The youth labor market in Bosnia and Herzegovina is characterized by long-standing structural challenges, including high youth unemployment, pronounced gender disparities, skills mismatches, and a significant share of informal employment. These challenges continue to shape young people transition from education to work and influence their overall socio-economic position. Employment and economic security consistently rank among the highest priorities for young people in Bosnia and Herzegovina, while their situation can be assessed through indicators related to labor market participation, employment status, and access to opportunities for skills development and entrepreneurship.

Due to the complex constitutional and administrative structure of Bosnia and Herzegovina, responsibilities related to employment and entrepreneurship are divided between the state level, the two entities, the Federation of Bosnia and Herzegovina and Republika Srpska, and the Brčko District of Bosnia and Herzegovina, with the state level providing coordination. As a result, policies and measures addressing youth employment and entrepreneurship are developed and implemented at multiple levels of governance, often with differing legal frameworks, institutional arrangements and implementation practices.

Key strategic responses include the Federation of Bosnia and Herzegovina Employment Strategy (2023–2030) and the Republika Srspka Employment Policy (2021–2027). Currently, the Youth Guarantee initiative (supported by the EU and ILO) is the primary framework aimed at providing employment or training offers to all youth under 30 within four months of becoming unemployed.