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croatia best in
training
Internships: First entry to the Labour Market in Croatia Sanja Crnković-Pozaić
4th Meeting of the Human Capital working group
9th
June, 2010
Skoplje
Sector Competitiveness Project:
Developing internships in the Western Balkans
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croatia best in
training
Today’s themes
• Types of internships in Croatia
• The challenge of first entry for
youth
• Results of survey on youth on
the labour market in Croatia
• Conclusions
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croatia best in
training
Types of internships in
Croatia • Practical work during secondary education
in:
– 3-year craft schools
– 3-year industrial schools
– 4-year technical schools
• Mandatory internships for some
occupations eg. nurses, social workers,
doctors
• Internships in public administration for
college and university level workers
• Limited number of classical internships
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croatia best in
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How is human capital used
in Croatia? • Just before Roumania and Turkey, Croatia
is at the bottom of Europe
0.0 20.0 40.0 60.0 80.0 100.0
Turkey
Romania
Croatia
Hungary
Poland
Bulgaria
European Union (27 countries)
European Union (15 countries)
Slovakia
Czech Republic
Austria
Germany (including ex-GDR from 1991)
Netherlands
Slovenia
Denmark
59.4
78.5
79.9
80.2
83.4
84.3
84.9
85.4
87.2
87.7
87.7
88.0
88.8
89.6
89.7
Activity rates, 2009
55-64
25-54
15-24
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croatia best in
training
The educated are more
inclined to be employed
0
10
20
30
40
50
60
70
80
90
100
Total Unfinished primary school
Primary school
1-3 yr VET 4 year VET Gymnasium
Non-university and higher
15-19 8.3 8.7 2.1 47.9 11.5 0.5 0
20-24 47.3 12.3 54.4 75.2 39 8.9 61.6
25-29 75.3 23.7 58.1 82.2 78.9 39.5 82
30-50 76.7 37.3 62.6 76.8 81.1 78.1 90.6
Employment rates by educational attainment and age, 2007
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croatia best in
training
Limited presence of young
people in business sectors
0.00 5.00 10.00 15.00 20.00
ELECTRICITY, GAS AND WATER SUPPLY
PUBLIC ADMINISTRATION AND DEFENCE; …
EDUCATION
TRANSPORT, STORAGE AND COMMUNICATION
FINANCIAL INTERMEDIATION
AGRICULTURE, HUNTING AND FORESTRY
FISHING
HEALTH AND SOCIAL WORK
MINING AND QUARRYING
REAL ESTATE, RENTING AND BUSINESS …
Total
CONSTRUCTION
MANUFACTURING
HOTELS AND RESTAURANTS
OTHER COMMUNITY, SOCIAL AND PERSONAL …
WHOLESALE AND RETAIL TRADE; REPAIR OF …
1.27
1.52
1.71
3.93
4.20
4.47
4.53
4.86
4.93
5.76
6.01
6.48
6.76
7.05
9.50
12.09
2.58
2.98
1.18
4.13
3.32
4.76
6.07
4.50
6.52
7.61
7.26
10.79
8.50
9.99
4.84
11.32
%
G 4 - Share of Young Men and Women in Employment by Sector, 2006
Females 15-24 Males 15-24
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croatia best in
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Age/skills nexus is the strongest
determinant of unemployment
0
10
20
30
40
50
60
70
80
90
Total Unfinished primary school
Primary school
1-3 yr VET 4 year VET
Gymnasium
Non-university and higher
15-19 39.6 0 36 36.2 51.2 85 39.6
20-24 22 59.9 21.4 16.1 23.6 16.9 26.9
25-29 12.8 40.3 22.7 12.1 9.6 13.6 14.3
30-50 7.8 17.4 11.3 8.5 6.6 11.4 4.1
G6 - Unemployment rates by educational attainment and age, 2007
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croatia best in
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Either short or long
unemployment spells
0.00
5.00
10.00
15.00
20.00
25.00
30.00
0-3 3-6 6-9 9-12 1-2 yrs 2-3 yrs 3+ yrs
%
0-3 3-6 6-9 9-12 1-2 yrs 2-3 yrs 3+ yrs
Muškarci 2008/15-29 28.47 25.87 6.47 5.09 13.79 7.20 13.10
Žene 2008/15-29 21.18 19.67 5.66 4.42 15.86 10.03 23.18
Duration of Unemployment by age group
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croatia best in
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Employers point of view: skills of
young people do not make the
grade
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
8 županija ADR NW PAN
33.56 33.33 31.25
35.2
64.36 64.29
68.75
61.6
Do you think that young people get adequate skills for work at school?
YES NO
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croatia best in
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Practical skills are missing
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
8 županija ADR NW PAN
36.96 38.46 35.83 36.72
31.88 34.19 34.17 28.81
13.04 11.97
11.67 14.69
12.08 8.55 13.33 13.56
5.56 5.98 4.17 6.21
What are the main reasons why they do not have the right skills? %
The knowledge which they get at school is too theoretical, there is too little practical work
It is normal that theya have no skills since they have no work experience
Young people are often unemployed for a long time and they loose their skills before first employment
The type of skills you need can not be learned at school
The skills they get at schools is outdated in relation to our needs
Something else, what?
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croatia best in
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Mostly cost related factors
0.00 10.00 20.00 30.00 40.00
Taxes and contributions are generally too high
Subsidies for the employment of youth are inadequate
Something else, what?
Young people without experience are too expensive since they do not earn their pay
I would readily employ young workers but the Labour Law makes it difficult to make older …
I cannot reach adequately qualified young workers through the free mediation services …
Private agencies are too expensive
30.95
26.19
14.29
9.52
7.14
9.52
2.38
27.03
18.92
24.32
13.51
8.11
8.11
0.00
30.61
20.41
12.24
14.29
14.29
6.12
2.04
Barriers to youth employment, %
PAN
NW
ADR
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croatia best in
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New skills and ability to
learn are an advantage
0.00 10.00 20.00 30.00 40.00 50.00
Young workers accept lower wages
They are ready to work on temporary contracts
They are adaptable, learn and acquire new skills quickly
Young people usually have better IT, language and other skills
Something else, what?
2.67
12.67
48.67
34.00
2.00
5.23
16.34
45.10
33.33
0.00
3.00
14.16
45.92
34.76
2.15
Advantages to employing youth, %
PAN NW ADR
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croatia best in
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Replacement or additional workload
main reasons for employing youth
0.00 10.00 20.00 30.00 40.00 50.00
There was a larger quantity of work to be done
You had to replace a worker due to retirement, notice or pregnancy
You had a need for new work places which were best filled by young people
Something else, what?
39.13
36.23
24.64
2.90
41.61
29.53
28.86
0.00
40.10
35.53
24.37
2.54
Reasons for employing youth, %
PAN NW ADR
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croatia best in
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Age related lay-offs not
relevent
0.0 20.0 40.0 60.0 80.0
Young workers usually have shortest tenure in the firm and they get leid.off
first
Young workers usually have termporary contracts which are then not renewed
Age does not determine who get laid off in our firm
Something else, what?
10.3
13.8
66.7
9.2
5.49
15.38
65.93
13.19
14.8
19.7
53.5
12.0
Reasons for firing young workers, %
PAN NW ADR
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croatia best in
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Character traits come in front of
knowledge and skills
0
5
10
15
20
25
30
35
40
45
1 2 3 4 4 5 6 7 8 9 9 10 1 2
4 3 5 7 6
8 9 10 11 12
1 2
3 4 5
6 8 7
9 10 11
12
1 2
3 4 5
7 6 8
9 10
12 11
Sum of ranks chosen by employers in the three regions by importance for work in their enterprise
All regions PAN NW ADR
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croatia best in
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Opinions on skills of youth
Occupation related theoretical knowledge (9.)
Occupation related practical skills (4.)
Language skills (12.)
Computer skills (7.)
Entrepreneurial skills (11.)
Communication skills (6.)
Reliability/responsibility (1.)
Motivation for work (2.)
Creativity and inovativeness (8.)
Problem solving skills (5.)
Team work readiness (3.)
Social skills (10.)
11.51
44.94
24.47
6.40
59.73
25.88
19.11
17.79
28.69
31.84
10.89
12.39
65.08
40.07
54.85
48.40
36.28
57.89
56.50
49.80
47.54
49.39
54.44
63.27
23.41
14.98
20.68
45.20
3.98
16.23
24.39
32.41
23.77
18.78
34.68
24.34
Opinions of employers about knowlede and skills of young workers, 3 regions , %
Poor Adequate Very Good
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croatia best in
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Lack of rules for
advancement?
0.00
10.00
20.00
30.00
40.00
50.00
60.00
Up to 1 year
1-2 years 2-4 years More than 4 years
Advancement is
individual, there are
no set rules
There is no
possibility of
advancement in our
firm
ADR 7.59 25.32 5.06 6.33 46.84 8.86
NW 7.69 15.38 12.82 10.26 48.72 5.13
PAN 9.17 17.50 9.17 5.00 52.50 6.67
%
Promotion Systems for Young Workers: Type and Duration
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croatia best in
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Internships most frequent
forms of work practice
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
%
Internship Apprenticeship Mandatory occupation
related internship Work practice None of the above
ADR 34.31 9.80 6.86 22.55 26.47
NW 30.10 9.71 6.80 30.10 23.30
PAN 40.48 12.50 5.95 26.79 14.29
Apprenticeships, internships, work practice
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croatia best in
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A possible youth skills
gap? low level of
practical occupation
related skills from school
relatively low exposure to occupation
related training at work
promotion systems not
focusing on merit in occupation related skills
there are at leaast 30% of employers who do not have any of the known systems of initial training for youth
practical skill acquisition is
difficult and leads to low skill traps
for youth
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croatia best in
training
Youth employment measures prefered
by employers
0% 20% 40% 60% 80% 100%
Reduction of contributions and taxes
Adjustments for youth in the Labour Law
Financial support - wage subsidy
Financial support - training subsidy
Promoting volunteeering, internships etc.
Tax rebates on investment in training
40.3
15.0
30.3
9.7
10.9
4.8
23.9
10.0
31.8
9.7
10.9
9.5
14.9
15.0
18.2
30.6
7.8
20.6
13.4
13.3
6.1
17.7
9.4
31.7
4.5
28.3
12.1
17.7
25.0
9.5
1.5
15.0
1.5
12.9
32.8
23.8
1.5
3.3
0.0
1.6
3.1
0.0
Ranks of policy measures for promoting youth employment in the ADR region
Rang 1 Rang 2 Rang 3 Rang 4 Rang 5 Rang 6 Rang 7
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croatia best in
training
Employers: Let others think
about skills
0% 20% 40% 60% 80% 100%
ADR
NW
PAN
8.2
5.6
5.5
0.0
1.0
0.0
0.0
1.0
0.0
12.4
15.4
13.7
31.4
29.7
32.2
37.1
36.4
36.6
Responsibility for providing young people with skills necessary for competitiveness
Adult education institutions Employment service Trade unions
Employers Young people themselves Institutions of formal education
Something else, what? I don't know
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croatia best in
training
In summary
• Youth in Croatia have difficult entry
to the labour market
• Those with low skills are in a much
more difficult position
• The main impediment seems to be
the lack of practical skills
• A related barrier is the cost of labour
for the young
• Employers consider the State and the
young people themselves to be
responsible for skill development
