employment decline

Serbia’s Labor Market Faces Structural Challenges

The labor market in Serbia is undergoing significant changes, marked by a decline in the number of registered employees despite ongoing wage growth. This trend highlights underlying structural issues within the country's export-driven industrial economy, as indicated by recent labor-market data. In the first quarter of 2026, Serbia reported approximately 2.356 million registered employees, reflecting a decrease of around 9,000 workers compared to the same period in 2025. This reduction is primarily observed among legal entities and industrial employers, while…