Labour market analysis in FBiH: Shortage of construction workers, caterers, IT professionals

(Patria) - The Government of the Federation of BiH, at today's thematic session in Sarajevo, considered and adopted information regarding the labour market analysis, which was prepared and submitted by the Federal Employment Service in accordance with the conclusions from 23.6.2022.

As concluded, the Government of the FBiH welcomes the online application system for employment, self-employment, and training co-financing programs, which guarantees transparency, accessibility, and efficiency, and prevents potential abuses. Taking into account the fact that online applications still constitute only half of the total applications for these programs, the Government has tasked the Federal Employment Service to make additional efforts in promoting this option to continuously increase the number of users and to modernize the system.

The Government was informed about the document "Analysis of the Structure of Unemployed Persons in FBiH" and the information that in 2021, there was a stabilization of labour market conditions. Taking into account the significantly higher unemployment rate for women compared to men, the fact that the highest unemployment rate was recorded among persons aged between 30 and 49, and that almost a third of the unemployed are unskilled workers, it tasked the Federal Employment Service to align its programs to provide better opportunities in the labour market for these categories.

The Government was also informed about the collected data from surveyed employers. Taking into account the expressed need of employers for new employment, and the fact that problems have been identified in employment in terms of labour shortages such as construction workers, caterers, and IT professionals, the Federal Employment Service is tasked to continue modifying and improving the "Training and Work" program to meet the needs of the labour market in terms of retraining, upskilling, and training.

The Federal Ministry of Labour and Social Policy is tasked to submit to the Government, within 90 days, a list of necessary amendments to the laws in this area, and within 60 days, amendments to bylaws and other legal regulations. Among other things, the goal is to separate the records of unemployed persons actively seeking work from the records of active persons who are temporarily not seeking work. Also, to establish a clear definition of the term "suitable job"; to facilitate the exchange of data between the Tax Administration of the Federation of BiH and public employment services for more efficient records of the unemployed and their registration for employment, and to enable vocational training without establishing an employment relationship for persons who have not completed education for a specific profession, so that through training they can perform certain jobs. After that, the Government of the Federation of BiH will adopt the dynamics and deadlines for adopting the necessary amendments.

Otherwise, the information stated that in 2021, there was a stabilization of labour market conditions and a halt in the decrease in the number of employed and an increase in the number of unemployed persons. Last year, compared to 2020, the number of employed increased by 5,235, and the number of unemployed decreased by 9,902.

The trend of decreasing unemployment in FBiH continued in 2022. As of May 31, 2022, there were 286,644 persons registered in the employment services records, which is a decrease of as much as 25,035 compared to the average in 2021. Regarding the structure of the unemployed, almost 30 percent are unskilled workers. Also, 36 percent of the unemployed are over 50 years old, which is an increase of three percent compared to the average in 2021. The share of the female population in the number of unemployed is 169,242, or 59.04 percent. The need for employment in 2022 was expressed by 726 employers out of 1,288 surveyed, or 56.4 percent of the total surveyed, for the employment of 6,349 workers.

In 2021, the average number of unemployed was 311,679, which is 9,902 or 3.1 percent less than the average in 2020. The registered unemployment rate in FBiH in 2021 was 37.2 percent, which is one percent lower than the previous year.