12-YEAR PERIOD: The biggest drop in employment in FBiH was recorded during the 2020 pandemic and in the first eight months of 2025.

(Patria) - From 2014 to 2020, there was an upward trend in employment growth in the Federation of BiH. On average, at the end of the year, there were about 10,000 more employed persons compared to the previous year.

In the last 12 years, including data for 2025, the largest growth was recorded at the end of 2016, when the number of employed persons was 503,971, an increase of 18,031 compared to the end of 2015.

The largest drop in the number of employed persons occurred during the first year of the Covid-19 pandemic in 2020, when the number of employed persons decreased by 15,252 compared to the end of 2019, amounting to 520,493. Considering the measures implemented during the pandemic, which affected businesses due to movement restrictions and difficulties in the transport of goods and services, numerous companies reduced their workforce and terminated employment contracts, so this decline was expected. The pandemic affected the entire global economy.

In the following four years, the number of employed persons in FBiH gradually increased, so at the end of 2021, there were 533,034 employed persons, an increase of 12,514 compared to the pandemic year of 2020.

However, a moderate increase in employment followed during 2022, 2023, and 2024. Thus, at the end of 2022, there were 538,312 employed persons, 544,345 a year later, and 551,452 employed persons at the end of 2024.

Following the ban on Sunday work for retail stores in FBiH, which came into effect at the end of November 2024, a decline in employment in the retail sector began. From January 2025, the minimum wage was increased from 619 to 1,000 KM without a prior reduction in contributions, which also caused a drop in employment, as shown by the monthly reports of the FBiH Tax Administration for the first four months of 2025. There was a slight increase in employment during May and June, followed by another decline.

At the end of August 2025, there were 541,921 employed persons. Compared to 2024, this is a decrease of 9,531 people. The FBiH Tax Administration explained that the largest decrease was in the education sector and that this is usual during August.

From July, the application of reduced contribution rates began, and for a salary of 1,000 KM, the employer has 86 KM less in costs.

The number of employed persons from the end of 2014 to August 2025 has increased by a total of 65,986, which would average around 5,500 persons annually. Considering the constant increase in the number of pensioners, the number of workers should increase.

The FBiH Government is preparing a new reduction in the contribution rate to open up opportunities for employers to increase the number of workers or at least increase workers' salaries.

Until the end of the year, the decrees of the FBiH Government on assistance to private employers, i.e., reimbursement of part of the contributions, as well as the decree on the payment of non-taxable assistance to employees by employers in the maximum monthly amount of 400 KM per employee, are in effect.