The economic crisis in Bosnia and Herzegovina is becoming more visible and more dangerous. According to the latest data from the Federation of BiH, in just a month, the number of employees decreased by as many as 1,733 workers, indicating a serious labor market problem and bad business climate in the country, writes Forbes BiH.
Unstable labor market – Workers lose, power silent
The data of the Tax Administration clearly show a negative trend that could have long-term consequences per economy. Reducing the number of employees means less budget revenue, lower consumption and additional weakening of the economy that is already suffering from political instability and lack of serious reforms.
What is further concerned is that the competent authorities do not offer any solutions, while investors lose interest in investing in BiH. Foreign investment in the country are on a record low level, while neighboring states are growing and attracted to capital that could end in BiH – that the government is responsible for the economy.
Who is responsible for this situation?
Loss of almost 2,000 jobs in just a month is not a coincidence. This is a consequence of irresponsible policies, political blockades and the absence of any concrete measures to improve the business environment. Meanwhile, citizens are increasingly leaving the country, and the labor force becomes deficient even in sectors that were once stable.
Businessmen have been complaining about the integers, unregulated laws, bureaucracy and insecurity in business for a long time. All this contributes to the negative trend now and statistically confirmed.
Without an action of government, job loss will continue
If this trend continues, BiH will face even more difficult economic problems. The departure of the working age population and closing jobs leads to economic collapse that will feel everyone – from workers to employers, but also the entire budget system.
The key question now is: Will the government finally identify the seriousness of the situation or will continue to ignore alarming indicators?
