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Serbia’s IT sector faces critical shortage of skilled professionals amid economic shifts

Following the remarkable growth of the IT sector during the COVID-19 pandemic, the industry is now grappling with significant challenges due to rapid changes and economic fluctuations. Globally, many tech companies have faced layoffs, leading to thousands losing their jobs almost overnight, followed by a cautious approach to hiring and launching new projects. While Serbia largely managed to evade these widespread layoffs, it now faces a critical shortage of qualified IT experts.

According to the 2022 population census, Serbia has seen an alarming trend, with between 25,000 and 27,000 people emigrating each year. This demographic shift equates to a city of 50,000 disappearing annually. Many individuals leave in search of better wages and living standards, but for IT professionals, the reasons for relocating often differ. With flexible working options available, many programmers do not need to physically move abroad for higher salaries.

Data from the Helloworld portal reveals that entry-level programmers earn between €940 and €1,000, with potential salaries reaching up to €3,000 depending on the company. Mid-level experts average around €1,500, while senior professionals can earn between €2,300 and €9,500 monthly.

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Despite the increasing number of programming graduates and foreign tech experts entering the market, Serbia still faces a significant labor deficit. Vuk Popović from Quantox notes that while the trend of IT professionals moving abroad has decreased, the quality of candidates is a growing concern. He explains that client expectations have evolved, requiring not just a sufficient number of programmers but comprehensive solutions. Consequently, the skills gap is widening, as not all individuals possess the necessary expertise to meet these demands.

Additionally, Nebojša Matić, owner of Mikroelektronika, emphasizes that while many individuals hold IT diplomas, practical experience remains lacking. He asserts that true expertise is developed through years of hands-on work, and companies now seek candidates with high-level practical knowledge. The impact of artificial intelligence is also reshaping the industry, automating tasks that previously required teams of employees, further contributing to the labor shortage.

MiloÅ¡ Turinski from Infostud confirms the ongoing need for qualified IT professionals, particularly in the context of the current “crisis wave.” Despite this, the demand for skilled intermediates and seniors remains high, as companies are eager to onboard individuals who can immediately contribute to projects.

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The reasons for job changes among IT professionals are multifaceted. While salary is a significant factor, many individuals switch jobs for better work conditions or to seek new career opportunities. Current job market data shows that 53% of advertisements target mid-level professionals, while 39% seek seniors, with only 10% aimed at juniors. This suggests that companies prefer candidates with prior experience.

Interestingly, while many juniors are leaving the country, seniors tend to remain due to satisfactory salaries and living conditions. Senior professionals who do consider leaving often cite political instability or a lack of economic progress as their primary concerns, rather than financial incentives.

In conclusion, Serbia’s IT sector is at a crossroads, facing a growing shortage of skilled professionals amid evolving market demands. Addressing this issue will require a concerted effort to enhance training, retain talent, and adapt to the changing landscape of technology.

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