labour productivity

Labour productivity stalls as skills mismatch becomes a structural constraint

The Serbian economy is facing a significant challenge as the disparity between labour availability and labour productivity continues to widen. Despite stable employment levels projected through 2025, productivity improvements have been sluggish. This stagnation is indicative of deeper structural issues, including a mismatch in skills, demographic shifts, and inadequate investment in human capital that aligns with the needs of various industries. Certain sectors within Serbia's labour market are experiencing tight conditions, particularly in advanced manufacturing, engineering, energy, and information and…