Zagreb - Foreign nationals holding a work permit who lose their jobs will now be able to register with the Croatian Employment Bureau (HZZ) and collect unemployment benefits, according to amendments to the Labour Market Act discussed by the Croatian Parliament on Wednesday.
"For the first time, they will be able to register as unemployed. The idea is to offer them a job immediately, to help them find new employment, so they don't have to return to their home countries by law," said Ivan Vidiš, State Secretary at the Ministry of Labour, Pension System, Family, and Social Policy.
Once their temporary residence permit expires, foreign workers will no longer be eligible for benefits, Vidiš clarified while presenting the legal changes.
"The key point is to allow these people to enter the unemployment register, not to receive benefits, but to help them secure new jobs, as we are in dire need of these workers. Most of them are employed in occupations where there are shortages," he added..
Vidiš rejected claims by Dalija Orešković (DOSIP) that foreign workers are only low-skilled, stating that most of them are medium-skilled, and some are highly skilled.
A 1% GDP growth translates to at least 20,000 new jobs, Vidiš said in response to criticisms from Miro Bulj (Bridge) about the unlimited import of foreign workers while young educated people are leaving the country.
Vidiš announced that the Foreigners Act will also be amended to introduce a mandatory quota for Croatian citizens in companies hiring for occupations with a shortage of workers.
Additionally, the amendment to the Labour Market Act raises the unemployment benefit rate from 30% to 35% of the base amount for the period between the 91st and 180th day. "We decided to increase the adequacy of unemployment benefits, as we believe that even with record-low unemployment, we must still consider the financial situation of the unemployed," the State Secretary said.
The increase is aimed at encouraging more unemployed individuals to register with the HZZ and, through a structured job-search process, shorten their unemployment period.
"Permanent seasonal worker" measure to be eliminated
The government has decided to abolish the "permanent seasonal worker" measure, Vidiš said, in order to take full advantage of the current low unemployment rate. This new measure will allow seasonal workers to sign permanent employment contracts and work in other positions during the off-season.
As of October 2024, there were 86,000 people registered with the HZZ as unemployed, with 20% receiving unemployment benefits, which means they had worked for at least 9 months in the past two years, Vidiš explained.
During the debate, the opposition raised concerns about the mismatch between education and labour market needs, proposed that individuals starting self-employment should continue receiving benefits for another year, and emphasised the importance of continuous retraining and lifelong learning.