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Republic of North Macedonia

3. Employment & Entrepreneurship

3.2 Administration and governance

Last update: 10 March 2025
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  1. Governance
  2. Cross-sectoral cooperation

Governance

In North Macedonia, the governance of youth employment and entrepreneurship involves a variety of key actors across public institutions, working in a collaborative effort to address youth unemployment and enhance employment opportunities for young people. The Ministry of Economy and Labour plays a central role in developing and overseeing policies related to employment, including the creation of the National Employment Strategy, which sets the framework for youth employment initiatives.

Building on this framework, youth employment policies in North Macedonia are governed through key strategic documents, such as the Government Work Program for 2024-2028 and the National Employment Strategy for 2021-2027, which is supported by the Action Plan for Employment for 2021-2027. These plans provide the direction and support for various employment-related programs targeting young people. Although the previous Action Plan for Youth Employment (2016-2020) has expired, youth employment remains an ongoing focus within the broader national employment framework, supported by active employment programs implemented by the government.

The Government Work Program for 2025 aligns with the strategic goals for 2024-2028, focusing on economic growth, infrastructure improvements, job creation, and digital transformation, with a specific emphasis on youth employment. It sets clear goals with transparent reporting mechanisms to ensure accountability. The National Employment Strategy, supported by the International Labour Organization (ILO), includes the Youth Guarantee, which aims to provide young people with timely access to employment, education, or training. The Youth Guarantee was revised in 2022 to reflect post-pandemic challenges and the EU's enhanced youth support programs.

The Ministry of Economy and Labour (formerly the Ministry of Labour and Social Policy) has been responsible for developing annual Operational Plans for Active Employment Programs and Measures since 2007. These plans outline the annual priorities for employment, with a continued focus on vulnerable groups, including youth up to 29 years of age. The Employment Service Agency of North Macedonia, in collaboration with other relevant bodies, implements these plans.

The newly adopted 2024 Operational Plan focuses on reducing unemployment, improving workforce skills, supporting entrepreneurship, and enhancing labor market services, with a strong emphasis on vulnerable groups. For youth, the plan includes targeted programs such as internships, apprenticeships, and entrepreneurship support, offering financial incentives, training, and mentorship to improve employability and foster self-employment opportunities. The plan also emphasizes the Youth Guarantee, ensuring that young people who become unemployed within a set period receive immediate access to employment, education, or training opportunities.

Main actors

The following public actors are involved in the process of creation and implementation of youth employment and entrepreneurship policies:

  • Ministry of Economy and Labour (main authority);

  • Ministry of Social Policy, Demography and Youth;

  • Ministry of Education and Science;

  • Ministry of Information Society and Administration;

  • Ministry of Finances;

  • Employment Service Agency;

  • Center for Vocational Education and Training;

  • Center for Education of Adults;

  • Agency for Promotion of the Entrepreneurship of the Republic of North Macedonia;

  • Centers for social work.

North Macedonia's Governmental institutions also cooperate with the UNDP office in North Macedonia, USAID office in North Macedonia, World Bank, ILO, Confederation of Free Trade Unions, Organization of Employers of North Macedonia and others.

Consultation of young people

A notable observation regarding government institutions is that, despite the adoption of youth employment policies, young people and youth organizations are not always consulted during the development of such policies. However, it is worth highlighting that there were consultations with the National Youth Council of Macedonia (NYCM) in key areas. Specifically, they were engaged in discussions related to the Operational Employment Plan, the revision of the Action Plan for Youth Employment 2016-2020, and the planning of the Youth Guarantee​. This collaboration is an important step towards ensuring that youth perspectives are considered in policy-making, but it remains essential to strengthen these consultations to create more inclusive and effective youth employment strategies.

Policy monitoring and evaluation

The Employment Service Agency and the Ministry of Economy and Labour are responsible for overseeing the implementation of active employment measures to ensure accurate assessment of their effectiveness. The impact of Active Labor Market Measures (ALMM) is typically evaluated based on results at the conclusion of the measures, such as the percentage of young people securing employment after completing internships. As outlined in the National Employment Strategy, a dedicated working group, led by the Ministry of Economy and Labour, provides annual reports to the Government on the progress of the Strategy's implementation.

Young people have been involved in evaluating youth employment measures through research conducted by the International Labour Organization (ILO). The study, based on the report “Impact Evaluation of Active Labor Market Programs in FYR Macedonia”, surveyed both beneficiaries of the employment measures (treatment group) and non-beneficiaries (control group). However, the authors noted a relatively low response rate, leading to mixed and inconclusive findings.

Cross-sectoral cooperation

North Macedonia's approach to youth employment policy is rooted in strong cross-sectoral collaboration, bringing together key public institutions and international partners. The Ministry of Economy and Labour spearheads coordination efforts, working closely with the Ministry for Social Affairs, Demography and Youth, Ministry of Education and Science, Ministry of Information Society and Administration and Ministry of Finance, to align strategies and ensure policy implementation.

Public agencies, including the Employment Service Agency, Center for Vocational Education and Training, and the Agency for Promotion of Entrepreneurship, play crucial roles in delivering employment programs and support services. Their efforts are complemented by international organizations such as UNDP, USAID, the World Bank, and the ILO, which provide financial assistance, expertise, and technical support.

A key outcome of this collaboration is the Youth Guarantee, designed to enhance youth employability by offering structured pathways into internships, education, and training. By integrating national and international efforts, this cross-sectoral approach fosters a more cohesive and effective response to youth unemployment, ensuring policies address diverse challenges while creating sustainable opportunities for young people.