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Sarajevo Times > Blog > BUSINESS > The Labor Market In BiH Between Optimism And Stagnation
BUSINESS

The Labor Market In BiH Between Optimism And Stagnation

Published February 1, 2026
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At the end of 2025, the labor market in Bosnia and Herzegovina(BiH) is sending moderately optimistic signals. The latest data for November show that negative trends from previous years are slowly easing, although the path to a stable and balanced labor market remains long.

As of November 30th, employment institutes and services in BiH registered 314.870 unemployed persons, which represents a decrease of 608 people compared to October, or a drop of 0.19 percent.

Labor market – active and unstable

An even more encouraging picture emerges at the annual level. Compared to November last year, the number of unemployed is lower by 7.042 persons, or 2.19 percent, indicating a gradual but continuous recovery of the labor market. A decline in unemployment was recorded in all administrative units, with Republika Srpska (RS) having the relatively largest percentage decrease, while the Federation of BiH (FBiH) and the Brcko District also recorded a positive shift.

Employment dynamics during November show that the labor market is simultaneously active and unstable. Around 11.000 people were removed from the unemployment registers, and nearly 60 percent of them found jobs in that very month. At the same time, more than 7.700 citizens lost their jobs and re-registered with employment offices, confirming that employment and job loss in BiH still go hand in hand, without a strong and lasting momentum.

Of particular concern is the fact that women continue to bear the greatest burden of unemployment. They account for almost 60 percent of the total number of unemployed, or more than 187.000 people. Although a slight increase in female employment has been recorded, the gender gap remains pronounced, especially among people with secondary and higher education. The paradox of the labor market is reflected precisely in the fact that among the unemployed with a university degree, women make up an overwhelming majority, pointing to structural problems and the insufficient valuation of women’s work and education.

Lower unemployment rate in the third quarter

The educational structure of the unemployed further illustrates the complexity of the situation. The largest share of those registered with employment offices consists of skilled and unskilled workers, as well as people with secondary education, while the highly educated make up a smaller, but still significant, portion of the unemployed. Such a structure simultaneously poses a challenge for employers who complain about a lack of labor with specific skills, and for the education system, which clearly does not fully keep pace with labor market needs.

An important context is also provided by the difference between administrative and survey-based unemployment. According to the Labour Force Survey for the third quarter of 2025, the unemployment rate in BiH stood at 11.2 percent, which is significantly lower than the figures obtained through employment office records. This discrepancy indicates that a portion of citizens, although formally unemployed, work in the grey economy or occasionally, outside official channels.

Encouraging signal in youth employment

An encouraging signal also comes from the segment of youth employment. The unemployment rate among young people aged 15 to 24 fell to 33.5 percent, which is a decrease compared to the previous quarter and a sign that active employment policy measures are nevertheless yielding certain results. The total number of employed persons in BiH in October 2025 amounted to 855.280, confirming that the labor market is slowly but cautiously stabilizing.

Although the figures leave no room for euphoria, they clearly show that the labor market in BiH is moving in a positive direction. The real challenge remains to turn these modest shifts into a long-term trend that will bring higher-quality jobs, less insecurity, and fairer opportunities for all citizens.

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