Bosnia and Herzegovina

One of the most challenging labour markets in the region
Although the economy of Bosnia and Herzegovina has been expanding steadily in the past few years, job creation has not kept up and the country shows one of the most challenging labour market situations in the region. Employment rates remain low (46% for age 15-64, 2019). Unemployment is high despite a downward trend in recent years (16% in 2020), especially among youth (34 % in 2019). The country has one of the lowest female employment rates in the Balkans (around 35%, age 15-64, 2019). The share of informal employment in total employment is relatively high (30%). The outward migration coupled with a rapidly aging population put a strain on the social security systems, challenging their sustainability over the long-term.

The Covid-19 pandemic has exacerbated the labour market challenges in Bosnia and Herzegovina. The ILO’s and EBRD’s joint assessment  shows that the decline in working hours caused by the pandemic during the third quarter of 2020 is equivalent to the loss of 170,000 full-time jobs. The losses of working hours are considerably higher than in other Western Balkan economies. The study identifies 14 sectors of the economy in which workers and enterprises are severely affected by the crisis. Over 245,000 jobs are at immediate risk as the health crisis persists.

ILO interventions in BiH
Currently, ILO supports Bosnia and Herzegovina in two areas:

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Skills mismatch in ETF partner countries
Publication Date: 24 Aug 2022
Source: International organizations-European Training Foundation

Skills mismatch problems in the labour market have been widely recognized by both current literature and policymakers. Skills mismatch indicators inform policies to improve the matching between labour demand and labour supply, making labour markets more efficient and reducing the wage penalties due to over-education or other types of mismatches. The skills mismatch indicators have been measured, so far, only for a limited number of the European Training Foundation (ETF) partner countries and they are not always comparable. This report provides an update and an extension of the work which has already been done to measure skills mismatch in ETF partner countries. The analysis following the choice and the construction of skills mismatch indicators provides a timely overview of this labour market issue which will be important for governments, stakeholders, and other stakeholders to shape future labour market policies.

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Embracing the digital age - The future of work in the Western Balkans: New forms of employment and platform work
Publication Date: 22 Aug 2022
Source: Bilateral organizations-European Training Foundation

Driven by social, economic and technological changes, labour markets are becoming more flexible in the European Union and EU Neighbourhood countries. This translates into growth in novel employment relationships, which differ from “traditional work” in terms of working conditions, content, and regulatory and legal ramifications.

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Exploration of impact investment for skills creation: Existing actions, emerging trends, implementation modalities, best practice
Publication Date: 22 Aug 2022
Source: Bilateral organizations-European Training Foundation

This study provides an overview of impact investment and skills creation in innovation, covering the main features of impact investment, the historical development of the phenomenon, and how it can be linked to the skills creation process. The study examines the emergence of impact investing and explains its principles and defining features. It maps some existing initiatives at European and local levels, presents examples of good and innovative practices in investments with social impact, and explores what practices and instruments for impact investment in innovation skills have been and/or could be applied in the Western Balkans. While the discussion and awareness about impact investment in the region appear to be highly limited, there is a need for developing new (financial and capacity-building) instruments to promote and spur impact investment so as to ensure sustainability in the skills creation and retention process, ultimately resulting in reducing the brain drain and supporting the creation of high value-added jobs

Djevojčice u tehničkim zanimanjima – CNC operaterka
Publication Date: 09 May 2022
Source: ILO

ILO has cooperated with Smart Lab, a Sarajevo-based company specialized in E-Learning products, within the frame of the project ‘Reimagining Education for Marginalized Girls and Boys during and post COVID-19’. This framework project involved many UN partners, like UNESCO, UNICEF and UN Volunteers. One of its results are 3 career orientation videos of a technical occupation. Each video features a young woman working in the respective position, who explains her professional activities and experiences. Young girls, who consider starting TVET are very much the target group of the orientational videos. They often face more difficulties or obstacles in entering TVET, which leads to underrepresentation. Encouraging female students and showing role-models eventually lead to a more balanced gender ratio and free individual career choice.

This video introduces the occupation CNC Operator.