Ljubljana , 16 March 2018 Egbert HOLTHUIS,

1. Key findings of the Country Report for Slovenia 2018 – Labour Market and Social Policy Developments Ljubljana, 16 March 2018 Egbert HOLTHUIS, Directorate-General for Employment, Social Affairs and Inclusion

2. Labour market conditions improved for the third year in a row % - The economic recovery has been accompanied by job-creation - Employment continued to rise and unemployment further decreased - Wage growth remains moderate and in line with productivity - Situation of young people improved • Challenges • Activation of older workers remains at the bottom of EU • Long termunemploymentisstillabovepre-crisislevels • There are signs of labour shortages in some vocational occupations • Temporary employment remains an issue Data for 2017* is average of first 3 quarters Source: European Commission

3. Activity rates of older workers remain lowest in the EU % Although the employment rate of older workers is increasing (45.3% in 2017) it still lags significantly behind the EU average (60.4% in 2017). Challenges: • A rapidly ageing society means the working age population and labour supply are shrinking • This could hamper economic growth • IMAD forecasts that in two years the working population could shrink by 8000 persons per year • Old age dependency ratio is projected to double by 2060 • Net migration after the economic crisis has been very low Data for 2017* is average of first 3 quarters Source: European Commission

4. Source: Manpower Talent Survey There are signs of labour shortages % • The share of employers reporting skills shortages increased • Some of the most wanted professions are: • Drivers of heavy vehicles • Workers in manufacturing • Welders • Masons • Cooks • Waiters • Toolmakers • Salesmen • Challenges: • Most workers are well matched with their current jobs but there are indications that the system is not fully able to provide in-demand skills • Adjusting the education programmes and offering enrolment places could help reduce these gaps

5. Skills and Education % - Slovenian education system performs well in most areas and the country already surpassed the Europe 2020 targets in education - The participation rate of adults in learning is still slightly above the EU average but it's been falling since 2010 Challenges: • Population ageing accentuates the need to increase participation in adult learning • Adult learning is especially low among older workers and the low-skilled Source: European Commission

6. Active Labour Market Policies (ALMP) • According to a study prepared by University of Primorska, Slovenian ALMP’s are performing well if judged by labour market impact and cost-effectiveness • Three out of four examined programmes had positive short and longer-term effects. • In 2017 Slovenia prepared two new ALMP measures aimed directly at older workers (Active until retirement and Support for companies for active ageing of the workforce) Challenges: • The participation rate of unemployed in ALMP’s is among the lowest in the EU • Long-term unemployment remains high • Spending on ALMP programmes is low • Older and low-skilled workers remain under-represented in ALMP and could benefit from implementation of the Upskilling Pathways Recommendation.

7. Social conditions have improved further, but old-age poverty is frequent % The number of people at risk of poverty and social exclusion declined further in 2016, but it is still above the 2008 level. Challenges: • The elderly have the highest risk of poverty or social exclusion, particularly women over 65 • Also due to the low employment and activity rate of older workers • Pensions are the principal source of income for elderly and are frequently below the poverty line • Due to the economic crisis many workers are facing shorter careers and longer career breaks and could face pension adequacy problems in the future • Delaying pension reform is a concern Source: European Commission

8. Hvala!