Filling the Gap? Employer Attitudes toward Migrant Labour in Bosnia and Herzegovina’s Shrinking Workforce

Abstract

Bosnia and Herzegovina has experienced continuous labour shortages over the past decade, especially in construction and hospitality sectors, largely as a result of sustained emigration. This paper investigates employer attitudes towards recruiting labour migrants as a strategy to address labour shortages, drawing on institutional, human capital, behavioural, and dual labour market theories, along with empirical research from the region. Based on a survey of 64 employers analysed through descriptive and inferential statistical methods, the findings demonstrated that legal and institutional issues, especially associated with the Law on Foreigners, significantly shape their willingness to hire. State support and private employment agencies also emerge as important factors. While concerns about language, culture, wages, and bureaucracy were noted, institutional and behavioural factors appear more decisive, underscoring the need for targeted and coherent policy interventions.