 663), still it must be stated that it is significantly lower in

relation to 2008 i.e. the year preceeding the crisis, when the number of newly employed was 18.140

persons and was the highest since market analysis started to be done.

The participation of women in the number of newly employed is 50% i.e. 4.347, while the number of

remaining vacant work positions that could not be filled in for women were only few, less than in the

previous year i.e. 27 women or only 3.6% of the total vacant work positions in Montenegro, which can

be the consequence of higher employment of women in the previous year.

Municipalities in which the highest number of employments was achieved is Podgorica, and then

seaside municipalities in the following order Budva, Herceg Novi, Tivat and Kotor.

Participation of women in the total number of newly employed is high i.e. 50% in the total number of

employees, which is a higher percentage than in 2009 when it was 47%. The reason can be higher

demand by employers for work force and professions belonging to service activities and which are

predominantly done by women: chamber maid, cashier or saleswoman, waitress, cook, trade

assistant, nurse, educator, class teacher, economist, lawyer, journalist, physician.

Table no. 5: Number of newly employed per municipalities and inflow and outflow of work force in

2010

MUNICIPALITY Number of newly employed

Number of newly employed women

Outflow of work force

Outflow of work force - women

Vacant positions

Vacant positions -women

ANDRIJEVICA 15 11 1 0 0 0

BAR 325 149 260 89 42 0

BERANE 178 42 55 29 1 1

BIJELO POLJE 354 166 232 95 24 0

BUDVA 1921 967 1712 851 12 1

CETINJE 59 30 29 14 41 0

DANILOVGRAD 142 47 87 28 0 0

HERCEG NOVI 1.023 668 512 259 30 2

KOLASIN 35 14 7 3 5 0

KOTOR 560 338 437 266 26 7

MOJKOVAC 57 36 17 13 8 0

NIKSIC 419 286 275 130 43 5

PLAV 2 2 7 3 0 0

PLJEVLJA 485 164 392 63 37 0

PLUZINE 12 2 11 0 4 0

PODGORICA 2.363 1.07 1.539 594 427 11

ROZAJE 18 5 11 4 4 0

SAVNIK 11 3 6 2 6 0

TIVAT 626 316 453 208 22 0

ULCINJ 38 19 36 9 3 0

ZABLJAK 51 12 9 2 6 0

TOTAL MN 8.694 4.347 6.088 2.662 741 27

The largest number of newly employed was achieved in the medium sized companies i.e. a total of 5.

343 persons which makes 61.46% of the total employment in all companies according to the Survey.

The second place is occupied by large companies with a total of 2 036 employed persons or 23.42%,

which means that in medium sized and large companies at the annual level 85% of new employments

in Montenegro are realized, and in micro and small companies only 15%.

Outflow of work force

In the presented table, the employment was terminated – there was outflow of work force amounting

to 6.088 with interviewed employers in 2010, while this number in the previous comparative Survey

was 6.945 persons.

The biggest outflow of work force was recorded in municipalities which had the biggest inflow of work

force, most in the seaside municipalities, which is understandable having in mind the seasonsal

character of employment lasting several months.

Table no. 6: Comparative data of inflow and outflow of work force at the labor market

Year Newly

employed

Nowly

employed

women

Outflow of

work force

Outflow of

work force

women

Vacant

positions

Vacant

work

positions

women

2008 18.14 8.229 10.627 4.461 9.073 1008

2009 7.663 3.613 6.945 2.606 767 80

2010 8.694 4.347 6.088 2.662 741 27

Among the northern municipalities, most employees were dismissed in Pljevlja, then in Niksic, Bijelo

Polje and Bar.

The biggest outflow of work force happened in the two branches in which seasonal employment is

predominant: and these are hotels and restaurants and trade. The third place is occupied by transport

and connections and processing industry.

From the aspect of the size of companies most dismissals happend in large companies as well as the

largest number of unfilled work positions.

The number of vacant work positions is not expressed in a large number (741) in relation to the

number of newly employed i.e. 8.5%.

If vacant work positions are analyzed, it can be observed that there are few vacant work positions for

women: 0.6% of the total number of newly employed women.

Table no 7: Professions of the newly employed in 2010

Profession of the newly employed Total Women

100501 Manipulant in food industry 32 14

101901 Manipulant for mounting-installing works 10 0

104501 Communal hygienist 73 14

104502 Installations cleaner 86 78

105201 Construction manipulator 57 0

105601 Transport manipulant 45 5

106501 Tourist manipulant 43 25

109900 Persons without profession and qualification 1075 391

109901 Porter 30 1

TOTAL I DEGREE OF QUALIFICATIONS 1.466 533

204504 Laundry washer 24 19

204515 Beech rescuer 10 4

205200 Assistant construction worker (II degree of qualifications and PK)

51 4

206400 Goods manager – assistant salesman (II degree

of qualifications and PK)

106 73

206500 Assistant caterer (II degree of qualifications and PK

91 47

206513 Food server 96 59

206515 Assistant coock 49 39

206522 Chamber maid 504 501

Total II degree of qualifications 1.039 759

300502 Baker 56 13

300513 Bucher 65 23

301002 Manipulator of the machines for cutting logs 12 0

301035 Carpenter for mounting, repair and maintenance 20 0

301505 Manipulator of simple mining mechnization 20 0

301 552 Manipulator of heavy miing vehicles 10 0

301813 Locksmith 19 0

302220 Car mechanic 26 0

302230 Airplane mechanic 15 0

302431 Electrician 11 0

304502 Communal vehicles manipulator 15 0

304561 Communal road builder 17 4

305203 Carpenter 18 0

305204 Mason 24 0

305231 Manipulator of simple construction machines 10 0

305251 Road builder 17 0

305600 Road vehicle driver (III degree of qualifications and KV)

142 2

305602 Driver of a passenger car 14 2

305604 Truck driver 51 0

305605 Bus driver 18 0

306400 Salesman 1010 856

306421 Salesman in retail of food products 17 10

306641 Warehouseman 102 0

306513 Waiter 197 76

306515 Cook of simple dishes 73 45

306517 Drinks pourer 82 32

306702 Cashier 20 13

309640 Hairdresser for women 16 13

309901 Qualification level - III 13 1

Total Qualification level - III 2.274 1.118

400900 Forest technician (IV level of qualifications) 11 4

402000 Mechanical technician – constructor (IV level of qualifications)

17 1

402400 Energy electrician (IV level of qualifications) 12 1

402600 Electronics electrician (IV level of qualifications) 22 2

404001 Garment worker 20 6

405200 Construction technician (IV level of qualifications) 13 0

405231 Technician of construction mechanization 32 4

405601 Bus or truck driver 13 0

405604 Truck driver 18 0

405901 Airplane technician acceptance and dispatch of passengers

27 27

406400 Trade technician (IV level of qualifications) 357 299

406453 Commercial technician 30 19

406513 Waiter 373 67

406515 Cook 120 52

406523 Recepcionist 69 32

406531 Tourist technician 26 16

406700 Economic technician 32 18

406702 Cashier 47 13

406721 Accountant 30 20

406901 Accounting operator 11 9

407100 Administrative technician 114 48

407221 Fireman 14 0

407501 Educator 64 64

408201 Grammar school leaver 20 12

409000 Medical technician 74 57

409002 Nurse 68 64

409021 Pediatric nurse 15 15

409082 Physiotherapy nurse 22 10

409200 Pharmaceutical technician 11 11

TOTAL IV DEGREE OF QUALIFICATIONS 2.199 1.076

506515 Cook – specialist 16 10

505531 Tourist technician – specialist 30 25

507121 Business secretary 12 7

616453 Commercialist 49 21

616532 Tourist guide 15 12

616600 Manager (VI/1 secondary qualifications) 41 17

616700 Economist for finances, accounting and banking

(VI/1 degree of qualifications)

29 20

6168000 Lawyer 10 4

617501 Educator of preschool children 32 32

617502 Class teacher 21 16

619900 Higher education degree 13 13

711800 Graduated machine engineer (VII/1 degree of

qualifications)

23 0

712600 Graduated electronics engineer 17 3

715200 Graduated civil engineer (VII/1 degree of qual.) 35 10

716600 Graduated manager (VII/1 degree of qual.) 14 4

716700 Graduated economist for general economics, banking and finances (VII/1 degree of qual.)

49

27716710 Graduated economist 137 76

716800 Graduated lawyer 108 58

716923 Information technolgy engineer 38 18

717306 Insurance Actuary 26 17

717502 Professor of class teaching 98 88

717510 History professor 11 5

717511 Mother tongue professor 12 9

717534 English language professor 45 40

717552 Sociology professor 12 10

717569 Professor for music group of subjects 14 9

717579 Physical culture professor 13 4

717601 Mathematics professor 14 9

717611 Biology professor 11 8

718220 Physchologist 12 8

718225 Sociologist 10 6

718600 Graduated musician (VII/1 degree of qualif.) 11 7

718721 Journalist 45 37

719000 Medical doctor 49 34

719001 General medicine doctor 12 6

719084 Bachelor of applied studies of high medical school

17 15

719900 Higher degree qualification 35 23

726792 Advisor for economic issues 18 8

Total VII-1 degree of qualifications 1.179 726

Total VII-2 degree of qualifications 34 15

Total VIII degree of qualifications 10 8

Total professions 8.602 4.477

When activities are concerned, the largest number of newly employees in 2010 was accepted in the

area hotels and restaurants, a total of 2 281 i.e. 26.23% of the total number of newly employed, and

occupied a place below trade which employed the largest number of work force last year and

occupied the second place this year.

To a much smaller number, employment was recoded in transport, education, health services and

processing industry, while construction industry came third.

Among the newly employed persons, the most represented professions are: assistant salesman, maid,

salesman, waiter, trade technician, waiter, cook, graduated economist, graduated lawyer, professor of

class teaching, professor of English language, journalist and medical doctor.

Table no.8 Changes in employment in 2010, the number of newly employed according to activities and

gender structure

Activities No. of newly employed

No. o fnewly employed women

Outflow of work force

Outflow of work force women

Vacant positions

Vacant positions women

Agriculture, hunting and forstry

111 50 46 21 1 0

Fishery 40 15 19 13 0 0

Power and gas production and supply

173 32 53 8 18 0

Construction industry 424 40 211 22 56 0

Retail and wholesale trade

2090 1366 1237 672 41 9

Processing industry 503 187 428 124 27 1

Financial mediation 318 158 284 128 19 0

Activities related to real estate

247 76 141 30 21 1

State administration and defense, obligatory social

203 101 79 39 296 7

insurance

Education 607 413 98 65 57 2

Health and social work 518 382 335 221 41 5

Other communal, social and personal service activities

429 118 259 80 118 0

Ore and stone mining 105 17 273 20 0 0

Transport, warehousing and connections

645 198 608 213 27 2

Hotels and restaurants 2281 1194 2017 1007 19 0

TOTAL MONTENEGRO 8694 4347 6088 2662 741 27

15. Did you have any vacancies in 2010 that you did not mange to fill?

Occupations in demand in the world

Results of an American research have shown that out of the ten most wanted professions in

the world in 2010 none of them existed five years ago.

Such occupations are for example: lobbyists, facebook applications experts, organizational

psychologists, and fitness and wellness educators, java developers… In such constellation of the

developments in the labour market, it is very hard to foresee future occupations and even harder to

create enrolment policy.

Employment strategies of the EU countries require that in the following 5-10 years at least

40% of young people are highly educated so that they can reach necessary future knowledge and

skills they will be expected to have.

Occupations in demand in our country

Occupations in demand are occupations for which demand has been higher than supply for

several years for any reason, (usually this is a period of 3-4 years which is the period needed to

educate staff), which is recorded based on the number of job advertisements during the year. From

the standpoint of individual employer, this is also a certain kind of short supply, but not from the

standpoint of national economy, because training measures aimed at removing such disparity can

be undertaken.

When analyzing personnel that needs to be provided during the tourist season, there are

problems of different nature, such as: supply and demand do not match at regional level, the

unemployed do not want to accept a vacancy under the offered terms or employers do not want to

hire the unemployed registered with the Employment Agency because they believe these

candidates do not suit their needs – in terms of expertise and competence, experience, gender, and

the like. That is why for occupations where there is a larger number of vacancies and such profiles

are registered with the Employment Agency, it is necessary to determine what is the reason for their

non-engagement, or what the reason for non-acceptance of the offered job is. Those looking for a

job know from experience that highly wanted occupations are those that are in the sphere of very

insecure occupations in terms of payment of wages, working conditions and duration of

employment. There is a number of employers who change employees very often because of

working conditions or because of occasional lack of work.

It should be noted that every 4-6 years in the future a large number of occupations will

disappear and the same number of new occupations will appear (according to estimations it will be

from 50-100%), so that only the establishment of the system of a lifelong education and education

of general population to the highest extent can be a guarantee of keeping up pace with

technological progress.

Jobs on which employers did not manage to employ anyone

The question: “Did you have any vacancies to which you were not able to hire anyone” was

answered by 85% employers with “No” and 15% employers answered with “Yes.”

Table 9: Did you have any vacancies in 2010 that you did not manage to fill

Category of answer Number of

answers

%

YES 189 15 NO 1,281 85

This percentage of 15% is lower in comparison to the previous year when 20.61% employers

responded with Yes and compared to 2008 it is much lower (in 2008 this ratio was about 30% YES to

about 70% NO).

15a. Major reasons for non-filling vacancies

Table 10: Major reasons for non-filling vacancies

Reasons for deficiencies Number of answers

Lack of experienced available workforce 35

Lack of necessary but specific skills 14

Lack of trained workforce on market 49

Lack of workforce with IT skills 3

Lack of workforce with knowledge of foreign languages 2

Lack of workers with several types of skills 5

Lack of the required occupation in the market 90

Temporariness of employment 6

Something else 28

Low wage for working conditions in that job 10

Age of job seekers, motivation, capacity for

work and habits

10

In 2010 employers believed that lack of occupation sought in the labour market is the major reason

for non-filling vacancies, than lack of trained workforce in the market and lack of experienced

available workforce which all indicates that it is necessary to invest in human resources, in practical

training and permanent improvement.

15.b Structure of non-filled vacancies by occupation

Table 11: Structure of non-filled vacancies by occupation

Occupation Number of workers

Communal hygienist 5

I LEVEL 5

Sewer of textile 10

II LEVEL 10

Butcher 9

Operator of cutting logs machines 7

Woodworker for mounting, reparation and maintenance 8

Locksmith 6

Car mechanic 16

Carpenter 15

Tinsmith 12

Bricklayer 17

Passenger car driver 20

Bus driver 7

Salesperson (III qualification level school/ skilled worker) 7

Waiter 10

Cook of simple dishes 5

III LEVEL 141

Waiter 11

Bookkeeper 5

IV LEVEL 16

Customs officer 10

V LEVEL 10

Business officer/administrator 6

VI LEVEL 6

Mechanical engineer B.Sc. (VII/1 qualification level ) 10

Civil engineer B.Sc. (VII/1 qualification level) 8

Economist BEC 16

Customs inspector 7

Lawyer BA (VII/1 qualification level) 18

Teacher of music group of subjects 16

Teacher of mathematics 8

Translator 6

Medical doctor (VII/1 qualification level) 7

University degree - social sciences 5

University degree - technical sciences 16

VII LEVEL 117

Doctor of agricultural sciences for livestock and poultry breeding (VIII qualficiation level)

11

VIII LEVEL 11

TOTAL 499

A significant number of executors with the III level of qualification in construction

occupations such as carpenters and bricklayers and craftsmen: car mechanics, tinsmiths, then

passenger car drivers and bus drivers as well as a large number of highly educated staff: economists,

lawyers, mechanical engineers and civil engineers is missing.

Table 12: Number of occupations and number of employees by year

Year Number of occupations Number of executors

2008 395 4,072

2009 193 1,169

2010 273 499

Employers need 499 executors which is almost three times lesser as compared to 2009 and

almost ten times lesser than in 2008, which illustrates cautiousness of employers when it comes to

new employment in conditions of crisis.

The number of occupations considered by employers occupations in demand is higher compared to

2009 (193) and accounts for 273.

If we analyze vacancies by type of occupation then we can see that there is a large number

of unfilled positions in the area of state administration and defence and obligatory social insurance

and education which is the consequence of limited employment in state bodies in the previous year.

Table 13: Structure of unfilled positions by type of occupation

Type of occupation Number of workers

Agriculture, hunting and forestry 1

Power, gas and water production and supply 13

Building industry 55

Wholesale and retail trading; repair of motor vehicles and

motorbike

58

Processing industry 42

Financial intermediation 17

Activities related to real estate, leasing and business activities 11

State administration and defence; obligatory social insurance 86

Education 64

Health care and social work 45

Other communal, social and personal services 31

Mining and rock digging 5

Transport, storage and communications 47

Hotels and restaurants 24

TOTAL MONTENEGRO 499

Analysis of the structure of vacancies by the level of educational qualification has shown

that the number of workers with university degree is largest. It is followed by the third level of

educational qualification while short supply in other levels of educational qualification has not been

so distinct.

Table 14: Structure of vacancies - by educational qualification

Level of educational qualification – code Number of workers

10 9

20 18

30 164

40 45

50 22

61 23

71 196

72 4

80 18

Analysis of the structure of vacancies by gender has shown a growing tendency of employers

to hire workers regardless of gender which expressed in percentage accounts for 67%; this is

followed by hiring male workers - 27% and female workers are on the third place which indicates

that gender balance is established.

Table 15: Structure of unfilled vacancies - by gender

Occupation Men Women Regardless

of gender

104501 Communal hygienist 0 0 5

204023 Sewer of textile 0 10 0

300513 Butcher 0 0 9

301002 Operator of cutting logs machines 7 0 0

301035 Woodworker for mounting, reparation and maintenance

8 0 0

301813 Locksmith 6 0

302220 Car mechanic 16 0 0

302256 Mechanic for hydraulics and pneumatics 2 0 0

305203 Carpenter 15 0 0

305204 Bricklayer 17 0 0

305602 Passenger car driver 0 0 20

305605 Bus driver 7 0 0

306513 Waiter 0 1 9

306515 Cook of simple dishes 0 0 5

406721 Bookkeeper 0 0 5

506751 Customs officer 0 0 10

711800 Mechanical engineer B.Sc. (VII/1 qualification level )

2 0 8

715200 Civil engineer B.Sc.(VII/1 qualification level) 1 0 7

716710 Economist BEC 0 0 16

716752 Customs inspector 0 0 7

716800 Lawyer BA (VII/1 qualification level) 0 0 18

717569 Teacher of music group of subjects 1 0 15

717601 Teacher of mathematics 0 0 8

718843 Translator 0 0 6

719000 Medical doctor (VII/1 qualification level) 0 0 7

719901 University degree – social sciences 0 0 5

719902 University degree – technical sciences 0 0 16

TOTAL: 499 136 35 328

Employers mostly lack workforce aged 25-30 and 30-40, which means that they are lacking

younger personnel, but there are also vacancies for workers aged 40-50 and there is a much lesser

need for workers aged 50-65.

Table 16: Structure of unfilled vacancies – by age

Occupations by age

Under

18 19-24 25-30 31-40 41-50 51-54 55-65 Total

104501 Communal hygienist 0 0 0 5 0 0 0 5

204023 Sewer of textile 0 0 0 10 0 0 0 10

300513 Butcher 0 0 2 0 5 0 2 9

301002 Operator of cutting logs machines 0 2 5 0 0 0 0 7

301035 Woodworker for mounting, reparation and maintenance

0 0 8 0 0 0 0 8

301813 Locksmith 0 0 4 2 0 0 0 6

302220 Car mechanic 0 0 13 2 0 1 0 16

302203 Carpenter 0 0 1 14 0 0 0 15

305204 Bricklayer 0 1 5 11 0 0 0 17

305602 Passenger car driver 0 0 20 0 0 0 0 20

305605 Bus driver 0 0 7 0 0 0 0 7

306400 Salesperson (III level of secondary/vocational school and skilled worker)

0 0 4 3 0 0 0 7

306513 Waiter 0 1 5 4 0 0 0 10

306515 Cook of simple dishes 0 0 2 3 0 0 5

406513 Waiter 0 4 6 0 1 0 0 11

406721Bookkeeper 0 0 2 2 1 0 0 5

506751 Customs officer 0 0 10 0 0 0 0 10

616453 Business officer/administrator 0 0 3 2 0 0 0 6

711800 Mechanical engineer B.Sc. 0 2 5 3 0 0 0 10

715200 Civil engineer B.Sc. 0 0 5 3 0 0 0 8

716710 Economist ECC 0 0 16 0 0 0 0 16

716752 Customs inspector 0 0 0 7 0 0 0 7

716800 Lawyer BA 0 0 9 8 1 0 0 18

717569 Teacher of music group of subjects 0 4 4 8 0 0 0 16

717601 Teacher of mathematics 0 0 7 0 1 0 0 8

718843 Translator 0 0 0 0 6 0 0 6

719000 Medical doctor 0 0 7 0 0 0 0 7

719901 University degree – social sciences 0 0 5 0 0 0 0 5

71119902 University degree- technical sciences

0 0 16 0 0 0 0 16

800200 Doctor of agricultural sciences for livestock and poultry breeding

0 0 11 0 0 0 0 11

TOTAL MONTENEGRO 1 37 283 127 37 8 6 499

Analysis of the structure of unfilled vacancies by specific knowledge has shown that

completed professional exam is in the first place regarding its importance for the employer, while

computer skills and knowledge of English language are in the second and third place when it comes to

employers’ priorities.

Table 17: Name of individual occupations

Code of special knowledge

Name of individual occupation Number of workers %

6801 Bar examination 3

7104 Typist of the I-a class 1

8831 English – beginners 2

8832 English – intermediate 1

9903 Passed professional exam 24 44%

9904 Computer skills 15 28%

9905 Knowledge of English language 8 15%

Three first types of selected specific knowledge, in the opinion of employers make 87% of

the reasons for non-filling individual positions.

It can be said that employers’ demand for workers is highly pronounced and that they are

unable to fill certain positions in public administration and health care where professional exam is a

very important factor for keeping employees at their positions and computer skills and English

language are already considered an integral element of functional literacy of each person in the

future and a requirement for employment.

16. Did you have excessive workforce in 2010?

On the sample of 1,470 interviewed employers, the Survey has shown that growing trend of

employers with excessive workforce continues and compared to the previous 2009 when we had

16.81% employers at the level of Montenegro who declared to have excessive workforce this year

we have 1% more. However, if we take into account the fact that in 2008 8.8% of employers

declared to have excessive workforce we must state that growing trend decreases and that

compared to the previous year the situation has not changed significantly.

Table 18: Excessive occupations

Category of response Number of responses %

YES 262 17.82

NO 1208 82.18

Total 1470

Also, we have to mention here that the last year’s forecast of employers for 2010 stating

that the number of excessive workforce would be retained at approximately the same level as it was

in 2009 and that it would gradually stabilize has come true almost entirely.

16.a Structure of excessive workforce in 2010

Table 19: Structure of excessive workforce in 2010 by size of the company (by number of

employees)

Municipality

1-4

Employees

5-9

Employees

10-49

Employees

50-249

Employees

Over 250

Employees

Excessive

Total

BAR 2 1 22 58 0 83

BERANE 0 0 8 56 0 64

BIJELO POLJE 0 24 100 73 10 207

BUDVA 7 6 29 37 14 93

CETINJE 0 0 1 3 0 4

DANILOVGRAD 0 0 29 4 0 33

HERCEG NOVI 1 0 35 30 25 91

KOLASIN 1 1 3 10 0 15

KOTOR 12 5 31 48 0 96

MOJKOVAC 0 1 8 6 0 15

NIKSIC 24 9 40 26 6 105

PLAV 0 0 4 0 0 4

PLJEVLJA 0 0 8 11 0 19

PLUZINE 0 0 0 9 0 9

PODGORICA 14 39 88 47 205 393

ROZAJE 0 2 0 7 0 9

SAVNIK 0 0 1 0 0 1

TIVAT 0 24 56 22 0 102

ULCINJ 15 3 7 1 0 26

ZABLJAK 0 0 6 0 0 6

TOTAL 76 115 476 448 260 1375

Graph 10: Structure of excessive workforce by size of the company (by number of employees)

Over 250 employees 19% 1-4 empl. 6% 5-9 empl.8%

50-249 employees 33% 10-49 employees 34%

When we look at the structure of excessive workforce by size of the company at the sample

level, we can see that unlike last year, when excessive workforce was most pronounced in medium-

sized enterprises (50-250 employees), this year excessive workforce mostly appear in small

enterprises (10 - 50 employees). It is also noticeable that large enterprises (over 250 employees)

have kept even this year the third place when it comes to excessive workforce. However, we must

also note that these redundancies are by 25.29% lesser compared to last year. These data make us

slightly more optimistic about medium and large enterprises and make us believe that they will

gradually stabilize their operations and structure of employees but also that global crisis in

Montenegro is slowly eroding.

If we observe excessive workforce by municipalities and compare it to the last year we will

come up with very interesting data. Niksic as a city in which a substantial part of Montenegrin

economy is placed and in which unfortunately the problems in companies are most visible, this year

had a decrease in excessive workforce by almost a half. In Bijelo Polje the situation is completely

opposite where we have an increase in excessive workforce of 100% compared to last year. There

are more such examples and they led to the conclusion that processes of restructuring and

privatization are still going on and are producing sometimes unexpected results.

Graph 11: Structure of excessive workforce by industries

This year like last year the highest excessive workforce was recorded in processing industry

but unlike last year when there were 419 redundant workers on the sample level this year it was a

significantly lower number. Health care and social work has increased redundancy as a result of

health care reform while in building industry redundancy is lesser than in 2009.

Name of occupation Number of workers

I level

Operator in food processing industry 5

Cleaning person 34 Construction operator 67 Persons without occupation and 128

Carrier 29 Other (under 5) 6

Total 269

II level

Assistant construction worker 30 Merchandise operator – assistant 22 Servicing worker 10 Maid 6 Keeper 5

Assistant medical worker 15 Other (under 5) 20 Total 108

III level

Food and drinks processing worker 55 Sorter of wood elements and final 8 Locksmith 24 Pipe works fitter 6 Car mechanic 5 Plasterer 5 Construction plasterer 9 Driver of motor vehicle 25 Driver of passenger car 17 Bus driver 5 Salesperson 147 Warehousemen 9 Waiter 15 Administrator 14 Guard – desk clerk 24

Other (under 5) 68

Total 436

IV level

Veterinarian technician 5

Janitor 5

Trading technician 12

Waiter 19

Cook 8

Tourist technician 7

Economy technician 13

Bookkeeper 8

Banking technician 6

Administrative technician 63

Technician for protection of assets 5

Medical technician 31

Nurse 86

Others (under 5) 111

Total 379

V level

Medical nurse – specialist in nephrology 7

Other (under 5) 9

Total 16

VI level

Electrical engineer for computer equipment 5

Economist for trading in goods 7

Business officer/administrator 10

Senior medical nurse 7

Physical therapist 11

Other (under 5) 36

Total 76

VII/1 level

Economist BEC 12

Accounting planner – analyst 5

Teacher (elementary school-younger classes) 7

Illumination works technician 5

Other (under 5) 54

Total 83

Vll/2 level

Master of Medical Science 5

Other (under 5) 3

Total 8

TOTAL 1,375

When talking about the structure of excessive workforce by educational qualification we can

see that this year as well as in 2009 redundancies were most pronounced at I, II, Ill and IV level of

educational qualifications which makes 86.69% of total redundancies.

The obtained results show that occupations which appear to be most redundant this year as

well as last year are the occupations of salesperson and persons without occupation.

It is interesting to mention here that according to the Employment Agency of Montenegro

these professions are actually on the top of the list of most wanted occupations in Montenegro.

16. b) General and specific reasons for excessive workforce

The table below shows the reasons that the interviewed employers estimated to be the

most important causes of redundancies in their enterprises.

Table 21: General and specific reasons for excessive workforce

Reasons for reduction in the number of employees Total %

Difficulties in operations caused by global economic crisis

130 50.58

Planned and implemented program of restructuring 30 11.67

Unfair competition in the market 8 3.1 I

Inadequate qualification structure of employees 14 5.45

Unsatisfactory knowledge and skills of employees 16 6.23

Other reasons 37 14.40

Outflow of work force due to pensioning 22 8.56

257

In large companies, employers mention planned and implemented restructuring programs

as the biggest reason for redundancies, while other employers mention difficulties in operations

caused by the global crisis as the most important reason for excessive workforce. Other reasons are

approximately the same as stated in 2009 and the only significant departure is the reason which

refers to unsatisfactory knowledge and skills of employees which was mentioned last year by 12.68%

of the interviewed employers, while this year this percentage has decreased significantly (6.23%).

PART III

EXPECTED EMPLOYMENT IN 2011

A significant chapter in the structure of Questionnaire relates to the expectations of

employers regarding the hiring of new employees during the year and during the season, and the

need for employment in relation to industries and personnel educational qualifications.

Also, the survey tended to find out the needs of employers for workers with new skills and

occupations.

17. The expected number of employment

Expected number of employees by municipalities during the year

As for the expectations of employers regarding the employment in 2011, the largest number

of jobs is planned in Podgorica (31%), Budva (27%), Herceg Novi (9%) and Tivat (7%).

These three municipalities make up about 74% of the total projected employment in 2011.

However, the situation is different when it comes to the expected employment in the

northern region of Montenegro.

Namely, employers from the north, particularly from municipalities Andrijevica, Berane,

Bijelo Polje, Kolasin, Pljevlja, Plav, Rozaje and Pluzine are not optimistic when it comes to new jobs in

2010 and they make somewhat less than 3% of the total planned employment.

This information is very important from the aspect of the development of tourism and

agriculture as leading activities in the north, and competent authorities should implement the

necessary incentives in order to motivate employers in the north.

Graph 12: The expected number of employees by municipalities during the year

Expected number of employees by municipalities during the season

When it comes to the upcoming season, according to prognosis of employers, the highest

employment can be expected in Budva, Podgorica, then Herceg Novi and Tivat.

Of the total number of the expected employment during the season, employers in Budva

plan to hire about 35%, employers from Podgorica about 28%, while employers from Herceg Novi

plan to hire about around 9% of workers and employers from Tivat about 8%. These four

municipalities account for around 80% of the total expected employment during the next season.

Graph 13: The expected number of employees by municipalities during the season

Based on the obtained data it can be concluded that there are no major differences in the

expected employment during the year and during the season.

However, the situation is different when it comes to the expected employment in the

northern, central or the southern region.

Namely, expectations of employers in the northern region of Montenegro when it comes to

seasonal employment and employment during the year are not optimistic, while employers in

Podgorica, Budva, Tivat, Bar and Herceg Novi are more optimistic when it comes to new

employment.

Graph 14: Parallel overview of the expected level of employment during the year and

during the season in municipalities

red – expected employment during season

blue – expected employment during the year

The expected number of employees by industries during the year

If we observe the expected employment by industries/sectors, the following sectors stand

out: hotels and restaurants (33%), processing industry (125), wholesale and retail trade (11%), then

transport and communications (10%) while the lowest rate of employment is expected in the

following sectors: private households with employed persons, exterritorial organizations and bodies,

mining and rock digging.

The expected number of employees by industries during the season

If we observe individual industries/sectors we can notice that employers in the following

sectors have the largest need for employment during the season: hotels and restaurants (43%)

agriculture, hunting and forestry (14%), wholesale and retail trade (10%) and transport, storage and

communications (8.25 %).

Compared to last year, the expectations of employers in hotel and restaurant industry during the

season have increased by almost double.

For the sake of comparison, in 2010 the need for the employment in season in hotel and restaurant

industry was about 23%, while in 2011 it is 43%, based on which it can be assumed that employers in

this industry expect the increase in the volume of work.

Compared to last year, the expectations of employers in the sectors of agriculture and forestry

reduced from 18% to 14%, in the sector of transport, storage and communications expectations of

employers reduced from 12% to 8.25%, while in the area of wholesale and retail trade the

expectations of employers reduced from 11% to 10%.

So, in comparison to the last year, in some industries the need for employment reduced based on

which it can be assumed that employers in the above mentioned industries expect reduction of the

volume of work.

In all other sectors there have been no major changes in employment expectations in the season.

Graph 15: The expected number of employees by industries during the year and during the season

It is obvious that during the year and during the season the most predominant is the expectation for

employment in tourism industry.

18. The expected changes in employment by occupations in the overall number of employees in

the following 12 months

In the Survey the employers pointed out which are the most frequent occupations with the

accompanying number of workers they intend to hire in 2011. According to the expressed

expectations persons with the following level of educational qualifications and occupations will be

employed:

I level of educational qualification

The highest level of employment with I level of educational qualification is expected for

persons without occupation and educational qualification (682) particularly in hotel and restaurant

industry with 54% of share. It is followed by the following occupations:

Carrier …………………………………………………………………….....…………………….. 51

Building operator ………………………………………………………………………………. 42

Communal hygienist ………………………………………………………………………..… 28

II level of educational qualification

Maid......... ……………………………………………………………………………………… 295

Clothes washer …………………………………………………………………………………... 33

Servicing worker ………………………………………………………………………………… 22

III level of educational qualification

Salesperson …………………………………………………………………………………….. 141

Motor vehicle driver ………………………………………………………………………… 102

Mechanical fitter ...................………………………………………………………………50

Locksmith ……………………………………………………………………………………….......40

Bricklayer ………………………………………………………………………………………...... 24

IV level of educational qualification

It is interesting to mention here that according to data highest employment with the IV level of

educational qualification is expected for persons with high school diploma – general course (326) in

hotel and restaurant industry which makes 23%.

It is followed by the following occupations:

Waiter …………………………………………………………………………………...... 275

Cook ...……………………………………………………………………………….....… 95

Administrative technician ………………………………………………………………… 64

Building works technician .………………………///….……………….…………….…… 45

V and VI level of educational qualification

Tourist technician – specialist …………………………………………………………… 25

Business officer/administrator …………………………………………………………..… 20

Manager …………………………………………………………………………………..... 15

Cook-specialist ...……………………………………………………………………………. 15

VII level of educational qualification

Lawyer BA …………………………………………………………………………………….......…46

IT operator ……………………………………………………………………….....….36

Elementary school teacher (younger classes)…………………………………..….29

Teacher of music group of subjects …………………………………………………...25

Advisor for economic issues ……………………………………………………………..21

Journalist ……………………………………………………………………………………......……20

Economist BEC …………………………………………………………………………....16

These data indicate that these occupations are the most frequent in the labour market of

Montenegro and that workers with these occupations frequently change employers.

18.a Do you think that in the future you will need some of these occupations which do not exist

today in the labour market in Montenegro?

Of the total number of the interviewed employers 96% of them believe that in the future

they will need occupations that do not exist today in the labour market, while only 4% of them

believe that in the future there will be no need for new occupations.

18.b Which are new occupations that you will need in the future?

The expressed needs of employers for occupations in the following period are grouped into three

categories of needs based on the analysis of their responses. The groups are as follows:

I Occupations identified by employers as needed which have not been produced by the education

system so far (HACCP administrator, HR manager, oligophreno-pedagogue):

II Occupations present in the labour market which are not produced by the current education system

(hardwood layer, stone cutter, insulation worker);

III Occupations produced by the current education system; they are produced by new education

programs and they are not included in the workforce supply (car mechatronic, sommelier):

19. Do you think that in the future you will need some of the new skills which do not exist today in

the labour market in Montenegro?

When it comes to employers' needs for new skills that do not exist today in the labour market needs

of employers are clear. Of the total number of the interviewed employers 99% believe that in the

future there will be a need for new skills that do not exist today in the labour market, while only 1%

of them believe that there will be no need for new skills in the future that do not exist in the labour

market today.

19.a What are the new skills that you will need in the future?

Observed by industries/sectors, it can be noticed that employers from sectors which expect

highest employment that is employers in hotel and restaurant industry, wholesale and retail trade as

well as employers in the field of civil engineering will have the largest needs for new skills in the

following period.

Employers’ needs for newer skills can be grouped into two categories: the needs for

currently actual skills such as general computer and language skills, with emphasis on the knowledge

of English language, and the needs for skills driven by organizational and technological changes in

the labour market such as collection of debts in the area of trading, working with technical foil in

building industry and developing and maintaining web sites in hotel industry.

General conclusion that can be drawn from expectations of employers is that employers

who expect higher employment express greater needs for special skills. Here the emphasis is placed

on professions in tourism and hospitality industry and wholesale and retail trade.

20. Have you hired people with disabilities in the last 2 years?

The question about hiring persons with disabilities was introduced in the Questionnaire for

Employers last year. Aim of this question was to find out how many people with disabilities the

employers have hired in the last two years who were before that registered with the Employment

Agency. In this way we have managed to avoid obtaining data about the number of disabled persons

employed by the surveyed companies whose disability was acquired at work because these data

would produce a distorted picture of the employment of this population. For the sake of having the

clearest picture possible, it is necessary to mention here that category “persons with disabilities”

includes people with all levels of disability.

According to the survey data it is clear that employers in Montenegro are not motivated to

employ persons with disabilities. The fact that over the past two years only 49 persons with

disabilities were employed by the interviewed employers speaks in favour of the above statement.

This number is by 18% lower than last year when interest in the employment of persons with

disabilities was also low.

According to the survey data, interviewed employers have hired in the last two years

persons with disabilities without occupation and educational qualification (12%), bakers (8%), guards

(6%) and sellers with the third level of educational qualification (6%). Other employment of disabled

persons by the interviewed employers referred only to individual cases.

As for the length of duration of working engagement of persons with disabilities with the

interviewed employers the data show the following:

Graph 16: Duration of working engagement

(37% - up to half a year, 12% - up to a year, 51%- over a year)

As for gender structure of the employed persons with disabilities with the interviewed

employers it is evident that employers favoured more male than female workers and percentage of

employed male was 70% of the total number of employed persons with disabilities.

20.a) Are you familiar with statutory incentives for the employment of persons with disabilities?

The aim of this new question was to find out how much are the interviewed employers

acquainted with legally prescribed incentives stipulated by the Law on Vocational Rehabilitation and

Employment of People with Disabilities. Namely, the above mentioned Law specifies a number of

subsidies that employer is entitled to should s/he hire a person with a disability such as:

- One-off assistance for the adaptation of workplace and working conditions for the employment of persons with disabilities;

- Loans under favourable conditions for the purchase of machinery, equipment and tools required for the employment of persons with disabilities;

- Participation in financing the cost of personal assistants (assistants in work) of persons with disabilities;

- Wage subsidies for persons with disabilities hired in the first year 80%, 60% in the second year and in the third and each subsequent year 50% of the paid gross salary of the person with disabilities3.

These data show that majority of the interviewed employers (91% of them) is acquainted with all

duties and benefits provided if they employ this category of persons.

20.b) Do you plan to hire person with disabilities under specific legally prescribed incentives?

Despite the fact that majority of the interviewed employers is familiar with statutory

incentives for the employment of persons with disabilities, only 10% of the interviewed employers

have expressed desire to hire persons with disabilities in the future. This percentage is much lower

than in the previous year when 23% of employers planned to hire persons with disabilities. It should

be noted here that in 2010 according to the records of the Employment Agency of Montenegro level

of employment through the Employment Agency was lower in comparison to 2009 and the

standpoint of employers that they plan to hire even less persons with disabilities in the future is

expected (in the extent presented here).

Employers in communal, social and personal servicing industries (41%) have shown the

greatest interest in hiring persons with disabilities, then in wholesale and retail trade (14%) and then

employers in the sector of health care and social work (12%).

Most employers would hire persons with disabilities for the period of six months that is 44%

of them; they are followed by employers who would hire 39% of persons with disabilities for a

period over one year and last place is taken by those who would hire this category of persons for a

period of one year (17%).

3 The Law on Vocational Rehabilitation and Employment of People with Disabilities, the Law was published in the Official Gazette of Montenegro 49/2000 as of 15 August 2008.

According to the survey, employers have shown largest interest in the employment of

persons with no occupation and educational qualification - 33% to them. They are followed by

administrative technician (8%), seller (5%), medical doctor (3%) and translator (3%). Other

occupations that employers plan to hire in the future are usually individual cases of occupations.

21. Have you hired any member of the RAE population in the last 2 years?

This year, like list year when this question was introduced for the first time in the

Questionnaire for Employers, the Employment Agency wanted to “hear” the opinion of employers

about this group of harder-to-employ persons. In Montenegro, members of the RAE population live

in drastically worse situation as compared to the rest of population. Due to a difficult socio-

economic status members of this population are among the hardest-to-employ persons. The biggest

barriers to employment of the RAE population members are: illiteracy, lack of familiarity with

Montenegrin language, low level of education, low level of skills and lack of motivation for

employment.

Lack of employment records of this harder-to-employ category and generally negative

attitude towards this population as well as ingrained prejudices have motivated the Employment

Agency to find out what the employers think about hiring members of the RAE population.

Until recently, employers had no interest in employing members of the RAE population.

However, the results of this year’s survey show that this attitude towards them has been changing

and in the last two years the interviewed employers have hired 431 members of the RAE population.

Of the total number of the interviewed employers 6% of them have hired members of the RAE

population in the last two years.

The employers have mostly employed members of the RAE population with the following

occupations:

Table 22: Most frequent occupations of members of the RAE population hired

Occupation Number of persons

Persons without occupation and qualification 153 Carrier 15 Communal hygienist 12

Maid 7 Assistant to florist–gardener 6 Cleaner of premises 5

Based on the data given it can be concluded that physically harder and less well-paid jobs

are “reserved” for the RAE population.

The largest number of members of the RAE population has been hired in the last two years

in the following sectors: communal and personal servicing activities (53%), tourism and hospitality

industry (14%) and with employers in production and electricity, gas and water supply (8%).

The analysis of the duration of working engagement of members of the RAE population with

the interviewed employers in the last two years shows that employers, like in the last year’s survey,

tended to engage members of the RAE population for a shorter period of time. Observed in terms of

duration of working engagement, working engagements of members of the RAE population for a

period of up to six months are in the first place (56%), they are followed by working engagements for

over than one year (31%) and in the last place are employments for a period of one year (13%).

21.a) Do you plan to hire members of the RAE population?

This year’s questionnaire data obtained from the Questionnaire for Employers are not as

optimistic as last year’s regarding the planned employment of members of the RAE population in the

following period. Data according to which the interviewed employers plan to hire 431 members of

the RAE population in the future is by 70% lower than last year’s. This attitude of employers is not

favourable for members of the RAE population and there should be made some efforts to change it

in the future.

Observed by occupations the interviewed employers are most interested in hiring members

of the RAE population with following occupations in the future:

Table 23: Occupations for which employers are most interested when it comes to hiring members

of the RAE population in the future

Occupation Number of persons

Persons without occupation and qualification 195

Maid 12

Carrier 12

Motor vehicle driver 10

Storage officer 9

Seller 9

Waiter 7

Cook 7

Baker 7

Unlike the results from last year’s Questionnaire for Employers, when most of the “planned”

members of the RAE employees were hired in communal industry or popularly called “dirty jobs”,

this year’s results indicate a change in this trend. Namely, according to the figures above it can be

concluded that the planned employment of members of the RAE population in the future is growing

and it is primarily the case with hospitality industry. If we add to this the information that

Montenegro lacks staff in tourism and hospitality industry in the tourist season and that it is getting

harder to hire foreign nationals for these jobs, then it is clear that domestic employers should

devote more attention to this harder-to-employ group. Through active employment measures,

together with the Employment Agency of Montenegro, employers should make serious efforts to

include members of the RAE population in larger numbers in the labour market of Montenegro.

Observed by industries/sectors, the interviewed employers have expressed desire to hire

most members of the RAE population in: communal and personal servicing activities (23%),

wholesale and retail trade (16%) and tourism and hospitality (16%). It is noticeable that the

interviewed employers from the sectors which have not employed members of the RAE population

so far are now thinking of doing so in the following period and best examples of this are: wholesale

and retail trade and tourism and hospitality industry.

Most interviewed employers want to hire members of the RAE population for a shorter

period of time up to six months - 41% of them, 40% of employers declared they wish to hire the RAE

members for over a year while 19% of them would hire members of the RAE population for a period

of one year.

PART IV: COOPERATION WITH THE EMPLOYMENT AGENCY

When it comes to cooperation of employers with the Employment Agency of Montenegro in

2010, a slight increase in comparison with the previous year when percentage of cooperation was

71% is noticed.

This year’s sample of 1,470 employers answered positively - 74% (1,094 employers) to the

question whether they had collaborated with the Employment Agency of Montenegro in hiring

workforce in 2010 and 26% (376 employers) of the interviewed employers responded that they had

not had cooperation with the Employment Agency in terms of workforce engagement.

Graph 17: Cooperation with the Employment Agency when it comes to hiring workforce

Of the interviewed employers who responded positively to the question on cooperation with

the Employment Agency referring to the engagement of workforce, 98% or 1,068 of them are

satisfied with their cooperation with the Employment Agency and that cooperation is exercised in

the following way:

Table 24: Manners of cooperation with the Employment Agency

Category of response Frequency %

Only when announce vacancies (public advertisements) 880 48

Referral of candidates to publicly announced vacancies 276 15

Information on conditions and possibilities of providing necessary workforce

278 15

Participation in the selection of candidates for employment (interviews with candidates, presentation of candidates, psychological selection…)

51 3

Participation in financing of employment of apprentices 204 11

Participation in the development and execution of the programme for training for employment (professional training, additional training…)

50 3

Financial support for new jobs opening 31 2

OTHER 57 3

Data from the table indicate that the most pronounced form of cooperation between the

Employment Agency and employers in 2010 continues to be through advertising vacancies - 48%.

Services of the Employment Agency that were least exploited by employers in 2010 refer to

the financial support for the creation of new jobs, only 2%, services of development and

implementation of training programs for employment only 3% and services of the selection of

candidates for employment only 3%.

For the sake of comparison, answers of employers in 2009 were almost identical.

This trend of cooperation, which has continued, is showing that employers are not

sufficiently using services offered by the Employment Agency Service, and that measures should be

taken when it comes to strategic and continuous notification of employers about the services made

available to them by the Employment Agency.

When asked whether they want to participate in future surveys, employers have responded:

Graph 18: Response of employers about participation in the following surveys

Do you want to participate in the following Employers Survey?

6% I cannot decide now, 10% No, 84% Yes

Graph 19: Manner in which employers would like to receive and fill up the questionnaire

In what way would you like to receive and fill up the questionnaire?

Internet

Visits from the Employment Agency

Visits to the Employment Agency

Mail

Telephone

This year, like last year, the largest number of the interviewed employers (60% - 281)

expressed desire to be visited by a responsible person from the Employment Agency in order to fill

up the questionnaire while only 6% - 85 is ready to come to the Employment Agency for this. Last

year we had a data that 17.78% of the interviewed employers wanted to be sent questionnaires by

e-mail, however, these employers did not enter their e-mail address when they filled out our survey,

so it was not possible to reach them in this way. This year 19% of them said they wanted to

complete survey in this way, which indicates that this type of communication over the Internet

should be used more in future work with employers and thus reduce costs and save time of the

Employment Agency.

SYNTHESIS, CONCLUSIONS AND RECOMMENDATIONS

Educational and qualification structure of employees. Trend of gradual improvement of

qualification structure of employees is continued. As a result of a better educational structure of

those who get employed (predominance of youth people with higher education levels), and lower

educational structure of those who get retired, the average educational level of employees is

gradually growing. Compared to 2009 these movements are very small, but compared to 4-5 years

ago are significant. Biggest changes are happening at the end-poles - the reduction of those with the

lowest level of educational qualification (I and II level) and significant increase in those with the

highest levels of education (VI, VII and VIII level). Changes in the group of mid-level of education (III

and IV but also V level) are very small and these changes are reflected in the gradual growth of IV

and V level at the expense of the III level of educational qualification.

Typically and predictably, the best qualification structure pertains to education, state

administration and financial services where about 50% of employees have VII and VIII level of

education. Trade, hotels and restaurants and construction industry are dominated by mid-level of

education - III and IV level of educational qualification (about 50%).

According to this indicator Montenegro is taking a good position even when it is compared

to more developed countries of the European Union. It is another story when it comes to evaluation

of quality of workforce – both young people coming from education system and employees. Namely,

real knowledge, skills and competencies are much more important for employers than formal

qualifications, that is, what young people and/or employees can do instead of which diploma they

have. This refers to specific/basic knowledge and skills needed for work at specific positions and real

knowledge of the so-called soft skills such as language skills, the use of computers in the workplace,

the use of the Internet, communication skills, teamwork and initiative and entrepreneurship.

According to the statements of employers and other criteria that measure knowledge, skills and

competencies (work productivity, innovation, results of tests and competitions) in general terms

quality of the human factor is not satisfying. In this sense, we have continual warnings of the

European Union aimed at the above mentioned and other limited administrative capacities of

Montenegro. Recent changes of education system have accentuated quantity - production of

certificates at the expense of quality which is contrary to the needs of employers and contrary to the

basic principles of the Bologna Declaration.

Therefore, Montenegro needs to continue its work on education reform, especially in sense

of creating conditions for more trainings and better practical training and workplace training and

employers also need to invest more in training and professional education of employees if they want

to survive in the global and domestic market where competition will be harder over time.

Education and training of employees. Employers are more concerned about the quality of

their workforce-employees. Of the total number of 1,470 interviewed employees, 21% send their

employees to education and training. This is a moderate growth (5%) compared to 2009 when 17%

of employers sent their employees to training. During 2010 4,836, that is, 7% of employees (sample)

participated in education and 2,467 or 3% took part in trainings in 2009, which is, in this regard, a

significant increase. As for education and training, the following data should be mentioned as

interesting:

- Average duration of training is extended and lasts over 2 days (2.2),

- Employees working in trade (20%), education (13%) and activities related to real estate (11%) are

mostly involved in training, while all other activities accounted for less than 10%,

- Employees with VII level of education are most trained (37%), IV (25%) and III (17%). The least

trained are those with I level of education. For a total of 935 trained persons, employers allocated

16,285 working days of which 79% was spent on those with higher education levels,

- Advanced education was taken by 935 employees within 125 occupations, among which most numerous are computer operators (62), economic profiles of various specialties (74), lawyers (52), physicians (49), electrical engineers and IT specialists, then nurses and craftsmen, - Training for a specific position was completed by 1,840 employees of which the most by far was for

the position of merchant (about 350), university degree – social sciences (294), operator in metal

processing (129), teachers for younger and senior classes of elementary school (about 150), medical

doctors (42), bakers, butchers, operators in wood processing (from 33 to 40) and so on,

- Most employees have passed training in the field of IT knowledge and skills (59%) and foreign

languages (14%), and training based on the training programmes - course for computer operators

(370), course of applicative programmes (186), course for the introduction and quality control (148),

tour guide course (58), accountants (22) ...

- According to employers, in 2010 employers allocated for trainings about 0.62% of gross salary, and

most was invested in health care and social work (33%), education (17%) and state administration

(12%),

- Of the total number of employees who have passed any form of additional education, 47% was in

small, 25% in medium and 16% in micro enterprises.

Employers who send their employees to training increase the number of trained staff and

increase spending on education and training, but this still represents a modest percentage as

compared to developed countries where the number of trained staff varies between 60% and 80%.

However, if we know that the year 2010 was the year of crisis, then even this modest growth is

encouraging. Positive thing is that trainings are extended which all suggests that perhaps better

times are coming for training, when employers will change their opinion about the importance of

human factor for the development and show their views in practice – meaning they will allocate

more funds and organize more training and education for their employees.

The fact that among the trained in Montenegro the largest number are those with

high(er)est level of education, confirms the general trend in the world, which, at first glance may

seem a paradox - that the best educated are the most prone to further education. On the other

hand, the fact that employees in trading industry are most trained and employees in manufacturing

industry and the real sector in general are less trained is not a good indicator from the standpoint of

increasing productivity of the overall economy, especially from the standpoint of increasing

competitiveness and export capability of Montenegrin companies. Also it is positive that small and

medium enterprises allocate the biggest amounts for education and training, but it is worrying that

large companies invest little, because, after all, they are still the biggest exporters and holders of

structural changes in Montenegro.

Employment in 2010. The stagnation in the labour market with a slight recovery of

employment. Employers are good forecasters. Like in 2009, despite the fact that some sectors

important for employment had a solid business year even in 2010 which was the year of crisis

(tourism, transport, and agriculture and trade), the crisis has taken its toll in employment.

Developments in the labour market both in new employment and labour outflows are characterized

by slow pace. In 2010 1,470 interviewed employers hired 8,697 persons which is a slight increase

compared to 2009 when they employed 7,663 persons. At the same time, the total outflow of

workforce amounted to 6,088 persons, which represents a slight decrease as compared to the same

period in 2009 when outflow of 6,945 persons was recorded. The end result of these two opposing

processes is the net increase in employment of 1,575 persons. In comparison to 2009 this is a slight

recovery, and it is far from the dynamic of 2008, when influx was 18,140 persons and outflow was

10,627. On the other hand, this is much better compared to the average for Montenegro and other

employers where overall employment in the period January - December reduced by about 15,000.

In the influx and outflow of workforce, both genders were nearly equally represented, but

still there was somewhat larger influx of women (4,347) and their somewhat lesser outflow (2,662).

The largest increase in employment was recorded in medium-sized enterprises (5,343), that is, 61%

and large companies with 2,036 or 23% are far behind them.

In terms of industries/sectors as in previous years hotels and restaurants along with trade

are a major source of new jobs and employment, with approximately equal influx of workforce

(2,281 and 2,090 respectively), which makes about 50% of new employment. Far behind them is a

group of industries with a significantly lower employment - traffic with 645 is in the third place,

education with 607 is in the fourth place, health care and social work with 518 are in the fifth place,

manufacturing industry with 503 in the sixth place, construction with 424 is equal to other

communal services … services (429) are in the seventh and eighth place. As for other industries

somewhat more significant influx of employment was recorded at financial intermediation (318) and

activities related to real estate (247). It can be clearly concluded based on these data that major

cause of slow employment is drastic reduction in employment in construction industry, which fell to

the eighth place.

Redundancies - the crisis continues. Of the total of 1,470 interviewed employers 18% of

them said that they had had excessive workforce. This is one percentage point more than in 2009

and nearly ten percentage points more than in 2008. These data confirmed that in 2010 the

employment crisis was pronounced, that is, that a significant number of employers is still burdened

with excessive workforce.

The declared redundancies account for 1,340 employees and are most concentrated in small

enterprises - the size of 10 to 50 employees, then in those of medium size and in the third place

there are large companies.

In sectoral terms, excessive workforce is concentrated in three activities – processing

industry, health care and trade. It is interesting to mention that out of seven possible causes of the

existence of these redundancies far ahead of all is crisis with 51%.

Occupations in demand. With crises and difficulties candidate’s selectivity of jobs is

decreasing. In 2010 15% of employers said that they could not fill vacancies; in 2009 this percentage

was 21% and in 2008 it was 30%. This means that the crisis has forced the unemployed to be less

picky in finding and taking jobs. Observed from the aspect of levels of educational qualifications and

occupations, most lacking are workers of III level in construction occupations such as carpenters and

bricklayers, bakers, cooks and waiters then workers in trading industry and craftsmen: car

mechanics, tinsmiths, drivers of passenger cars and bus drivers and the like. In sectoral terms,

personnel shortage is most pronounced in several sectors and is fairly evenly distributed - trade,

construction, transport, processing industry, education and state administration, and much less in

other sectors.

This also shows that the problem of occupations in demand in its essence is not a big

problem, but instead it much more refers to the lack of regional and professional mobility of

workforce. This means that in Montenegrin market there are profiles of staff who, in most cases,

directly or with little additional training, can fill vacancies, but they do not do it for various reasons –

they do not want to leave their place of residence and cannot travel to their workplace, low wages,

inadequate working conditions, seasonal jobs and the like, which means that if greater regional and

professional mobility were provided, the actual deficiency would be substantially lesser. In the

current situation, occupations in demand are only a few such as construction engineers, professors

of mathematics and English, doctors of certain specialties, and only in the medium run, because

education and training systems, with appropriate incentives can relatively quickly increase

production of these profiles.

Of those expressed in the Survey .... occupations in demand would be practically only those

for whose production (education, training) a long period of time is needed and/or bigger funds -

construction and other engineers of various specialties, doctors of certain specialties, professors of

mathematics, teachers of foreign languages, especially English, software developers, scientific

researchers. As for certain occupations that appear in the Survey as occupations in demand –

economists of various specialties and knowledge and lawyers of different specialists and knowledge -

it must be noted here that these are mentioned in the context of the need for adequate quality

training.

This is supported by statements of employers who see lack of individual occupations in the

market as major causes of inability to fill vacancies but also the lack of trained staff and lack of

experience. Also, the analysis of the structure of vacancies by specific knowledge ahs shown that

completed professional exam takes first place according to its importance; it is followed by

computer skills and knowledge of English language.

Expected employment in 2011. A slight recovery or reserved optimism of employers. The

interviewed employers plan in 2011 to employ 11.208 workers, which in relation to what was

realized in 2010 (8,697) represents an increase of 2,511 persons or 29%. This is far from record-

breaking 2008 when 18,000 persons were employed. As it comes after two years of crisis it can be

interpreted as a slight recovery and a gradual return of optimism that the worst is over.

Observed by sectors, we can talk about continued trend from the previous and several years

before when hotels, restaurants and shops were main sources of employment with approximately

equal participation. Planned expectations for 2011, however, show big differences between these

two and other activities. Far ahead of all are hotels and restaurants, with 33%, and trade has fallen

to a modest 11% so that it occupies third place and is behind processing industry with 12%.

Transport and communications with approximately the same percentage of planned increase (10%)

are in the fourth place. This means that the four above mentioned activities constitute 66% of the

planned demand for workforce.

Observed by municipalities and regions, there are huge differences in terms of further

concentration of employment in several developed municipalities and practically absence of

employment in several underdeveloped municipalities in the north. Thus for example three coastal

municipalities - Budva, Herceg Novi and Tivat account for 44% in the expected growth in

employment (27%, 9% and 7% respectively), and eight municipalities in the north (Andrijevica,

Berane, Bijelo Polje, Kolasin, Mojkovac, Pluzine and Rozaje) in the planned increase in employment

account for around 3%.

Interestingly, employers do not foresee large seasonal fluctuations in employment, except

that the share of hotels and restaurants in the planned increase is even greater and accounts for

43%; second place is taken by agriculture with share in the planned growth of 14%; it is followed by

trading industry with 10% and traffic and communications with 8%. Regionally speaking, seasonal

fluctuations are even greater than in expected increase in total employment.

As for the expected growth of employment by educational qualification and occupation

trend is similar as in the previous two years – the highest demand will be for workforce with medium

level of education (III and IV level), the second place is taken by the low educated and the third place

is taken by the demand for highly educated (VII and VIII qualification level). In terms of occupation,

in the group of the lowest level of education, the highest demand will be expressed for the following

occupations: maids and physical workers with no occupation; as for medium level vocational staff

the highest demand will be expressed for waiters, sellers, motor vehicle drivers, cooks and

administrative technicians; then the group of craft occupations such as locksmith and bricklayer,

mechanical fitter and the like and as for the occupations with university degree – lawyers,

economists of different profiles, IT specialists, teachers of English and elementary school teachers

(younger classes), construction and mechanical engineers.

As for the new jobs that are not produced by the education system the following are

mentioned: HACCP administrator, HR manager, then jobs that exist in the labour market and which

are not produced by the present education system such as hardwood layer, stone cutter, insulation

worker, and occupations produced by the current education system and trainings are made based

on the new education programs, such as car mechanic and sommelier.

Low interest in hiring persons with disabilities. Contrary to the announcements from the

2009-2010 Survey, when it comes to the increase in motivation for hiring persons with disabilities we

have to say that this did not happen, and what is even more important, the results of this Survey

show a decline in motivation. The fact that the interviewed 1,490 employers have hired over the

past two years only 49 persons with disabilities supports the above statement. Moreover, the

number of employed persons with disabilities in 2010 was 18% lower than in 2009. In the last two

years employers have employed mostly people with disabilities without occupation and educational

qualifications (12%), bakers (8%), guards (6%) and sellers with the III level of educational

qualification (6%). Other figures refer to individual cases.

In this respect expectations when it comes to the employment of these persons are less

favourable. Namely, despite the fact that majority of the interviewed employers (90%) are familiar

with statutory incentives when hiring persons with disabilities, only 10% i.e. 157 of them expressed

the desire to employ them. This percentage is significantly lower than the one from 2009/10, when

23% (i.e. 340) of employers stated that they plan to hire disabled persons.

Prejudice against the Roma are being reduced. The fact that employers had expressed

greater willingness to employ the Roma (1,445) not only the unskilled workers who can do physical

jobs (which can be interpreted as a necessity), but also people with certain occupations with a higher

level of education, speak in favour of the reduction of prejudice and common understanding of the

Roma. This also means that public awareness campaigns and conducted various training programs

for the Roma have resulted with certain results.

MAJOR RECOMMENDATIONS

Priority given to employment. 2010-2011 Survey of Employers as well as the previous one

and many other researches show that situation in the labour market in Montenegro is still complex.

We will repeat what has been stated in the Opening Remarks. Structural imbalances between

workforce demand and supply not only have not decreased but instead have increase and have

become more complex. Enrolment policy is changing very slowly and unemployment in Montenegro

receives new dimensions and new characteristics of which the most unfavourable is the fact that

unemployment of highly educated is growing very fast. Economic crisis has very negatively affected

employment. Workforce demand is low and is recovering very slowly and problems in many

companies have led to layoff of workers which has resulted in the decrease in the overall

employment by about 15,000. At the same time, the planned growth rate does not provide

significant positive movements in the sphere of employment. On the other hand without greater

employment there is not growth of living standard, there is no reduction for poverty, there is no

reduction of regional differences and in the end as pointed out in the analysis and recommendations

of the European Union, there is no accelerated access to the European Union. Consequently,

benefits that accessing and membership to the EU bring will be left out.

The overall analysis has clearly shown that the increase of employment is the biggest

development challenge of Montenegro in a short and a long run. That is why it is important that the

problem of employment and growth of employment become more actual and set as high priority in

the development strategy, economic policy and other measures, activities and reforms. Only

synchronized and simultaneous action at several levels guarantees success. We are going to mention

some of them.

Reform of education and training. The expressed imbalances in workforce demand and

supply and low level of workforce quality which have been emphasize for a longer period of time

now imply that Montenegro must urgently work on the change of enrolment policy, on the

improvement of quality of education and workforce in its entirety. For the first issue a detailed

market analysis is needed and accordingly taking urgent measures in the enrolment policy in the

sense of the establishment of necessary balances at all levels of education and change of the

structure of the enrolled students at various levels of education. This implies further improvement of

curricula, increased flexibility and particularly improved practical training and workplace training.

This was also been pointed out in the last report and recommendations of the European Union.

Adequately implemented reforms in the highlighted direction will decrease imbalances in the labour

market and will provide better filling of vacancies and thus contribute to the increase of

employment and reduction of unemployment rate.

Observed in short term, growth of employment can be achieved through better filling of

vacancies. In order to achieve this it is necessary to provide better options for regional and

professional mobility, higher motivation of employers to use domestic workforce and higher

motivation of the unemployed to take vacant positions. Here also the system of education and

training and particularly the creation of conditions for re-qualification, additional qualification and

gaining new working experience is of great importance.

Besides this, it is the fact that a number of major state-owned enterprises has not passed

the process of restructuring which inevitably leads to redundancy; this together with duration of the

crisis and market economy, by their nature, affect the occurrence of excessive workforce, and clearly

show that Montenegro will continue to face permanently this problem, which imposes the need of

the creation of programmes and measures for the employment of redundant workers of which the

largest number are older – hard-to-employ workers who need, in order to get a new chance for

employment, some form of training, and therefore capacities for training of adults must increase.

Montenegro must allocate more funds for education and training programmes and

programmes of active employment policies than for example some bigger countries especially big

countries on the same level of development. This is for two main reasons: in Montenegro, as small

and undeveloped country, it is not possible to establish a diversified system of education and

training that would produce staff for a large number of countries. Very often very specific

occupations of limited scope are wanted for which there is little demand, so it is irrational to

establish educational institutions for the production of that profile and, secondly, Montenegro has

no diversified economy in which practical training and workplace training can be organized. In

addition to this in Montenegro micro-micro and micro enterprises dominate, mainly in trading

industry, which are not interested in taking young workers for training and they do not have

conditions for any serious kind of training.

Due to the underdevelopment of the craftsmanship and structural and technical and

technological changes in the craftsmanship, quality training of personnel for different types of crafts

is a big problem. It is not rare that the existing handicraft shops or businesses are not interested in

receiving young people for training because of inadequate organization but also their wish to keep

monopoly in the market can be another potential motive.

Two industries that have solid conditions for practical training and workplace training are

hotels and restaurants and construction industry. However, these possibilities are underused. In

both these cases greater problem is motivation of the youth and their parents to attend practical

training and legal framework which regulates practical training rather than (dis)interest of employers

to receive people for training. On one side there are not enough young people who enrol the

following departments in secondary schools (waiters, cooks, butchers, bakers, pastry cooks, etc.)

especially in construction industry and on the other side we have a domesticated practice that

parents want to protect their children from attending and completing practical trainings so they

manage to provide formal proofs for their children confirming that they had completed these

trainings.

Due to the above mentioned, more funds must be invested in equipping school workshops

and the establishment of special training centres; then, it is necessary to establish the practice of

verification and control of certificates issues by employers to trainees about completed practical

training which should be conducted by education inspection and schools and the introduction of

sanctions against such employers. One of solutions in this sense is setting stricter terms and

conditions for awarding of diplomas, for example, the introduction of the system of external

evaluation at the final exam. In this respect, experiences of other countries should be used more,

and particularly countries that have longer tradition such as Germany and Austria. Different

models/forms of modern apprenticeship are being introduced more and more and perfected in most

EU countries. Assets for these purposes could be obtained from the funds of the European Union

and some can be provided through bilateral cooperation with individual countries; some of these

have already been established and implemented and they should be further expanded and

improved.