OVI for October 2017: Strong labor demand growth

In October 2017, OVI index registered a 36.3 percent growth when compared to the same month of the previous year indicating the continuation of strong labor demand growth. Seasonally adjusted values suggest that the largest positive contribution to the annual increase in job advertisements was achieved precisely in October this year amounting up to soaring 17.2 percent. May was the second month considering the contributions, while April and September registered a negative contribution. Due to favorable index movements in most of the months over the past year (growth was realized in 8 out of 12 months), labor demand was accelerated by 17.3 percent in the first ten months of 2017 when compared to the end of 2016. In terms of occupations, the largest labor demand from October this year was recorded for sales assistants, teachers, waiters, cooks, and drivers. Almost a third of the job advertisements in October required a secondary education level and 90 percent of advertisements were equally distributed between permanent employment and fixed-term employment contracts.
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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