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North Macedonia labor market and demographic shifts

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2026-09-01 13:58 UTC → 2026-09-07 12:48 UTC · added ~~removed~~

North Macedonia is experiencing significant shifts in its labor market and demographic structure. As of the second quarter of 2026, the unemployment rate stood at 11.3 percent, with 90,020 people officially unemployed. While this represented a decrease of 1,357 individuals compared to the previous year, the rate itself remained stagnant. By June 2026, the country saw its first monthly increase in unemployment since the start of the year. Data from the Employment Agency reported 88,541 active job seekers, an increase of 2,425 compared to May. Additionally, 41,281 individuals are registered as passive job seekers. Demographic breakdowns of these seekers include 40.3 percent ethnic Albanians, 38.0 percent Macedonians, 11.3 percent Roma, and 7.4 percent Turks. A persistent skills gap characterizes the market. Approximately 83 percent of active job seekers possess only no formal education, primary education, or secondary education. This lack of specialized training contrasts with employer demand; over 60 percent of surveyed businesses report a need for new staff, with more than 10,000 vacancies available. Demand is highest in manufacturing, followed by trade, construction, and hospitality. Due to this ~~shortage of qualified personnel, there has been a notable increase in the demand for foreign labor, with~~ shortage, 10,143 work permit applications for foreign citizens were submitted within a single year. Recent data from the State Statistical Office highlights a rise in the shadow economy, with over 101,000 people engaged in informal employment. This represents a 7.2 percent increase from the previous quarter and accounts for approximately 14.3 percent of the total workforce. The largest concentration of informal workers is in the agriculture, forestry, and fishing sector, comprising 51 percent of the informal workforce, followed by the construction sector at 17.2 percent. Economists attribute long-term trends to the emigration of the young workforce, declining natural population growth, and efforts to combat the grey economy. There has been a 1.2 percent decrease in the working-age population between 25 and 49, while employment for those over 65 has increased by 2.7 percent. Experts warn that the current economic structure lacks the productivity and innovation necessary to drive significant GDP growth.

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