Living Standards Measurements Study - Serbia 2002 - 2007

If the economic position of the employed is
analyzed by ownership sector, the fact that the poor
mostly work in the unregistered sector of private
ownership comes as no surprise. Almost one-fifth of
the total number of the employed (and the majority
of the poor 43.4 percent) works in unregistered
businesses. In addition, almost 48 percent of the
total number of employed persons with primary
school education works in the private unregistered
businesses. Of the total number of workers with
secondary education, 13.2 percent is employed in
the unregistered sector and 4.5 percent of employees
with college and university education. Workers
employed in the private unregistered businesses
make up one-third of the employed in rural areas.
9.5. Permanent and temporary jobs
Employed people may be engaged for an
indefinite term, for a definite term, seasonally and
occasionally. Often the number of people
performing seasonal and occasional jobs is seasondependant
and this can influence estimates of the
total employment. The increase in the number of
employed persons in LSMS, as compared to LFS, is
probably the result of a larger number of temporary,
occasional or seasonal workers. The number of
unemployed persons was reduced by almost the
same number whereby the number of employed
persons increased, which resulted in a significant
decrease in the unemployment rate.
Permanent workers are the most stable
category of the employed, free from seasonal
influences. Their number in LFS 2007 rose by a
little less than 1 percent as compared to LFS 2006.
The increase in this category of employed persons,
albeit minimal, coupled with a substantial growth of
seasonal employment could indicate a turnabout
towards a rise in overall employment. Unlike the
2002-2006 period in which the number of employed
dropped each year, both the LSMS and LFS
reported an increase in the number of employed
persons in 2007.
Of employees living below the poverty line, 42
percent have no permanent employment, whereas
78 percent of those above the poverty line have
permanent employment.
9.6. Status in employment
The development of the private sector and the
encouragement of private initiative by giving
support to small and medium-sized businesses
potentially opened the possibility of selfemployment
for the unemployed. The LFS and
LSMS show, however, that self employment plays a
minor role in overall employment. The largest
number of the employees (71 percent) work for an
employer. The self-employed who do not employ
other workers account for 16.3 percent of the
employed, self employers who employ at least one
worker (7.5 percent) and unpaid family members
who assist in the performance of a family business
(5 percent). The LFS data show a similar
distribution.
Graph 9.4. Employees and self employed,
LSMS 2007
5,0%
7,5%
16,3%
71,2%
self-employed with
employees
self-employed
without employees
employed workers
assisting family
members
9.7. Employment by activity sector
Changes in the employee structure by activity
show trends characteristic of a country whose
economy, despite delays, is moving towards modern
trends. This is reflected in a larger number of
employees in the service sectors. Although the
number of employees in these activities is still far
from absorbing 50 percent of the total number of
those employed, a 4 percent increase compared to
2002 shows that Serbia is following world trends
regarding the orientation of its economy, i.e. that
along with the revitalization of industry and the
revival of the construction industry, it is also
oriented towards the development of service
activities. The need to further expand service
activities are shown by the fact that these activities,
with 44 percent of the employed, account for 60
percent6F6F7 of GDP.
The largest number of the employed (24
percent) still works in agricultural (5 percent less
122 Living Standards Measurements Study - Serbia 2002 - 2007