Labor market situation in the country 

According to the most recent labor force data of the Bosnia and Herzegovina Labor and Employment Agency, the overall labor market in Bosnia and Herzegovina continued to show persistent challenges in 2025, despite some improvements in employment indicators. The employment rate in the first quarter of 2025 was 42.9%, slightly lower than at the end of 2024, while unemployment stood at around 12.6% (labor force survey), with the rate decreasing to 11.2% in the third quarter of 2025. 

Youth unemployment (ages 15–24) remained high, with the youth unemployment rate at 30.2% in the first quarter of 2025 and approximately 33.5% in the third quarter of 2025. 

While labor force survey figures differ from administrative records (which capture registered unemployment), these data illustrate ongoing difficulties for young people in securing employment and transitioning into stable labor market roles.

The share of young people not in employment, education or training (NEET) continues to be a concern, with international estimates indicating a significant portion of youth are outside the labor market and education systems, an issue that limits future employment prospects and contributes to social exclusion. 

Bosnia and Herzegovina also faces structural challenges, such as low female labor force participation and gender gaps in employment, although recent disaggregated figures are available primarily through national surveys and institutional reports. Gender and educational disparities remain key factors shaping youth labor market outcomes.

In addition, emigration of young and skilled workers persists as a pressing concern, reducing the potential labor supply and exacerbating labor market imbalances. (Contextual corroboration from labor market analyses.)

The structure of job seekers as of 31 October 2025 was as follows:

• Unskilled workers: 91 126 or 28.89%, comprising 36 092 (28.36%) men and 55 034 (29.24%) women

• Semi-skilled workers/low educational background: 4 129 or 1.31%, comprising 1 926 (1.51%) men and 2 203 (1.17%) women

• Skilled workers: 98 855 or 31.33%, comprising 49 752 (39.09%) men and 49 103 (26.09%) women

• Highly skilled workers: 594 or 0.19%, comprising 332 (0.35%) men and 161 (0.09%) women

• Secondary school qualifications: 90 927 or 28.82%, comprising 30 490 (23.96%) men and 60 437 (32119%) women

• Two-year post-secondary education: 4 706 or 1.49%, comprising 1 571 (1.23%) men and 3 135 (1.67%) women

• University degree: 25 141 or 7.97%, comprising 7 015 (5.51%) men and 18 126 (9.63%) women

Main concepts

Youth unemployment in Bosnia and Herzegovina consistently remains among the highest in Europe, estimated around 27–35%, compared with lower regional averages. This chronic lack of opportunities drives a steady outflow of young, skilled individuals seeking better prospects abroad.

There is a pronounced gap between educational output and labor market demands. Vocational education follows outdated curricula and lacks practical, work-based learning, leaving graduates unprepared for modern roles. Bosnia and Herzegovina’s fragmented post-war governance has led to institutional inefficiencies, lacking flexible contractual arrangements, limited mobility, and limited labor market reform, factors that sustain both informality and structural unemployment. 

A growing share of youth work in the platform economy (e.g., delivery, ride-share) under precarious conditions. Classified as independent contractors, these workers typically lack access to unemployment benefits, sick leave, occupational safety, and guaranteed minimum income.

Policy responses have been limited, youth-focused budgets are minimal compared to EU countries, and many local governments lack active youth strategies or dedicated officers (Study of Youth Employment in Bosnia and Herzegovina, 2019). Research suggests that expanding training, internships, and active labor market programs can significantly improve youth employment outcomes (Pilav-Velic, 2019; Okicic, 2020).

The UNDP report on the Analysis of Barriers to Entrepreneurship Development in Bosnia and Herzegovina highlights that the entrepreneurial culture in Bosnia and Herzegovina is generally perceived as poor. Specifically, 21.4% of respondents rated it as unsatisfactory, while an additional 41.1% gave it low scores. Furthermore, 73.2% of surveyed entrepreneurs reported having no practice of holding meetings with ministries or government bodies, reflecting a lack of supportive business culture. The report also suggests that due to negative experiences, there is little interest in building future cooperation with chambers of commerce or other potentially helpful institutions.