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Training for the unemployed

Policy Instrument

Training for the unemployed

Obrazovanje nezapolsenih
Croatia

Description

Timespan

The instrument was first introduced in 2009, as a part of the National Plan for Enhancing Employment 2009-2010 (65 beneficiaries). The training of the unemployed starts during the first quarter of a calendar year and has an average duration of 6 months.

Stage

Fully operational

Foundations

Policy area

Enhancing access to employment and sustainable inclusion in the labour market. Training of the unemployed is a core active labour market measure (ALMM), which is implemented in Croatia for a long time, i.e. it has been part of all active labour market programmes (ALMP) developed since 2008. The main purpose of the measure is to directly influence local labour market supply and demand. It aims to combat skills mismatches and foster lifelong learning.

Policy goal

To enhance the employability of unemployed persons and create necessary qualified workforce, in order to diminish skills mismatches in the local labour market. Review and evaluate the existing programmes for the long-term unemployed and people at risk of becoming long-term unemployed and, based on the results of the evaluation, develop an effective policy strategy in this area. Provide adequate training for the unemployed and others at risk of becoming unemployed. ‘Adequate’ refers to inclusion of, for example, long-term unemployed people in training programmes tailored to meet labour market needs.

Mismatch

Part of broader programme, yet with explicit focus

The guidance on Development and Implementation of Active Politics of Employment 2018-2020 defines as intervention "Education in accordance with needs of labour market". Under this intervention, the Croatian Employment Service will implement measures to include the unemployed into education. Other instruments under this intervention are: scholarships for students of crafts, education for crafts and education of unemployed war veterans and their families.

Aim of policy instrument

Administrative level

National

Main responsible body

Ministry of Labour and Pension System, Croatian Public Employment Service (CES).

Stakeholders

The Ministry of Labour and Pension System is responsible for the design and approval of national active labour market programmes (usually for a two-year period).
CES is an implementing body, whose Managing Board adopts active labour market measures and implementation guidelines. CES is responsible for the implementation, monitoring and evaluation of the measures.
CES Regional Offices deliver a plan for training of the unemployed, conduct public procurement procedures, select the candidates, refer them to educational institutions and make all eligible payments (to the unemployed and service providers).

Funding

State budget for period 2018-2020: 329,658,250 HRK
EU funds for period 2018-2020: 311,452,750 HRK

Intended beneficiaries

The intended beneficiaries are unemployed people, especially long-time unemployed people, women, unemployed people with disability, young people, people aged over 50 years old. Unemployed people with insufficient or inadequate level of education are referred to educational programs demanded in the local labour market. That is especially useful for people with disability, due to limited possibilities of employment and need for gaining new knowledge and skills in order to be able to compete in the labour market. Young people are referred to education related to EU projects and professions of the future and education for entrepreneurship, in order to gain knowledge for starting their own business. People aged over 50 years old are one of the target groups of this instrument, due to necessity of lifelong education and gaining new knowledge and skills in order to stay competitive in the labour market.

Processes

Use of labour market intelligence

This instrument provides adequate training programmes (lasting around six months) by the PES for the unemployed and those at risk of becoming unemployed. ‘Adequate’ refers to inclusion of, for example, long-term unemployed people in training programmes tailored to meet labour market needs. Labour market needs feed into PES’ annual local training plans on the basis of:
(a) analysis of labour supply and demand;
(b) expert opinions;
(c) an employer survey;
(d) development programmes implemented at county level.
A crucial condition for the strong link between labour market analysis and training programmes is the historically close connection between the PES and training providers.

Financial schemes

To educational institutions: 100% of cost
To health institutions: costs of medical examinations for educational programs that have them as requirement for enrolment.
To attender: financial support, in accordance with Art 55 of the Act on Employment Mediation and Unemployment Rights (NN 16/17). People who the CES referred for education has the right to financial help (in proportion to days spent in education) to the amount of 50% of the minimal salary after contributions for mandatory insurances have been paid.
Financial support is paid according to a defined calendar of working days and the highest monthly amount must not be higher than 50% of minimal salary reduced for contributions for mandatory insurances (respectively 1.375,92 HRK).
People that are referred to education are not erased from the records of unemployed people and he/she still receives financial support. If the person is receiving unemployment benefits, he/she will not receive further support during the training, but if benefits end during the training he/she will get the financial support from the instrument.
Travel expenses in accordance with the Decision of the Administrative Council of the CES on the amount of travel expenses for days spent in education if there is more than 2 km from the address of residence to the address of the educational institution.
Expenses of insurance according to the regulations of the Croatian Pension Insurance Institute, special contribution for protection of health at work at the rate of 0.5%.

Development

The training of the unemployed is implemented in the same way in all regions. The scope of implementation may vary according to the unemployment rate, availability of educational programmes and local labour market needs.
There is no information on the changes to the instrument over the years. There is a change in the amount provided for travel expenses in 2018 (now the amount is 1HRK per kilometre).

Barriers

In the case of the long-term unemployed, there is a higher risk of remaining unemployed once the training is over. The average duration of training is 6 months. However, there is no guarantee that after participating in the training, the beneficiary will get a permanent job.

Success factors

Analysis of the labour market and successful identification of needs for specific education for certain professions (e.g. nannies, nurses, seasonal work- chefs, waiters etc).

Monitoring

Reports on the implementation of the instruments of the Strategy for Lifelong Career Guidance in the Republic of Croatia 2016-2020 have not been published. Instrument was also monitored in previous periods and the indicators used were number of people educated under the instrument.

Innovativeness

Very innovative

The innovation is to give individual initiatives through a universal scheme available for employees, jobseekers, self-employed, whatever their status. Another innovative feature is to develop a training session chosen through an agreement between an employee and his manager or company responsible.

Sustainability

Evidence of effectiveness

Evaluation shows increased employability of people with basic school education and people with 1-3 year vocational secondary school.
Expected results are 11,053 beneficiaries for 2018, 11,665 for 2019 and 12,725 for 2020. There was increase in number of beneficiaries over the years. However, the expected results were not achieved in 2016. For example, the expected number of young beneficiaries for 2016 was 5,000 and the final number was 1,791; for beneficiaries older than 50, the expected number was 2,200 and the final number was 542; for beneficiaries with disability, there were 86 out of an expected 330; there were 1,628 women out of an expected 3,500; and 1,997 long-time unemployed out of an expected 6,500.

Engagement of stakeholders

The Ministry of Labour and Pension System is responsible for the design and approval of national active labour market programmes (usually for a two-year period). CES is an implementing body, whose Managing Board adopts active labour market measures and implementation guidelines. CES is responsible for the implementation, monitoring and evaluation of the measures. CES Regional Offices deliver a plan for training of the unemployed, conduct public procurement procedures, select the candidates, refer them to educational institutions and make all eligible payments (to the unemployed and service providers).

Transferability

Easily transferable

Apart from procurement procedures, the implementation of the measure doesn’t require any additional efforts.

Sustainability

The Guidance on Development and Implementation of Active Politics of Employment was adopted by the Government for the period 2018-2020, so it is expected that the instrument will continue for at least two years.