Skilled Professionals Become a Key Driver of Economic Development

The telecommunications sector, metal processing, and the pharmaceutical industry have emerged as the strongest drivers of wage growth in the Republic of Srpska.

According to an analysis by the MojPosao.ba portal, these sectors have recorded wage increases ranging from 20% to as much as 37%. Economists and business leaders interpret this trend as a direct result of companies competing for qualified labor, as well as the strengthening of export-oriented industries.

Telecommunications and Industry Lead Wage Growth in the Republic of Srpska

The analysis shows that the average salary in Bosnia and Herzegovina increased by 9% this year, while certain sectors in the Republic of Srpska achieved significantly above-average growth:

•    Telecommunications – 37.18%

•    Metal processing industry – 29.48%

•    Chemical and pharmaceutical manufacturing – 20.92%

While the Federation of Bosnia and Herzegovina recorded the highest wage growth in financial services, retail, and the textile industry, the Republic of Srpska is dominated by technology-driven, processing, and pharmaceutical sectors, characterized by stable demand and strong export potential.

Labor Market Competition Drives Wage Increases

Goran Račić, President of the Chamber of Commerce of the Republic of Srpska, stated that wage growth is a natural consequence of market competition for skilled professionals:

“The market has dictated the need to raise wages to a level that enables the retention of skilled labor and the uninterrupted continuation of business operations. This is particularly evident in the pharmaceutical industry and sectors with high demand,” Račić told Glas.

According to him, the most promising sectors at the moment are pharmaceutical manufacturing, telecommunications, the IT industry, and a wide range of service activities, while the processing industry remains the backbone of exports from the Republic of Srpska.

Chamber of Commerce Calls for Greater Incentives for High-Tech Industries

Račić emphasized that the Chamber of Commerce is actively involved in the preparation of the Republic of Srpska budget for the coming year and is advocating increased allocations for the development of high technologies and investments:

•    increasing incentives for high-tech industries from 24 to 40 million BAM,

•    allocating 10 million BAM to local governments for industrial and business zones,

•    allocating 20 million BAM to support investors and special investment programs.

“It is crucial to enhance the competitiveness of our exporters and enable faster development of companies that follow global trends,” Račić stressed.

Economic Perspectives and Risks

Economist Aleksandar Ljuboja notes that wage growth trends vary depending on the structure of the domestic economy and global economic developments:

“If wage growth is the result of increased production volumes and stable demand, it is a positive signal. However, if wage increases are driven by labor shortages or non-economic pressures, they may have negative implications for the market,” Ljuboja explained.

He also warned that forecasts remain uncertain due to geopolitical tensions, energy challenges, and volatility in international markets.

Plans for Stronger International Presence of Domestic Companies

The Chamber of Commerce of the Republic of Srpska, Račić added, is also working on improving legislative solutions and increasing the presence of companies from the Republic of Srpska at international trade fairs and global markets.

“Our goal for the coming year is a stronger international presence of domestic companies and more robust promotion of local industry,” Račić concluded.