In Bosnia and Herzegovina, in the first three months of this year, labor was about 1.4 million people. Employees were about 1.21 million, and out of work in 188 thousand. This means that the number of employees fell by about 44 thousand compared to the end last year, while unemployment jumped by almost 13 percent.
While more and more people come out of the sphere of work and stops looking for a job – almost a million and for them is currently employed or actively looking for a job – the Employment Service of Republika Srpska deletes those who refuse the offer. Only in the first half of the year, 49 citizens were deleted from records because they refused a job in the profession or did not appear at the employer.
The Institute explains that everyone has unjustifiably refused employment that corresponded to their qualifications. Therefore, they lost the status of an active job seeker and the right to be reported again for the next 12 months.
This practice has been going on for years. From 2021. By the end of 2024. A total of 218 people were erased from the records, and in the first six months of this year, the number almost reached that annual figure.
Fictitious unemployment and black labor market
At the records of the Institute for Employment of the Republika Srpska at the end of June, there were 51,452 unemployed, but employers claim that the number of actual job search engines is significantly lower. Many were reported only to achieve certain rights, while actually work black or went abroad.
The director of the Union of Employers ‘Employers’ Association, Sasa Ačić warned that over 36% of the unemployed were unskilled or semi-qualified, while 14% with higher or higher education, which does not match the needs of the market. The age structure further complicates the situation – 37% of the unemployed are over 50 years.
The black labor market and work abroad exacerbate the situation, while the education system does not monitor employers’ needs. In FBiH employers’ associations require modernization of education, greater investment and more flexible immigration policy to replace the deficit of qualified workers.
What is the future?
The trade unions claim that BiH needs to improve the conditions of work and increase salaries to maintain domestic workforce. Otherwise, the Earth will continue to depend on the cheap foreign labor force, which can jeopardize economic stability.
The estimates show that by 2033. The Republika Srpska could have only 313,000 employees and 290,000 pensioners, while the total population fell below a million. In parallel, it is estimated that until 2028. in the RS will work between 20,000 and 30,000 foreign workers.
Employers and economists agree that urgently need to be reformed the education system, improve digitization, redefine the notion of unemployment and adapt social policies. Without these changes, the labor market in BiH will face serious challenges that can endanger economic development, writes Noise.
