Favourable economic trends, typical for the past few years, continued in 1999. This was reflected in the growth of actively working people whose number increased on the previous year by 1.8%. The number of employed people increased by 2.8% while the number of self-employed fell by 5.6%, of sole farmers by over 10% and of sole traders and persons in independent profession by 1.5%.

The demand for labour was 4.1% higher than the year before. Demand retained its seasonal character and was characterised by a higher demand for workers in spring; demand was concentrated mainly in the construction industry, agriculture, restaurants and tourism. In 1999 employers reported 148,494 job vacancies of which, as in the past, as much as 70.9% were for temporary workers. According to data by sector, the share of the demand for temporary labour in agriculture stands out since as much as 81.7% of the total need in this sector was for temporary workers, while the lowest (65%) was in the services sector. The differences originate mainly in the different structure of demand as the services sector usually seeks highly qualified workers while agriculture requires seasonal workers for less demanding work. The share of actual temporary job placements was even higher than the demand as 73.4% of newly employed workers were employed temporarily only. The majority of people to be employed temporarily were unemployed people, first-time job seekers and less educated workers. Labour force demand by sector resembles demand in previous years; more than half of the demand was in the services sector, two fifths in the non-agricultural sector and only a good tenth in the agricultural sector.

As previously, the educational structure of the demand (need for labour force) in 1999 differed considerably from the educational structure of the supply (unemployed people). The demand for workers with higher or university levels of education was double and fourfold the supply on one hand, while on the other the demand for unskilled workers was considerably lower than the number of such workers among the unemployed.

The increase in the number of work permits issued in 1999 was influenced by the following three key factors: greater demand for labour force in the construction industry; in agriculture; and the transition to the system where work permits are issued to those foreigners who previously regulated their status with business visas. Considering the legislation regulating this field it needs to be pointed out that these were mainly foreigners who have been in Slovenia for years and there were not many cases of new employment. At the end of the year there were 37,791 valid work permits which is 8.7% more than at the end of 1998. As before, most foreigners were employed in the construction industry and agriculture. The reasons for employment of foreign workers are: structural discrepancies between demand and supply, willingness of foreign workers to accept work under difficult working conditions and similar.

At the end of 1999 there were 114,348 registered unemployed people in Slovenia. For the first time in eight years the number fell below 115,000 and was 3,000 lower than at the end of 1992. In comparison with 1998 the number of registered unemployed people was 9.7% lower. This was the result of more favourable trends on the labour market and of the new EUIA, which defines the status of unemployed people and the obligations necessary for retaining that status in greater detail. The favourable trend of registered unemployment was contributed to by active employment policy measures. One typical feature of the structure of the influx (80,778 people) was the increase in the number of those whose temporary employment was terminated and of first-time job seekers. Since restructuring processes (including personnel restructuring) have ended in most companies the influx of redundant workers was significantly lower, while the number of those who lost work due to bankruptcy or liquidation of the company remained on the same level as the year before. Registered unemployment was left by 17.8% (93,055) more people that the year before, mainly because they found regular employment or employment in public works and also because more people have been removed from the record for other reasons (30,705 people which is 30.5% more than in 1998). In December 1999 the registered unemployment rate was 13% which is 1.6 percentage point lower than in December 1998. Despite more favourable trends in the number of unemployed people, their structure has not changed essentially, as 62.9% remain long-term unemployed, over a half (50.5%) are over 40 and of the total, 47.5% had attained first or second level of education only. When it comes to demand for workers all these groups are hard-to-employ and can only improve their position on the labour market by joining various active employment policy programmes.

In terms of comparability of the unemployment rate with other countries, the survey-based unemployment rate (calculated according to the ILO methodology) deserves to be mentioned. In 1999 it was 7.4% and was lower than the 1998 average rate by 0.3 percentage points. In the EU it was 9.4% which means that the survey-based unemployment rate in Slovenia is lower than the average in the EU fifteen. The countries whose rate was higher then in Slovenia were: Belgium (9%), Finland (10.3%), France (11.2%), Germany (9.1%) and Spain (16.3%).

In keeping with the EUIA the ESS decides on rights arising from unemployment insurance. The trend in the area of unemployment benefits and unemployment assistance was slightly different in 1999 to that in the preceding five-year period. In 1999 the number of recipients of unemployment benefit gradually fell. At the end of 1999 there were 31,227 recipients of unemployment benefit which is similar to the number in 1996. The trend was completely the reverse in the area of unemployment assistance. The number of recipients of unemployment assistance was gradually increasing and grew from 2,800 to 3,283 by the end of 1999. This trend was the consequence of legislative changes (extending the duration of receiving unemployment benefit to 15 months minimum, shortening the duration of receiving unemployment benefits) and of the increase in the number of recipients joining active employment policy measures, particularly public works.

National and Zois scholarships can be granted to apprentices, secondary-school and university students who meet the conditions set by the EUIA and the Rules on Scholarships. The main objective of national scholarships is to allow young people from disadvantaged backgrounds to study, and of Zois scholarships to encourage development of very gifted students. At the end of December 1999, 39,762 secondary school and university students were entitled to national scholarships and 11,222 to Zois scholarships. The number of national scholarships began to increase during the 1990s at the same time as the number of company scholarships was falling.

Student loans were introduced in 1999 as a new form of assistance to students. A public tender attracted 2,429 applications. The procedure of loan granting was not completed in 1999 which is why there is as yet no final data available on the number of students who on the basis of the tender signed a contract on a student loan.

The basic activity of the ESS is job placement, including provisions of information, employment advising and referral to job vacancies. As a result of these activities 52,352 people found employment in 1999 and additional 10,296 were employed by public works.

As in previous year the ESS again helped to reduce discrepancies between demand and supply on the labour market by implementing various active employment policy measures, which on one hand led to an improved supply (training and education programmes) and on the other, to an increased demand (various subsidies). 23,018 new unemployed people joined training and education programmes. The programme of education for unemployed people, which was adopted by the Government of the Republic of Slovenia at the proposal of the Ministry of Labour, Family and Social Affairs and the Ministry of Education and Sport, deserves special attention. The basic objective of the programme is to raise the educational levels of unemployed people and thus reduce structural discrepancies on the labour market. In the 1998/99 academic year 7,932 unemployed people took advantage of the programme. Since the education programmes in general last three years it is too early to give an objective evaluation of the success of programmes.

As in previous years, the refunding of contributions to employers who took on a first-time job seeker, a long-term unemployed person, older unemployed person, a recipient of unemployment benefit or of unemployment assistance remained an important measure of increasing demand. The measure particularly encouraged employers with not more than 50 staff to employ new workers. Of the 6,223 job placements that resulted from this measure as many as 4,789 (77% of all) were employed by small-sized companies.

For the tenth year running the ESS carried out activities of facilitating self-employment. With the help of this measure which includes provision of information, business training, advising and subsidies, loans or refunding of contribution to newly self-employed, 1,643 unemployed people put their business ideas into action and became self-employed. Two other important projects within the facilitation of self-employment were the introduction of cooperatives and R&D project on self-employment in rural areas. The first included 163 unemployed people of whom 72 became self-employed in 1999; the second project laid the foundations for self-employment in rural areas through the development of auxiliary activities on farms in particular.

The number of disabled people among the unemployed continued to grow in 1999 as opportunities for their employment are even fewer than for other groups of unemployed people. The ESS has various active employment policy programmes for this group of unemployed aimed at preserving employment (by subsidising sheltered companies) and increasing their employability (with training and education). The educational structure of unemployed disabled persons is even worse than that of the unemployed in general as 65% of the total of 14,878 unemployed disabled had only attained first or second levels of education. In order to ensure the most effective assistance possible to this group of unemployed people the ESS, in addition to employing occupational therapists, also has a special medical advice service which in 1999 carried out 3,284 consultations on medical and ergonomic matters. 957 disabled people joined training programmes, of whom 818 found employment after training (13.1% more than in the year before), and 24 disabled people became self-employed. As spin-offs of company-restructuring processes new sheltered companies are often created as a way of preserving jobs for disabled people. The number of sheltered companies increased by 8 to a total of 133. At the end of the year they employed 5,424 disabled people. The ESS pays monthly subsidies to sheltered companies in line with the Rules on the Criteria for Subsidising Operational Costs of Sheltered Companies.

Public works programmes were carried out in keeping with the new EUIA. The key change in this area was the change in the status of people included in public works who now sign special contracts of employment with the providers. Public works programmes pursue two primary objectives: to encourage the opening-up of new jobs and to preserve and develop the working habits of unemployed people. The total of 2,412 public works programmes included 10,296 unemployed people which is similar to the number in the year before. On average, public works included 5,450 unemployed people. Public works programmes are intended for hard-to-employ categories of unemployed people. The actual structure of participants shows that as far as this aspect is concerned these programmes fully achieved set targets; 62% of the participants had been unemployed for over three years and 1,190 were disabled. What is particularly important and positive is that the number of those who during public works or within 6 months of the end of public works find regular employment is growing. In 1999, 2,860 participants in public works found employment (27.7% of all participants). In previous years the share was between 5% and 17%.

The most important active employment policy programmes include promotion of regional and local employment programmes, assistance to companies participating in the governmental project of personnel restructuring in companies (training of key and other personnel) and the programme of including redundant workers in labour funds.

Active employment policy programmes were in 1999 attended in total by 63,455 people, of which 50,860 were unemployed people. In nearly half the cases (24,055) unemployed people found one form of subsidised employment or self-employment with the help of the programmes. Other participants were either already employed in companies which are being restructured or redundant workers or employed disabled who were in this way guaranteed a new job or preservation of their employment.

The ESS assessed its work in 1999 as successful. The corner was turned on years of decline in unemployment and registered unemployment trends. As well as favourable economic trends this was the result of systematic measures - those concerning the definition of the status of unemployed people (their obligations and rights) as well as those which concern the implementation of active employment policy measures. These identify in a clearer manner the target groups of unemployed people whose chances of finding regular employment on the labour market are lower and places more emphasis on those measures which increase demand and reduce the number of unemployed people at the same time.