3.6 Integration of young people in the labour market
Address:
Ministry of Civil Affairs of Bosnia and Herzegovina, Department of Education, Mobility and Youth Unit
Trg BiH 3, 71 000 Sarajevo, Bosnia and Herzegovina
Tel: +387 33 492 623, +387 33 492 606, +387 33 492 519
E-mail: kemal.salic@mcp.gov.ba
Website: www.mcp.gov.ba
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 Bosnia and Herzegovina, employment falls under the responsibility of the Department of Labor, Employment, Social Welfare and Pensions within the Bosnia and Herzegovina Ministry of Civil Affairs. The Bosnia and Herzegovina Labor 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 Brčko District participates in their implementation, and coordinates activities in domestic and international employment projects. The Commission for Coordination of Youth Issues in Bosnia and Herzegovina, together with the Bosnia and Herzegovina Ministry of Civil Affairs, performs a coordinating role in youth issues, in this case in the field of employment. The Bosnia and Herzegovina 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 Bosnia and Herzegovina Labor and Employment Agency, together with the Federation of Bosnia and Herzegovina Employment Institute, Republika Srpska Employment Institute, Brčko District Employment Institute, and cantonal employment services, jointly coordinate activities related to the employment of Bosnia and Herzegovina 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 labor market policies.
Bosnia and Herzegovina 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 labor market for NEETs (Not in Employment, Education, or Training), first-time job seekers, and low-skilled youth.
The Bosnia and Herzegovina Ministry of Civil Affairs is coordinating the development of the Youth Guarantee Implementation Plan in Bosnia and Herzegovina, while the International Labor Organization (ILO) is providing technical support to labor 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 Bosnia and Herzegovina requires the development of entity-level action plans and an action plan for Brčko District, separate working groups have been appointed for the Federation of Bosnia and Herzegovina, Republika Srpska, and Brčko District. 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 Republika Srpska, while they are still under review in the Federation of Bosnia and Herzegovina and Brčko District.
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 Bosnia and Herzegovina, which will consolidate the implementation plans of Federation of Bosnia and Herzegovina, Republika Srpska, and Brčko District, and will be approved by the European Commission.
So far, the Republika Srpska Government has adopted its Action Plan, and the Action Plan for Brčko District has also been developed and confirmed. The Action Plan for Federation of Bosnia and Herzegovina is in its final stage of development and is expected to be finalised and approved by the Federation of Bosnia and Herzegovina Government in 2025. At its session held on 16 December, the Federation of Bosnia and Herzegovina Government adopted the Information submitted by the Federal Ministry of Labor 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 Bosnia and Herzegovina Youth Guarantee Action Plan.
The Federation of Bosnia and Herzegovina Government adopted the Federation of Bosnia and Herzegovina Employment Strategy (2023–2030) on 21 September 2023. The Federation of Bosnia and Herzegovina 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 labor 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 Federation of Bosnia and Herzegovina defined in the Federation of Bosnia and Herzegovina Youth Law, the Federation of Bosnia and Herzegovina 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 Republika Srpska Youth Policy 2023-2027 defined key strategic projects focused on youth employment as follows:
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Establishment of a youth resource canter.
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Support program for young entrepreneurs "Startup Srpska".
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Establishment of the first science and technology park in Republika Srpska.
In the field of youth employment in Republika Srpska, an important role is played by the Republika Srpska Ministry of Education and Culture together with the Republika Srpska Employment Bureau. The ministry, in co-operation with the Republika Srpska Youth Council and trade unions, aims to stimulate employers to hire students for traineeships.
The Employment Institute in Brčko District deals, among other things, with youth employment issues. According to the Brčko District Youth Law, competent bodies, institutions and other legal entities, in cooperation with the Brčko District 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 Bosnia and Herzegovina, nor Federation of Bosnia and Herzegovina, Republika Srpska and Brčko District implement specific flexicurity measures focusing on young people.
In Bosnia and Herzegovina, 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 Federation of Bosnia and Herzegovina and Republika Srpska, aim to protect income levels. While their main impact is broader, they give young workers a safety net upon entering the formal sector.
In Federation of Bosnia and Herzegovina, 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 Republika Srpska, 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 Brčko District legislation mirrors that of the Federation of Bosnia and Herzegovina—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 Bosnia and Herzegovina. 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.
Also, the 2025 OECD report offers key insights into strengthening the links between vocational education and training (VET) and the private sector in Bosnia and Herzegovina.
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 Bosnia and Herzegovina. 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 Bosnia and Herzegovina, 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:
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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.
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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.
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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).
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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:
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79% have access to hybrid work,
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62% can work fully remotely,
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60% benefit from flexible start/end times.
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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 Brčko District Government to support the implementation of active labor market programs.
In July 6, 2023 the Republika Srpska Government adopted the Decision on the Adoption of the Action Plan for the Implementation of the Republika Srpska 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 Bosnia and Herzegovina 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 Republika Srpska. 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 Republika Srpska Investment and Development Bank (IRBR). The IRBRS co-finances youth employment through loans or grants to start agricultural businesses. Within its activities, the Republika Srpska Institute for Adult Education stimulates the enrolment of unqualified persons for additional training and further education according to the needs of the labor market.
The Helvetas organization in Bosnia and Herzegovina has implemented the "Moja budućnost" (My Future) project that aims to tackle two major challenges in Bosnia and Herzegovina: youth unemployment and the underdevelopment of rural areas, which contribute to high youth emigration and internal migration toward urban centres. 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 Bosnia and Herzegovina, 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 Bosnia and Herzegovina–Montenegro cross-border cooperation programme, the “Your Job” initiative (approx. EUR 360,000 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.
Employment Institute of Brčko District continued to deliver several active employment and self-employment support measures in 2024 and 2025. Alongside ongoing funding from its own annual budget, the Institute and other local partners have expanded support for jobseekers, youth and marginalised groups through new initiatives and international collaboration:
The Employment Institute of Brčko District published a public call for the Self-Employment Programme for 2025, aimed at supporting unemployed persons to start their own businesses with financial support. This is part of the continuing effort to expand self-employment opportunities in the district.
Under the SEI – Socio-Economic Inclusion in Brčko District of Bosnia and Herzegovina project, supported by the Government of the Czech Republic and implemented with partners including CARE International Balkans and the Brčko District Development Guarantee Fund, targeted training sessions and business plan workshops were held in May 2025 to prepare beneficiaries (including youth, women, persons with disabilities and Roma) for self-employment and employment support. In June 2025, grant agreements were signed with selected beneficiaries under the SEI project to support employment creation and business start-ups. This included support for marginalised groups and aimed to generate new jobs in the Brčko District. A public call for Prilika za prvi posao (First Job Opportunity) was announced in April 2025, offering structured internships for young people and persons without prior work experience, helping them gain on-the-job learning and increase employability.
The Brčko District Government allocated approximately half a million BAM for a programme to employ interns in the real sector for 2025, expanding opportunities for work experience and youth labor market entry. These programmes show that the Employment Institute and the District Government continue to support active labor market measures, self-employment incentives, and targeted training activities that respond to local labor market needs.
Strategic framework update (2024–2027):
In addition to programme implementation, the Draft Employment Strategy 2024–2027 for Brčko District (developed in 2023) provides a current strategic policy framework. Its objectives include increasing employment through activation and self-employment support, better aligning labor supply and demand through skills development and implementing institutional reforms to improve labor market services including career guidance and counselling.
Quality assurance
1. Active Monitoring Efforts:
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The Institute for Youth Development KULT reported in 2012 that the Federation of Bosnia and Herzegovina 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. The project was supported by GOPA mbH and Swiss Embassy in Bosnia and Herzegovina and managed by public employment services in Bosnia and Herzegovina.
2. Capacity Building and Monitoring and Evaluation Training:
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Local youth officers from Federation of Bosnia and Herzegovina and Republika Srpska 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.
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Under RCC/ESAP2 (February 2022), public employment services staff across Federation of Bosnia and Herzegovina, Republika Srpska, and Brčko District attended seminars on Youth Guarantee and active labor market policies, which included discussions on enhancing monitoring, evaluation, coherence, and effectiveness of employment measures.
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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:
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The Youth Guarantee Implementation Plan for Bosnia and Herzegovina 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, Bosnia and Herzegovina lacks a structured, institutional-level monitoring and quality assurance system covering all youth employment policies or schemes at the national level.