[REVISION HISTORY]

Bosnia and Herzegovina labor market and migration

Updated 3 times since CLSTR started tracking revisions of this situation.

What changed

2026-08-27 08:52 UTC → 2026-08-27 12:14 UTC · added ~~removed~~

Bosnia and Herzegovina is experiencing significant labor shortages and economic challenges driven by a mass exodus of skilled workers and young professionals. This migration, particularly toward Germany, has resulted in a shortage of essential tradespeople, such as electricians and mechanics, leading to higher service costs and longer wait times for domestic repairs. While the number of citizens finding work in Germany through official agency mediation decreased in the first half of 2026, official German migration statistics show a net positive migration balance, with significantly more citizens moving from Bosnia and Herzegovina to Germany than vice versa. Domestic youth unemployment reached 30.1 percent in the first quarter of 2026, with reports from UNICEF and UNDP noting a disconnect between the education system and market needs. In response, there is a rise in vocational retraining in practical professions such as accounting, culinary arts, and digital marketing. Regional efforts to address deficits include the Republic of Srpska increasing work permit quotas by 1,000 to support construction and manufacturing. Recent data highlights the scale of demographic pressure in Republika Srpska, where authorities face a deficit as the region loses approximately 15,000 workers annually to retirement while gaining only 9,000 new entrants. ~~This trend underscores the broader regional struggle to balance aging workforces~~ To combat this, businesses are increasingly relying on foreign labor, with approximately 2,874 work permits issued to foreign nationals in the ~~need for~~ first seven months of 2026. However, the construction sector in the region reports a slowdown in new ~~labor, even as neighboring Croatia sees~~ building permits due to rising labor costs and worker shortages. Neighboring trends show mixed results; while Croatia’s GDP growth slowed to 1.7 percent in the second quarter of 2026, its ~~crafts~~ service sector ~~and Montenegro considers legislative changes~~ remains active. Meanwhile, in Montenegro, employers have raised concerns regarding administrative barriers and proposed regulations that could delay the employment of foreign workers.

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