Labour market situation in the country

According to the latest data published by MONSTAT, the labour market in Montenegro in 2025 continues to show signs of recovery and positive trends, following the disruptions caused by the COVID-19 pandemic in previous years.

As reported in the Labour Force Survey for the first quarter of 2025, the activity rate for the population aged 15–89 was 59.8%, while the employment rate stood at 53.1%. The unemployment rate for the same period was 11.2%, indicating an improvement compared to previous years. 

Out of total number of labour force (active population), there are 170.1 thousand or 55.8% of men, and 134.7 thousand or 44.2% are women, while 121.8 thousand or 59.4% of persons outside the labour force are women, and 83.2 thousand or 40.6% are men. Out of total number of employed persons, there are 147.0 thousand or 54.3% of men, and 123.6 thousand or 45.7% are women. When unemployed persons observed, there are 23.0 thousand or 67.3% of men, and 11.2 thousand or 32.7% are women.

The highest number of labour force (active population) refers to the age group 25 to 49 years (195.9 thousand). An age group with the highest number of persons outside the labour force is the 65 to 89 years (86.3 thousand of inactive persons). The highest number of employed persons refers to the age group 25 to 49 years (177.3 thousand). Also, the highest number of unemployed persons is persons of the same age group (18.6 thousand of unemThe educational structure of labour force (active population) shows that 57.0% persons have finished the secondary school, followed by persons who have graduated tertiary education 36.6%, and persons who finished the primary school or lower education 6.4%.

The highest share in the educational structure of persons outside the labour force has persons with completed secondary education, 53.3%, then 34.5% of persons with primary school or lower education,and remaining 12.2% have graduated tertiary education.

The educational structure of persons in employment shows that the 56.0% persons have finished secondary education, followed by persons who have graduated tertiary education 38.2%, and persons with primary school or lower education 5.8%.

The educational structure of unemployed persons shows that 65.5% persons have finished the secondary education, followed by persons who have graduated tertiary education 23.5%, and persons who finished the primary school or lower education 11.1%ployed persons).

The full report is available here:

https://www.monstat.org/uploads/files/ARS/2025/LFS%20release_2025_Q1.pdf.

In addition to quarterly figures, the Economic Reform Programme of Montenegro 2025–2027 provides insight into annual trends. According to this document, the average unemployment rate in 2024 was 11.6%, a decrease from 13.2%recorded in 2023. The employment rate for the population aged 15–64 reached 62.9%, marking an increase compared to 61.1% in the previous year. You can access the full programme here:
Economic Reform Programme 2025–2027. 

Despite positive developments in recent years, the labour market in Montenegro continues to face a range of structural challenges, many of which are identified in the National Employment Strategy 2021 - 2025. These challenges are particularly pronounced among youth, the long-term unemployed, and socially vulnerable groups.

One of the most pressing issues is the high rate of youth unemployment, which in previous years exceeded 30 percent. A significant share of unemployed young people have been out of work for more than six months, indicating a persistent problem of long-term unemployment. Additionally, Montenegro has a high proportion of young people classified as NEET - not in employment, education or training—which signals growing social and economic disengagement among youth.

There is also a noticeable mismatch between the education system and labour market needs, resulting in a shortage of relevant skills among jobseekers. A lack of digital competencies, in particular, has been highlighted as a critical barrier to workforce competitiveness in a modern economy.

Institutional capacities for delivering active labour market measures remain limited, especially in rural and less developed areas. Regional disparities in access to services, the quality of career guidance, and labour market monitoring further complicate the effective integration of jobseekers.

Another significant challenge is the social exclusion of vulnerable groups, including the Roma population, persons with disabilities, the long-term unemployed, and residents of northern Montenegro. Their inclusion in the labour market remains limited due to systemic barriers and insufficient targeted support.

As a response to these challenges, Montenegro launched a pilot Youth Guarantee programme in 2025. The programme aims to ensure that every young person under the age of 30 who registers with the employment service is offered a quality opportunity—employment, continued education, training, or internship—within four months. Implemented in cooperation with the European Union, the programme is considered a key tool in reducing youth unemployment and accelerating their integration into the labour market.

Main concept[MB1] sThe National Employment Strategy 2021–2025 -  is Montenegro’s key strategic document that outlines the country’s employment policy framework over a five-year period. It aims to increase employment, reduce unemployment, and improve the overall functioning of the labor market through a comprehensive and inclusive approach. The strategy sets out priorities, goals, and measures tailored to national economic conditions and social needs, aligning with EU standards and practices.The Strategy pays special attention to vulnerable groups, including youth, women, the long-term unemployed, and persons with disabilities. It promotes active labor market measures, quality education and training, better alignment between the education system and labor market needs, and the development of entrepreneurship and self-employment. Implementation is supported by annual action plans that define concrete activities, responsible institutions, performance indicators, and timelines.Link: https://www.gov.me/en/documents/cc228dd3-f17b-47ce-ac2d-3b230ebcf2a6The Employment Action Plan for The National Employment Strategy for 2025 -  includes dedicated activities and performance indicators specifically designed for youth, enabling precise monitoring of the plan’s impact on young people.  The Labour Law  -  regulates the rights and obligations arising from employment relationships for both employers and employees, including specific provisions for the employment of young people and minors. According to the law, an individual may enter into an employment relationship upon reaching the age of 15.However, for persons under the age of 18, the Labour Law stipulates additional conditions. Employment of minors is allowed only with the prior written consent of a parent, adoptive parent, or legal guardian. Furthermore, the work must not endanger the minor’s health, moral development, or education, and must not be prohibited by law. These regulations are designed to ensure the protection, safety, and well-being of minors in the workplace.Link: https://www.gov.me/dokumenta/cb1b0281-c091-4147-8454-e5016dbd1548The Youth Guarantee  - is an inclusive activation program that has been implemented in European Union member states since 2013. It is designed to support young people in their transition from education to the labor market by ensuring that every young person under the age of 30 receives a quality offer of employment, continued education, vocational training, or an internship within four months of registering with the employment service.In Montenegro, the Youth Guarantee reflects the commitment of the Government to actively support youth employment and reduce youth unemployment. The Ministry of Labor and Social Welfare is responsible for coordinating its implementation, while the Employment Office of Montenegro manages service delivery and monitors outcomes. The first implementation plan for the Youth Guarantee in Montenegro covers the period 2023–2026, with pilot service delivery planned for 2025 and 2026.Link: https://www.gov.me/clanak/garancija-za-mladeStrategy for the development of micro, small and medium enterprises in Montenegro 2023 – 2026 - 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. Link: https://www.gov.me/dokumenta/3e145aba-089d-40bf-8bbb-6e7a91b3e873The 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. Link: https://wapi.gov.me/download-preview/6852d215-af43-4671-b940-cbd0525896c1?version=1.0  European Youth Card (EYCA) Development Program 2022–2024European 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. Link: https://omladinskakartica.me/vijesti/usvojen-program-razvoja-evropske-omladinske-kartice-eyca-za-period-2022-2024-godine  Strategy for the development of female entrepreneurship in Montenegro 2025-2028 -  the new Strategy builds upon previous strategic documents and is based on an analysis of the results achieved in the previous period, as well as on the recommendations of relevant domestic and international stakeholders. The document identifies key challenges and needs of women entrepreneurs, sets strategic goals, defines support measures, and focuses on creating a stimulating business environment for the development of women's entrepreneurship, particularly in the small and medium-sized enterprise sector.Link: https://www.gov.me/clanak/usvojena-strategija-razvoja-zenskog-preduzetnistva-2025-2028-sa-akcionim-planom-za-2025-2026-godinuIndustrial policy of Montenegro until 2024-2028 (IP 2028)  - The Industrial Policy of Montenegro 2024–2028 (IP 2028) is a strategic document aimed at enhancing the competitiveness of Montenegro's economy, with a focus on the industrial sector. In line with the new EU industrial policy package, IP 2028 outlines a pathway for a dual transition toward the sustainable development of Montenegro’s industrial sector in the context of accession to the EU single market. IP 2028 recognizes that the true drivers of change and development are business enterprises, which—given adequate support—should maximize their growth, development, and competitiveness potential.Link: https://www.poslodavci.org/site/assets/files/5228/nacrt-industrijske-politike-2024-2028-godine-1_2.pdf Digital transformation strategy of Montenegro 2022-2026 - 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. Link: https://www.zzzcg.me/wp-content/uploads/2022/02/strategija-digitalne-transformacije-sa-ap-1.pdf  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.Link: https://wapi.gov.me/download-preview/59a998e8-af01-4e54-a205-fc81584163f8?version=1.0 Youth Employment - refers to the integration of young people (typically aged 15–29) into the labor market. In Montenegro, youth employment is a policy priority due to the persistently high unemployment rate among young people, particularly those classified as NEET (Not in Employment, Education or Training) Youth Unemployment - The percentage of young people actively seeking but unable to find work. In recent years in Montenegro, this rate has exceeded 30%, with long-term unemployment and the difficult school-to-work transition as key concerns.NEET (Not in Employment, Education or Training) - A term used for young people who are not employed, enrolled in formal education, or engaged in any form of training. A high NEET rate in Montenegro signals social and economic disengagement and highlights the need for targeted interventions.Youth Guarantee - An EU-inspired activation measure aiming to ensure that every young person under the age of 30 receives a quality offer of employment, continued education, training, or internship within four months of registering with the employment service. In Montenegro, the Youth Guarantee is being piloted in 2025–2026, with EU support.Youth Entrepreneurship - Refers to young people starting and managing their own businesses. In Montenegro, this is an emerging area supported through training, mentoring, startup grants, and financial incentives, aimed at fostering innovation and self-employment among youth.Start-up - A newly founded business, typically innovation-driven and with high growth potential. Montenegro supports youth start-ups through various programs, including innovation funds, entrepreneurship training, and business incubators.Active Labour Market Measures (ALMMs) - Public policy tools used by the Employment Office of Montenegro to improve the employability of jobseekers. For youth, this includes training programs, employment subsidies, internships, public work schemes, and career counseling services.Career Guidance and Counseling - Services that help young people make informed career choices, plan their professional paths, and improve their readiness for the labor market. These are provided through schools, universities, and the Employment Office.Digital Skills and Competencies - Essential for youth employability in a modern economy. A lack of digital skills among young people in Montenegro is identified as a key barrier to competitiveness, prompting efforts to improve digital literacy and training.  

Employment Growth – in the Montenegrin context, employment growth refers to the stable and sustainable increase in the number of employed persons. This growth is not solely focused on quantity but also on quality—ensuring that employment is accessible, inclusive, and contributes to social cohesion. It is a strategic goal that supports economic resilience and social stability.

Decent Work - this concept, central to the strategy, involves work that guarantees fair wages, safe working conditions, social protection, and respect for workers’ rights. In Montenegro, decent work also implies equal access to employment opportunities and the inclusion of vulnerable groups in the labour market.

Active Labour Market Measures (ALMMs) – are a set of targeted programs and services implemented by the Employment Agency of Montenegro. They are designed to support unemployed individuals—particularly those facing long-term unemployment or belonging to disadvantaged groups—in improving their employability and accessing job opportunities. These measures include job counselling, vocational training, internships, public works, and wage subsidies for employers.

Skills and Competencies for the Digital Age – this concept emphasizes the need to modernize the skills of the workforce, especially by improving digital literacy and expanding education in science, technology, engineering, and mathematics (STEM). In Montenegro, the development of digital and transferable skills is seen as critical to boosting productivity, innovation, and competitiveness in the evolving labour market.

Programme for Enhancing the Competitiveness of the Economy for 2025Boosting economic competitiveness and accelerating growth are key priorities for Montenegro’s national development. Although the food processing sector holds significant potential, it faces challenges such as low domestic production, reliance on imports, and limited processing capacities. The government’s strategy focuses on import substitution, particularly in the food industry, by supporting local production, enhancing quality, fostering innovation, and creating jobs. Efforts will also target sustainable development of food processing capacities and expanding markets for domestic products.A special focus is placed on including women, youth, and vulnerable groups in business development through tailored programs, subsidies, and mentorship—aiming to improve efficiency, drive innovation, and promote inclusive economic growth. In addition, the health industry, as one of the world’s fastest-growing high-tech sectors, is recognized as a strategic opportunity. The 2025 Competitiveness Enhancement Programme will include a dedicated component to support this sector, through the introduction of innovative business models and technologies, helping to raise product quality and strengthen Montenegro’s position in the global economy.