Forthcoming policy developments

One of the most important characteristics of BiH is its administrative and political structure and complex decision-making system to pass laws and adopt necessary reforms. In BiH, youth unemployment is a major factor driving emigration among young people. According to a Westminster Foundation for Democracy study in 2020, youth unemployment reached nearly 40%, which "represents one of the main push factors" causing them to leave the country, leading to substantial brain drain. The International Labour Organization (ILO) notes that vocational education in BiH suffers from "a significant skills mismatch between VET curricula and labour market needs," due in part to outdated curricula and low levels of work-based learning.

The World Bank, in a 2019 blog post titled Realizing Education’s Promise in BiH, highlights that many students, 51% in secondary education, are dissatisfied with the relevance of their schooling, while over 25% feel their education does not align with labor market requirements, contributing to youth unemployment of nearly 47%.

The European Commission's Western Balkans Progress Report 2023 criticizes the country’s weak educational quality and persistent skills mismatches, noting that curricula do not reflect actual labor market demands, especially for entrepreneurship and key competencies, further hampering youth employment prospects.

According to the Joint Socio-Economic Reform 2019-2022, the skills needed to support the growing economy in the future are currently not being created, and not enough attention is paid to entrepreneurship and innovation in the education system. As a result, according to the latest Global Innovation Index, BiH ranks only 77th out of 126 countries. 

Incentives mainly come from non-formal education, international organizations, NGOs, private sector actors, and donor-funded projects as provided in previous sections.

At a major conference in May 2025, FBiH authorities discussed reforms to the social protection system, including expanded child allowance. While not exclusively youth-focused, these reforms may aid young families and support youth welfare.

Also, ongoing discussions on harmonizing maternity leave and allowance benefits may impact young parents — a key youth demographic.

BiH is developing a Public Administration Reform Plan (2023–2027) under the EU Stabilisation and Association framework. Though not youth-specific, improved government efficiency may enhance the delivery of services such as traineeships and youth employment measures.

The new FBiH Youth Strategy (2025–2034) that has been currently developed explicitly addresses “work, employment and youth entrepreneurship” as one of its seven priority areas, meaning traineeships and employment measures are recognized as key aspects of youth policy. However, while the strategic vision clearly identifies employment and entrepreneurship as focal points, the Strategy’s does not specify concrete programs or incentives for traineeships or structured employment measures like apprenticeships, internships, or subsidies.

The Council of Ministers of BiH, at its 73rd session held on March 17, 2025, adopted the BiH Economic Reform Programme 2025–2027. The BiH Economic Reform Programme represents a strategic document for the coordination and planning of economic policies, the management of reforms crucial for improving competitiveness, fostering opportunities for new jobs and social inclusion, as well as for meeting the economic criteria in BiH’s EU pre-accession process.

The Programme was prepared in line with the European Commission’s Guidelines and is one of the key documents in the economic dialogue with the European Union (EU) in the process of accession and the achievement of a functional market economy.

The BiH Economic Reform Programme 2025–2027, in one of its chapters, contains structural reforms focused on competitiveness, sustainability and resilience, as well as human capital and social policies. At the same time, it provides projections of BiH’s average economic growth rate for the period 2025–2027 at around 3% annually, with growth based on domestic demand through increased private consumption and investments.

Ongoing debates

On April 3, 2024, the FBiH Ministry of Culture and Sports launched a public consultation on the draft Youth Strategy 2024–2027. This included a Strategic Platform document and a feedback form, inviting public input until May 3, 2024. It was announced through the Ministry’s platform.

From May 28 to 29, 2024, the Working Group to draft the FBiH Youth Strategy held a two-day “Dialogue with Youth and Government” conference in Sarajevo, jointly organised with the FBiH Ministry of Culture and Sports, Institute for Youth Development KULT, and the FBiH Youth Council. Over 150 young people participated to voice their views and contribute directly to shaping the strategy. 

The debate on reforms in employment and entrepreneurship has been mostly dealt with by international organizations, domestic NGOs and youth councils at all levels.