Analysis of labor market needs. Employer Survey

Transcription

1 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 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 in the period January December.

2 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 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.

3 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 , which makes 46.88% of the total number of employees in the data base of 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

4 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.

5 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.

6 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 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,

7 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 , i.e % of men are employed, while i.e % of women. Graph no.7 Structure of employees according to gender

8 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 employees i.e % of the total number of employees in the companies included in the survey, of which 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 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 , 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

9 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 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.

10 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 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.

11 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 professions 1 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)

12 For which special knowledge and skills 2 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 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)

13 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.

14 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 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

15 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 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

16 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 higher in relation to the previous year, when this number was , 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 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 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 , while the number of remaining vacant work positions that could not be filled in for women were only few, less than in the

17 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 ANDRIJEVICA BAR BERANE BIJELO POLJE BUDVA CETINJE DANILOVGRAD HERCEG NOVI KOLASIN KOTOR MOJKOVAC NIKSIC PLAV PLJEVLJA PLUZINE PODGORICA ROZAJE SAVNIK TIVAT ULCINJ ZABLJAK TOTAL MN Vacant positions - women The largest number of newly employed was achieved in the medium sized companies i.e. a total of 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 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%.

18 Outflow of work force In the presented table, the employment was terminated there was outflow of work force amounting to with interviewed employers in 2010, while this number in the previous comparative Survey was 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 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 Manipulant in food industry Manipulant for mounting-installing works Communal hygienist Installations cleaner Construction manipulator Transport manipulant Tourist manipulant Persons without profession and qualification Porter 30 1

19 TOTAL I DEGREE OF QUALIFICATIONS Laundry washer Beech rescuer Assistant construction worker (II degree of 51 4 qualifications and PK) Goods manager assistant salesman (II degree of qualifications and PK) Assistant caterer (II degree of qualifications and PK Food server Assistant coock Chamber maid Total II degree of qualifications Baker Bucher Manipulator of the machines for cutting logs Carpenter for mounting, repair and maintenance Manipulator of simple mining mechnization Manipulator of heavy miing vehicles Locksmith Car mechanic Airplane mechanic Electrician Communal vehicles manipulator Communal road builder Carpenter Mason Manipulator of simple construction machines Road builder Road vehicle driver (III degree of qualifications and KV) Driver of a passenger car Truck driver Bus driver Salesman Salesman in retail of food products Warehouseman Waiter Cook of simple dishes Drinks pourer Cashier Hairdresser for women Qualification level - III 13 1 Total Qualification level - III Forest technician (IV level of qualifications) Mechanical technician constructor (IV level of 17 1 qualifications) Energy electrician (IV level of qualifications) Electronics electrician (IV level of qualifications) Garment worker Construction technician (IV level of qualifications) Technician of construction mechanization 32 4

20 Bus or truck driver Truck driver Airplane technician acceptance and dispatch of passengers Trade technician (IV level of qualifications) Commercial technician Waiter Cook Recepcionist Tourist technician Economic technician Cashier Accountant Accounting operator Administrative technician Fireman Educator Grammar school leaver Medical technician Nurse Pediatric nurse Physiotherapy nurse Pharmaceutical technician TOTAL IV DEGREE OF QUALIFICATIONS Cook specialist Tourist technician specialist Business secretary Commercialist Tourist guide Manager (VI/1 secondary qualifications) Economist for finances, accounting and banking (VI/1 degree of qualifications) Lawyer Educator of preschool children Class teacher Higher education degree Graduated machine engineer (VII/1 degree of 23 0 qualifications) Graduated electronics engineer Graduated civil engineer (VII/1 degree of qual.) Graduated manager (VII/1 degree of qual.) Graduated economist for general economics, 49 banking and finances (VII/1 degree of qual.) Graduated economist Graduated lawyer Information technolgy engineer Insurance Actuary Professor of class teaching History professor Mother tongue professor English language professor Sociology professor 12 10

21 Professor for music group of subjects Physical culture professor Mathematics professor Biology professor Physchologist Sociologist Graduated musician (VII/1 degree of qualif.) Journalist Medical doctor General medicine doctor Bachelor of applied studies of high medical school Higher degree qualification Advisor for economic issues 18 8 Total VII-1 degree of qualifications Total VII-2 degree of qualifications Total VIII degree of qualifications 10 8 Total professions When activities are concerned, the largest number of newly employees in 2010 was accepted in the area hotels and restaurants, a total of i.e % 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 Agriculture, hunting and forstry No. o fnewly employed women Outflow of work force Outflow of work force women Vacant positions Fishery Power and gas production and supply Construction industry Retail and wholesale trade Processing industry Financial mediation Activities related to real estate State administration and defense, obligatory social Vacant positions women

22 insurance Education Health and social work Other communal, social and personal service activities Ore and stone mining Transport, warehousing and connections Hotels and restaurants TOTAL MONTENEGRO 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

23 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 %), 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 NO 1, % 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).

24 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