Economy

Serbia’s Labour Market Tightens as Productivity Gains Offset Declining Employment

Serbia’s labour market is recording lower unemployment alongside declining formal employment and rising real wages, while productivity growth is becoming increasingly important for sustaining economic expansion. The unemployment rate fell to a record-low 7.2% in the second quarter of 2026, down 1.3 percentage points from a year earlier. Youth unemployment also decreased, reaching 22%. Formal employment, however, moved in the opposite direction. The number of formally employed people declined 0.5% year on year in January-July, to approximately 2.355 million, while…