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Republic of North Macedonia

3. Employment & Entrepreneurship

3.11 Current debates and reforms

Last update: 10 March 2025

Current situation

Since gaining independence, North Macedonia has struggled with persistently high youth unemployment rates, which at times have reached alarming levels. In the early 2000s, the rate peaked at approximately 65%, reflecting significant challenges in the labor market. However, through targeted employment policies and economic reforms, the situation has gradually improved. By 2019, youth unemployment had dropped to 35.55%, marking a notable step forward.

The positive trend has continued in recent years. According to the latest data from the State Statistical Office of North Macedonia, as of the third quarter of 2024, the youth unemployment rate has further declined to 23.6%, highlighting ongoing progress in addressing labor market challenges for young people.

Current reforms

Regarding recent reforms, North Macedonia is currently pursuing several important changes to its labor laws and social policies aimed at improving employment opportunities, particularly for youth. These reforms include initiatives to align more closely with EU standards, focusing on creating a more inclusive and effective workforce. Specific updates include the introduction of a Law on Vocational Education and Training (VET), aimed at better integrating the educational system with the labor market​.

However, some key laws, such as the Law on Secondary Education and the new labor regulations for youth work (ages 15-18), are still in development or have been delayed, with further work expected in the coming months​ (February 2025).

Additionally, the National Youth Strategy for 2023-2027 has been adopted, with an action plan that includes measures to improve youth employment through various programs​. These ongoing reforms show the government's commitment to improving labor market conditions, though full implementation of some laws is still pending as of early 2025.

In 2022, the former Ministry of Labor and Social Policy started a  process for a new Law on Labor Relations. In 2023, through social dialogue, the Ministry conducted a series of consultation meetings with relevant institutions and civil society organizations. Based on information from the Ministry of Labor and Social Policy, it’s expected to be adopted in the second half of 2023. In regards to youth, the Law is envisioned to offer specific provisions regulating work for young people aged 15-18.