Macedonia audit finds uneven spending and weak controls at employment agency

A State Revision Office audit of the Republic of North Macedonia’s Employment Agency (AVRSM) for 2024 revealed that more than €23 million was allocated to active employment measures, but the distribution was highly uneven. Over 62% of the “self‑employment” funds and more than half of the “subsidising wages” and “employment and legal entity growth” programmes were concentrated in just five centres – Skopje, Tetovo, Struga, Kumanovo and Probishtip (with Gostivar also mentioned for self‑employment).

The report highlighted serious monitoring weaknesses: insufficient procedures, rare field checks and incomplete documentation, raising the risk of misuse. Specific irregularities included contracts lasting only three days, extensions beyond the legal five‑year limit, and re‑employment with the same employer immediately after receiving unemployment benefits. Approximately 77% of lawyer fees were paid to a single lawyer, and 67.9% of unemployment‑benefit payouts were for persons whose contracts had ended.

Unemployment benefit payments rose 27% to about €21.5 million. An IT‑skills training programme spent €1.4 million but only 25% of 735 candidates passed the final exam. The audit noted that many of the eight recommendations issued after the 2023 review remained unimplemented, urging stronger controls and clearer legal rules.

Overall, the audit points to systemic inefficiencies and a lack of regional equity in the use of public funds for job creation and support.