OVI for July 2017: Labor demand slows mildly

In July of 2017, OVI registered a growth rate of 38.6 percent when compared to the same month of the previous year, indicating a continuation of strong growth in labor demand. Seasonally adjusted index values show that the largest positive contribution to the annual increase in job advertisements occurred in October last year, and in February and May this year, while in July of 2017 the contribution was actually negative. Compared to the month before, OVI decreased mildly by -0.4 percent in July. Owing to the favorable index movements in most of this year’s months, labor demand growth accelerated in the first seven months of 2017 by 25 percent compared to the end of 2016. The highest demand in July of this year was recorded for the occupations of sales assistant, waiter, cook, programmer and bookkeeper. Compared to previous months, there were relatively less advertisements for sales assistants, cooks and waiters, and a mildly higher proportion of advertisements for programmers.
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 such a 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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