Enhancing job opportunities in Croatia depends on job creation possibilities, and solutions lie outside labour market regulation, notably in removing obstacles to opening new companies and developing existing ones, Banerji said.
He added that this conclusion was based on a survey conducted in 2002 as part of the preparation of the report, which asked business people in Croatia to indicate what they saw as major obstacles to the development of their business, the opening of new companies and employment growth.
The survey found that uncertainty regarding the position of political elites on doing business, high tax rates (especially income tax), a slow judiciary and no access to credit were viewed as more important than labour legislation.
That is why Croatia should concentrate on resolving those issues in its efforts to create conditions for the reduction of unemployment, Banerji said.
Although labour legislation was not regarded as a major obstacle to business development, Banerji recommended creating an adaptable labour market with a small and enforceable set of laws.