About the ILO in Serbia

Incomplete economic transition impacting labour markets

Serbia has been undergoing an unfinished transition from a centrally planned to a market economy for nearly 30 years interrupted and also partially reversed by the Balkan Wars in the 1990ies. Being the largest country of the Western Balkans, it has a strategic importance for EU accession negotiations with the candidate countries from this region.

The incomplete transition has its effects on labour markets. While unemployment is going down, Serbia continues to struggle with relatively low labour force participation, high inactivity, a large portion of youth neither in employment nor in education, and a high number of workers in state owned enterprises supported with high subsidies. Informality continues to be high, the quality of jobs requires substantive improvement and there is a need for further reform of the occupational safety system. The long-standing labour legislation reform is relevant both for EU accession and for advancement of social dialogue. Continue