The Demands of the Labour Market in Bosnia and Herzegovina and new trends in Immigration

Abstract

This paper explores the increasing need for imported labour in Bosnia and
Herzegovina, driven by a prolonged shortage of local workforce, due to decades of labour emigration. It addresses statistical inconsistencies in unemployment rates, the process of hiring foreigners, and major migration trends in BiH. Immigration trends are analysed through two key factors: temporary residence permits and work permits. The paper highlights that the current system is unprepared for a significant influx of foreign workers and highlights several issues affecting the BiH labour market, including emigration, skills mismatch, unemployment, and unreliable unemployment data. The findings emphasize the importance of addressing these issues to stabilize and enhance the efficiency and sustainability of the labour market.