The Association of Small and Medium Enterprises of FBiH sent a reaction to the data of the Tax Administration of FBiH regarding the number of employees. They pointed out that a drastic drop in the number of employees was shown and the consequent loss of around 12,000 potential jobs at the end of 2025.
They say that they are expressing serious concern about the consequences of the economic policy that was conducted in 2025 without systematic preparation, without analysis and without dialogue with the economy.
The number of employees in FBiH fell to 546,663 on November 30, 2025, which is 857 less than a month earlier.
“In the same period of the previous year, the number of employees was 552,148, which means that as many as 5,485 jobs were lost during the entire year 2025, while an additional 6,529 jobs were lost through the opportunity cost compared to the growth from 2024,” the Association states.
They add that the FBiH labor market recorded a drop of 12,014 jobs in just one year, which represents more than two percent of total employment. “The losses are not only measured in numbers, but also in income: estimates show that the Federation has lost over 160 million KM in public revenue due to this drop in employment. When the expenses for unemployment benefits are added to that, the total effect almost completely cancels the financial income that was achieved by the controversial decree on increasing the gross minimum wage by 61 percent”, they point out.
They say that inflation has increased and the spending power has decreased.
“Unemployment increased, and the business environment weakened. According to data from the FBiH Tax Administration, 124,725 workers were registered for the minimum wage in 2024, and an additional 95,000 workers had a net income of up to 1,000 KM. The regulation that was supposed to help the most vulnerable did not bring an increase in standards, because inflation simultaneously devalued any nominal gain. Instead of increasing the number of workers with stable incomes, the FBiH Government pushed an additional 95,000 workers closer to the poverty line”, they state.
As they say, artisans, owners of micro, small and medium enterprises, who form the backbone of our economic system, have been turned into budget users, due to various subsidy and refund programs that were introduced as an emergency measure to mitigate the effects of the decree.
In practice, more than 300,000 people moved from the zone of creation to the zone of social dependence.
“With one decree, entrepreneurs were turned into social cases. The market reacted quickly, and the effects were dramatic. UMSP calls on all competent institutions to finally admit what the real sector has been saying for months: decisions cannot be made without expertise, without assessing the consequences and without talking to those who need to implement them,” the Association’s reaction states.
They say that it is time for fiscal reform and responsible planning, not shock therapy.
“The Association of Small and Medium Businessmen of the FBiH will continue to advocate for a system in which decisions will be based on knowledge, responsibility and the common interest of everyone, because workers and employers are not opponents. We are one team that wants to create, employ and stay here”, concludes the Association of Small and Medium Businessmen of the FBiH, writes Klix.
