Labour shortage is increasingly becoming a problem in Western Balkans and EU Candidate Countries. Like anywhere in the Western world there are shortages in certain sectors caused by a number of reasons. Many of the reasons are comparable to the countries in Western Europe, but in the case of the Western Balkans and EU Candidate Countries there is also the issue of migration.
The main challenges of the labour market in the Western Balkans and EU Candidate Countries are: Insufficiently educated workforce; significant lack of skills; and high emigration rates of young and qualified workers. This cocktail is leaving the home-countries without the essential workforce needed to further develop the countries and region.
From 16-18 April more than 40 trade union leaders from 11 different EU and Candidate countries participated in a two-day seminar in the capital of Bosnia and Hercegovina, Sarajevo. The title of the seminar was “The future of work in the Western Balkans and EU Candidate Countries: How to tackle the workforce and skill shortage?”. The initiative was organized by WOW-Europe and the Independent Trade Union Federation of Workers in Financial Organizations (SSRFOFBiH) in cooperation with the European Centre for Workers’ Questions (EZA) and funded by the European Commission.
Education is the starting point of everything. It is key. ‘The economy is created in kindergartens, leaders especially are created in kindergartens!’ Mr. Nedim Krajišnik, Director of the Center for Educational Initiatives Step by Step (Bosnia and Hercegovina) stated. ‘Without education no society, no economy, no leaders and no quality’, he continued. But the way in which children are educated are a one size fits all. There is little room for play, everyone is treated the same and young people are not motivated to learn. The fact is that the ‘world needs all kinds of minds. Everyone should be valued for the contributions he or she can make’, Mr. Nedim Krajišnik concluded.
What we are experiencing in the Western Balkans is a ‘demographic crisis’, Mr. Lazar Ivanovi?, Economist at the Center for Advanced Economic Studies – CEVES (Serbia) continued. Most countries are experiencing a migration deficit. Bosnia and Hercegovina is the worst pupil in the class in that respect. This has tremendous consequences for society as a whole as well as the region. The pension-system, for example, is really under pressure. This is the result of a number of factors, such as ‘mass emigration of working-age population and declining birth rates’ Ivanovi? said. There are a number of ways to tackle this of which the investment in skills, technology, innovation is the most long-term solution. For the region the Open Balkan Initiative (a “mini-Schengen” enabling free movement of people, goods, services, and capital initiated by Albania, North Macedonia, and Serbia) seemed very promising, but the implementation has not been very successful so far.
In many ways related to the Open Balkan Initiative is the project ‘Better employment conditions for seasonal workers in South-East Europe’, initiated by the Deutsche Gesellschaft für InternationaleZusammenarbeit (GIZ). ‘It is difficult to regulate this sector where much is very temporary and on short notice’, Ms. Amira Omanovi?, Programme Component Manager, Open Regional Fund for South East Europe – Modernisation of Municipal Services, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) stated. ‘The current Serbian labour law does not give a solution for easy declaration of seasonal workers. Many of them work cross-border. The introduction of and electronic registration system has simplified the process of registration. But to achieve these ‘relatively’ simple things it is important to include all stakeholders, which is a big task’. Hence the ‘Reform of the Seasonal Workers Registration in Serbia’. By sharing the Serbian experiences in the region a domino-effect can be detected where other countries are follow. Each at the their own pace.
‘Shortage of skilled workers is indeed a big challenge and vocational training could well be the answer’, according to Mr. Semir Hadžali?, Assistant Director at Sector for Legal and General Affairs at Lutrija State Lottery of Bosnia and Herzegovina. ‘Vocational training has the potential to become an important factor in economic development and reducing youth unemployment. To achieve this, continuous reforms, investments and better cooperation between the education system and the economy are needed.’ The current three key industries in South-East Europe are construction and manufacturing, IT, and tourism and hospitality. And all face shortages. Either because of lack of qualified workers or because the people are moving to the EU. This has tremendous economic effects. ‘Possible solutions are better education, higher salaries and improving working conditions, encouraging diaspora return, importing labour, and encouraging entrepreneurship. There is a weak link between education and the labour market’, Hadžali? stated. ‘Without a systemic partnership between education, employers and institutions – vocational education remains on the margins, and the labour market suffers the consequences. The solution lies in strengthening the dual model, stimulating companies, and changing social perception – that the profession means quality, safety, and dignity’ Hadžali? concluded.
There are a number of macro, meso-and micro-level factors (incl. personality traits) for people to migrate. However, in the Western Balkans, “economic motivations” are the main reason, said Ms. Ksenija Ivanovi?, PhD candidate and project manager for HEU “Global Strategy for Skills, Migration and Development’’ (GS4S) Radboud University. ‘The GS4S research examines the role of skills shortages in migration aspirations and destination preferences in the following three countries: Albania, Bosnia and Herzegovina, and Serbia’. Migration aspirations are very high in the three examined countries with Germany being the most popular destination country. One should acknowledge that incentives for leaving are labour shortages both in the destination country as the country of departure. Demand creates opportunity. ‘It is important to understand why and where skills shortages occur’, said Ivanovi?. ’And that migration does not necessarily have to be permanent’ she concluded.
‘The Western Balkan is faced with some serious challenges. Leaving workforce is just one of them. Productivity another. When we look at the various countries it becomes clear that the countries import more than they export. This has tremendous effects on the economies’ according to Mr. Goran ?ukanovi?, Chief Compliance Officer Prva Banka Crne Gore. One such effect is the high unemployment rate. For all age groups. Whereby it is noted that Bosnia and Hercegovina and North Macedonia stick out. This also becomes clear when looking at the numbers for migration. These numbers have been extremely high for Bosnia and Hercegovina the passed decades. Structural changes are essential in order for things to improve. The approach to the institutional and demographic crisis as well as the education structure should change, ?ukanovi? concluded.
When focusing on Bosnia and Hercegovina the challenges are very worrisome. Some disenchanting numbers. Between 2015 and 2023, more than 1.5 million people left the Western Balkans. 500.000 of these people came from Bosnia and Hercegovina. 70% of young people in Bosnia and Herzegovina are considering to leave. More than 5.000 doctors left Bosnia and Herzegovina between 2013 and 2020. ‘Apart from the obvious reasons for migration there is the issue of political instability. Instability and corruption encourage emigration’ Ms. Minka Rešidbegovi?, President Independent Trade Union Federation of Workers in Financial Organizations – SSRFOFBiH declared. The departure of young people further leads to a decrease in the birth rate, an aging population, and the depopulation of rural areas. ‘The Balkans are predicted to continue losing labour force unless significant economic reforms occur. Addressing the problem of labour migration requires coordination between governments, employers, and educational institutions, Rešidbegovi? finalized.
The two-day conference made very clear that there are many challenges on many levels when it comes to workforce shortage. The Western Balkan has some specific conditions that make it difficult to tackle the trend of workforce shortage and migration. On economic and political level the countries face many challenges that ask for coordination. Steps are being made, but improvements take time. Estonia and Poland, countries that were in similar positions a number of years ago, may serve as good examples. People are slowly returning to their countries of origin. It too many years though, but surely this will happen to the Wester Balkan countries too.
For pictures click here
