Labour market integration of the long-term unemployed in Slovenia

While Slovenia has been relatively successful in mitigating the rise in unemployment during the COVID-19 crisis, longer-term challenges relating to unemployment still require attention. Most prominently, the share of jobseekers who are long-term unemployed (LTU) has remained consistently above the EU-average in recent years. The persistently high share of long-term unemployed stands in stark contrast to Slovenia’s broader labour market recovery in the aftermath of the 2009 recession. Employment rates stand close to their 2008 peaks, surpassing both the OECD and EU averages. While the underlying reasons for these contrasting developments may be multifaceted, they do suggest the presence of a sizable number of individuals with significant barriers to employment in Slovenia.

In order to facilitate the design and implementation of policies to improve the labour market integration of the long-term unemployed, the Slovenian Ministry of Labour, Family, Social Affairs and Equal Opportunities requested technical support to the European Commission through the Structural Reform Support Programme. The OECD and the European Commission’s Directorate-General for Structural Reform Support (DG-Reform) have provided technical support to Slovenia between June 2019 and November 2020 (contract SRSS/S2019/036).

One specific aim of the project was to give Slovenia’s authorities a better understanding how statistical profiling and client management strategies can improve the efficiency and effectiveness of the provision of employment services, and thus preventing long-term unemployment. Another specific aim was to inform Slovenia’s authorities of the potential for contracted‑out employment services to augment the work of Slovenia’s public employment service – the Employment Service of Slovenia (ESS) – through e.g. the delivery of tailor-made services to specific disadvantaged groups. Finally, in response to the onset of the COVID-19 crisis in early 2020, the project also supported Slovenia’s authorities with specific recommendations on how to improve its short- to medium‑term policy responses while paving the way for a strong labour market recovery in the longer-term.

The following three main reports were produced in the context of this project:

The work was supported by:

1. Semi-structured interviews and consultations with Ministry and ESS staff, national and international experts as well as other stakeholders.
2. Workshop and joint study visit to another OECD country (Ministry and ESS staff undertaken together with the OECD) to examine lessons learnt in the course of that country’s implementation of contracted-out employment services.
3. Two workshops with Slovenian stakeholders and international experts on the use of statistical profiling tools for the effective segmentation of jobseekers and targeting of services and a workshop summary.
4. Analysis of ESS individual-level data to better quantify the challenge of long-term unemployment and identify the scope for providing additional assistance to jobseekers.
5. An internal learning event to disseminate and discuss the results of the project with policy makers from the Ministry and senior management of the Employment Service of Slovenia.

This type of support could be relevant for other countries wishing to design better policies for addressing the challenges of long-term unemployment or weak labour market attachment. Two specific issues addressed within the project could be of interest: (i) schemes for contracted-out employment services to augment the work of public employment services, especially in times of rising registered unemployment; and (ii) the use of statistical profiling tools to better target employment services and prevent long-term unemployment. While much of the project focussed on providing specific policy advice, it is also part of broader effort by the OECD and the EU to help countries improve their use of administrative data to develop evidence-based policies. 

Contact: Activation@oecd.org

Funded by the European Union via the Technical Support Instrument, and implemented by the OECD, in cooperation with the European Commission.