Occupations and skills most demanded by enterprises – the case of South Serbia

1. Occupations and skills most demanded by enterprises –the case of South Serbia Galjina Ognjanov, Faculty of Economics – University of Belgrade Valli Corbanese, International Labour Organisation RCC Conference: New Skills for New Jobs in the Western Balkans, Sarajevo, 27-28 October, 2011

2. Topics • Economic and social context in South Serbia • Occupational skills survey • Methodology • Findings • Problems • Conclusions and implications RCC Conference: New Skills for New Jobs in the Western Balkans, Sarajevo, 27-28 October, 2011

3. Four districts in South Serbia 13.2% of territory 14.4 % of population (1 mil) RCC Conference: New Skills for New Jobs in the Western Balkans, Sarajevo, 27-28 October, 2011

4. Economic and social context in South Serbia • A challenging labour market situation • lower employment and higher unemployment rates than the national average • wages approximately 20 % lower than those paid in other regions • lower skills levels: higher shares of the population with primary or less than primary educational attainment RCC Conference: New Skills for New Jobs in the Western Balkans, Sarajevo, 27-28 October, 2011

5. Economic and social context in South Serbia Table 1: Unemployment in South Serbia Source: Republic Statistical Office (RSO), Labour Force Survey, 2010 Table 2: Average gross and net salaries in South Serbia (Serbian Dinars, 2010) Source: Republic Statistical Office (RSO), http://webrzs.stat.gov.rs RCC Conference: New Skills for New Jobs in the Western Balkans, Sarajevo, 27-28 October, 2011

6. Occupational skills survey Main purpose: identifying the economic sectors, occupations and skills most demanded by enterprises Carried out: February 2011, Republican Statistical office Supported by: YEM (MDG Fund) and PBUILD (Gov. Sweden, Norway and Switzerland) Background: 2009 Occupations and Skills Survey in Serbia (YEM, MDGF) RCC Conference: New Skills for New Jobs in the Western Balkans, Sarajevo, 27-28 October, 2011

7. Occupational skills survey • Job creation and job destruction among enterprises and entrepreneurs • Trends in workforce recruitment • Skills of the workforce and training practices • Cooperation with the National Employment Service • Conclusions and policy implications RCC Conference: New Skills for New Jobs in the Western Balkans, Sarajevo, 27-28 October, 2011

8. Methodology • A total of 666 enterprises and 487 entrepreneurs (i.e. unincorporated businesses) surveyed • Sample frame of 5,267 enterprises and 8,073 unincorporated businesses generated at country level by cross-referencing the records of the business register and of the tax administration • Stratified random sampling procedure (by district, enterprise size class and economic sector) • Instrument based on ISCO 2008, allows deriving occupational skills need from international classification • Administered by phone RCC Conference: New Skills for New Jobs in the Western Balkans, Sarajevo, 27-28 October, 2011

9. Findings: Skills of the workforce and training practices • Occupations most likely to create new jobs in South Serbia (short t0 medium term) mapped according to: occupations creating jobs in last 12 months current vacancies occupations to create jobs in the next 12 months RCC Conference: New Skills for New Jobs in the Western Balkans, Sarajevo, 27-28 October, 2011

10. Findings: Skills of the workforce and training practices Vocational skills groups needed Higher skills occupations to be needed Skills listed according to International Standard Classification of Occupations (ISCO) 2008 RCC Conference: New Skills for New Jobs in the Western Balkans, Sarajevo, 27-28 October, 2011

11. Findings: Skills of the workforce and training practices • The strategies to overcome skills deficits are mainly increasing training and recruitment. • Most enterprises provided training to their workers Training is generally short and mostly organized and financed by the enterprise itself. RCC Conference: New Skills for New Jobs in the Western Balkans, Sarajevo, 27-28 October, 2011

12. Findings: Skills of the workforce and training practices Figure 1. Most frequently used training providers among job creating enterprises in last 12 months Figure 2. Models of financing trainings in enterprises in Southern Serbia by districts RCC Conference: New Skills for New Jobs in the Western Balkans, Sarajevo, 27-28 October, 2011

13. Findings: Skills of the workforce and training practices Figure 4. Models of financing trainings at entrepreneurs in Southern Serbia by districts Figure 3. Most frequently used training providers among job creating entrepreneurs in last 12 months RCC Conference: New Skills for New Jobs in the Western Balkans, Sarajevo, 27-28 October, 2011

14. Findings: Skills of the workforce and training practices Who receives training? • Enterprises prefer to invest in workers with higher initial skills levels rather than in low-skilled workers (The general trend found in other neighbouring countries and EU confirmed). • The age group 25 to 45 years old is most likely to receive trainings. RCC Conference: New Skills for New Jobs in the Western Balkans, Sarajevo, 27-28 October, 2011

15. Problems • The major problem with regards to conducting the establishment survey (Occupational skills needs survey) is derived from a low ability of responding enterprises/entrepreneurs to communicate the skills needs (Occupations and Skills Survey 2009) • The problem was overcome by using ISCO 2008 which leads to more difficult data analysis and interpretation (especially generalization) of findings (Occupational skills survey 2011) RCC Conference: New Skills for New Jobs in the Western Balkans, Sarajevo, 27-28 October, 2011

16. enterprise size class (micro and small enterprises), economic sectors (trade, manufacturing and, to a lesser extent, construction and professional services) occupations (sales assistants; office and bookkeeping clerks; bakers, butchers and food preparers; and machine tools operators) and the skills most likely to create jobs in the short and medium-term. Conclusions and implications • The improvement of the skills base of the workforce, should be given priority. • More and better labour market training programmes needed. • Active labour market policy package offered by the National Employment Service (NES). • Clear indications for the design and targeting of employment programmes in terms of: RCC Conference: New Skills for New Jobs in the Western Balkans, Sarajevo, 27-28 October, 2011

17. Conclusions and implications • The Occupational Skills survey should be conducted on regular basis (annually). • In Serbia it is planned to be integrated within Job Vacancy Survey aligned to the relevant European Union (EU) regulations and standards (Regulation No 453/2008 of 23 April 2008;Commission Regulations No 1062/2008 of 28 October 2008 and No 19/2009 of 13 January 2009). • The data should be shared with other important stakeholders, in particular public and private educational institutions providing general education, vocational trainings, adult education, life-long learning. RCC Conference: New Skills for New Jobs in the Western Balkans, Sarajevo, 27-28 October, 2011

18. Thank you for attention! Occupational Skills Survey 2011: Key findings in South Serbia RCC Conference: New Skills for New Jobs in the Western Balkans, Sarajevo, 27-28 October, 2011