1. Forecasting system(s) 

Forecasting and development of skills is carried out at the level of companies, enterprises or various public or private bodies without interference from the highest level for which state authorities would be responsible. The Ministry of Labour, Employment and Social Dialogue is responsible for monitoring the state of the labor market in the country and abroad. The Ministry and the Employment Institute conduct regular surveys [MB1] [MOU2] in order to identify what skills, knowledge and qualifications are needed by the economy of Montenegro. One of the main programs that speaks in favor of this and concerns young people is the Vocational Training Program for university students, where young people acquire additional knowledge and skills.

In Montenegro, anticipation and development of skills are primarily managed at the enterprise level—by individual companies, public agencies, and private institutions—without a centralized national-level forecasting mechanism. Strategic oversight is provided by the Ministry of Labour and Social Welfare, which works in conjunction with the Employment Institute of Montenegro to monitor both domestic and international labour market trends.

The Ministry and Employment Institute conduct regular, in-depth analysis of the labour market in order to pinpoint the skills, knowledge, and qualifications demanded by the Montenegrin economy. One such outcome is the Vocational Training Programme for University Students, designed to help young graduates acquire practical knowledge and skills aligned with the needs of employers.

Recent data illustrates clear improvements across key labour market indicators:

• As of 31 December 2024, the Employment Institute reported 33,037 registered unemployed individuals, of whom 59.6 % were women - a decrease of 17.3 % from 39,942 at the end of 2023 

• By 30 June 2024, registered unemployment numbered 34,715, representing a 13.9 % decline compared to mid‑2023.

Link: https://www.zzzcg.me/uploads/wysiwyg/Izvjestaj-o-radu-ZZZCG-za-2024-godinu-19-2-2025-KONACNI-PDF-67c19f3e5141e.pdf 

Moreover, according to MONSTAT’s Labour Force Survey for Q4 2024, key indicators were as follows:

• Unemployment rate (ages 15–89): 11.6 %

• Activity rate: 63.1 %

• Employment rate: 55.8 %

During 2024, total employment rose by 1.5 % to 282,600, and the average yearly unemployment rate fell from 13.1 % in 2023 to 11.5 % in 2024. 

Link: https://monstat.org/cg/page.php?id=22&pageid=22 

These figures underline a robust upward trend in employment, decreasing unemployment, and increasing workforce participation. They provide a firm empirical foundation for the continued development of skill demand forecasting and for tailoring training and employment programmes, especially for the young population in Montenegro.

 Skills development

Key legislation and regulatory framework are:

1.Law on Youth - Montenegro’s Law on Youth (Official Gazette of Montenegro No. 25/19 and 27/19) defines young people as individuals between 15 and 30 years of age and establishes a legal framework for the implementation of youth policy. The law emphasizes the importance of improving youth employability and explicitly recognizes youth employment and entrepreneurship support as areas of public interest. It calls for the development of educational programs and institutional mechanisms that enable young people to access active labour market measures, including professional training, internships, and entrepreneurship development. The Ministry of Education, Science and Innovation is the leading body responsible for implementing youth policy, including activities related to employment, entrepreneurship, and labour market integration.

2. Law on the National Qualifications Framework (2025) -  This law establishes Montenegro’s alignment with the European Qualifications Framework (EQF), ensuring that all qualifications, whether gained formally, non-formally, or informally, are recognised and valued. It enhances the employability of young people by promoting lifelong learning and improving the connection between education and the real needs of the labour market.

3. Law on Professional Training of Persons with Acquired Higher Education - 
This law regulates dual education models and fosters structured cooperation between employers and educational institutions. It enables recent graduates to gain practical experience through work-based learning, while developing occupational standards that align with market demands. It is particularly relevant for youth transitioning from education to employment.

4. Labour Law -  The Labour Law includes provisions aimed at improving youth access to quality employment. Employers with more than 10 employees are required to establish job classification systems and provide opportunities for continuous training and skills upgrading. This legal obligation supports youth by encouraging companies to invest in their early career development.

Key national strategies are:

Education Reform Strategy 2025-2035

The existing strategic framework of Montenegro, including its horizontal and vertical alignment, positions the Education Reform Strategy 2025–2035 as a comprehensive development document aimed at ensuring a holistic contribution to equitable, inclusive, and sustainable development through access to quality education for all children, adolescents, and youth, enabling them to reach their full potential and contribute to society.

The Strategy seeks to develop a framework for an integrated approach to improving the quality and inclusiveness of education, in order to enhance learning outcomes and promote the acquisition of lasting and applicable knowledge. Furthermore, the Strategy aims—partly through improving education quality and enabling a more responsive education sector—to address the challenge of long-term unemployment, particularly among youth, resulting from the mismatch between qualifications, skills, and labor market needs.

In parallel, the Economic Reform Programme 2024–2026 serves as Montenegro’s key document for economic dialogue with EU member states and institutions regarding macroeconomic, fiscal, and structural reforms. It outlines medium-term macroeconomic and fiscal policies aimed at improving conditions for stronger economic growth and development. Within this framework, education is prioritized through Structural Reform No. 5, which focuses on improving the framework for youth employability and the quality of education, and Reform Measure No. 8, which aims to develop an integrated approach to quality enhancement, digitalization, and inclusiveness in education.

As part of its EU accession efforts, Montenegro is aligning its education policies with EU benchmarks and standards under Negotiation Chapter 26 – Education and Culture, which was provisionally closed in 2013. This alignment includes:

• Implementation of the Bologna Process in higher education,

• Participation in the European Higher Education Area (EHEA),

• Adoption of the European Qualifications Framework, and

• Participation in EU education programmes, such as Erasmus+.

Link: https://www.gov.me/dokumenta/73f999b6-b879-4868-a72d-e670ce78f77f 

The Scientific Research Strategy of Montenegro 2024- 2028

The Scientific Research Strategy of Montenegro is the most important sectoral strategic document in the field of science and research. It is adopted with the aim of establishing priorities, encouraging development, and monitoring progress in scientific research activities.

The purpose of adopting the Scientific Research Strategy of Montenegro for the period 2024–2028 is to set clear priorities and development directions for scientific research in the country, positioning it as one of the key foundations for national development and prosperity. Additionally, the Strategy aims to support the continued adoption of European standards in the field of science and research, with the ultimate goal of full integration into the European Research Area (ERA), in line with Montenegro’s aspirations as a future member of the European Union (EU).

Link: https://www.gov.me/clanak/strategija-naucnoistrazivacke-djelatnosti-2024-2028

Higher Education Development Strategy 2024–2027

Strategic planning for the development of higher education, in line with national and international policies and priorities, sets guidelines and defines objectives for a sustainable and long-term development path in this sector. Higher education policymakers and the management of higher education institutions design education policies in response to global changes such as the rapid advancement of digital teaching, learning, and assessment, the unstoppable development of new technologies, pandemics, mass migrations, and global shifts in the labor market.

Based on the results and recommendations of the previous strategic document, clear guidelines have been formulated for the development of the new Strategy, with a focus on the following:

• Improving the model of practical training in higher education to ensure that all students receive adequate hands-on experience;

• Defining clear criteria and conditions for admission to higher education institutions;

• Ensuring thorough implementation and evaluation of learning outcomes;

• Continuing efforts to enhance quality assurance in higher education;

• Aligning the Agency for Control and Quality Assurance of Higher Education with the ESG standards and facilitating its inclusion in EQAR through the appropriate review process;

• Expanding lifelong learning opportunities, monitoring the quality of implementation, and enabling the recognition of non-formal and informal education;

• Further improving the student standard and support services;

• Promoting internationalization and alignment with EU recommendations and guidelines from documents adopted as part of the Bologna Process and other declarations to which Montenegro is a signatory.

Link: https://www.gov.me/clanak/strategija-visokog-obrazovanja

The 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-3b230ebcf2a6

Strategy for the Development of Vocational Education and Training (2020–2024) - The Government of Montenegro, at its session held on January 17, 2020, adopted the Strategy for the Development of Vocational Education and Training in Montenegro (2020–2024), along with an accompanying Action Plan for 2020–2021. The Strategy was developed in response to the growing challenges facing vocational education—challenges driven by the rapid advancement of knowledge and technology, the impact of digitalization on the economy and labor market, the increasing demand for a highly qualified workforce, globalization processes, and demographic trends, as well as the constantly evolving needs of the labor market.

These trends created the need for a flexible vocational education system with a well-developed quality assurance framework. The system was intended to offer diverse educational pathways and advancement opportunities, and to promote and support quality and excellence in learning and skill development, ultimately allowing individuals to fully realize their personal and professional potential.

The Strategy aimed to align vocational education more closely with labor market needs, introduce modular learning, and strengthen the role of employers as mentors in practical training.

The strategic objective defined in the Strategy was the establishment of a high-quality and inclusive vocational education system that would serve as a foundation for lifelong learning, economic and social integration, and the personal and professional development of individuals—supported by an effective system of governance and financing.

To achieve this, the Strategy set out three operational objectives:

1. Vocational education that enables the acquisition of skills, competencies, and qualifications necessary for employability, lifelong learning, inclusion, personal development, and active citizenship;

2. Relevant, accessible, and innovative vocational education tailored to the individual, the labor market, and society;

3. A comprehensive and effective vocational education system, with governance and financing mechanisms that promote excellence and efficiency.

At the end of 2024, the Government of Montenegro adopted the Final Report on the Implementation of the Strategy for the Development of Vocational Education and Training (2020–2024), summarizing the progress and outcomes achieved during its implementation period.

Strategy for Entrepreneurial Learning (2020–2024)
Promotes the integration of entrepreneurial competencies across all education levels, both in formal and non-formal learning environments.

Link: https://www.gov.me/dokumenta/59a998e8-af01-4e54-a205-fc81584163f8

Digital Transformation Strategy (2022–2026)

 

Aims to boost digital skills among youth and enhance employability through an integrated system of public services, digital tools, and innovation-driven policies.

The Digital Transformation Strategy of Montenegro 2022–2026 represents a developmental framework that defines the prerequisites and initiatives necessary for rapid adaptation to an increasingly complex digital environment, as well as for the agile and proactive development of a digitally advanced Montenegro. With an efficient digital environment that positively impacts economic growth, the strategy also contributes to the overall development of society.

For this reason, the Digital Transformation Strategy should not be viewed merely as a technical or developmental document, but rather as one of the key political and strategic development instruments, serving as a foundation for political decisions, changes to the regulatory framework, investments, and incentives.

Link: https://www.gov.me/dokumenta/b70528ed-0bba-4140-a576-addab76998e4

The Government of Montenegro adopted the Youth Guarantee Implementation Plan on July 22, 2024, covering the period 2024 to 2026, with a pilot phase to be conducted in three municipalities during 2025–2026.

The plan aligns with EU youth policy standards and ensures that every young person aged 15–29 receives a quality offer of employment, further education, training, or apprenticeship within four months of leaving education or becoming unemployed.

Key components of the plan are:

1. Strengthening the institutional capacity of the Employment Agency (ZZZCG), including digital transformation of youth services;

2. Launching pilot employment schemes for youth in agriculture, inspection services, and digital jobs;

3. Developing coordinated outreach mechanisms to identify and support NEET youth;

4. Establishing a monitoring and evaluation system for long-term scaling of the Youth Guarantee as a national employment policy tool.

The Plan is also connected to Montenegro’s Operational Programme for Employment and Social Policy 2024–2027, which enables access to EU and national funding for implementation, and reinforces cooperation between ministries, agencies, and stakeholders involved in youth employment.

This initiative marks a significant step toward reducing youth unemployment and building a more inclusive and responsive labour market in Montenegro.

The Employment Office of Montenegro offers a range of Active Labour Market Programmes aimed at enhancing employability, encouraging job creation, and supporting workforce integration. These programmes include:

• Education and Training – initiatives focused on upgrading skills and qualifications to meet labor market demands;

• Employment Incentives – financial and institutional support for employers to encourage the hiring of registered unemployed individuals;

• Self-Employment Incentives – support for individuals aiming to start their own businesses, including grants and advisory services;

• Direct Job Creation – programmes that facilitate the establishment of new jobs through targeted public and private sector initiatives.

These measures are designed to promote inclusive and sustainable employment, in line with national priorities and European Union standards.

Link: https://www.zzzcg.me/me/p-45/programi-aktivne-politike-zaposljavanja

The Ministry of Education, Science and Innovation, together with relevant institutions such as the Institute of Education and the Centre for Vocational Education, develops and implements policies aimed at promoting lifelong learning and the acquisition of knowledge, competencies, and skills necessary for personal and professional development. These policies are designed to strengthen education and training in line with the evolving needs of the labour market and society as a whole.The Ministry of Education, Science and Innovation, through numerous public calls, scholarship programs, and continuous improvement of school infrastructure, strategically contributes to the development of digital competencies and STEM skills, thereby strengthening the education system to meet the demands of modern society and the labor market.More information about the activities of the Institute of Education related to key competences for lifelong learning is available at the following link:https://www.gov.me/zzs/kljucne-kompetencije-za-cjelozivotno-ucenjeThe Center for Vocational Education is part of the EPALE platform and implements a project that, among other things, refers to adult education providers in Montenegro. Within the mentioned project, Montenegro is a member of the Community of European VET practitioners network. This project is being implemented with the aim of raising awareness among representatives of the general and professional public about the importance of: networking institutions in the creation, organization, and implementation of activities in the field of adult education; using various learning resources; promoting adult education at the national and international level; motivating the general and professional public to use EPALE – the multilingual electronic platform for learning; promoting EPALE in Montenegro; improving the quality of its content; and promoting the national adult education system at the European level. Link: https://epale.ec.europa.eu/en/practitioners-in-vet.  Non-formal education programs (workshop, training, training) are organized and planned educational activities, which encourage individual and social learning, outside the formal education system, in which participation is voluntary, and are designed and implemented by trained and competent educators. Informal education and informal education are also recognized in the Law on Youth for the implementation of youth activities and youth work, and youth services are established, which are divided into youth clubs and youth centers.According to the Law on Youth, youth services are established for the implementation of youth activities and youth work.Youth services include:·         Youth clubs, and·         Youth centers.A youth club is a space adapted to the needs of young people for the implementation of youth activities (office space, etc.), while a youth center is an equipped, multifunctional space intended for youth, used for conducting youth activities and youth work.Youth activities and youth work are carried out within youth services in accordance with the Work Plan and Program of the youth service.The Work Plan and Program of the youth service is developed by the state administration body responsible for youth policy, at least once every three months, in order to implement activities from the Youth Strategy, the Action Plan for the Implementation of the Youth Strategy, and the Program for the Realization of Public Interest in the Field of Youth Policy, and depending on the needs of the local community or the location of the service.Links: https://wapi.gov.me/download-preview/e1ac770f-706f-4ba9-99e3-790b64ba464f?version=1.0 ; https://www.gov.me/clanak/omladinski-servisiSuperschools is a RYCO programme with cooperation with the Ministry of Education, Science and Inovation for school exchanges in WB6 with the objectives to support the peacebuilding and reconciliation process and intercultural learning and dialogue among schools, students and their communities. The programme is part of a multi donor project “Western Balkans School Exchange Scheme” co-financed by the European Union and the German Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) together with the Regional Youth Cooperation Office (RYCO).Link:  https://www.rycowb.org/?page_id=11934In the Economic and Investment Plan of the European Commission for the Western Balkans, young people are the focus of the last of a total of 10 investment priorities. In order to offer solutions in various problematic areas, and above all in employment, the European Commission proposed the Youth Guarantee, which represents a system of measures that would ensure that every young person, within 4 months after losing a job or leaving formal education, receives a quality job offer, the possibility of continuing education, training or internship.It is also important to mention the new three-year project of the RCC (Council for Regional Cooperation) called "Youth Laboratory of the Western Balkans", which is funded by the European Union. The goal of the project is to give young people the opportunity to participate in decision-making in six economies of the Western Balkans, among which is Montenegro, by establishing youth laboratories, which together with policy makers will deal with issues of importance for this social category, such as employment, entrepreneurship, education and similar.Link: https://www.rcc.int/youthlab