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Unemployment to continue rising but at slower rate

ZAGREB, April 27 (Hina) - Unemployment in Croatia will continue to rise but at a slower rate, with an annual growth rate of three percent, and this trend is expected to stop in 2012, a round table discussion heard in Zagreb on Wednesday.

In the last two crisis-hit years, Croatia lost more than 122,000 jobs. The processing industry and commerce each shed 45,000 jobs and the construction sector 25,000.

It is necessary to ensure at least a 2-percent growth in the Gross Domestic Product in order to stop the growing unemployment, HZZ labour market analyst Darko Oracic said at the discussion, held in the Croatian Employment Service (HZZ).

Croatia can expect such DGP rates only in 2012, while this year a modest growth of 1 percent can be expected.

Splitska Banka analyst Zdeslav Santic said that first signs of recovery in the labour market might be seen in the second half of 2012.

Raiffeisen Banka analyst Zrinka Zivkkovic Matijevic forecast mild recovery for the second half of this year.

The Croatian Employment Service said it had taken all the necessary measures to reduce joblessness.

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