The Online Vacancy Index (OVI) for January 2021 indicates that labour demand was 33 percent lower than in January 2020, the largest year-on-year drop since May 2020, the Institute of Economics Zagreb (EIZ) reported on Thursday.

OVI is an index of online job ads compiled on a monthly basis and developed by the Institute of Economics in cooperation with the job website MojPosao.

“The labor market  at the beginning of 2021 still proves to be under the strong influence of the Covid-19 pandemic and measures designed to curb the pandemic. OVI index for January 2021 shows that labor demand was 33 percent lower than in January 2020, which is the biggest drop since May 2020, caused by stronger restrictions of the economic activity,” EIZ said on its web site.

In December 2020, OVI fell by 25 percent, in November by 30 percent, in October by 21.5 percent, in September by 27.8 percent, in July by 18 percent and in June by 26 percent, largely due to pandemic restrictions which severely affected a number of sectors. The most extreme drop in OVI were recorded in May (57.4 percent) and April (74.7 percent).

Huge drop in demand in the services sector

Labour demand for occupations in the service sector, which are traditionally the most sought after – sales person, cooks and waiters – was 54 percent, 76 percent0 and 90 percent lower respectively in January 2021 year-on-year.

However, some occupations recorded a significant increase in demand, with the demand for teachers, doctors and dentists doubling y-o-y. Demand for construction and mechanical engineers rose by 64 percent and 20 percent respectively.

A noticeable fall in demand for student and seasonal jobs evidently fell by as much as 72 percent, while fixed-term and permanent contracts dropped by 25 percent compared to January 2020.