The Serbian economy faces persistent challenges due to a shortage of both low and high-skilled workers, severely impacting sectors such as hospitality, construction, metal, textile and chemical industries.
Recent surveys by Infostud reveal that while 77% of Serbian employers have not hired foreign workers in the past year, 55% plan to do so in the future. However, key obstacles remain: complex visa and work permit procedures (cited by 60% of employers), language barriers (41%), and high costs. Only 2% of companies have hired over 100 foreign workers, with most employing smaller numbers.
Workers from Asia are the most sought after, followed by those from Balkan countries, due to cultural and linguistic similarities and easier logistics. The “Open Balkan” initiative, launched in February 2024, created a common labor market between Serbia, North Macedonia, and Albania, introducing a unified residence and work permit with processing times reduced to 15 days and a fully digitalized application process.
Despite this, uptake remains low with only 174 permits issued in 2024, indicating the initiative has yet to fully impact the labor market.
The Serbian Chamber of Commerce confirms acute labor shortages across multiple industries and anticipates increased demand with upcoming infrastructure and development projects related to EXPO preparations. They emphasize ongoing efforts to streamline procedures, improve vocational education, and collaborate with government bodies to address workforce gaps.
Currently, approximately 100,000 foreign workers are employed in Serbia under various permits and arrangements, reflecting the growing reliance on foreign labor as a necessary solution to demographic decline and domestic workforce shortages.
