Employment

The system of organization of employment services is in accordance with organization of BiH, which is defined by Constitution of BiH. Labor and Employment Agency has been established and operate at the state level, while Employment Bureaus have been established and operate at entity levels and Brčko District. In Federation of BiH, Employment Bureaus operate at cantonal level. Public Employment Services, established in Republika Srpska, Brčko District and Federation of BiH operate according to the current laws which regulate the operation of public services.

General situation in the labor market in BiH is still very difficult.

Rising unemployment of persons who have previously been employed is largely conditioned by the decrease in economic activities due to continued impact of global economic crisis and by the decline in total employment in process of restructuring companies, which is indicated by large number of cancelation of fixed-term contracts.

It is evident that there is a structural imbalance in the labor market which is manifested through mismatch between supply and demand for labor in terms of occupation, education, qualification or regional distribution.

According to data of Employment Services in BiH, on 31.10.2013, there was 552.707 unemployed persons registered (cca 44,8%), as compared to 30.09.2013. represent decrease for 2.380 persons or 0,43%. Out of the total number o people who seek for employment, 280.066 or 50,67% are women.

Considering the structure of persons seeking employment, on 31.10.2013., largest number of registered unemployed persons are those with III level of education (qualified/skilled workers) 34,48%, then nonqualified/unskilled workers 28,05%, while unemployed people with university degree make 7,02%.

In order to improve current situation in economy, BiH for a long time tends to resolve the accumulated problems and problems of unemployment. In country with high unemployment rate and huge social problems, eliminating the grey labor market is one of priorities. This is one of the ways to improve social – economic situation in total.

Of course, in order to enable significant employment growth and solve unemployment problems it is necessary to improve economic ambience in a way that is stimulating for investors.

It is necessary that economy achieve high rates of economy growth.

The biggest macroeconomic challenge in forthcoming period is increasing domestic, public and private investment, along with initiation of higher rate of domestic savings, as well as higher volume of foreign investments.