3. Employment & Entrepreneurship
In Montenegro, an individual may enter into an employment relationship upon reaching the age of 15. The Labor Law stipulates additional conditions for the employment of minors, i.e., persons under the age of 18. Such employment is permitted only with the prior written consent of a parent, adoptive parent, or legal guardian, provided that the work does not endanger the minor’s health, moral development, or education, and is not prohibited by law. The strategic priorities and objectives of employment policy, as well as active employment policy, are defined by the National Employment Strategy 2021–2025, whose adoption is mandated by Article 35 of the Law on Employment Mediation and Rights During Unemployment.The commitment of the Government of Montenegro to solve the situation of insufficient youth employment is recognized in the National Employment Strategy 2021-2025. The National Employment Strategy 2021–2025 was developed in accordance with the obligations of the Ministry of Economic Development, as outlined in the Work Programme of the Government of Montenegro. It represents a continuation of previous strategic documents in the field of employment policy (2012–2015 and 2016–2020), making it the third strategy of its kind. This document provides a systematic and structured approach to the challenges of the Montenegrin labour market, building upon the experience and results of earlier strategies.
The primary aim of the Strategy was to establish a clear and sustainable framework for employment development, with a focus on improving the quality of the workforce, increasing overall employment, and promoting decent work. It was developed through a comprehensive process that included labour market analysis, identification of key challenges, and the design of targeted measures. These were carefully selected and aligned through an appropriate mix of public policy instruments and support programmes. The full document is available at the following link: National Employment Strategy 2021–2025.
The Strategy identifies specific priorities and objectives that reflect the complexity of Montenegro’s socio-economic environment at the time, with particular emphasis on strengthening institutional capacity, improving workforce skills, and enhancing the link between education and labour market needs. One of the central contextual factors during its development was the COVID-19 pandemic, which marked 2020 as the final year of implementation of the previous strategy. The crisis exposed the vulnerabilities of the existing economic model, especially in terms of employment and human resource development. It became evident that the country’s economic structure lacked sufficient diversification and that its human capital was underutilised and inadequately equipped with modern knowledge and competencies.
The Strategy responded to these systemic weaknesses by offering practical tools for improving the effectiveness of employment policies and fostering better use of human resources as a foundation for socio-economic recovery and increased resilience.
In Montenegro, the fight against youth unemployment and the promotion of youth employment are recognized as a priority. Youth employment is high on the state's political agenda. The Employment Action Plan for 2025 outlines targeted activities and specific indicators related to youth, enabling effective monitoring of the plan’s impact on young people.
The Employment Action Plan is the main instrument of active employment policy, defining the measures and activities aimed at achieving the goals set by the National Employment Strategy for a one-year period (Article 37).
The Action Plan is adopted by the Government, upon the proposal of the Ministry of Economic Development.
Based on the strategic goal of the National Employment Strategy 2021–2025, which focuses on stable and sustainable employment growth grounded in equal access to the labour market, decent work, further development of knowledge and skills, and greater social inclusion, four operational objectives have been defined. These objectives are aligned with the European Commission’s employment policy guidelines:
- Operational Objective 1: Achieving employment growth and investment in quality and secure jobs through the improvement of the business environment;
- Operational Objective 2: Creating knowledge and competencies for the labour market in the digital age;
- Operational Objective 3: Improving the position of unemployed persons in the labour market through efficient labour market services, active labour market measures, strengthening social inclusion, and reducing poverty;
- Operational Objective 4: Ensuring the efficient functioning of the labour market.
The activities proposed in the Employment Action Plan for 2025 aim to follow the European Commission’s guidelines for the implementation of employment policy and are designed to improve the situation in the labour market, specifically by:
- Implementing activities that significantly increase labour demand, particularly regarding job creation, labour taxation, and wage-setting mechanisms;
- Enhancing labour supply and qualifications by addressing structural weaknesses in the education and training system, especially in view of youth unemployment and long-term unemployment;
- Improving the functioning of the labour market, with a particular focus on reducing labour market segmentation, strengthening active labour market measures and labour mobility, as well as reducing poverty and promoting equal opportunities for all.
In Montenegro, key institutions responsible for fostering youth employment and entrepreneurship include:· Ministry of Labour, Employment and Social Dialogue - https://www.gov.me/mrzs
- Ministry of Social Welfare, Family and Demography - https://www.gov.me/mssd
- Ministry of Finance - https://www.gov.me/mif
- Ministry of Education, Science and Innovation - https://www.gov.me/mps
- Ministry of Economic Development - https://www.gov.me/mek
- Ministry of Human and Minority Rights - https://www.gov.me/mmp
· Institute for Employment of Montenegro - https://www.zzzcg.me/ · Social service of Montenegro - https://www.csrcg.me/index.php/podgorica/kontakt
- Social Council - https://www.socsav.me
- Centre for Vocational Education - https://www.gov.me/cso
· Development Bank of Montenegro - https://www.rb.me/clanak/opste-informacije-o-osnivanju-rbcg-ad
- Chamber of Commerce of Montenegro - https://komora.me/
- Institute for Education of Montenegro - https://www.gov.me/zzs
- Innovation Fund of Montenegro - https://fondzainovacije.me