Labour market in the region: Which profiles are lacking and why the concept of “one profession for life” is outdated

The unemployment rate in the region ranges from 8 to 14 percent—highest in Kosovo and lowest in Albania. The figures fluctuate from quarter to quarter, but what has remained constant for some time, and is common to all, is a shortage of labour in construction, transport, and hospitality. This is not limited to tradespeople; highly qualified professionals are also in short supply. Economic experts interviewed by Kosovo Online point to a mismatch between labour supply and demand, resulting in the import of workers for occupations where rapid retraining is not feasible. They also warn that artificial intelligence is reshaping the concept of “one profession for life.”

Written by: Dusica Radeka Djordjevic

As one of the key challenges facing the region, experts highlight the misalignment between education systems and labour market needs.

They note that artificial intelligence will change how certain jobs are performed and will require adaptation, particularly through upskilling to enable the use of AI tools.

They also warn that labour migration is no longer driven solely by higher wages, but increasingly by young people—who are the most likely to emigrate—seeking a better quality of life and improved working conditions.

Nearly 50,000 people leave Kosovo each year, and according to Agim Shahini, President of the Kosovo Business Alliance, these are skilled individuals.

Although, according to data from the Kosovo Agency of Statistics, the unemployment rate stands at 13.9 percent, Shahini told Kosovo Online that more than 51 percent of the labour force is inactive and that unemployment remains a major issue.

He assesses that the biggest problem is that women account for more than 60 percent of those waiting for employment.

“The Government of Kosovo has no strategy for developing new jobs, for advancing the economy, or for addressing unemployment. Unemployment is widespread across Kosovo; the percentages are the same everywhere,” he stated, adding that Kosovo has the highest unemployment rate in the region.

On the other hand, economic expert from Tirana, Eduard Gjokutaj, stated that Albania is estimated to have had the lowest unemployment rate in the region in the fourth quarter of 2025, at 8.3 percent. According to him, this is both a result of economic growth and a declining population, which has led to unmet labour demand.

In Serbia, according to Ljiljana Pavlovic from the Union of Employers of Serbia, the registered unemployment rate is below 9 percent.

“These are data obtained from the National Employment Service; however, this figure is likely higher if we include individuals who are not registered with the Service,” Pavlovic explained.

According to official statistics from the State Statistical Office of North Macedonia, the country has recorded a positive trend in the labour market, with unemployment decreasing in recent years.

Compared to 2020, when it stood at 16 percent, the rate has declined over the past two years and now amounts to 11.5 percent, according to Nataša Janevska, education advisor in the cabinet of the President of the Chamber of Commerce of North Macedonia.

This, Janevska explains, has been achieved through active government policies and measures, including training programmes for in-demand occupations based on data collected from various institutions. Another contributing factor is dual education.

“We already have the first generation that found employment immediately after completing their education, in line with companies’ needs,” Janevska told Kosovo Online.

A significant portion of the working-age population in North Macedonia remains inactive, and Janevska also points to structural unemployment—meaning a mismatch between supply and demand, where available skills do not meet market needs.

Import of Labour

While some people are seeking jobs, there is a shortage of workers for certain occupations.

Pavlovic stated that Serbia lacks mechanical and civil engineers, architects, medical staff, and doctors, while the construction and transport sectors lead in labour imports.

Over the past five years, she notes, there has been a pronounced shortage of workers in the construction sector.

“This was initially specific to trades such as bricklayers, painters, carpenters, and tilers. Then the transport sector became particularly vulnerable, with a shortage of drivers. Now, after five years, there is almost no economic sector without a labour shortage. We lack highly qualified professionals as well—mechanical engineers, civil engineers, architects, medical staff, and doctors,” she said.

Serbia, she adds, imports workers for occupations where there is a shortage or where retraining is not quick or easy. The first imported workers were in construction.

“They are generally skilled workers, whether in high-rise or low-rise construction. We all see who drives us through our cities, so the transport sector is also heavily reliant on imported labour. Recently, the hospitality sector has also turned to importing workers,” she noted.

At the same time, people are leaving Serbia in search of better opportunities—those who do not receive adequate compensation or working conditions within their profession.

“It is difficult to define specific categories, but broadly speaking, those leaving are mostly highly educated individuals,” Pavlovic emphasized.

Gjokutaj notes that Albania imports workers for basic services, mainly in tourism, construction, and other sectors including agriculture. The import of highly qualified professionals is lower, despite government fiscal incentives aimed at so-called digital nomads, offering opportunities for remote work in the technology sector.

Lack of Practical Knowledge

A key issue across the region, according to Gjokutaj, is the mismatch between education and labour market needs.

“This is most evident in Albania, where vocational schools do not provide practical knowledge necessary to produce true professionals. Our schools do not offer specialization in professions most needed by the economy. Our economy is based on services, construction, and agriculture, yet schools do not offer such specialization,” he said.

He adds that similar issues exist in Kosovo, Serbia, and Montenegro, although these countries have somewhat lower emigration of highly qualified workers and a reduced need to import such personnel.

Janevska notes that North Macedonia has long experienced labour shortages in sectors such as construction, hospitality, tourism, and the food industry, while employment is excessive in others.

“In public administration, a significant portion of the workforce should gradually be reduced in favour of labour needed in the business sector,” she assessed.

Regarding labour migration, she emphasizes that financial motives are no longer the only factor.

“Young people now seek a better quality of life, higher living standards, and better working conditions, which they find in European countries,” Janevska said.

North Macedonia is losing both low- and highly qualified workers.

“Most often, they come from hospitality and tourism—waiters, cooks—as well as construction, mechanical trades, locksmiths, welders, bricklayers, plumbers—professions in demand in the EU. Workers also leave from service sectors and the food industry, including machine operators and drivers,” she listed.

At the same time, foreign workers coming to North Macedonia are most often from Turkey, Nepal, India, the Philippines, as well as from Kosovo, Albania, and Serbia.

“Unfortunately, a large portion of our workforce that leaves consists of highly educated professionals, while those coming into the country are mostly low-skilled. What leaves is effectively replaced through imported labour,” Janevska explained.

Impact of Artificial Intelligence

When asked whether artificial intelligence has already brought changes to the labour market in the region, the responses were affirmative.

Pavlovic noted that its impact is already being felt and that AI will significantly transform the way work is performed in a very short period.

“At present, artificial intelligence can replace repetitive tasks—primarily administrative and certain financial sector jobs. In banking, digital models are increasingly used for transactions, reducing the need for front-desk staff. There is no need to fear job losses; rather, AI will change how specific roles are performed. We will certainly have to move away from the concept of ‘one profession for life’ and adapt by learning how to use the tools that AI provides,” Pavlovic emphasized.

Janevska also stated that artificial intelligence has already indirectly introduced changes in the labour market. She explained that it has created a need for digital skills, which in turn requires education systems to adapt so that students completing primary and secondary education are already equipped for the labour market.

“We can say that there will not necessarily be layoffs or the disappearance of professions, but there will be a need for reskilling and upskilling in digital competencies. Artificial intelligence should not lead us; rather, we should use it as a tool to improve our lives. New professions have emerged thanks to AI—such as data analysts and IT engineers—which are in high demand. This has also driven digitalization in administrative processes, and those entering such roles must possess digital skills if they wish to remain competitive in the labour market,” Janevska pointed out.

According to Shahini, artificial intelligence is not yet highly developed in Kosovo, but since it replaces many workers—especially in administration—he expects it will inevitably lead to a reduction in the number of jobs.