Introduction. Arban Abrashi, Minister of Labour and Social Welfare

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Introduction The purpose of the annual report "Labour and Employment", as in previous years during this reporting year, provides information on the labour market in Kosovo and reflects the achievements of the Ministry of Labour and Social Welfare in the field of Employment and Vocational Training. This report reflects all developments and trends occuring within the reporting year for the registration of unemployed, jobseekers and employers, provision of services as well as active labour market measures. The key data in this report reflects the longer period of performance of services provided by employment and vocational training offices. The services provided by the employment and vocational training offices are continuously expanding and becoming qualitative for our clients. The main indicators in the labour market have reflected positive trends. MLSW during this reporting period introduced the profiling of registered unemployed, where after this categorization there is a decrease in registrations by 9.3% (101,773) compared with the previous year. Over the same period, more jobs were reflected by 22.9% (14,137) than in the previous year. Employment rate for 2016 is 6.6%, compared with the previous year which was 5.5% increased to 1.14%. Employment through regular mediation was realized by 4022 persons and through active measures 2,732 unemployed persons were employed. Vocational training has reflected positive growth trends for 66.1% (6,736) while compared with previous year, whereas we also have been increased to the in-job training from 281 referred to last year's 951 during this reporting year with an increase of 238%. The Labour and Employment Report is a good basis for policy makers, both within and for other relevant institutions. MLSW is modernizing infrastructure in Public Employment Services, is increasing the quality and providing employment services to all its clients. Also, there has been great expansion of active labour market measures. The Ministry of Labour and Social Welfare thanks all the donors that have supported the realization of joint professional and financial projects such as UNDP, World Bank, EYE projects, GIZ, KE-EYWG, IOM etc. Without their help and dedication of MLSW staff, these results would not be achieved. Arban Abrashi, Minister of Labour and Social Welfare

Compiled by: Shpetim KALLUDRA, Manager Section of Labour Market Analysis and IT, DLE/MLSW shpëtim.kalludra@rks-gov.net Jehona Namani-REXHA, Head Vocational Training Division, DLE/MLSW jehonanamani@hotmail.com Ylber ALIU, Head Employment Offices Coordination Division, DLE/MLSW ylber.aliu@rks-gov.net Responsible Defrim RIFAJ, Director Department of Labour and Employment dëfrim.rifaj@rks-gov.net Address Ministry of Labour and Social Welfare UÇK street No.1 10000 Prishtina, Kosovo Published by Ministry of Labour and Social Welfare Published on: March 2017 : Department of Labour and Employment/MLSW Reproduction is not permitted without authorization. The source should be noted for used data.

Content MAP OF KOSOVO ABBREVIATIONS LIST OF TABLES LIST OF FIGURES Introduction Executive summary 1 2 3 Page 6 7 8 9 10 11 Registered Unemployment 1.1. Registered unemployment by Years 1.2. Registered unemployment by Qualifications 1.3. Registered unemployment by Occupations 1.4. Registered unemployment by Age group 1.5. Registered unemployment by Ethnicity 1.6. Registered unemployment by Regions Employment Services 2.1. Job vacancies 2.1.1. Vacancies by Sector 2.1.2. Vacancies by Size of Enterprises 2.1.2. Vacancies by Occupation 2.1.3. Vacancies by Qualification 2.1.4. Vacancies by Region 2.2. Mediated employments 2.2.1. Regular Mediations in Employment by Economic Sectors 2.2.2. Regular Mediations in Employment by Size of Enterprises 2.2.3. Regular Mediations in Employment by Occupation 2.2.4. Regular Mediations in Employment by Qualifications 2.2.5. Regular mediations in Employment by Age group 2.2.6. Regular Mediations in Employment by Ethnicity 2.2.7. Regular Mediations in Employment by Gender 2.2.8. Regular Mediations in Employment by Region Active Measures in Labour Market 3.1. Vocational trainings 3.1.1. Vocational trainings by Qualifications 3.1.2. Vocational trainings by Age group 3.1.3. Vocational trainings by Ethnicity 3.1.4. Vocational trainings by Gender 3.1.5. Vocational trainings by Region 3.2. Other active measures in labour market 3.2.1. Active measures in labour market by Qualifications 3.2.2. Active programs in labour market by Age group 3.2.3. Active measures in labour market by Ethnicity 3.2.4. Active programs in labour market by Occupation 3.2.5. Active measures in labour market by Gender 3.2.6. Active measures in labour market by Region 14 17 17 18 18 19 19 21 22 23 24 24 24 26 27 28 29 30 31 32 32 33 34 35 35 36 37 38 39 40 41 43 44 44 45 46 47 Annex A Annex B Annex C Annex D Annex E 48 51 53 54 56 57 Projects implemented during 2015 Certification for registration of foreign nationals working for "30, 60, 90 days General data Vocational Training Data by Occupation Data on persons with disabilities Definitions and Terminology

Map of Kosovo Department of Labour and Employment Employment Offices Vocational Training Centres in Kosovo

Labour and Employment, 2016 Abbreviations DLE Department of Labour and Employment DSW Department of Social Welfare DE Division of Employment IOL/ILO International Organisation of Labour / International Labour Office IOM International Organisation of Migration IMF International Monetary Fund MAFRD Ministry of Agriculture, Forestry and Rural Development MEF Ministry of Economy and Finance MEO Municipal Employment Office MEST Ministry of Education, Science and Technology MLSW Ministry of Labour and Social Welfare MTI Ministry of Trade and Industry REC Regional Employment Centre SOK Statistical Office of Kosovo UNDP United Nations Development Program VTC Vocational Training Centre DVT Division for Vocational Training WB World Bank SHE Survey of House Economy RHD Research on Human Development ISCED International Standard for Classification of Education IPSAS International Standard for Classification of Occupations LFS Labour Force Survey ISCEA International Standard for Classification and Economic Activities. 7

Labour and Employment, 2016 List of Tables Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Table 13 Table 14 Table 15 Table 16 Table 17 Table 18 Table 19 Table 20 Table 21 Table 22 Table 23 Table 24 Table 25 Table 26 Table 27 Table 28 Table 29 Content Unemployment registered by years Registered unemployment by qualifications Registered Unemployment by Occupations Registered unemployment by age group Page 18 18 19 18 20 20 25 26 27 28 30 31 32 33 33 34 35 36 37 38 40 40 41 44 45 45 46 47 48 Registered unemployment by Ethnicities Registered unemployment by Regions Job vacancies by size of business Vacancies by qualifications Vacancies by region Employment Rate Mediations in Employment by Size of Enterprises Regular Employment by Occupation Regular Employment by Qualifications Regular Employment by Age group Regular Employment by Ethnicity Regular mediation in Employment by Gender Regular mediations in Employment by Region Active Measures In Labour Market Vocational trainings by qualifications Vocational trainings by age group Vocational trainings by Ethnicity Vocational trainings by Gender Vocational trainings by Regions Active measures in labour market by Qualifications Active measures in labour market by age group Active measures in labour market by Ethnicity Active Measures in Labour Market by Occupation Active measures in labour market by Gender Active measures in labour market by Region 8

List of Figures Figure 1 Figure 2 Figure 3 Figure 4 Figure 5 Figure 6 Figure 7 Figure 8 Figure 9 Figure 10 Figure 11 Figure 12 Figure 13 Figure 14 Figure 15 Figure 16 Figure 17 Figure 18 Figure 19 Figure 20 Figure 21 Figure 22 Figure 23 Figure 24 Figure 25 Figure 26 Figure 27 Figure 28 9 Labour and Employment, 2016 Content Registered unemployment by staff Trend of vacancies by years Registered unemployment by economic sectors Trend of Vacancies by Ownership Vacancies by occupation Vacancy ratio by qualifications RRV by Regions HRRV by Regions Employment Mediation Trends by Years Regular Mediations in Employment by Economic Sectors Regular employment rate by ownership Regular employment rate by occupations Regular Employment Rate by Qualification Regular Employment Rate by Age group Regular Employment Rate by Ethnicity Regular Employment Rate by Gender Employment Rate by Region Regular employment rate by staff in regions Trend of Entrance to Vocational Training by Years Training Rate by Qualifications Vocational trainings rate by age group Vocational trainings rate by Ethnicity Vocational trainings rate by Regions Activation rate in AMLM by Qualifications Activation Rate of AMLM by age group Activation Rate of AMLM by Ethnicity Activation Rate of AMLM by occupations Activation Rate of AMLM by regions Page 21 23 24 24 25 26 27 27 28 29 30 31 32 33 34 34 35 35 37 38 39 40 41 44 45 46 47 48

Labour and Employment, 2016 Entry "Labour and Employment" as the report of work of DLE in consistently that since 2003, addresses the issues related to employment and vocational training in Kosovo. Special attention is dedicated to the performance of the activities undertaken by the Department of Labour and Employment (DLE) of the Ministry of Labour and Social Welfare (MLSW). Based on the reforms undertaken for LES have two types of registrations of jobseekers, such as: (i) the registered unemployed and (ii) the registered job seekers. Registration of Unemployed means physical arrival for registration at the employment office. For the purpose of unemployment continuing, the unemployed person has to be presented every three 3 months in the office of employment. If they do not appear in the Employment Offices of two (2) times a row (3 + 3 months) then these persons are not active and will be suspended from the record keeping. Registration of Jobseekers means the registration of all persons who are from outside (through the Internet) on online platform and who are not obliged to come physically in employment offices. This category can also get the services they need from LES without going to in employment offices through online services offered Objectives and Methodology - Work and Employment Report as the performance report reflects most of the services offered by employment offices and vocational training centres. It presents all developments such as: the registration of the unemployed, jobseekers and the Employer and the provision of services and active employment measures. The main focus is directed at monitoring the performance, whereas by establishing performance indicators in SIMP aimed at increasing the efficiency of the services provided by the LES. Therefore the figures used in this report mainly refers to data collected by the Information System for Management of Employment (ISME), by officials of Employment Offices (EO) and the Vocational Training Centres (VTC). Based on this, the DLE has developed the Information System for Management of Employment, whereas from this application can be obtained all the data such as: registered unemployment, job vacancies, mediation in employment and entry into vocational training. Likewise, these data are disaggregated by gender, qualification, age group, ethnicity, region, sector of activity, property sector etc. Regarding the external determinants of the labour market, such as the population, the working age population, active population and employment, the report refers to other institutions as secondary sources. The main objectives of this report are to support the decision-making and policy-making process within the MLSW. Furthermore, it aims to provide transparent information on the development of labour and employment for all relevant institutions and to the general public as per their interests, by: Presenting and analyzing the structure and facets of the registered unemployment, socio-demographic aspects, gender, qualifications, age and ethnicity; Analysis of job vacancies offered by the labour market and registered at the employment office and mediated employment through LES. Entries in vocational training of unemployed and results of vocational training as a measure to advance the employment opportunity of registered as unemployed; Overview of the development of active measures in the labour market. 10

Labour and Employment, 2016 Summary The total number of registered unemployed by public employment services by the end of 2016 is 101,773 persons, out of which 45,061 are women whereas 56,712 are males. Registered as "Unqualified" are 37,950 persons or 37.3%, while registered unemployed with "Primary School" reaches the figure of 24,062 persons or 23.6%, whereas the registered with "Secondary Professional School" reaches the figure of 29,530 or 29.0%. The number of registered with "University" is about 7,826 or 7,7%. Registered unemployment by professions for this reporting year mostly refers to registered unemployed in primary education with 73.6% of absolute majority, then professional technicians and associates with 7.1%, followed by professionals with 5.7%. Prishtina reflects the highest number of registered unemployment with 24,727 persons or proportionally from other regions by 24%, Prizren with 16,412 persons or 16% and Mitrovica with 15,535 or 15%. Public Employment Services during this reporting year also reflected about 14,137 job vacancies. If compared the data with 2015, we have the increase of more than 22.9%. During 2016, most of the vacancies offered refer to the manufacturing industrial sector with 21.1%, followed by trade sector, automotive and household goods repair by 16.2%, as well as agriculture, hunting and silviculture with 11.4%. Job vacancies by professional division are mainly reflected by 24% craftsman and tradesmen, followed by 22% of service workers and 20.7% by elementary professions. During this year, the number of registered vacancies with primary school are 5,687 positions or 40.2%, as well as with secondary school 6.147 positions or 43.5%. Most registered job vacancies refer to the region of Ferizaj with 3,213 vacancies or 22,7%, followed by Prizren with 2,648% vacancies or 18,7%, then Prishtina region with 1,904 vacancies or 13.5%. The lowest number of registered job vacancies refers to the Gjilan region with 1,262 vacancies or 8.9%. 11

Labour and Employment, 2016 6,754 employment mediators were made during this reporting year (2016). Mostly, employment mediations were made through a regular mediation process with 4,022 intermediaries and through the form of active programs in the labour market with 2,732 mediations. The largest number of employment mediations was made in the processing industry with 20.8%, followed by 20.1% in the sector of trade, automotive and household goods repair, as well as agriculture, hunting and silviculture with 18.0%. Service and sales workers reach the highest number of employment mediations by 26%, followed by 22% elementary professionals and craftsmen and similar professionals by 18.6%. Mediation in regular employment was mostly accomplished for the age group 25-39 with 50.1%, then for the age group 15-24 with 23.0%, followed by two other age groups 40-54 with 23.1 % and 55+ by 3.9%. Public Employment Services have realized 38.5% of regular mediations for women or 1,550 persons, while men are mediated in employment by 61.5% or 2,472 people. Regular employment mediation by region reflects different results, where the Employment Office in Prishtina in 2016 has realized the highest number of jobs in absolute figures for the 12 month reporting period, which amounts to 836 people or 20.8% followed by Gjakova with 20.0% (806). The growth rate of entry into vocational training has never been higher than in 2016. 6736 unemployed have entered training during 2016, distributed to more than 30 Vocational Training Centres. When compared to 2015, the number of participants in Vocational Training has increased by 66%. The largest number of entries in vocational training is done for the levels of qualification with primary school with 325 and secondary school with 56.4%. While other levels of qualification or those with higher education have reflected much less entry into vocational training. Entries with Bachelor in vocational training reach up to 9.8%. Entries to Vocational Training for 12 months by gender shows that the proportion of women in attendance is about 27.2% or 1830 participants, while men attend 72.8% or 4906 participants during this reporting year. 12

Labour and Employment, 2016 Professional qualifications by region, reflects completely different results. Again as in other years, Prizren region dominates in relation to other regions with participation of up to 21.9% or 1476 persons. Thereafter, the Peja region is ranked with 18,6% or 1255 participants in trainings as well as Prishtina region with 17,9% or 1205. The largest number of activation in active employment measures was done by high school level with 44.1% or with 1205 beneficiaries, followed by primary school with 27.2% or persons, and with unskilled with 12.2% or 334 people. During 2016, the largest number of mediations was made for the age group 25-39, which participates with 45.1% or 1232 persons, followed by the other age group 15-24 with 34.7% or 949 persons. While the age groups 40-54 with 17.6% or 482 beneficiaries as well as age group 55+ participate with only 2.5% or 69 people have received support. Elementary professions are the main beneficiaries of active employment measures with 26.0% or 709 beneficiaries, based on data reported during this year (2016). Then service and sales workers participate with 20.8% or 567 beneficiaries as well as craft workers and similar professions with 19.7% or 537 beneficiaries. Active Labour Market Measurement (ALMM) by region reflects different outcomes, where Prishtina region proportionally dominates with 23.5% or 642 participants versus other regions. Behind this region is Mitrovica region with 18.8% or 514 participants, as well as Prizren region with 12.1% or 330 participants. 13

Labour and Employment, 2016 1. REGISTERED UNEMPLOYMENT 14

Labour and Employment, 2016 New model of provision of services for jobseekers, which was approved by MLSW, are two categories of jobseekers: Registered jobseekers: The first group consists of registered jobseekers on the online platform (aprk.rks-gov.net) and are users of only online employment services. Registered unemployed: The second group consists of unemployed people who visit EO to look for job and get services in these offices. Registered jobseekers: Based on the new service delivery model, job seekers registered on the online platform (aprk.rks-gov.net) can use all the employment services offered on this platform. As noted above, these clients are users of the services provide on the online platform but not the services provided in the EO, therefore they are only kept on the list of 'registered jobseekers'. Registered jobseekers have full access to online services after registering and creating their profile as jobseekers. The services provided through the Internet are: reviewing vacancies, obtaining information on advertisements, direct application to vacancies, reviewing and applying for training provided by VTC, etc. Multi-channel services enable the provision of services in a fast and automatic way. In cases where registered jobseekers visit the EO to seek services, they may be offered services such as: providing information on the labour market situation, job search assistance, employment mediation and career orientation. An example of this situation is when registered jobseekers aim to change jobs or are at risk of losing their job. Registered unemployed: Persons visiting the EO and seeking employment support will go through a certain procedure and will be treated differently from registered jobseekers. Initially, the unemployed person is directed to the waiting area within the EO. After identification of the initial needs by the information officer /receptionist, the jobseeker is addressed to the adviser. Then the process of a detailed interview is conducted to collect the information needed to find out more about the jobseekers and to carry out their registration. During the interview the adviser collects further information such as: individual client circumstances, wishes and needs, motivation, etc. During the interview process, the unemployed are enrolled in the ISME and should be segmented or profiled in one of the following three sub-groups: 15

Labour and Employment, 2016 (i) Low risk group becoming the long-term unemployed (LTU) (ii) Medium risk group becoming the LTU (iii) High risk group becoming the LTU Subsequently, the persons considered to become low risk LTU are advised to use selfservice instruments and, if needed, will be provided assistance in the following format: clarification on the use of self-service, assistance in activating social networks and how to contact the employer directly to find a job. On the other hand, if registered unemployed are segmented at medium risk to become LTU, employment advising services are provided such as: job mediation, job search assistance, and market information Work and training. Finally, if the registered unemployed are segmented at high risk of becoming LTU, the adviser offers intensive support or advising that combines skills in job search, career guidance, customer motivation during long period in order to search job, and the creation of an individual employment plan (IEP). In-depth and individual advising is provided for those clients who need additional help or for a prolonged period for the purpose of their reintegration into the labour market. Finally, the advisor informs and advises the unemployed client to be incorporated in the various measures of the LTUVT taking into account the available categories and funds. Finally, the movement of clients within different segments (from low risk to high risk of becoming LTU and vice versa) is based on changes in the features of registered unemployed. If early registered segregated unemployed people to become LTU continue to remain idle in the next visits, then increasing the length of unemployment means they lose their readiness for work and motivation to become seekers for job. In these cases, the advisor should treat these clients as having a medium risk of becoming LTU. Also, if earlysegmented high-risk clients to become LTU have been provided with professional training, have been trained in a particular profession, and have been able to seek employment, then the advisor should not treat these clients as high-risk but as medium-risk to becoming LTU. In the new model of providing employment services approved by MLSW, advisors are responsible for providing all kinds of services to the unemployed and employers. In other words, there is no segmentation or specialization of advisers in certain types of services provided to clients. Thus, clients will receive all the services from a single advisor who is assigned to them at the time of registration. 16

Labour and Employment, 2016 1.1. Registered unemployment by Years The total number of unemployed registered by public employment services by the end of 2016 is 101,773 persons, out of which females are 45,061 and males 56,712 persons. Table 1: Unemployment registered by years Registered 2013 2014 unemployment 74,475 83,323 Women 32,327 36,570 Men 42,148 46,753 Increase in 2013 11.9% 13.1% 10.9% 2015 112,179 48,960 63,219 Increase 2016 Increase in 2014 in 2015 34.6% 101,773-9.3% 33.9% 45,061-8.0% 35.2% 56,712-10.3% Unemployment entry for 12 months has declined by -9.3%, compared with the number of registered unemployed from the previous year (2015). Just as registered women and men have declined to record -8.0% and -10.3% respectively. The decline comes as a result of the new service provision model and the development of a new mechanism within the information system to categorize the registered unemployed. 1.2. Registered unemployment by Qualifications The total number of registered unemployed varies according to the level. Registered as "Unqualified" are 37,950 persons or 37.3%, while the unemployed are registered with " Primary School" reaches the figure of 24,062 persons or 23.6%, whereas the registered with "Secondary Professional School" reaches 29,530 or 29.0%. The number of students with "University" is about 7,826 or 7,7%. While the registered number with master remains in modest figures of 401 persons or 0.4%. Table 2: Registered unemployment by qualifications Level of qualifications 2016 Unqualified Grades I-IX (Primary School) Secondary Vocational Education Secondary School Gymnasium Bachelor Master ScD 17 37,950 24,062 29,530 2,004 7,826 401 101,773 (%) 37.3% 23.6% 29.0% 2.0% 7.7% 0.4% 100.0% Difference in 2015-44.5% 37.5% 47.5% 104.5% 54.9% 77.4% -9.3% Women 18,691 10,319 10,308 836 4,713 194 45,061 Men 19,259 13,743 19,222 1,168 3,113 207 56,712

Labour and Employment, 2016 1.3. Registered unemployment by Occupations Registered unemployment by occupations for this reporting year mostly refers to registered unemployed in primary education with 73.6% of absolute majority, then professional technicians and associates with 7.1%, then professionals with 5.7%. Table 3: Registered Unemployment by Occupations Managers Professionals Professional technicians and associates Office Workers and Assistants Service and Sales Workers Workers in agriculture, forestry and fishery Craftsmen and similar professions Operators and installers in factories and cars Elementary professions Armed forces 2016 % 488 5835 7214 2097 3897 817 5683 816 74926 101,773 0.5% 5.7% 7.1% 2.1% 3.8% 0.8% 5.6% 0.8% 73.6% 100.0% Difference in 2015-18.4% -7.9% -10.5% -12.5% -18.3% -26.2% -18.6% -12.4% -7.5% -9.3% Women Men 207 2940 2432 1019 1916 532 961 65 34989 45,061 281 2895 4782 1078 1981 285 4722 751 39937 56,712 The smallest number of registered unemployed are managers with only 0.5%. However, the decrease in registrations compared to the previous year is mostly reflected in the craftsmen employment and similar professions -18.6%, then with -18.4% the service and sales workers with -18.3% (for more see tab. 3) 1.4. Registered unemployment by age group Registered unemployment by age group mostly refers to the age of 25-39 with 48.3%, then the age group 40-54 that participates with 27.9% in registered unemployment. The age group of young people aged 15-24 and older 55-64, participate with 16.2% of registrations, respectively 7.7%. Table 4: Registered unemployment by age group Age group 2016 15-24 25-39 40-54 55+ 16,452 49,115 28,357 7,849 101,773 (%) 16.2% 48.3% 27.9% 7.7% Difference in 2015 55.2% -9.0% -24.8% -20.8% -9.3% Women Men 7,489 21,985 12,352 3,235 45,061 8,963 27,130 16,005 4,614 56,712 18

Labour and Employment, 2016 The unemployment rate for youth reflects an increase of 55.2% compared to the previous year, while for the other age groups we have a decrease in the registration. However, the increase in young people's registration comes as a result of campaigning from Public Employment Services. 1.5. Registered unemployment by Ethnicities The Public Employment Service during this reporting year also reflects high figures on registration of unemployment. Albanians participate with 87,093 persons or 85.6%, while in terms of unemployment records for the Serbian minority it was 2,594 persons or 2.5%.. Table 5: Registered unemployment by Ethnicities Ethnicity Albanian Serb Other Minorities All Minorities (%) 87,093 2,594 12,086 14,680 101,773 85.6% 2.5% 11.9% 14.4% Difference in 2015-12.2% -39.9% 38.8% 12.7% -9.3% Women Men 38,678 921 5,462 6,383 45,061 48,415 1,673 6,624 8,297 56,712 Other non-majority minorities participated in the registration of unemployment with 12,086 persons or 11.9%. While in general all minorities participate with 14,680 persons or 14.4% of all registration of unemployment. 1.6. Registered unemployment by Regions Prishtina reflects the highest number of registration of unemployment with 24,727 persons or proportionally from other regions by 24%, then Prizren with 16,412 persons or 16% then Mitrovica with 15,535 or 15%. Table 6: Registered unemployment by Regions Region Ferizaj Gjakova Gjilan Mitrovica Peja Prishtina Prizren Kosovo Average 19 2016 % 9,628 13,146 10,445 15,535 11,880 24,727 16,412 101,773 9% 13% 10% 15% 12% 24% 16% Difference in 2015-29.8% 6.1% -25.7% -5.5% 10.6% -1.0% -17.4% -9.3% Women Men PES 3,910 5,898 4,886 6,644 5,367 10,908 7,448 45,061 5,718 7,248 5,559 8,891 6,513 13,819 8,964 56,712 963:1 1096:1 803:1 1110:1 990:1 1124:1 1824:1 1106:1

Labour and Employment, 2016 The Ferizaj region faces the lowest number of registrations with only 9,628 persons or 9% persons. The decrease in registrations was mostly reflected in Ferizaj region by -29%, then Gjilan by -25.7%. A positive growth indicator has reflected the Peja region with 10.6% and Gjakova with 6.1%. The Public Employment Service of 92 employment advisers was supposed to provide services to 101,773 registered unemployed persons. Fig.1. Registered unemployment by staff Ferizaj 963:1 Gjakovë Gjilan Mitrovicë Pejë Prishtinë 1096:1 803:1 1110:1 990:1 1124:1 Prizren Kosovo 1824:1 1106:1 The highest number of staff unemployed was realized in Prizren region with 1824:1, then Prishtina region with 1124:1. While the lowest unemployment rate for staff is faced by Gjilan region with 803:1 (see figure 1). 20

2. EMPLOYMENT SERVICES 21 Labour and Employment, 2016

Labour and Employment, 2016 The Public Employment Service (PES) intends to mediate the job-seeking requirement and replenish job vacancies in the labour market while simultaneously serving jobseekers and employers. The PES based on the new service delivery model will offer employers a combination of services through: (i) (ii) internet (via computer and smart phones) and direct meetings (face to face) tailored to the needs of the employer. From the employer's point of view, some businesses are expected to prefer to use online services, some direct meetings, and some others both at the same time. Specifically, employers who have worked with PES and who know the services of the PES, the largest businesses that have employees or units of 'Human Resources' (HR), and other smaller businesses that have a high level of IT skills (even if they do not have HR units or employees) are expected to use the services via the Internet. On the other hand, those with less knowledge of services of Employment Offices, smaller businesses that do not have HR units or employees and have low level of ITC skills are expected to prefer direct communication with PES. But there will also be businesses that will use internet services for example to announce job vacancies, but will also use direct communication to get pre-selection candidates for interviewing and recruitment selection services. For this reason, it is very important for PESs to offer both types of services, digital and direct. 2.1. Job Vacancies Public Employment Services during this reporting year also reflected about 14,137 vacancies. If we compare the data with 2015 we have a rise of more than 22.9%. From 2014 to this reporting year, a trend of growth in job vacancy registrations has been reflected (see Figure 2) Fig.2: Trend of vacancies by years 11,506 8,561 2006 6,535 6,937 2007 2008 8,299 2009 8,037 2010 9,776 2011 14,137 9,434 2012 6,980 6,566 2013 2014 2015 2016 The registration rate of job vacancy (RRJV) in relation to the registration of unemployment is approximately 13.9% during 2016. 22

Labour and Employment, 2016 2.1.1. Vacancies by Sector During 2016, most of the offered vacancies refer to the processing industry sector by 21.1%, followed by trade sector, automotive and household goods repair by 16.2%, as well as agriculture, hunting and silviculture 11.4%. Fig.3 Registered unemployment by economic sectors in % Agriculture, Forestry Fisheries Mining Production Electricity, gas, water Construction Trade Hotel/ gastronomy Transport / Traffic Finance / Insurance Real estate activities Public Administration Education Health/ Social Protection Services Colective, social and personals Services House Activities of extraterritorial organisations and bodies 11.4% 0.0% 1.3% 21.1% 0.4% 8.8% 16.2% 9.6% 3.9% 1.6% 2.7% 3.0% 2.6% 2.2% 10.6% 3.9% 0.9% According to the overall results in 2016, the private sector has achieved a slight increase of 67% compared to 80% in the previous year. Regarding developments in the labour market in Kosovo divided by sector of ownership, the total number of vacancies has been referred to the private sector. While the public sector has declined by 33% compared to 2015, to 20% for 2016 (see Figure 4). However, it is important that the vacancies in the private sector are proportionally 80% compared to the public sector of 20%. Fig.4: Trend of Vacancies by Ownership 75% 59% 61% 41% 39% 25% 2008 23 2009 2010 80% 77% 67% 66% 64% 67% 33% 34% 36% 33% 23% 2011 2012 2013 20% 2014 2015 2016

Labour and Employment, 2016 2.1.2. Job vacancies by Size of Business Job vacancies by size division of enterprises are mainly for Micro Enterprises with 40.2% or 5.688 vacancies, followed by small enterprises with 27.8% or 3.937 vacancies. Vacancies 5,688 3,937 1,949 2,563 14,137 Table. 7. Job vacancies by size of business Micro Enterprises Small Enterprises Medium Enterprises Big Enterprises Ratio 40.2% 27.8% 13.8% 18.1% Middle-sized enterprises have found at least job vacancies, with 13.8% or 1.949 vacancies during this reporting period. 2.1.3. Vacancies by Occupation Job vacancies by occupational division are mainly reflected by 24% craftsmen and similar occupations with 22% followed by workers services and sell with 22% as well as elementary occupations with 20.7%. Fig.5: Vacancies by occupation Managers 1.3% Professionals 10.4% Professional technicians and associates 8.9% Office Workers and Assistants 5.3% Service and Sales Workers Workers in agriculture, forestry and fishery 22.0% 1.2% Craftsmen and similar professions Operators and installers in factories and cars Elementary professions 24.0% 6.2% 20.7% Whereas job vacancies that are reflected in small percentages, are for managers with 1.3% and skilled workers in agriculture and forestry with 1.2% (see Figure 5) 24

Labour and Employment, 2016 2.1.4. Vacancies by Qualifications Labour market demands mainly refer to job vacancies with primary education and secondary vocational education. During this year the number of vacancies registered with primary school is 5,687 places or 40.2%, as well as with secondary school 6.147 places or 43.5%. Table 8: Vacancies by qualifications 40.2% 43.5% 3.5% 12.2% Difference in 2015 36% 23% 4% 23.6% 20.8% 24.8% 22.1% 0.5% 262% 23% 19.0% 13.9% Qualifications 2016 Ratio Unqualified Grades I IX (Primary School) Secondary Vocational Education Secondary School Gymnasium Bachelor 5,687 6,147 497 1,730 Master ScD 76 14,137 RRV Other requirements coming from the labour market are smaller, with a master's qualification level are 76 places or 0.5%. Fig.6: Vacancy ratio by qualifications ScD - Master 19.0% Bachelor 22.1% Secondary School 24.8% Secondary Vocational 20.8% Grades I IX (Primary School) Unqualified 23.6% 0.0% The job vacancy rate refers mostly to secondary school gymnasium with 24.8%, followed by primary school with 23.6% and Bachelor with 22.1%. Whereas secondary vocational education in terms of vacancies is 20.8% and with master level 19.0%. 25

Labour and Employment, 2016 2.1.5. Vacancies by Region The most registered job vacancies refer to the Ferizaj region with 3,213 or 22.7%, followed by Prizren with 2,648% vacancies or 18,7%, then Prishtina region with 1,904 vacancies Or 13.5%. The lowest number of registered job vacancies refers to the Gjilan region with 1,262 vacancies or 8.9%. Table 9: Vacancies by region Regions Ferizaj Gjakova Gjilan Mitrovica Peja Prishtina Prizren Vacancies % 3,213 1,572 1,262 1,905 1,633 1,904 2,648 14,137 22.7% 11.1% 8.9% 13.5% 11.6% 13.5% 18.7% Difference in 2015 216% 7% -6% 15% 1% -22% 36% 23% HRRV RRV 321:1 131:1 97:1 136:1 136:1 87:1 294:1 154:1 33% 12% 12% 12% 14% 8% 16% 14% Compared to other regions, the highest vacancy rate registration (HVRR) in 2016 was reported by the regional Fig.7: RRV by Regions offices of Ferizaj (33%) and Prizren (16%). 33% While the Prishtina region 16% (8%) in 2016 has faced the 14% 12% 12% 12% lowest decline in terms of 8% offered vacancies. In other Ferizaj Gjakova Gjilan Mitrovica Peja Prishtina Prizren words, while in Prishtina region the monthly average Fig.8: HRRV by Regions according to statistics is about 159 unemployed and had to 321:1 compete for 1 job vacancy, 294:1 this ratio was about 100 to 1 in the Gjakova region. The 136:1 136:1 131:1 97:1 87:1 highest number of vacancies in relation to staff (HNVRS) in Ferizaj Gjakova Gjilan Mitrovica Peja Prishtina Prizren 2016 was reached by employment officials in the Ferizaj region with 321:1 and Prizren region 294:1 (see Figure 7). 26

Labour and Employment, 2016 2.2. MEDIATED EMPLOYMENTS Public employment services during this reporting period will be divided into: (i) regular employment mediation 1 and (ii) mediation in employment by active labour market measures 2. Table 10: Employment Rate 2015 112,179 11,506 6,174 3,574 2,600 54% 5,50% Unemployment Job Vacancies Employment - Regular Mediations - Mediations in employment by AMLM HRRV Employment Rate 2016 101,773 14,137 6,754 4,022 2,732 48% 6.64% Therefore, the data that will be reflected in this section will be solely for regular employment mediation carried out by Employment Offices, while other employment mediated data from active labour market measures will be reflected in the other section to this report. Fig.9: Employment Mediation Trends by Years 4,528 5,242 6,370 5,863 3,730 7,348 5,993 5,845 7,232 6,787 7,484 7,692 4,729 4,667 6,174 6,754 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 The most important indicator of all the activities realized in the labour market is Employment. One of the main objectives of Public Employment Services in Kosovo is mediation in employment, i.e. integration into the labour market and employment of the unemployed. 1 Regular employment is done directly through Employers, where they submit their requests to employment offices and thereafter matching the offer (registered unemployed). 2Employment through active labor market measures is done by subsidizing the workplace directly or indirectly through Employers. 27

Labour and Employment, 2016 6,754 employment mediators were made during this reporting year (2016). Mostly, employment mediations were made through a regular mediation process with 4,022 mediations and through the form of active programs in the labour market with 2,732 mediations. Employment rate for 2016 is 6.6%, compared with the previous year, increased to 1.14 %, which was 5.5%. Only 48% of vacancies have been met, in this context the comparison with previous year reflects a slight decrease in employment rates with reported vacancies. 2.2.1. Regular Mediations in Employment by Economic Sectors Continuously employment advisor research the labour market and register all the demands that come as a result of this daily activity. All developments related to this context reflect a result of mediated divisions by economic sectors. Fig. 10: Regular Mediations in Employment by Economic Sectors by % Agriculture, Forestry Fisheries Mining Production Electricity, gas, water Construction Trade Hotel/ gastronomy Transport / Traffic Finance / Insurance Real estate activities Public Administration Education Health/ Social Protection Services Colective, social and personals Services House Activities of extraterritorial organisations and bodies 18.0% 0.0% 0.1% 20.8% 0.7% 1.9% 0.7% 1.9% 0.8% 1.1% 0.8% 1.0% 0.2% 11.4% 11.8% 20.1% 8.6% The largest number of employment mediations was made in the processing industry with 20.8%, followed by 20.1% in the sector of trade, automotive and household goods repair, as well as agriculture, hunting and silviculture 18.0% (see Figure 10) 28

Labour and Employment, 2016 Regular ownership-mediated employment again reflects the comparative value between the two sectors. During the reporting year 2016, the share of all job mediations referring to the public sector declined by 24% compared to the previous year to 17% during this reporting year. Fig.11 Regular employment rate by ownership 2009 2010 2011 2012 2013 2014 2015 2016 % Public 41% 26% 33% 37% 26% 38% 24% 17% % Privat 59% 74% 67% 63% 74% 62% 76% 83% Private sector economy at the same time absorbed nearly 83% of all realized employment, and if compared to 2015, the increase is also quite pronounced by 76% compared to the previous year at 83% for 2016. (See Figure 11). 2.2.2. Regular Mediations in Employment by Size of Enterprises Employment mediations realized through the size of enterprises are mainly for micro enterprises with 36.8% or 1481 mediations, then small enterprises with 32.9% or 1323 mediations. Table. 11. Mediations in Employment by Size of Enterprises Micro Enterprises Small Enterprises Medium Enterprises Big Enterprises Employment 1481 1323 906 312 4022 % 36.8% 32.9% 22.5% 7.8% Large enterprises have mediated about 7.8% or 312 people, which also reflects the smallest mediation number. 29

Labour and Employment, 2016 2.2.3. Regular Mediations in Employment by Occupation Mediations in employment through the occupation reflects the results of requirements and offers in the labour market. Table 12: Regular Employment by Occupation Occupation 2016 % ER Managers Professionals Professional technicians and associates Office Workers and Assistants Service and Sales Workers Workers in agriculture, forestry and fishery Craftsmen and similar professions Operators and installers in factories and cars Elementary professions 53 399 336 233 1047 57 749 265 883 4,022 1.3% 9.9% 8.4% 5.8% 26.0% 1.4% 18.6% 6.6% 22.0% 10.9% 6.8% 4.7% 11.1% 26.9% 7.0% 13.2% 32.5% 1.2% 4.0% Difference in 2015 26.2% 7.0% -41.9% -4.9% 77.8% 1.8% 31.9% 307.7% -16.5% 12.5% Service and sales workers reach the highest number of mediations employment by 26%, followed by 22% of elementary professionals and craftsmen and similar occupations by 18.6%. Fig. 12: Regular employment rate by occupations Managers 10.9% Professionals 6.8% Professional technicians and associates 4.7% Office Workers and Assistants 11.1% Service and Sales Workers 26.9% Workers in agriculture, forestry and fishery 7.0% Craftsmen and similar professions 13.2% Operators and installers in factories and cars Elementary professions 32.5% 1.2% However, if the employment rate is viewed, most of the mediations are done in the profession of operators and installers in factories and cars with 32.5%, then 26.9% service and sales workers, as well as craftsmen and similar professions to 13, 2%. Elementary professions have achieved the lowest employment rate by only 1.2%, as well as professional technicians and associates with 4.7%. 30

Labour and Employment, 2016 2.2.4. Regular Mediations in Employment by Qualifications Regular mediations in employment according to qualifications was achieved mainly with secondary vocational education up to 35.6%, followed by 28.0% primary school group, followed by 19.4% of unskilled. Table 13. Regular Employment by Qualifications Level of Education Unqualified Grades I IX (Primary School) 2016 779 1,127 % 19.4% 28.0% Unemployment 37950 24062 ER 2.1% 4.7% Secondary Vocational Education Secondary School Gymnasium 1,432 175 35.6% 4.4% 29530 2004 4.8% 8.7% 477 32 11.9% 0.8% 7826 401 6.1% 8.0% 4022 101,773 4.0% Bachelor Master ScD Other qualifications have shown a lower percentage of mediation of employment and this in very small values, as with masters are realized only 0.8%. Fig.13: Regular Employment Rate by Qualification ScD 0.0% Master 8.0% Bachelor 6.1% Secondary School Gymnasium 8.7% Secondary Vocational 4.8% Grades I IX (Primary School) Unqualified 4.7% 2.1% The employment rate above the average, in Kosovo referring to the employment realized through mediation, was achieved for the level of secondary school and "master" qualifications by 8.7%, respectively by 8.0%. 31

Labour and Employment, 2016 2.2.5. Regular Mediations in Employment by Age group Mediation in regular employment was mostly done for the age group 25-39 with 50.1%, then for the age group 15-24 with 23.0%, followed by two other age groups 40-54 with 23.1% and 55+ by 3.9%. Table 14. Regular Employment by Age group Age group Employment % ER 925 2014 928 155 4022 23.0% 50.1% 23.1% 3.9% 5.6% 4.1% 3.3% 2.0% 4.0% 15-24 25-39 40-54 55+ Difference in 2015 11.6% 19.0% 2.3% 6.2% 12.53% The overall review for results in 2016, Employment Rate (ER), was achieved for the youth group (15-24) with 5.6%, followed by the age group (25-39) with 4.1%, while Two other age groups (40-54 and 55+) showed lower results Fig.14: Regular Employment Rate by Age with 3.3% and 2.0% respectively (see group Figure 14). Younger age groups are more likely to be employed than older age groups. The younger the unemployed is registered with the employment office, the sooner he gets a job vacancy. 5.6% 4.1% 3.3% 2.0% 15-24 25-39 40-54 55+ 2.2.6. Regular Mediations in Employment by Ethnicity Out of a total of 4022 regular employment mediations, in above to the proportion that are taking part with 92.1%. Compared to the previous year we have a decrease from 95% to 92.1% during this reporting period (2016). Table 15. Regular Employment by Ethnicity Ethnicity Albanian Serb Other Minorities Minorities Employment % Unemployment ER 3704 61 257 318 4022 92.1% 1.5% 6.4% 7.9% 87093 2594 12086 14680 101,773 4.3% 2.4% 2.1% 2.2% 4.0% Difference in 2015 9.0% 117.9% 72.5% 79.7% 12.53% 32

While all minorities participate with 2.2% compared to the previous year, we have 79.7% increase in employment mediations. Thus, with the exception of other minority communities, Serbs participate with 2.4% or 117.9% compared to the previous year (2015). Labour and Employment, 2016 Fig.16: Regular Employment Rate by Ethnicity 4.3% Albanian 2.4% 2.1% 2.2% Serb Other Minorities Minorities Other minorities (non-serbs) report during this period report below Kosovo's average of 4.0% of the employment rate (see Table 11 and Figure 14). Kosovo Albanians realize a rate of employment of 12 months (ER) of 4.3%, which is slightly higher than the Kosovo average (4.0%). 2.2.7. Regular Mediation in Employment by Gender Public Employment Services have realized 38.5% of regular mediation for women or 1,550 persons, while men are mediated in employment by 61.5% or 2,472 people. Table.16: Regular mediation in Employment by Gender Women Employment 1,550 ER 3.4% Registered Unemployment 45061 Rate 38.5% Employment rate for unemployed women is 3.4%, while men achieve results of 4.4% for the year 2016. Women are really below Kosovo's average values (4.0%) with 0.6 %, which is 3.4%, while men proportionately are above these with 4.4%. 33 Men 2,472 4.4% 56712 61.5% 4,022 4.0% 101773 Fig.16: Regular Employment Rate by Gender 3.4% 4.4% Gra Burra

Labour and Employment, 2016 2.2.8. Regular Mediations in Employment by Region Regular mediation of employment by region reflects different results, where the Employment Office in Prishtina in 2016 realized the highest number of jobs in absolute figures for the 12month of reporting period, which reaches 836 persons or 20.8%, followed by Gjakova with 20.0% (806). Table 17: Regular mediations in Employment by Region Ferizaj Gjakova Gjilan Mitrovica Peja Prishtina Prizren 2016 % Difference in 2015 ER ERS 243 806 524 528 569 836 516 4,022 6.0% 20.0% 13.0% 13.1% 14.1% 20.8% 12.8% 100.0% 20.9% 26.7% 19.9% 53.0% -1.0% -2.8% -0.8% 12.5% 2.5% 6.1% 5.0% 3.4% 4.8% 3.4% 3.1% 4.0% 24:1 67:1 40:1 38:1 47:1 38:1 57:1 44:1 The lowest number of jobs was reported by the Ferizaj region with mediation of employment with only 6.0% or 243 mediated Fig.17: Employment Rate by Region persons (see Table 12). The highest rate of 6.1% employment was recorded 5.0% 4.8% in the Gjakova region by 6.1%, followed by the Gjilan 3.4% 3.4% 3.1% 2.5% region by 5.0% and Peja by 4.8% which is above the Ferizaj Gjakova Gjilan Mitrovica Peja Prishtina Prizren Kosovo average (4.0%). Whereas the Ferizaj region Fig.18: Regular employment rate by staff in regions faces the lowest level of 2.5%, which is significantly below the Kosovo average 67:1 as well as the Mitrovica, 57:1 Prishtina and Prizren 47:1 40:1 38:1 38:1 regions by 3.4%, 24:1 respectively 3.1%. Employment officials in the Ferizaj Gjakova Gjilan Mitrovica Peja Prishtina Prizren Gjakova region have the highest employment rate for staff (ERS 67:1), followed by Prizren region with (ERS 57: 1). A much weaker regional performance for 2015 in terms of ERS was reported by employment officials in the Ferizaj regions with (ERS 24: 1) and Mitrovica and Prishtina regions (ERS 38: 1). 34

Labour and Employment, 2016 3. ACTIVE MEASURES IN LABOUR MARKET Active measures in labour market during this reporting period (2016) have been used to mitigate unemployment. However, from all of the active labour market measures the most important are vocational training offered by 8 Vocational Training Centres operating under the DLE Management. Vocational training is one of the most active priority measures which participates with the highest percentage of proportionally with 70.5%, increasing by 14% points compared to the previous year, being 56.5%. Vocational Training again during this reporting period will be reflected separately from other active labour market measures. However, the same methodology and analytical method will be used. Table 18: Active Measures In Labour Market Types Vocational Training Public Works Wages subsidies Self employment Interns Training at work Combined Training in the Company 2016 6,736 819 474 54 434 951 90 9,558 % 70.5% 8.6% 5.0% 0.6% 4.5% 9.9% 0.9% Difference in 2015 66.1% -56.1% -4.8% 10.2% 130.9% 238.4% -63.1% 33.1% 2015 4055 1865 498 49 188 281 244 7180 3.1. Vocational trainings Vocational training includes two sub-measures, such as: (i) Institutional Training in Vocational Training Centres and (ii) Combined Training (VTCs and Companies). (i) Institutional Training means the training provided by 8 Vocational Training Centres (VTCs) operating under the DLE Management. Vocational Training Centres (VTCs) provide training for jobseekers for a particular free occupation by focusing on applying skills and practical knowledge by using teaching in classroom as well as various cabinets. The purpose of the institutional training is to enable an increase or adaptation of the professional knowledge, skills and necessary attitudes for efficient performance within a profession. By enabling participants to gain additional knowledge, skills and abilities to perform efficient work, VTC trainings therefore aim to increase the prospect of participants in employment or maintaining their employment. 35

Labour and Employment, 2016 (ii) The Vocational Training Centres identify the enterprises for cooperation and jointly realize the understanding agreement. Within this, combined training is used, where some modules are developed at the vocational training centre and some other modules related to the practical part of product finalization are developed in the company. The trend of entry growth in vocational training has never been higher than in 2016. 6736 unemployed have entered training during 2016, distributed to more than 30 Vocational Training Centres. When compared to 2015, the number of participants in Vocational Training has increased by 66%. Fig.19: Trend of Entrance to Vocational Training by Years 6736 3108 1658 2002 3928 3455 3047 3240 2201 2003 2004 2005 2006 2007 2008 2977 2009 3306 2010 3449 2011 3230 3350 2012 2013 3419 2014 4055 2015 2016 Referring to the total number of VT participants (i.e. entries) in 2016 with the total number of registered unemployed during this time, results in 12 months training rate (TR) of about 6.6%. When compared to the previous year, the growth trend is for 3.0 %. If we refer to the total number of entries in 2016, during this reporting period, approximately 5670 persons were certified. The Certification Rate is reflected by about 84.2%, showing a slight increase of 81.3% as it was in the previous year. 3.1.1. Vocational trainings by Qualifications Vocational training according to qualification levels reflects different results. The highest number of entries in vocational training is done for the levels of qualification with primary school with 325 and with high school with 56.4%. While other levels of qualification or those with higher education have reflected much less entry into vocational training. Entries with Bachelor in vocational training reaches up to 9.8%. 36

Table 19: Vocational training by qualifications Trainings Unqualified Labour and Employment, 2016 Vocational training 7 % TR 0.1% 2159 3800 107 661 2 6736 32.1% 56.4% 1.6% 9.8% 0.0% Grades I IX (Primary school) Secondary vocational training Secondary school gymnasium Bachelor Master ScD Certified SR 0.0% 4 57.1% 9.0% 12.9% 5.3% 8.4% 0.5% 6.6% 1864 3179 100 521 2 5670 86.3% 83.7% 93.5% 78.8% 100.0% 84.2% The vocational training rate for secondary school level is 12.9% then with primary school is 9.0% and with bachelor's degree is 8.4%. While other levels of qualifications take part in lower levels of training. (See Table 16). Fig.20: Training Rate by Qualifications ScD Master 0.0% 0.5% Bachelor 8.4% Secondary school gymnasium 5.3% Secondary vocational training 12.9% Grades I IX (Primary school) Unqualified 9.0% 0.0% The certification rate for all categories is good considering that the outputs or completion of some courses is longer than 3 months and can be reported in the following year. 3.1.2. Vocational trainings by Age The main priorities for Vocational Training Centres again in 2016 are young people. This age group, as in other years, also participates in this reporting year with a high percentage of training. 37

Labour and Employment, 2016 Table 20: Vocational trainings by age group Age group 15-24 25-39 40-54 55+ Vocational trainings 2461 3185 1020 70 6736 % TR Certified CR 36.5% 47.3% 15.1% 1.0% 15.0% 6.5% 3.6% 0.9% 6.6% 2033 2672 900 65 5670 82.6% 83.9% 88.2% 92.9% 84.2% Actually proportionally in this year is the age group 25-39 with 47.3%, whereas the age group 15-24 is 36.5%, whereas the age group 40-54 and 55+ participate with 15.1%, respectively with 1.0%. Training rates by age group 15-24 reach 15.0% followed by the other age group 25-39 with 6.5%. While other older age groups participate with the lowest Fig.21: Vocational trainings rate by age group participation rate. As in previous years, this year's figures confirm a 15.0% constant priority given to young people registered as unemployed. 6.5% However, the overall increase in Vocational Training Attendance is 15-24 25-39 evident with about 6.6% compared to the previous year, which was 3.6% referring to all age groups. 3.6% 0.9% 40-54 55+ The average candidate rating for Kosovo candidates reaches 84.2%, but the age group 40-54 and 55-64 exceed this average, while the other two age groups remain below Kosovo's average certification values. 3.1.3. Vocational trainings by Ethnicity Vocational Training during this reporting period reflects the rather significant difference of figures based on ethnic groups. Albanians again reflect during this reporting year a positive indicator of participation in Vocational Training with 6141 persons or 91.2%. Serb ethnicity participates with only 1.2% or 80 participants, while other minority communities participate with 7.6% or 515 participants. 38

Labour and Employment, 2016 Table 21: Vocational trainings by Ethnicity Ethnicity Vocational trainings Albanian 6141 Serb 80 Other Minorities 515 Minorities 595 6736 % TR Certified CR 91.2% 1.2% 7.6% 8.8% 7.1% 3.1% 4.3% 4.1% 6.6% 5234 67 369 436 5670 85.2% 83.8% 71.7% 73.3% 84.2% The average Kosovo s training rate, which during this reporting year is 6,6%, reveals a small over-proportional impact of Albanians of 7,1%. However, other communities are subproportionally below Kosovo's average, with Serbs participating at 3.1%, while other minorities by 4.3%. So all minorities participate with 4.1%, which again is below Kosovo's average values. It should also be emphasised that the certification rate for Albanians is slightly above the Kosovo average value of 85.2%, while the serbs that participates with 83.8% of the certification is slightly lower than the Kosovo average of 84.2% (See Table 18). Fig.22: Vocational trainings rate by Ethnicity 7.1% 3.1% Albanian Serb 4.3% 4.1% Other Minorities Minorities 3.1.4. Vocational trainings by Gender Entries into Vocational Training for 12 months by gender indicate that the proportion of women participating is about 27.2% or 1830 participants, while men participate with 72.8% or 4906 participants during this reporting year. Table 22: Vocational trainings by Gender Trainings Vocational trainings Women 1830 Men 4906 6736 % TR Certified CR 27.2% 72.8% 4.1% 8.7% 6.6% 1528 4142 5670 83.5% 84.4% 84.2% The training rate for women is below the Kosovo average values, which is about 4.1%, while men have a higher participation rate of 8.7%. Also certification is disproportionate for both genders, women participate with 83.5% whereas men with 84.4%. 39

Labour and Employment, 2016 3.1.5. Vocational trainings by Region Vocational training by region, reflects completely different results. Again as in other years, Prizren region dominates in relation to other regions with participation of up to 21.9% or 1476 persons. Thereafter, the Peja region is ranked with 18,6% or 1255 participants in trainings as well as Prishtina region with 17,9% or 1205. Low participation is reflected in the Gjilan region with 6.2% or 417 participants, followed by Gjakova region with 6.5% or 439 participants. Table 23: Vocational trainings by Regions Regions Vocational trainings Ferizaj 931 Gjakova 439 Gjilan 417 Mitrovica 1013 Peja 1255 Prishtina 1205 Prizren 1476 6736 % TR Certified CR 13.8% 6.5% 6.2% 15.0% 18.6% 17.9% 21.9% 9.7% 3.3% 4.0% 6.5% 10.6% 4.9% 9.0% 6.6% 766 357 371 882 923 1140 1231 5670 82.3% 81.3% 89.0% 87.1% 73.5% 94.6% 83.4% 84.2% Referring to the completed VET capacities in absolute figures with the average of registered unemployed in the Fig.23: Vocational training rate by Regions different regions, the highest level of training rate (TR) in 2016 was 10.6% reached in the Peja region 9.7% 9.0% by 10.6% followed by 6.5% Prizren region with 9.0%. 4.9% 4.0% 3.3% While the lowest training rate is reflected in the Ferizaj Gjakova Gjilan Mitrovica Peja Prishtina Prizren region of Gjakova with 3.3%. The development of the Training Rate points out to a steady increase in contrasts with regard to participation in Vocational Training, respectively capacities. 40

Labour and Employment, 2016 3.2. OTHER ACTIVE MEASURES IN LABOR MARKET Other active labour market measures on a continuing basis as in previous years will be reviewed as a separate part of this report, given the enormous importance of these measures for supporting unemployment. Thus, active employment measures have played a very important role in integrating unemployed persons into the labour market. Through active measures the considerable number of unemployed jobseekers have been mediated and a number of them are referred to vocational training. Referral to short-term training has greatly influenced the development of individual skills for each unemployed person who has received services from Public Employment Services. Other active labour market measures outlined in this part of the report are: (i) job training (ii) internships (iii) subsidies for employment (iv) self-employment and (v) public works. (i) Training at Work (TW) means training by an employer that is provided to jobseekers during engagement in productive work that develops the knowledge or essential skills to perform a specific job with an adequate performance. Hence, the TW main objective is to increase the skills and prospects of jobseekers for employment. The TW is a labour market measure in order to provide to participants the skills and necessary knowledge to carry out the particular work within the work and work environment. The TW supports jobseekers to have access to training opportunities and to contact employers in order to improve their future job opportunities and gain a job. (ii) Workplace Practice (WP) means a labour market measure aimed at providing the opportunity to gain valuable work experience for participants seeking to enter a particular career field. So, the main objective of the WP is to increase the skills and perspectives of newly graduates for employment. WP is a measure of the labour market in order to provide the participants the necessary skills and knowledge to carry out a specific work within the work and work environment. WP supports newly graduates to have access to training opportunities and to contact employers in order to improve their future job opportunities and earn a job. Promotion of the employment of first jobseekers who intend to start an appropriate job to their type of education and 41

Labour and Employment, 2016 who have completed vocational secondary school or university education. The measure aims to increase employment prospects for job seekers for the first time. (iii) Employment Subsidy (ES) means a labour market measure that aims to create employment opportunities for jobseekers by subsidizing employers to recruit them on a long-term basis. Participants in the ES scheme are expected to remain in place after the end of the subsidy period. These are direct transfers to employers to encourage them to hire certain groups with difficulty finding a job. Employment subsidies can help employers expand their business and hire new staff, which will help create more jobs. (iv) The main purpose of the self-employment measure is to provide opportunities for registered unemployed to start a business activity. Self-employment program is a labour market measure that helps unemployed people to start a business or provide self-employed training and counselling to develop and manage a business and financial support to help the unemployed to start a business activity. The measure for self-employment aims to address unemployment through self-employment and thereby create new jobs in small companies. (v) Public works provide short-term employment by improving local infrastructure. The purpose of public works programs is to generate temporary employment for registered unemployed through the implementation of intensive projects that absorb manpower and the maintenance and rehabilitation of municipal assets and public spaces. During 2016 2,732 unemployed have been activated in other active employment measures. All these measures were implemented within the reporting period (2016). The activation rate in the active labour market measures was 2.7%. 42

Labour and Employment, 2016 3.2.1. Active measures in labour market by Qualifications Active employment measures regarding the different levels of qualifications based on the figures reported during 2016 will reflect the different outcomes. In reality, tertiary groups actually participate less than other groups. Table 24: Active measures in labour market by Qualifications Level of Qualifications AMLM % Unqualified Grades I IX (Primary school) Secondary vocational training Secondary school gymnasium Bachelor Master ScD 334 743 1205 82 346 22 2,732 12.2% 27.2% 44.1% 3.0% 12.7% 0.8% Difference in 2015-40.7% -17.6% -5.3% -21.9% 30.1% 37.5% -12.6% AR 0.9% 3.1% 4.1% 4.1% 4.4% 5.5% 2.7% The largest number of activation in active employment measures was done by high school level 44.1% or 1205 beneficiaries, followed by primary school with 27.2% and with 12.2% or 334, (See table 21). Kosovar activation rate Fig.23: Activation rate in AMLM by Qualifications is 2.7%, while all other categories other than ScD 0.0% the unqualified Master qualification level Bachelor 4.4% (0.9%) as all other Secondary school 4.1% categories, from the Secondary vocational 4.1% level of vocational Grades I IX (Primary 3.1% qualification to the Unqualified 0.9% master level, have the highest degree in activations. 5.5% 3.2.2. Active programs in labour market by Age Group Young people in all strategic documents are a priority category that is also the most beneficial category in terms of support through active employment programs. 43

Labour and Employment, 2016 Table 25: Active measures in labour market by age group Age group AMLM % Difference in 2015 15-24 949 34.7% -19.0% 25-39 1232 45.1% 9.1% 40-54 482 17.6% -31.0% 55+ 69 2.5% -44.8% 2732 100.0% -12.6% AR 2015 5.8% 2.5% 1.7% 0.9% 2.7% 1172 1129 699 125 3125 During 2016 the largest number of mediations was made for the age group 25-39, which participates with 45.1% or 1232 persons, followed by the other age group 15-24 with 34.7% or 949 persons. While age groups 40-54 with 17.6% or 482 beneficiaries as well as age group 55+ participate with only 2.5% or 69 people have received support. Fig.25: Activation Rate of AMLM by age group Activation rates by age group 15-24 reach 5.8%, while other age groups 2539 with 2.5%, followed by age groups 4054 and 55+, which participate with the lowest rate of activation, even below average values, which is 2.8% in country level. 5.8% 2.5% 15-24 25-39 1.7% 0.9% 40-54 55+ Through active employment measures, the current figures confirm a constant priority given to young people. The difference is very large in activation compared to other older ages. 3.2.3. Active measures in labour market by Ethnicity Active labour market programs by ethnicity reflect very divergent results, where the differences are quite pronounced. Albanians result with very high participation indicators of 84.3% in active employment programs. Table 26: Active measures in labour market by Ethnicity Ethnicity AMLM % Difference in 2015 Albanian 2303 84.3% -3.8% Serb 166 6.1% 9.9% Other Minorities 263 9.6% -54.7% All Minorities 429 15.7% -41.3% 2732-12.6% AR 2.6% 6.4% 2.2% 2.9% 2.7% 2015 2394 151 580 731 3125 44

Labour and Employment, 2016 While other ethnic groups like Serbs participate with 6.1% or Fig.26: Activation Rate of AMLM by Ethnicity 166 beneficiaries and other minorities participate with 15.7% or 429 6.4% participants. 2.6% As previously stated, the Activation Rate on the Kosovo average, which 2.2% Albanian Serb 2.9% Other Minorities All Minorities during this reporting year is 2.7%, bring to the surface above proportionality the Serbian ethnicity by 6.4%. Also, other communities participate with 2.2% of the activation rate, which is below the Kosovo average of 2.7%. 3.2.4. Active programs in labour market by Occupation Elementary professions are the main beneficiaries in active employment measures with 26.0% or 709 beneficiaries, based on data reported during this year (2016). Followed by service and sales workers that participate with 20.8% or 567 beneficiaries as well as craftsmen and similar professions with 19.7% or 537 beneficiaries. Table 27. Active Measures in Labour Market by Occupation Occupations AMLM % Managers Professionals Professional technicians and associates Office Workers and Assistants Service and Sales Workers Workers in agriculture, forestry and fishery 32 257 247 203 567 63 537 117 709 2,732 1.2% 9.4% 9.0% 7.4% 20.8% 2.3% 19.7% 4.3% 26.0% Craftsmen and similar professions Operators and installers in factories and cars Elementary professions 45 Difference in 2015 39.1% -11.4% -23.1% 39.0% 96.9% -54.0% 6.1% 112.7% -47.8% -12.6% AR 6.6% 4.4% 3.4% 9.7% 14.5% 7.7% 9.4% 14.3% 0.9% 2.7%

Labour and Employment, 2016 The professional category which has benefited is the Managers the least with 1.2% or 32 beneficiaries, followed by workers in agriculture, forestry and fishery with 2.3% or 63 beneficiaries. Fig.27: Activation Rate of AMLM by occupations Managers 6.6% Professionals 4.4% Professional technicians and associates 3.4% Office Workers and Assistants 9.7% Service and Sales Workers 14.5% Workers in agriculture, forestry and fishery 7.7% Craftsmen and similar professions 9.4% Operators and installers in factories and cars Elementary professions 14.3% 0.9% The activation rate in active employment measures was achieved proportionally for service and sales workers by 14.5%, then operators and installers in factories and cars 14.3%, while the lowest activation rate faced the elementary professions with 0.9% (See Figure 26). 3.2.5. Active measures in labour market by Gender Participation in active employment measures for 12 months by gender shows that the proportion of women is approximately 34.7% or 948, while men participate with 65.3% or 1784 persons. Table 28. Active measures in labour market by Gender Gender AMLM % Women 948 34.7% Men 1784 65.3% 2732 Difference in 2015 20.9% -23.8% -12.6% AR 2.1% 3.1% 2.7% The activation rate has increased by 2.1% for women in 2016, compared to 1.6% in the previous year, but again below the Kosovo average of 2.7%. As for men, the activation rate is about 3.1% significantly higher than the Kosovo average of 2.7%. 46

Labour and Employment, 2016 3.2.6. Active measures in labour market by Region Active Labour Market Measures by region, reflects different outcomes, where Prishtina region proportionally dominates with 23.5% or 642 participants versus other regions. Behind this is Mitrovica region with 18.8% or 514 participants, as well as Prizren region with 12.1% or 330 participants. Table 29: Active measures in labour market by Region Regions AMLM Ferizaj 387 Gjakova 307 Gjilan 378 Mitrovica 514 Peja 174 Prishtina 642 Prizren 330 2,732 % 14.2% 11.2% 13.8% 18.8% 6.4% 23.5% 12.1% Difference in 2015 47.7% 36.4% -43.9% 3.0% -28.1% -27.2% -3.2% -12.6% AR 4.0% 2.3% 3.6% 3.3% 1.5% 2.6% 2.0% 2.7% The region with the lowest participation in active employment measures is Peja with 6.4% or 174 participants, followed by Gjakova region with 11.2% or 307 participants (see Table 26). Ferizaj as region is dominating with regards to activation Fig.28: Activation rate of AMLM by regions measures realized in active employment 4.0% measures, followed by 3.6% 3.3% the Gjilan region with 2.6% 3.6% and the Mitrovicë 2.3% 2.0% region. Other regions 1.5% below the Kosovo average are Peja region Ferizaj Gjakova Gjilan Mitrovica Peja Prishtina Prizren with 1.5%, then Prizren with 2.0% and Gjakova with 2.3%. 47

Labour and Employment, 2016 Annex A: Projects implemented during 2015 During 2016, the Department of Labour and Employment (DLE) has continued to draft and implement documents from the area of labour and employment as well as vocational training. DLE has monitored, supervised, evaluated and implemented employment and vocational training policies through the Division of Employment and the Division of Vocational Training. It has continued to provide and offers professional advices, and has monitored the activities of Kosovo's employment and vocational training divisions and services. It has provided support in the realization of employment plans and programs and vocational training. It is committed to fully and effectively support and cooperate between all relevant stakeholders, who have to do with the field of employment. DLE has fostered and developed co-operation with enterprises that have an impact on the development of the labour market at Kosovo level and abroad. It has drafted the budget at the Department of Labour and Employment. It has made planning of human resource needs and has recruited staff at the Department of Labour and Employment. The Department of Labour and Employment through the Division of Monitoring and Coordination of Employment Offices, Division of Employment Policies, continued to carry out active employment measures throughout seven (7) Regional Employment Centres with 23 Municipal Employment Office, and six (6) Sub-municipal Offices of Employment and eight (8) Vocational Training Centres. For the realization of active employment policies and increase of employment, the Division of Labour and Employment has worked closely with a number of projects with MAFRD, KFA, MTPT, UNDP, Kosvet VI, WB, municipalities and other local and international institutions. Active programs and projects in the Labour Market: The project "Reparation of forests from the fires, silviculture activities, thinning, freeing, cleaning and pruning of corridors and drilling of timber" by MLSW in cooperation with the Ministry of Agriculture and Rural Development, respectively the Kosovo Forest Agency. 500 jobseekers were mediated from employment offices. The duration of the project was two months. Project value was 250,000, funded by MLSW. It's the sixth year that is being developed. 48

Labour and Employment, 2016 Project "Protection of forests from fires", in cooperation with the Ministry of Agriculture and Rural Development. It is financed by MAFRD in the amount of 120,000. 120 jobseekers have benefited. Project duration is four months. The project "Creating opportunities for sustainable employment and vocational training" in the municipalities of the northern part of Kosovo (Leposaviq and Zveçan). The project is co-financed where the MLSW supports the cost of 100,000, and is implemented by the Centre for Development of Local Community CDLC. The project started on 15 November 2016 and will continue until 2017. The Project "Seasonal Employment in Public Works", in the Municipality of Lipjan. 33 jobseekers were engaged through EO of Lipjan for the three month period with monthly compensation of 250.00. The value of the project was 24,750.00. The project "Clean up and maintenance of common public spaces" between MLSWMunicipality of Vushtrri and the Centre for Support to Employment and Environmental Protection in Vushtrri. It received 15 jobseekers with monthly compensation of 240.00 for the three month period. The Project Value was 10,800.00. The project "Cleaners in the Public Enterprise Ambienti Peja", within the project, 10 jobseekers were engaged for a period of six months with a monthly compensation of 200.00. Project value was 12,000.00. The Project "Work Practice", an cashier intern in the Municipality of Peja. Within the project, 5 jobseekers were engaged with a monthly fee of 250.00 for the six month period. The Project "Production of Accessories - Promotion of Social Businesses and Private Sector", Municipality of Graçanica. Twenty practitioners with monthly compensation of 200.00 for the period of four month were engaged in this project. The value of the project was 16,000.00. The Project "Practitioner in Termokos", the city heating of Prishtina. Within the framework of the project to regulate the data base of customer, i.e. the verification of the legitimate owners of the apartments, six unemployed interns were engaged, for the one year period. The project value was 19,440.00. The Project "Seasonal Employment of Workers at RCK Pastrimi", unit in Fushë Kosova. Twenty employees were engaged for four months, with a monthly fee of 200.00. The value of the project was 16,000.00. The Project "Practitioner in Hidromorava Water Supply Company", in Gjilan. In this project were engaged five interns for the six month period, with a monthly fee of 250.00. The project value was 7,500.00. 49

Labour and Employment, 2016 The "Internships in DILFD and DVT" project has engaged 79 interns with monthly compensation of 250.00 for the one year period, The project value was 237,000.00. The Project "Job Training for community members: Roma, Ashkali and Egyptians", duration of three months, 90 jobseekers have benefited, monthly compensation 150.00. The project value was 40,500.00. The project "Internship at the Kosovo Forest Agency", are engaged 2 interns for the six month period with a monthly fee of 250.00. The value of the project is 3,000.00. The Project "Wage Subsidy" is ongoing, benefiting about 200 beneficiaries. In the project will benefit jobseekers and unemployed people registered at Employment Offices. The project started on 03 October 2016 and will last 12 months. The amount of salary subsidy will be 150.00 per month. The Project "Promoting Youth Employment in Kosovo" is implemented in cooperation with GIZ YEPiK, Private Sector Competitiveness in Rural Areas (COSIRA) and MLSW Employment Structures. MLSW has supported the Business Investment Fund with 3,000 for beneficiaries (successful women). 14 women have benefited who have already registered their businesses. The Project, Active Labour Market for Employment Generation (or otherwise known as ALMP 2). The project is implemented by UNDP (funded by UNDP and MLSW). Implemented in partnership with MLSW. Supports the Self-Employment and Salary Subsidy. The project will continue in 2017. 50

Labour and Employment, 2016 Annex B: Certification for registration of foreigners working for "30, 60, 90 days Pursuant to the Law no. 04/L-219 on Foreigners, which regulates the conditions of entry, movement, residence and employment of foreigners in the territory of the Republic of Kosovo. The Ministry of Labour and Social Welfare, pursuant to this Law, regulates the employment and deadlines of foreigners for a period of 30 days; 60 days and 90 days within the calendar year. Certification for the Posting of Foreign Work, which is issued by the Division for Monitoring of Employment Offices within the Department of Labour and Employment. This is regulated by Law no.04/l-219 on Foreigners as well as the Administrative Instruction 01/2014 which regulates the procedure of issuing a residence permit for foreigners and a certificate of employment notification. During this year, 122 Certified Notifications of Work for Foreign Citizens were issued, out of which 18 certificates were extensions. B1. Certificates for employment announcement by citizenship Citizens who have received a Certificate of Employment Announcement, which are the largest number from Macedonia with 41.8% or 51 certificates, followed by Croats with 13.9% or 17 certificates from the total number of citizens in general. Citizenship % Belgian 1 0.8% Bulgarian 4 3.3% Czech 5 4.1% German 2 1.6% Italian 11 9.0% Croat 17 13.9% Macedonian 51 41.8% Polish 2 1.6% Romanian 6 4.9% Serb 11 9.0% Slovak 3 2.5% Turk Swiss 8 1 6.6% 0.8% 122 51

Labour and Employment, 2016 B2. Certificates for employment announcement by Gender Foreign citizens with a Certificate of Employment Announcement, out of a total of 115 persons, of whom 122 are men and 7 are women. Tab.2. Certificates of Employment Announcement by Economic Sector Economic Activity Supply with electricity, gas, steam, air conditioning Processing of wood and paper products and printing Production, Mining and Quarrying and other industries Public administration and defence, compulsory social security Construction Manufacturing Professional, scientific, technical, administrative and support services Manufacture of pharmaceutical products for medical chemicals and botanical products Telecommunications Wholesale and retail trade, repair of motor vehicles and motorcycles Activities of public administration, defence, education, human health and social work Mining and quarrying Grand Certificate 4 4 9 1 42 13 21 % 3.3% 3.3% 7.4% 0.8% 34.4% 10.7% 17.2% 13 10.7% 6 6 4.9% 4.9% 1 0.8% 2 122 1.6% 100.0% The largest number of certifications issued is in the construction sector with 34.4% or 42 certificates, then the professional activity services, scientific, technical, administrative and support service with 17.2% or 21 certificates as well as production of pharmaceutical products for medical chemicals and botanical products with 10.7% or 13 certificates. 52

Labour and Employment, 2016 Annex C: General Data Registered Unemployment 7318 Regions Prishtina 1706 446 Employment rate 6.1% Vacancies Employment 220 Mediation Rate 3.0% 56 2.9% APLM Fushë-Kosova 1922 325 93 4.8% Gllogoc 3720 145 69 1.9% 31 0.8% Lipjan 3390 233 79 2.3% 105 3.1% Novobërda 1008 136 25 2.5% 84 8.3% Obiliq 1577 209 51 3.2% 62 3.9% Podujeva 4703 404 66 1.4% 64 1.4% Graçanica 1089 55 7 0.6% 20 1.8% Prizren 7738 623 267 3.5% 114 1.5% Rahovec 2037 554 58 2.8% 107 5.3% Suhareka 4505 159 117 2.6% 49 1.1% Dragash 2132 236 74 3.5% 60 2.8% Ferizaj 5286 919 163 3.1% 265 5.0% Kaçanik 2087 159 23 1.1% 53 2.5% Shtime 1207 116 47 3.9% 36 3.0% Shtërpce 1048 68 10 1.0% 33 3.1% Gjilan 5814 844 272 4.7% 179 3.1% Viti 2482 841 140 5.6% 142 5.7% Kamenica 2149 220 112 5.2% 57 2.7% Gjakova 6224 858 414 6.7% 223 3.6% Deçan 3853 335 143 3.7% 21 0.5% Malisheva 3069 440 249 8.1% 63 2.1% Peja 7114 1297 353 5.0% 79 1.1% Istog 1840 327 92 5.0% 59 3.2% Klina 2926 280 124 4.2% 36 1.2% Mitrovica 6117 1041 196 3.2% 190 3.1% Skenderaj 4144 655 172 4.2% 121 2.9% Vushtrri 4265 722 155 3.6% 176 4.1% Zveçan 81 12 0 0.0% 7 8.6% Zubin Potok 422 14 0 0.0% 4 0.9% Leposaviq 513 204 5 1.0% 16 3.1% 101780 14137 4022 4.0% 2732 2.7% 53

Labour and Employment, 2016 Annex D: Vocational Training Data by Occupation for 12 months Vocational Training Entries Certified % 6736 1205 65 5691 1165 61 84.5% 96.7% 93.8% Accounting 28 24 85.7% Business Administration 17 17 Car-electrician 12 15 125% Information Technology 24 25 104% 6 4 66.7% Occupations Prishtina Grand Administrative Assistant Industrial electronics Construction 88 83 94.3% Bakery 226 224 99.1% Pastry 35 35 Office equipment service 28 18 64.3% 9 9 Water and Wastewater Installer Central Heating Installer Ferizaj 35 42 120% Self-employment 562 562 Tailoring TI Podujeva Chef i Catering ITC Welding Carpenter 25 45 931 111 58 63 56 71 25 21 766 95 41 43 45 57 46.7% 82.3% 85.6% 70.7% 68.3% 80.4% 80.3% Facility Maintenance 36 26 72.2% Electric wiring 82 61 74.4% Accounting 26 20 76.9% AB 25 22 88.0% 284 270 95.1% Administrative Assistant 43 43 UK 39 20 51.3% 37 944 92 60 23 826 73 45 62.2% 87.5% 79.3% 75.0% 47 39 83.0% Self-employment Mitrovica Central heating Chef Welding Carpenter Textile Construction ITC (Information Technology and Communication) Business Administration Doljani Computer Basics, Mobile Centre -Skenderaj Chef 70 49 70.0% 102 87 85.3% 68 46 67.6% 449 441 98.2% 56 69 3 46 56 3 82.1% 81.2% 54

Pejë Prizren Welding Business Administration Carpenter Textile (tailoring) Chef Construction Hydro installations Electrical Installation Braille Administrative Assistant Accounting Agriculture Self-employment Entrepreneurship Business Administration Carpenter Chef Waiter Car-electrics Welding ITC Business Administration Entrepreneurship Hairdresser Gjilan Gjakova 55 Labour and Employment, 2016 4 49 7 6 1255 102 267 137 81 10 85 31 232 156 97 57 1476 211 127 75 128 85 4 36 7 6 923 65 206 74 37 7 53 25 170 147 89 50 1230 169 98 56 89 68 100.0% 73.5% 73.5% 63.7% 77.2% 54.0% 45.7% 70.0% 62.4% 80.6% 73.3% 94.2% 91.8% 87.7% 83.3% 80.1% 77.2% 74.7% 69.5% 80.0% 92 69 75.0% - - - 265 227 85.7% Computer Basics 10 9 90.0% Electro mechanic of hom.devi. 30 30 Hydro and pneumatic mechanic 49 42 85.7% 39 99 266 417 29 52 64 33 34 17 188 439 112 48 53 85 86 55 5 33 76 264 371 23 31 52 30 34 17 184 354 93 33 40 62 80 46 3 84.6% 76.8% 99.2% 89.0% 79.3% 59.6% 81.3% 90.9% 97.9% 80.6% 83.0% 68.8% 75.5% 72.9% 93.0% 83.6% 60.0% Waiter Dragash Tailor Self-employment Carpenter Welding TI Graphic Design Accounting Business Administration Entrepreneurship Administrative Assistant Accounting Welding Electrical Installation Self-employment Micro and Small Enterprise Manag. SCVT- Junik Admin. Assistant

Labour and Employment, 2016 E. Data on people with disabilities Registered people with disabilities Unemployment All Male Female 510 341 169 Employment Employment Rate Trainings TR 33 24 9 6.47% 7.04% 5.33% 39 21 8 7.65% 6.16% 4.73% 56

Definitions and Terminology Labour and Employment, 2016 All Chapters: In order to identify the difference and interpretation derived from this report, the definitions and terminology used are explained below: Population is the population residing within the territory of Kosovo. The working age population includes the part of the population aged 15-64, oriented to the existing Labour Law. Jobseekers - are all job seekers, including full-time or part-time people, and persons who are temporarily suspended from work. The unemployed refer to - according to the ILO definitions - the persons with a working age who are: a) unemployed, b) seeking job, and c) are available for job. Unemployed (registered) - refers to persons who are registered as unemployed (These should be the persons who are unemployed but are seeking for work, however this requirement is only partially implemented in Kosovo and in the majority of other countries). Long-term unemployed are persons who are registered as unemployed for more than 12 months: this ratio refers to the calculated ratio of long-term unemployment, which is under the condition [exit <registrations] and [entry-registration] in: - worst case = - best case = - worst case = 57 [Unemployed - (inputs - outputs)] Unemployed *100 [Unemployed - (inputs +outputs)] Unemployed *100 [Unemployed -(inputs+outputs)] Unemployed *100 Under the term of subtracting registrations. Under the term of increasing registrations.

Labour and Employment, 2016 The Employees are identified by the following definition of ILO / EUROSTAT such as: "A person is considered as employed if he or she has done any work for salary or profit.... Employees themselves are also considered to be working if (person),, works in his business, professional practice or farm for profitability purposes, "spends time in operating the business, is under the process of establishing a business... An unpaid worker is said to be working if the job directly contributes to a business, farm or professional practice owned or run by a member in relation to the same holding house ". The term "employed" means persons with regular employment, self-employed (including small businesses - and farm owners), farm workers, contributing family members (e.g. in shops and farms) and - within all of it under the employed persons: anyone who is older than 15 years and - works for profit or the income purposes (including those who are not successful in achieving such a thing). Active population consists from: registered unemployed plus the employees. Unemployment rate i.e. the unemployment rate is the proportion of registered unemployed by the economically active population. Unemployment Ratio refers to the unemployment register for working age populations, the unemployment rate here is equal to the registered unemployment ratio, respectively at the registration rate. Age groups: 15-24, 25-39, 40-54, 55-64. Ethnic Groups: Albanians, Serbs, Montenegrins, Ashkali, Roma, Turks, Bosniaks, and others. For the purposes of the analysis, a brief classification will also be used: Albanians, "all minorities", Serbs and "other minorities" (without Serbs). Sectors by Activity are oriented to the International Standard of Economic Activity Classification, ISEAC (Rev. I), but not yet fully adequate: (A) agriculture/forestry (B) fishing (C) mine (D) production (E) electricity/ gas/water (F) construction (G) trade (H) caterers / gastronomists (I) transport / communication (J/K) finance / real estate, etc. (M) education 58

(N) social protection (O) services (NGOs) / organizations Labour and Employment, 2016 Sectors by Owner: Public sector: governmental and government-controlled institutions and enterprises. sector: private individuals, farms, businesses and companies. Enterprises by Size Classification Micro Enterprises Small enterprises Medium Enterprises Large enterprises Number of employees 1-9 10-49 50-249 250 and above ISCED: International Standard Classification of Education ISCED 0: Pre-primary education: The initial phase of organized instruction, first reported as very small children for a school environment. Such programs are in schools or organized in centres for children of at least 3 years of age. ISCED 1: Primary education: Start of systematic studies with reading, writing and maths. The programs are designed based on a project unit (often with a teacher for most of the time) rather than on a case basis (with different subjects for different subjects). Age of entry is from 5 to 7 years old. ISCED 2: Low Secondary Education: Beginning of the subject-based learning - to complete the elementary education provision that has started at ISCED 1 and to extend the foundation for a long-term learning. Complete implementation of elementary skills resembles this level. This phase is subdivided: ISCED 2A programs are designed for direct access to ISCED 3 in an order, which would lead to tertiary education. ISCED 2B programs are designed for direct access to ISCED 3C. ISCED 2C programs are designed first for direct access to the labour market. Advancing ISCED 3 also requires completion of ISCED 2A or 2B. 59

Labour and Employment, 2016 ISCED 3: Secondary Education (Higher): Further Specializations Compared to ISCED 2. This stage begins at the end of compulsory schooling 15 or 16. Successful completion of ISCED 2 is required. This stage continues with subdivisions: ISCED 3A programs are designed for direct access to ISCED 5A. ISCED 3B programs are designed for direct access to ISCED 5B. ISCED 3C programs do not directly lead to tertiary education. Advanced ISCED 5A or 5B also requires ISCED 3A, 3B or 4A completion. ISCED 4: Non Tertiary Education after Secondary School: Programs that have removed the boundaries between high school and post-secondary education. Content is not enough to be called tertiary programs. Most of the time no more advanced than ISCED 3 - to expand the knowledge of students who have performed ISCED 3. Programs for preparation for entry into tertiary education. This phase is still subdivided: ISCED 4A programs are designed for direct access to ISCED 5. ISCED 4B programs are designed primarily for direct access to the labour market and do not give access to ISCED 5. ISCED 5: The First Stage of Tertiary Education: Programs whose content is more advanced than ISCED 3. Entry to these programs requires successful completion of the ISCED 3A, 3B or 4A program. This stage has subdivisions: ISCED 5A is largely based on theory, attempting to provide access to advanced ISCED 6 research or to higher-skilled professions (e.g. doctors). It may be necessary to have more than a qualification at ISCED 5A (e.g. a bachelor's degree and later a master's degree) prior to joining ISCED 6. ISCED 5B programs focus on specific vocational qualifications with direct access to the labour market. They are often shorter than programs at ISCED 5A. Their theoretical content is usually insufficient to provide advanced access to research programs (before completing the program at ISCED 5A). ISCED 6: Second stage of tertiary education: Programs leading to the award of an advanced qualification (usually doctorate level or later). Programs are devoted to advanced studies and original research and are not just based on courses. 60

Labour and Employment, 2016 References ILO (1982): Resolution on economically active population statistics, employment, unemployment and low employment rates, Geneva ILO (1998): Resolution on Measuring Employment and Inadequate Employment Situations ILO / MLSW-DLE (2006): Kosovo Youth Employment Action Plan MLSW-DLE (2014c): Labour Market Information in Kosovo (Monthly), Prishtina SIK (2014): Workforce Analysis (AFP) 2014, Prishtina Many other sources can be found in: Ministry of Labour and Social Welfare, Kosovo www.mpms-ks.org Government of Kosovo www.rks-gov.net Kosovo Agency of Statistics http://esk.rks-gov.net/ International Labour Office www.ilo.org UNDP in Kosovo www.kosovo.undp.org World Bank in Kosovo www.worldbank.org/kososvo 61

Labour and Employment, 2016 62