Ristic: Serbia has the lowest unemployment rate in the Western Balkans, Kosovo the highest

Zoran Ristic, Senior Economic Advisor at the United Branch Trade Unions “Independence,” stated that all research points to a decline in unemployment across the Western Balkans, with Serbia and Albania showing the best results. Kosovo, he noted, ranks at the very bottom, with the highest unemployment rate in the region.

Commenting on the European Commission’s report on the Western Balkans and Turkey, which states that the region is seeing a “historically low level” of unemployment despite a slowdown in annual economic growth, Ristic confirmed that unemployment has indeed decreased across the region.

“The data showing that unemployment has dropped across the region is accurate. However, it’s also true that the unemployment rate remains significantly above the European average. If we look at the Western Balkans, we see that the rate still stands at a high 12 percent—almost 50 percent higher than in EU countries,” Ristic told Kosovo Online.
 

He emphasized that Serbia and Albania have the lowest unemployment rates in the region.

“In Serbia, the unemployment rate is 9.1 percent; in Albania it’s similar, followed by Montenegro. Of course, the highest unemployment rate remains in Kosovo and Metohija. Even though some statements claim a significant reduction in unemployment, I would argue that the persistently high rate clearly indicates that this is the most severe issue in Kosovo and Metohija,” Ristic stressed.

When it comes to labor shortages, Ristic was unequivocal.

“There is a shortage of skilled tradespeople throughout the region. Construction workers are also in limited supply, and there’s a lack of medical staff as well. In fact, we are missing all the personnel that Western countries needed—many young workers from this region have gone there,” Ristic explained.

The region is compensating for labor shortages through “imports,” and Ristic illustrated this by noting that in 2018, 46,000 work permits were issued in the region—half the number issued last year.

“Last year, there were over 100,000 work permits issued. In Serbia, we see similar trends. We already have more than 50,000 work permits,” Ristic said.

Workers in the region, at least on paper, express a willingness to retrain for new jobs. In reality, that’s often not the case.

“If you ask any worker, they’ll say they’re ready to retrain, that they understand the labor market is unstable and that they need to adapt. Certain World Bank studies show that over 60 percent of workers in the Western Balkans answer positively when asked if they are willing to retrain. However, a much smaller number are actually ready to do it. That figure stands at about 15 percent,” Ristic pointed out.

The majority of “labor migration” within the Western Balkans is tied to the tourism sector.

He emphasized that the trend of labor force movement from one country to another only applies to seasonal jobs—primarily in tourism.

“Significant migration is from the entire region toward the West. When we talk about migration within the region, the only noticeable trend is related to seasonal jobs. This summer, as well as last, it mostly involved seasonal work in tourism—particularly employment along the Montenegrin and Albanian coasts. There are also issues in Serbia’s hospitality sector with securing sufficient labor during the season,” Ristic observed.