10,068 jobs lost during Nikšić's government term, number of pensioners growing, increasing debt

At the end of February 2026, the difference between the number of employed and pensioners in the Federation of BiH was only 76,115 more workers. While the number of employed is decreasing or stagnating, the number of pensioners is growing.

At the end of February, the number of employed was 542,080, and the number of pensioners was 465,965.

Independent MP Admir Čavalić yesterday, during the debate on the work of the FBiH Government for 2023 and 2024, compared the number of employed in May 2023 (the FBiH Government headed by Nermin Nikšić was formed in April 2023) when it was 541,084, and in the third year of the same government, the number is only higher by 996 people.

“When all is said and done, it means that during the term of this government, whether due to their inaction or action, or some EU crisis circumstances, let everyone interpret it as they wish, only 996 new jobs have been created. If you look at the structure of these jobs, they are in cantons within the public sector, which means that there is a very high chance that most of these almost 1,000 new jobs are in the public sector. That is the outcome of the work of this FBiH Government,” said Čavalić.

He stated that the previous FBiH Government, headed by Fadil Novalić, had an increase of 90,000 jobs.

The first significant drop in the number of employed occurred after the introduction of the non-working Sunday in November 2024 in FBiH, and then after the increase in the minimum wage from 619 to 1,000 KM at the beginning of 2025. Since then until today, there are 10,068 fewer employed. The number of employed in November 2024 was 552,148.

The ratio of employed to pensioners in FBiH is 1.16, while the European average is 1.7. With pension increases and a decrease in the contribution rate from July 2025, the FBiH Government covers the shortfall from the Budget. For example, during 2024, 512 million KM were paid from the budget for pension payments.

The monthly increase in the number of pensioners with such a trend of stagnating employment is a burden for the FBiH Government. The measures and decrees they adopted during 2025 under the pretext of preserving jobs did not yield the desired results. Although employers themselves will say that there is a shortage of labor in FBiH, according to unemployment records, it would not seem so.

This is particularly noticeable in hospitality and service industries, and at the same time, quotas for foreign workers are increasing.

In the long term, an increase in public spending without creating new jobs in the real sector and without new investments will not significantly change anything.

With increasing social benefits, pension payments, and other compensations, the FBiH Government is already borrowing hundreds of millions of marks. Only for pensions, 4.4 billion KM will be allocated, which represents more than half of the total budget. From PIO contributions, a revenue of 3.3 billion KM is projected, while more than a billion KM will be compensated directly from the budget. The planned borrowing for the FBiH Government this year is 2.3 billion KM.

The IMF has been warning authorities at all levels for years that a reduction in the public sector, rationalization of public administration, and digitalization of as many processes as possible are necessary.

However, the IMF always forgets that the public sector is the voting base of the ruling parties, so no one is ready for cuts and layoffs.