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 aftermath of 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 has dropped (10% for age of 15 and above, Q3 2021, 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 large share of the state-owned enterprises and institutions in the national GDP. 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