Connecting People with Jobs: The Labour Market, Activation Policies and Disadvantaged Workers in Slovenia

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Giving people better opportunities to participate actively in the labour market improves well-being. It also helps countries to cope with rapid population ageing by mobilising more fully each country’s potential labour resources. However, weak labour market attachment of some groups in society reflects a range of barriers to working or moving up the jobs ladder. This report on Slovenia is the second country study published in a series of reports looking into how activation policies can encourage greater labour market participation of all groups in society with a special focus on the most disadvantaged. Labour market and activation policies are well developed in Slovenia. However, the global financial crisis hit Slovenia hard and revealed some structural weaknesses in the system, which have contributed to a high level of long-term unemployment and low employment rates for some groups. This report on Slovenia therefore focuses on activation policies to improve labour market outcomes for four groups: long-term unemployed people; low-skilled workers; older workers; and workers who were made or are at risk of becoming displaced. There is room to improve policies through promoting longer working lives and through enabling the Employment Service and related institutions to help more harder-to-place jobseekers back into employment.



Opportunities: The Slovenian labour market and policy environment

This chapter discusses some key features of the policy environment in Slovenia, to help understanding of current labour market outcomes and activation policy challenges and of the large impact of the recent recession. These features include among other things the relatively high minimum wage; legally required or tax-exempt allowances paid to employees; and non-standard forms of work and their regulation. The chapter looks at how these issues as well as benefits and benefit conditionality may interact, e.g. the minimum wage may encourage the use of fixed-term contracts, while benefit entitlements from fixed-term contracts encourage repeat unemployment. The chapter also describes the social and labour market reform path Slovenia has followed since its independence and the recent partial breakdown of social dialogue.


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