Labour Market

Labour market is the part of a complex national market with a function to provide the biggest possible employment and effective allocation of the workforce according to the sectors, types of work and territory. Labour market provides employment in accordance with real demand for the workforce, as well as in accordance with the offer which is specifically based on profession, age, sex or territory.

The increase of productivity is the primary economic goal which is the foundation for strengthening the competitiveness of local economy and its steady growth.

There is a certain level of unemployment rate in the labour market of the Republic of Srpska which can be observed as the potential from the investor´s point of view. Furthermore, it is important to emphasise that the structure of the workforce increases in favour of the people with a university degree who are looking for employment.

The quality of the intellectual capital in the Republic of Srpska is based on the educational system which produces people with university degrees who learn fast, speak several foreign languages and use cutting edge informational technologies.

The Ministry of Education and Culture, which has the goal to improve the quality of secondary school education, runs a secondary school enrolment policy based on the needs of the labour market, as well as the needs for the further education at universities.

Based on the proposal, which has been handed in to the Ministry of Education and Culture by the directory board of secondary schools, the new enrolment plan for 2019/2020 has been created which implies an introduction of new educational profiles.

The introduction of a dual system of education into secondary schools in the Republic of Srpska has started and it should show expected results in the future period. The plan is to organise one day of practical work in companies for the students of the first grade of secondary professional schools, two days for the second grade students and three for the third grade students.

One of the goals defined by the Strategy of the educational development of the Republic of Srpska for the 2016-2021 period is linking professional education and labour market. By signing the agreement, practical education will be improved in the secondary school system.

It is defined by the agreement that students will do the practical work for the employer and that the internship will be paid. After finishing secondary schools, the best of them will have the possibility of being employed. The main goal for the students is to acquire skills, competencies, knowledge in order to be qualified for the labour market after secondary schools.

By profiling young men and women in the Republic of Srpska, the potential possibilities for economic growth will be determined and new places of work will be created.

The structure of the workforce according to the level of their professional education in the Republic of Srpska in September 2018 is the following:

university degree 25,4%
two-year post-secondary education 4,3%
secondary education 46%
other 24,3%

In the academic 2017-2018 year in the Republic of Srpska 21 higher education institutions were registered, more accurately 12 upper-secondary schools and 9 universities. Out of nine, two are state universities, University in Banja Luka and University of East Sarajevo.

Higher education organizational structure is consisted of 93 faculties, 5 academies and two theological faculties.

The highest number of unemployed people with the 7^th level of education is registered in the following occupations: financial workers and Bachelors of Economics (3727), Bachelors of Law (1577), Bachelors of Agricultural Engineering (518). Moreover, there is a big number of registered people from different fields of educational sciences- primary school teachers, PE teachers, English language teachers, Bachelors of Pedagogy, Bachelors of Geography, Serbian language teachers.

The measures of the active policy of employment in the Republic of Srpska are realized through the Employment Institute in accordance with the Strategy of employment which is adopted by the Government, as well as the action employment plan for the current year, the Institute´s agenda and official economic policy of the Republic of Srpska.

Active measures with the employment goal in the Republic of Srpska comprise realizations of different projects whose purpose is to create new work places, retraining, additional training and professional training of employed and unemployed individuals.

The Government of the Republic of Srpska adopted the bill on amendments of the Law on intermediation in employment and rights during the period of unemployment which is one of the most significant reforms on the labour market in the Republic of Srpska. This reform is proposed by the Strategy on Employment of the Republic of Srpska for the period from 2016 to 2020, as well as by the Programme of Economic Reforms from 2019 to 2021.

By the Strategy on educational development of the Republic of Srpska for the period from 2016 to 2021, strategic goals have been determined whose concern is higher education and they move towards strengthening of scientific research work, linking higher education with labour market and internationalization of higher education.

Linking professional education and labour market is one of the goals defined by the Strategy on educational development in the Republic of Srpska for the period from 2016 to 2021, and by signing the agreement practical education will be improved in the secondary school system.