1. General situation on the labor market of Montenegro

2. The main concept

General situation on the labor market of Montenegro

According to the data available to the relevant ministry, the situation on the labor market in Montenegro in the period 2016-2020 was characterized by positive trends. Thus, according to data from labor force surveys, the activity rate of 15-64 increased from 63.4% in 2016 to 66.2% in 2019, but due to the health crisis of COVID-19, it would decrease in 2020 to 61.5%.The employment rate of 15-64 year olds increased from 46.8% in 2016 to 49.7%, and in 2020 it will be 44.4%.The 15-64 unemployment rate decreased from 18% in 2016 to 15.4% in 2019, and due to the COVID-19 health crisis, it increased to 18.3% in 2020. Table 1: Labor force survey 15-64 years:

 When it comes to data for young people aged 15-29, the data indicate that the activity rate increased from 48.5% in 2018 to 51.1% in 2019, and after the health crisis, it reached a level of 45.1%.The employment rate of young people aged 15-29 increased from 35.9% in 2018 to 39.7% in 2019, only to decrease to 31.3% due to the COVID-19 crisis.The unemployment rate of young people 15-29 decreased from 26.0% in 2018 to 22.3% in 2019, only to increase to 30.7% due to the COVID-19 crisis. In the period from 2015-2018, the NEET rate decreased from 23.4% to 21.0%, due to the decrease in the share of unemployment among young people in the NEET number (from 11.1% to 8.6%). The NEET rate document recorded in 2022 is a consequence of the increase in the share of young people who were inactive in the NEET population (from 8.8% in 2018 to 12.9% in 2020), while the share of unemployed youth increased by only 1.5%. Table 2: Survey on the labor force of young people aged 15-29: 

 Main challenges 

Among those who were unemployed, 83.5% had been looking for a job for more than six months at the time of the survey. When asked to assess the main obstacle in finding a job, respondents indicated the limited number of jobs available 29.8%, followed by (their perception of) discrimination 18.9%; 13.9% considered their education/qualification unsuitable. For 12.7% of respondents, the main obstacle was the lack of work experience.

The main concept

The main goal of the employment policy in Montenegro is to achieve employment growth. The strategic framework for defining the employment policy is represented by the National Employment Strategy 2021-2025, which is determined through a comprehensive approach, careful selection of priorities and goals for at least 5 years.The Action Plan for Employment for 2022 foresees activities and indicators specifically aimed at young people.      The "Youth Guarantee" has been implemented in the member states of the European Union since 2013 and represents an inclusive, activation scheme that enables young people to transition from education to the world of work. The Youth Guarantee represents the obligation of the Government of Montenegro to ensure that all young people receive a quality offer of employment, continuing education or professional training.The Government of Montenegro and the Ministry of Labor and Social Welfare, which coordinates this process, will undertake all necessary activities in the direction of its implementation immediately after the adoption of the Plan.The first implementation plan of the Youth Guarantee in Montenegro covers the period 2023-2026, with the piloting of the YG service provision system planned for 2025 and 2026.The Ministry of Labor and Social Welfare (MRSS) - as the coordinator of the Youth Guarantee, will oversee the entire implementation.The Employment Office of Montenegro (ZZCG) - during implementation, will be responsible for the system of providing services, as well as the framework for monitoring and evaluation of the "Youth Guarantee".Strategy for the development of micro, small and medium enterprises in Montenegro 2018-2022 It aimed to facilitate the creation of new and existing small and medium-sized enterprises by creating a more favorable business environment, reforming the regulatory framework and reducing administrative barriers. In addition, one of the priorities was creating easier access to finance, while specific measures were aimed at increasing the competitiveness of SMEs and promoting entrepreneurship and start-up projects. 

National strategy for sustainable development until 2030

The National Strategy for Sustainable Development until 2030 (NSOR) represents the long-term development strategy of Montenegro, which defines solutions for the sustainable management of four groups of national resources: human, social, natural and economic, as a priority for the overall sustainable development of Montenegrin society. Looking objectively and integrally at the sustainability of national development, Montenegro is among the first countries in the world to fully accept and integrate into the national system the requirements of the United Nations established by the United Nations Agenda for Sustainable Development until 2030. 

European Youth Card (EYCA) Development Program 2022–2024

Represents a strategic document intended for the further development and implementation of policies aimed at improving the overall social and social position of young people in Montenegro. It will enable the long-term planning and creation of various socially beneficial initiatives, opportunities and opportunities for young people in our country, with the information that more than 38,000 young people have had the opportunity to receive an EYCA card so far. 

Strategy for the development of female entrepreneurship in Montenegro 2021-2024

A systemic approach in the development and planned implementation of the new Strategy for the Development of Women's Entrepreneurship is based on the Government's work program and the priority "Healthy finances and economic development" is defined - which, among other things, envisages the improvement of the business environment for small and medium-sized enterprises and female entrepreneurship, and this priority will be achieved with the goal of "Improving the conditions for the economic empowerment of women and strengthening the competitiveness of female entrepreneurship". 

Industrial policy of Montenegro until 2019-2023

Industrial policy of Montenegro 2019-2023. (IP 2023) is a strategic document for the development of the competitiveness of the Montenegrin economy with a focus on the industrial sector. IP 2023 recognizes that the real bearers of change and development are economic companies that, with adequate support, should maximize their potential for growth, development and competitiveness. 

Digital transformation strategy of Montenegro 2022-2026

The digital transformation strategy of Montenegro is a key component of fulfilling digital ambitions, as well as a tool with the help of which we will improve public services and user experience, strengthen the digital skills of the entire society, reduce the digital gap, but also enable digital transformation and manage it effectively throughout the country. 

Strategy for lifelong entrepreneurial learning 2020-2024

Accepting a broader concept in the formulation and implementation of entrepreneurial learning, key requirements are being created in Montenegro on how to manage and develop schools and faculties, how to modernize the teaching profession and the learning process, promoting entrepreneurship within every component of the learning system where it is objectively possible (from primary education to university, as well as through the adult education system), with a clear need to build on the outcomes of entrepreneurial learning on previous learning. Entrepreneurship, as one of the eight key competencies, becomes a key incentive for the release of creative thinking, problem solving, identifying opportunities and assessing risks that help create and improve the entrepreneurial character of individuals, but also the business and social community as a whole. 

Program for improving the competitiveness of the economy for 2021

The development of productive and export-oriented micro, small and medium-sized enterprises is one of the key factors in the further growth and development of the Montenegrin economy. Bearing in mind the trends and the state of the economy of Montenegro, it is clear that the increase of investments and the competitiveness of domestic production are imposed as one of the most important tasks of economic policy in the future. In the complex competitive relations that rule the world economic scene, small businesses, such as the economy of Montenegro, must build their way to international success on the improvement of operations and competitiveness of their economic entities.