STATISTICAL ANALYSIS OF THE UNEMPLOYMENT RATE BY PYRAMIDAL MODEL

Pre-war hidden unemployment, the transition crisis and the warfare aggression upon the Republic of Croatia have resulted in drastic reductions of economic activities, so that Croatia today has one of the highest unemployment rates in Europe. The significant regional disparities in Croatian unemployment are the consequence of inequalities in the regional structure and development. The regional unemplovment disparities have to be solved by the economic development strategy which is regionally oriented based on endogenous potential of the regions. Fluctuations in the unemployment depend on the educational level: the individuals with a higher level of education have the lower unemployment rate. Analysis of the unem-ployment rate by Pyramidal model shows that the increase of unemployment was mostly affected by the rate of compensation (characterize the movements of the labour force from the state of employment to the state of unemployment) and that in the Republic of Croatia it is mainly a question of cyclical unemployment. Continued rates of high growth of the economy with rapid job creation would be necessary to avoid large unemployment in Croatia.