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Croatia: Working life in the COVID-19 pandemic 2020

Without doubt impacts of the pandemic on the economy and working life have been significant. At the end of November 2020, the Croatian Employment Service recorded 157, 000 unemployed persons, representing a 21.9% increase in the number of registered unemployed persons compared to November 2019. While the gender structure of unemployed persons did not change in comparison with November 2019, so 45% were males and 55% female, regarding the age the highest share was recorded by the group 30 to 34 years (for 28, 9%), and the lowest by persons 60+ years (for 11.5%). Overall, real GDP is expected to contract sharply in 2020 (around 9.6%). Social cohesion was still kept by Government’s extensive furlough scheme with approximately HRK 10 billion (€1.33 billion). These sums were paid out in the period from April until October 2020, with almost 630.000 employees included in the protection scheme at one point in time. Additionally, Croatia was granted €1 billion in favourable loans within SURE instrument (Support to mitigate Unemployment Risks in an Emergency) with the goal of supporting national working time reduction schemes. The year 2020 represents a true test for Croatia’s economic resilience and policy effectiveness. Croatian authorities decided to lock down the economy on 16 March 2020. The schools and universities remained closed until mid- May, as well as public transport. The circumstances remained favourable during summer, with only few new cases of corona virus infections until September. As the situation worsened, as of 28 November, a soft lockdown as introduced, through 21 December, with several restrictions, among which the closure of hospitality services (restaurants, cafes, and bars) and interdiction of cultural events and gatherings. The healthcare system was under much bigger pressure than during spring wave. Furthermore, one should not forget that Croatia suffered from terrible earthquakes - the first one in March 2020 in the Capital the City of Zagreb, and the second one at the end of December 2020 in cities Sisak, Petrinja and Glina, which also caused serious material and economic damage and additionally contributed to the significant drop in GDP

Croatia ; working conditions ; working life ; Covid-19

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