Contraction of tourism sector drags down employment in Croatia

Contraction of tourism sector drags down employment in Croatia
By bne IntelliNews July 20, 2020

The number of people in employment showed a year-on-year decline of 4.6% in June, according to new data from the Croatian Bureau of Statistics (DZS). There was, however, a modest 0.4% month-on-month increase in employment to just over 1.5mn people. 

The overall employment figure was clearly dragged down y/y by the contraction in Croatia’s dominant tourism sector, caused by the coronavirus (COVID-19) pandemic. Even though Zagreb has eased travel restrictions, employment in accommodation and food service activities was just 70.9% of the June 2019 level. This was by far the steepest drop of any sector in y/y terms. 

Among the other sectors that showed y/y declines in employment in June were administrative and support service activities (86.7% of the June 2019 level), other service activities (90.9%), arts, entertainment and recreation (95.8%), wholesale and retail trade, repair of motor vehicles and motorcycles (96.1%) and several others. 

On the other hand, there were modest increases in employment in a handful of sectors, led by agriculture, forestry and fishing, where employment stood at 103.8% of the June 2019 level. 

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