Jevtovic: Reduction in German quotas will not improve labor market situation in Serbia

Spokesperson for the Serbian Association of Employers Jelena Jevtovic told Kosovo Online that the announced reduction in Germany’s quota for workers from the Western Balkans from 50,000 to 25,000 annually would not solve Serbia’s labor shortage and that retaining workers required increasing the competitiveness of the domestic economy, productivity and wages.

“As far as workers are concerned, Germany has been one of the most sought-after labor markets for Serbian workers in recent decades, while at the same time it represents a challenge for our employers, given that workers who are also needed in our country are leaving,” Jevtovic told Kosovo Online.

According to her, the needs of the Serbian and German labor markets largely overlap, particularly when it comes to occupations in which there is already a shortage of workers.

“These include workers in construction, manufacturing, transport, logistics and hospitality, as well as all skilled trades, and this certainly represents a problem,” she said.

The departure of workers makes it even more difficult for domestic employers to find qualified staff, as they are competing not only with other companies in Serbia but also with employers from more economically developed countries.

“Serbia is short of many types of workers precisely because they are leaving for countries such as Germany. In addition to competing with other employers in Serbia to find qualified workers, Serbian employers also face competition from German employers and employers in all those Western countries,” Jevtovic explained.

For that reason, she believes that administratively restricting workers from leaving for one country cannot resolve a problem that has existed in Serbia’s labor market for years.

“This announced reduction will not improve the situation regarding the labor shortage in Serbia, precisely because it is unrealistic to expect an administrative restriction in one country to solve a problem that has existed here for years,” she stressed.

Nevertheless, Jevtovic expects that some workers who are unable to move to Germany because of the reduced number of available places could remain in Serbia. She noted, however, that there were no official figures showing how many Serbian citizens had used the existing quota, which covers six Western Balkan countries.

“It will certainly have some impact in the sense that a certain number of people who, for one reason or another, cannot go there, or cannot do so because there are no places available, will remain here, because those 25,000 places are intended for six countries. We do not have official statistics showing how many of the current 50,000 are from Serbia. So a certain number will certainly remain here, but that will not solve the existing problem,” she said.

As one way of enabling higher wages for workers and easing pressure on the domestic labor market, the Serbian Association of Employers has for years advocated creating more favorable conditions for doing business.

“We at the Serbian Association of Employers have been pointing out for years that the domestic economy must be allowed to grow, in terms of increasing productivity and competitiveness. That is possible when the tax burden and fiscal and parafiscal charges are reduced and all other measures are implemented that will allow businesses to operate more easily, because that is the only way for people to earn higher wages, that is, for employers to be in a position to pay higher salaries,” Jevtovic said.

In addition to economic measures, she identified aligning education with the needs of the economy as another important prerequisite.

“Another important factor we have been emphasizing is reform of the education system, because the education system must be adapted to the needs of the labor market and train the professionals that the economy requires. No matter how willing an employer may be to hire someone, pay them a good salary and provide good working conditions, they simply cannot hire workers who do not exist,” she stressed.

Jevtovic believes that the announced reduction in Germany’s quota could also serve as an incentive for domestic institutions to reconsider proposals put forward by employers.

“When everything is taken into account, this announcement can serve as a signal to our government to consider the initiatives we have been submitting for years and to work on increasing the competitiveness of the domestic economy,” Jevtovic said.

The goal, she concluded, should be to give domestic workers more reasons to remain in Serbia rather than forcing employers to recruit workers from abroad because they are unable to fill vacancies.

Germany has announced that, as of January 1, 2027, it will halve the annual quota for workers from the Western Balkans, from the current 50,000 to 25,000. The measure applies to Serbia, Kosovo, Bosnia and Herzegovina, Montenegro, North Macedonia and Albania.