Despite the significant potential for establishing a common labor market in the Western Balkans, labor migration remains limited, with most individuals continuing to migrate to European Union countries. This was highlighted by the Institute for Innovation and Development (IRI) during the conference titled “How to Increase Labor Force Mobility in the Western Balkans.”
The analysis presented at the conference indicated that the future of the region’s labor market is crucial, yet it also raised concerns about projections suggesting Serbia could face a shortage of 80,000 to 100,000 workers over the next decade. This shortage is exacerbated by competition with EU countries, where many residents from the Balkans seek higher wages and better working conditions. Since the beginning of the year, only 174 people from the region have applied for free access to the labor market under the Open Balkans initiative, a number that underscores the challenges facing Serbia and the wider region.
IRI Director Nenad Jevtović emphasized the struggle to compete with EU nations that offer significantly better wages and conditions. “Serbia or Albania cannot compete with Germany, Switzerland or Austria. We are in a different league when it comes to the labor market,” he stated.
The analysis was supported by the Open Society Foundation. Deputy Director Miodrag Milosavljević noted that while migration is a characteristic of the modern world, it is essential to maintain a balance between inflow and outflow to ensure sustainable development. He pointed out that the lack of labor is a major obstacle to progress.
This situation is highlighted by the ongoing outflow of workers to Western Europe. IRI researcher Milica Anđelković Đoković reported that from January to July of this year, 14,693 unique work permits were issued to foreigners, while only 243 went to citizens from the region. She also noted that the highest number of long-stay visas granted last year went to Chinese citizens—almost 9,000 out of a total of 29,000—followed by Indian citizens, who received 3,050 visas.
Dragan Todorović, president of the Association of Independent Trade Unions of Belgrade, expressed concern that the only foreign workers coming to Serbia are often recruited from distant countries and do not intend to stay. He highlighted that these workers are not necessarily paid less than local workers but often face “dumping” of work hours, being asked to work six or seven days a week for extended hours. “Employers may claim they are more productive, but this is a violation of their labor rights,” he warned.
While the current situation presents challenges, solutions do exist. Bojan Stanić, assistant director for strategic analysis at the Serbian Chamber of Commerce, mentioned that creating a regional labor market in the Western Balkans is a short-term measure. However, he noted that all regional economies are currently experiencing labor shortages, and pulling workers from one country to another may not be sustainable. Stanić suggested attracting returnees—those who have been educated or have started careers abroad—by providing opportunities for them to work and develop in a healthy environment.
Jevtović also recommended that countries in the region collaborate on a common labor market and develop national strategies for economic migration, similar to Serbia’s approach. He highlighted the need for improved infrastructure to enhance labor mobility, stating, “If it takes hours to travel between Skopje and Niš, or if you can only fly efficiently from Belgrade to Tirana, significant labor mobility is unlikely.”
In summary, while there are considerable hurdles to labor migration within the Western Balkans, targeted strategies and regional cooperation could help alleviate the labor shortages and enhance mobility in the future.
