In 2003 the Employment Service of Slovenia (ESS) contributed to positive trends on the labour market, best reflected in the falling number of unemployed people, which was, on average, below 100,000 for the first time since 1992. The ESS carried out its activities in line with the ESS Business Plan for 2003, adopted by the Administrative Board.

In 2003 the ESS continued to perform the tasks laid down by law, with an important segment also being defined for the year by the Strategy of Labour Market Development Up To 2006, the Active Employment Policy Programme for 2003 and other documents. The basic law defining the powers and tasks of the ESS is the Employment and Insurance Against Unemployment Act (the Act), although there are several other laws closely related to the work of the ESS (Employment of Aliens Act, Training and Employment of Disabled Persons Act, etc.).

The ESS continued to be the central institution on the labour market, performing tasks laid down by the Act and its implementing regulations. The ESS is also in charge of certain other tasks laid down by other laws, government documents and programmes. The ESS is also engaged in performing new tasks relating to Slovenia’s accession to the EU, preparing for participation in the ESF (European Social Fund), laying the foundations for the EURES system and for the recognition of rights related to coordination of social security schemes within the EU, and cooperating with regional development agencies on the preparation of plans for human resource development.

ESS activities are conditional on the economic situation as it affects the labour market.

In 2003 basic expectations relating to labour market conditions of continued (albeit slower) economic growth were fulfilled, although the assessment and forecasts of basic macroeconomic aggregates by the Institute of Macroeconomic Analysis and Development (UMAR) for 2003 had to be slightly amended during the year due to less favourable worldwide economic projections for 2003. Economic growth was subsequently lower (around 2%, with UMAR's projection for the autumn standing at 2.6%).

In the sphere of employment, employment growth and reductions in unemployment slowed down more than was originally expected; this was the result of slower economic growth and sluggish improvements in operating conditions. Companies adapted to the worsening economic situation by cutting costs (lower investment, lower wage growth, fewer new jobs), by laying off workers and by moving operations abroad. In view of the situation on the labour market, the ESS adjusted application of the active employment policy and strove to improve the unfavourable unemployment structure, which only partly corresponded to the actual demand for labour. The transition of 14,443 redundant workers into open unemployment (32.7% more than in 2002, when 10,887 redundant workers became unemployed) needs to be taken into account here.

At the end of December 2003 there were 95,993 registered unemployed people. On average, 96,674 unemployed people were registered with the ESS in 2003, which was a fall of 4.8% on the year before. The number of newly unemployed people in 2003 was 94,249, a rise of 7.9% on 2002. By improving cooperation with employers, and despite the lower demand for labour and the unfavourable unemployment structure, the ESS succeeded in achieving better-than-planned job placement results, with 50,520 people finding employment in 2003.

The ESS was flexible in adapting to changes on the labour market, performing activities aimed at preserving its position as one of the most important players on the labour market. By adjusting to the regional specifics of the labour market, the ESS consolidated the role played by its regional and local offices. By introducing organisational changes, the ESS strengthened its work with the unemployed, employers and other users of its services, as well as its cooperation with partners on the regional and local levels.

The ESS also successfully continued with its cost-control activities and the drive for more cost-effective use of available resources; and great attention was given to achieving greater transparency of operations. The application of the Quality Project, which is helping the ESS to improve its business processes and to adapt them to the expectations and demands of customers, made a major contribution to this. The ESS continued to adjust its organisation and activities to the new requirements expected after Slovenia’s accession to the EU in 2004 - cooperation within the EURES network, use of ESF funding, coordination of social security schemes, and the employment of foreign workers.

During the year the ESS collaborated with the Ministry of Labour, Family and Social Affairs in the preparation of the active employment policy for the following year, as well as in the drawing-up of most employment-related regulations and acts. In 2003 the ESS continued to intensify its international links; these are helping it to consolidate its profile among similar institutions in Europe, to follow professional developments, and to introduce examples of good practice into its own work. The priorities of staff training were to increase the efficiency, success and cost-effectiveness of ESS operation, and to prepare for new conditions on the labour market following full membership of the EU.