Official data shows that in the fourth quarter of 2024, the number of employed people in Serbia was 2,894,900, while the number of unemployed individuals was 273,100. The number of people outside the labor force stood at 2,462,200, according to the Republic Statistical Office’s labor force survey. The employment rate was 51.4%, and the unemployment rate was 8.6%.
Comparing the latest statistics with the third quarter of the previous year, the labor market situation shows a decline in employment and an increase in both unemployment and inactivity. The employment rate decreased by 0.5 percentage points in the fourth quarter compared to the third, while the unemployment rate rose by the same amount, from 8.1% to 8.6%.
Over the past few years, unemployment in Serbia has been steadily decreasing. For example, at the end of 2020, the unemployment rate was 12.8%, and by the end of 2024, it dropped to 8.6%.
In several industries, there is a significant shortage of labor, leading to the need for foreign workers. Experts suggest that this situation, combined with negative demographics and the emigration of the workforce, has led to significant changes in the labor market, especially in terms of rising real wages and improved negotiating power for employees.
Each year, about 1% of Serbia’s working-age population, approximately 40,000 people, emigrates. This emigration, alongside poor demographics, has led to a rapid decline in unemployment rates in Serbia and other countries in Central and Eastern Europe. However, the shortage of labor has caused real wages to grow faster than productivity, which could negatively affect long-term economic growth.
Despite the favorable statistics, worker rights in Serbia are still systematically violated, according to the latest Global Index of Labor Rights. Issues include suppression of the right to collective bargaining, inadequate working conditions, and insufficient overtime pay. The textile and automotive industries face the worst conditions, with workers reporting poor safety, low wages, and long working hours.
On the other hand, conditions in the IT sector remain far better, with rising wages and benefits such as remote work, health insurance, and additional days off. However, employment in the IT sector has been declining, with a 25% decrease in new hires compared to 2023.
Economists and labor rights experts agree that there are significant differences in workers’ conditions across industries in Serbia, with traditional industries offering tougher and more inadequate working conditions compared to the technology sector. Serbia’s economy still heavily relies on traditional industries, where working conditions are often poor and wages insufficient for a noticeable improvement in living standards.
