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Smart, Sustainable and Inclusive Growth

Labour Market – Measures to Reduce the Impact of Negative Structural Trends

The Recovery and Resilience Plan addresses the structural employment challenges of ageing populations and technological change through a comprehensive set of reforms and investments. These challenges include low employment rates of older workers and persons with disabilities, youth unemployment, risks to the financial sustainability of pension systems, and more appropriate flexible working arrangements.

The objectives of the reforms and investments under the component "Labour market – measures to reduce the impact of negative structural trends" are to strengthen labour market resilience, increase labour market participation, and ensure the sustainability of the pension system and the adequacy of pensions.

Structural measures to strengthen the resilience of the labour market – reform

The objective of the reform is to increase the resilience of the labour market by ensuring, in particular, its adaptation to demographic trends. The reform shall consist of the:

  • Entry into force of the act establishing a permanent crisis short-time work scheme for businesses in difficulties or seriously threatened with severe difficulties caused by exceptional occurrences beyond their control, building on the experience acquired during the covid-19 crisis, and during the energy crisis in 2022. The act shall include education and training obligations during part-time work;
  • Entry into force of legislative changes in the field of unemployment benefit. The provisions in the Labour Market Regulation Act on unemployment benefits will be amended with the aim of increasing the employment rate of older people and preventing early exit from the labour market. Work shall build on the OECD’s analysis of the pension 
    and disability insurance system in Slovenia;
  • Entry into force of pension reform legislation;
  • Adoption of the Guidelines for the implementation of active labour market policy 2026-2030..

Introducing more flexible ways of working adapted to the needs of persons with disabilities in sheltered companies and employment centres – investment

The objective of the investment is to provide the technical basis for introducing more flexible working methods in sheltered companies and employment centers.

The investment consists in grants for projects supporting more flexible working arrangements for persons with disabilities.

Faster entry of young people into the labour market – investment

The objective of the investment is to reduce youth unemployment following the COVID-19 pandemic.

The investment consists in financial incentives for employers to hire young people on open-ended contracts.

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