OVI Index

OVI for August 2017: Labor demand continues to recover; nearly half of new job advertisements represent fixed-term employment  

In August of 2017, OVI registered a growth rate of 39 percent when compared to the same month of the previous year, indicating a continuation of strong growth in labor demand. Although seasonally adjusted index values show a mild 0.8 percent increase in labor demand compared to the previous month, this is the lowest growth rate in the last 12 months, excluding November of last year and April and July of this year. However, labor demand recovery is evident from the fact that the average OVI index value in the first eight months of this year is 34.6 percent higher than the average OVI index value in the same period of last year.

In terms of occupations, the highest demand in August of this year was recorded for sales assistants, waiters, cooks and drivers, while teachers came in fifth place – reflecting the start of a new school year. The share of fixed-term contracts continues to be high, with 48.5 percent of job advertisements in August representing fixed-term employment, and 38.9 percent representing permanent employment. Secondary education level is the prevailing level of qualification, as 35.1 percent of job advertisements in August required secondary education level.
What is OVI?

Online Vacancy Index (OVI) is a monthly index of online job advertisements developed by the Institute of Economics, Zagreb in cooperation with the web portal MojPosao. The index aims to provide timely information regarding current labor demands. OVI index is developed by means of simple enumeration of single new job advertisements whose application deadlines end within the same month for which the index is being calculated. Given that advertisements published by only one web portal are taken into account, the number of job advertisements is expressed as an index (with the base year being 2015).

The index is to be interpreted in a such way that the values greater than 100 represent growth when compared to 2015, and accordingly, that the values less than 100 represent a decrease with respect to the base year. Index is seasonally adjusted using the X-12-ARIMA method.

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