Youth Employment measures

At the state level, there is no legislation that explicitly addresses youth issues and thus youth employment.

At the state level in BiH, employment falls under the responsibility of the Department of Labour, Employment, Social Welfare and Pensions within the BiH Ministry of Civil Affairs. The BiH Labour and Employment Agency also plays an important role in formulating policies at the state level in the field of youth employment. The Agency, among other things, monitors the application of international standards and policies in the field of employment and in cooperation with the Entity Employment Institutes and the Employment Institute of BD participates in their implementation, and coordinates activities in domestic and international employment projects. The Commission for Coordination of Youth Issues in BiH, together with the BiH Ministry of Civil Affairs, performs a coordinating role in youth issues, in this case in the field of employment. The BiH Directorate for Economic Planning also has a significant role in the analysis, formation, coordination and monitoring of measures against unemployment, development policy and social inclusion policy of all social categories. 

The BiH Labour and Employment Agency, together with the FBiH Employment Institute, RS Employment Institute, BD Employment Institute, and cantonal employment services, jointly coordinate activities related to the employment of BiH citizens abroad and the organization of vocational guidance and training programs in cooperation with employers, trade unions, educational institutions, and other partners to promote youth employment and active labour market policies.

BiH has several high-level measures at the state and entity levels to support young people (15–30 years) transitioning to employment. These actions aim to improve access and retention in the labour market for NEETs (Not in Employment, Education, or Training), first-time job seekers, and low-skilled youth.

The BiH Ministry of Civil Affairs is coordinating the development of the Youth Guarantee Implementation Plan in BiH, while the International Labour Organization (ILO) is providing technical support to labour market institutions across different levels of government in the preparation and pilot activities for the implementation of the Youth Guarantee. The support provided by the ILO is co-financed by the European Commission, Directorate-General for Employment, Social Affairs and Inclusion, and the Directorate-General for Neighbourhood and Enlargement Negotiations.

With the aim of finalising the Youth Guarantee Implementation Plan, a national expert-level working group has been established. Since the Plan for BiH requires the development of entity-level action plans and an action plan for BD BiH, separate working groups have been appointed for FBiH, RS, and BD BiH. Functional analyses of the public employment service systems have also been conducted. The conclusions of these analyses have already been integrated into the Action Plan for RS, while they are still under review in FBiH and BD BiH.

To achieve full participation in the Programme and to access the IPA 2024 funds allocated to the Youth Guarantee (EUR 3 million), it is necessary to develop and adopt the Youth Guarantee Implementation Plan for BiH, which will consolidate the implementation plans of FBiH, RS, and BD BiH, and will be approved by the European Commission.

So far, the RS Government has adopted its Action Plan, and the Action Plan for BD BiH has also been developed and confirmed. The Action Plan for FBiH is in its final stage of development and is expected to be finalised and approved by the FBiH Government in 2025. At its session held on 16 December, the FBiH Government adopted the Information submitted by the Federal Ministry of Labour and Social Policy regarding the activities carried out so far in the implementation of the Youth Guarantee model. The Information also includes a draft Action Plan for the implementation of this model, which will become an integral part of the BiH Youth Guarantee Action Plan.

The FBiH Government adopted the FBiH Employment Strategy (2023–2030) on 21 September 2023. The FBiH Employment Strategy is a long-term strategic document that sets out key reforms and measures to increase employability, improve the alignment between education and the labour market, encourage the private sector to create jobs, and enhance the inclusion of vulnerable groups.

It also recognizes and integrates the Youth Guarantee model and the care economy concept, aiming to shorten the waiting time for the first employment to a maximum of four months, ensuring young people have access to employment, training, internships, or apprenticeships.

When it comes to measures and programs of youth employment in FBiH defined in the FBiH Youth Law, the FBiH Government undertakes to define and establish federal grants and transfers through the competent ministries to support youth employment and young entrepreneurs, and especially young people without work experience.

The RS Youth Policy 2023-2027 defined key strategic projects focused on youth employment as follows:

• Establishment of a youth resource center.

• Support program for young entrepreneurs "Startup Srpska".

• Establishment of the first science and technology park in RS.

In the field of youth employment in RS, an important role is played by the RS Ministry of Education and Culture together with the RS Employment Bureau. The ministry, in co-operation with the RS Youth Council and trade unions, aims to stimulate employers to hire students for traineeships.

The Employment Institute in BD deals, among other things, with youth employment issues. According to the BD Youth Law, competent bodies, institutions and other legal entities, in cooperation with the BD Youth Council, develop and implement programs in the field of employment.

Flexicurity measures focusing on young people

There are no state level flexicurity measures in BiH, nor FBiH, RS and BD BiH implement specific flexicurity measures focusing on young people.

In BiH, flexicurity-related youth employment policies combine increased flexibility, through temporary contracts and varied work-based programs, with security supports such as wage subsidies, training, career guidance, and minimum wage protections. 

Minimum wage policies, set at ~50–58% of average pay in FBiH and RS, aim to protect income levels. While their main impact is broader, they give young workers a safety net upon entering the formal sector. 

In FBiH, fixed-term contracts are permitted for up to three years. If renewed beyond this period or extended through multiple successive contracts, they automatically convert into permanent contracts. In RS,fixed-term contracts are generally allowed for up to two years, with exceptions for justified cases (e.g., replacing an absent employee or completing a specific project). The BD BiH legislation mirrors that of the FBiH—fixed-term contracts of up to three years apply. 

These regulations allow flexibility for project-based or temporary hiring, but they also include built-in security for employees, as exceeding the limit mandates a switch to permanent employment. There’s no direct mention of flexicurity measures tailored to youth, such as first-job schemes, flexible work-study options, or bridging income support.

There are a couple of international programs that contribute to flexicurity measures for young people in BiH. On-the-job training & career counselling are integrated into both EBRD and World Bank-supported initiatives. These measures offer tailored support during transitions, helping youth enter, adapt, and stay in formal employment even after contract renewals end. 

The EBRD’s Private Sector Youth Initiative (2019) connects students and recent graduates with private-sector internships and mentoring, enhancing flexibility while improving skills and enabling smoother transitions between education and work. 

Under the World Bank’s Employment Support Project (2017), wage subsidies were combined with on-the-job training to incentivize private firms to hire young workers. This blends flexibility for employers with income security and skills development for youth.

Reconciliation of private and working life for young people

Reconciliation of private and working life for young people is not specifically addressed in any regulations in BiH. Family-friendly and work–life balance supports exist primarily through employer initiative or advocacy proposals, with no comprehensive legal framework yet implemented at entity or state level.

Flexible Working Arrangements

Beyond fully remote work, various flexible work arrangements are becoming more common in BiH, driven by employee demand and employer recognition of their benefits. These arrangements aim to provide employees with greater autonomy over their work schedule and location, while still meeting business needs.

Common flexible options include:

• Hybrid Work: Employees split their time between working remotely (e.g., from home) and working from the employer's office or another designated location. The specific split (e.g., 2 days in office, 3 days remote) is typically agreed upon.

• Flexible Working Hours (Flexitime): Employees have some degree of flexibility in determining their start and end times, provided they work the required number of hours per day/week and are available during core business hours.

• Compressed Workweeks: Employees work a full-time schedule in fewer than five days (e.g., working longer hours four days a week to have a three-day weekend).

• Job Sharing: Two or more part-time employees share the responsibilities of one full-time position.

The implementation of these arrangements often depends on the specific industry, company culture, and the nature of the job role. Clear policies and communication are essential for successful implementation.

Remote and hybrid work are increasingly offered by private employers, especially in IT and service sectors. A 2024 survey of IT employees found:

• 79% have access to hybrid work,

  • 62% can work fully remotely,

  • 60% benefit from flexible start/end times.

These arrangements support young employees seeking to better balance work, learning, or family responsibilities.

Funding of existing schemes / initiatives

Sources of financing for employment activities are primarily approved budgets of institutions that implement these activities, with additional funds provided through projects financed from foreign loans and donations and funds from the budgets of the entity governments and the BD Government to support the implementation of active labour market programs.

In July 6, 2023 the RS Government adopted the Decision on the Adoption of the Action Plan for the Implementation of the RS Employment Strategy 2023 - 2025. The Action Plan provides for the implementation of the employment measures in 2023 in the total amount of approximately BAM 49,000,000.00, of which a total of BAM 15,063,000.00 has been planned for active employment measures through the implementation of the Employment Program.

Of the amount mentioned, BAM 10,000,000.00 has been planned for the implementation of the Employment and Self-Employment Program for the children of killed and demobilized soldiers, war veterans, and war invalids called "Together to a Job".

BAM 5,000,000.00 has been planned for the Program to support the economy through the return of paid taxes and contributions for new employment, and an amount of BAM 63,000.00 has been planned for the implementation of the Program to support the employment and self-employment of Roma, which is financed from the grant of the BiH Ministry for Human Rights and Refugees.

The employment of 2,689 persons has been planned with the funds in the amount of BAM 15,000,000.00 provided in the Budget 2023. Out of this number, 1,151 persons will be employed through the "Together to a Job" program, and 1,151 persons through the Program to support the economy through the return of paid taxes and contributions for new employment, while the Employment and Self-Employment Program for Roma would cover 11 individuals.

The Program to support the employment of young people with higher and secondary education as interns was implemented in 2022 in RS. The value of the Program was 6,035,816.00 KM. The expected effects of the Program were reflected in the training of 888 young individuals and professionals with higher and secondary vocational education for independent work in their fields. The necessary funds for the year 2021 amounted to BAM 4,818,648.12. 

A very important institutional actor in the field of youth employment is the RS Investment and Development Bank (IRBRS). The IRBRS co-finances youth employment through loans or grants to start agricultural businesses. Within its activities, the RS Institute for Adult Education stimulates the enrolment of unqualified persons for additional training and further education according to the needs of the labour market.

The Helvetas organization in BiH has implemented the "Moja budućnost" (My Future) project that aims to tackle two major challenges in BiH: youth unemployment and the underdevelopment of rural areas, which contribute to high youth emigration and internal migration toward urban centers. The project focuses on strengthening economic ties between rural and urban areas to create sustainable employment and educational opportunities for young people. The Opportunity Group Methodology is applied through the project for the first time in BiH, actively engaging youth in peer groups to build technical, entrepreneurial, and life skills, making them agents of change rather than passive beneficiaries. The project, initially implemented in the Herzegovina region, seeks to expand its impact nationwide. Key objectives include creating 220 job opportunities, providing training and coaching to 1,440 young people, and improving the quality of employment-related services at the local level.

World Bank has implemented the Employment Support Project (2017–) that is co-financed by a EUR 50 million IBRD loan. This initiative encourages private-sector employment of young, low-skilled, and long-term unemployed individuals through wage subsidies, on-the-job training, self-employment grants, and improved monitoring systems. To date, close to 55,000 jobseekers have been placed, with 52% maintaining employment after 12 months.

Within the IPA II BiH–Montenegro cross-border cooperation programme, the “Your Job” initiative (approx. EUR360,000 grant) offers career guidance, internships, entrepreneurship support, and job fairs—such as the 2024 event in Mostar, which involved 350+ young people and featured workshops on CVs, entrepreneurial plans, and competency passports.

The Swiss SDC Youth Employment Project (2016–2022) supported Public Employment Services (PES) to deliver youth-friendly services, including career centres and “job clubs”. By early 2017, 6,240 youth received support and 2,665 secured employments.

Regarding the BD BiH, the Employment Institute implemented several programs in 2022, including: the Program for Employment of Hard-to-Employ Individuals, the Program for Aligning the Labor Market and Education System - Career Guidance, which are financed from its own funds. The Roma Employment Program have been funded by the BiH Ministry for Human Rights and Refugees, while the Employment Program and the Self-Employment Program in Agriculture in BD have been financed by the BD Government, i.e. the Department for Economic Development, Sports, and Culture, and the Department for Agriculture of BD. In addition to these, the Self-Employment Program and the Self-Employment Program in Agriculture in BD for 2021 were also implemented in 2022.

 Quality assurance

1. Active Monitoring Efforts:

• The Institute for Youth Development KULT reported in 2012 that the FBiH Audit Office conducted an efficiency audit of the Youth Employment Programme (YEP),  assessing planning, implementation, monitoring, and evaluation, including effectiveness for hard-to-employ youth youth. The project was supported by GOPA mbH and Swiss Embassy in BiH and managed by public employment services in BiH.

2. Capacity Building and Monitoring and Evaluation Training:

• Local youth officers from FBiH and RS participated in targeted monitoring and evaluation training sessions (e.g., June 2015 USAID-funded), learning systematic project monitoring, evaluation methods, performance tracking, and gender-sensitive indicator design.

• Under  RCC/ESAP2 (February 2022), public employment services staff across FBiH, RS, and BD BiH attended seminars on Youth Guarantee and active labor market policies, which included discussions on enhancing monitoring, evaluation, coherence, and effectiveness of employment measures.

• Institute for Youth Development KULT conducts structured training programs that equip youth officers with practical tools for tracking project performance, evaluating outcomes, and improving the quality of youth programs. These trainings focus on preparing public calls for youth projects, managing awarded grants, and applying systematic monitoring and evaluation methods to ensure project effectiveness.

3. Institutional Tools and Workshops Under Youth Guarantee:

• The Youth Guarantee Implementation Plan for BiH includes functional assessments of PES systems and workshops on monitoring and evaluation, although these processes are still at early stages.

The initiatives like the Youth Fair include concrete performance metrics, such as number of participants, training hours, and successful business plans (14 business plans received further support), indicating emerging evaluation practices. However, BiH lacks a structured, institutional-level monitoring and quality assurance system covering all youth employment policies or schemes at the national level.