The ILO in Bosnia and Herzegovina

Bosnia and Herzegovina has been an ILO member state since 1993. The country has ratified eighty-three ILO Conventions, including all ten fundamental conventions.   

Developments in the labour market in Bosnia and Herzegovina still hampered by structural dynamics  

While the economy recovered faster than expected from the Covid-19 pandemic, the much-needed recovery of the labour market is still lagging. The country continues to face one of the most challenging labour market situations in the region linked to long-standing structural challenges and the current energy crisis caused by Russia’s invasion of Ukraine.   

Low employment levels coupled with a rapidly aging population put a strain on the development of Bosnia's labour market. The Bosnian employment rate remains low, at 44.7 per cent for people aged 15-64 in 2022 (ILO, 2024), and still reveals notable disparities between men (55 per cent) and women (35 per cent). The country has one of the lowest female employment and labour force participation rates in the Balkans. Despite a downward trend in recent years, unemployment remains high, estimated at almost 13 per cent in 2022 (ILO, 2024). Moreover, Bosnian youth continue to be severely affected by unemployment and inactivity. Over 32 per cent of the aged 15-24 were unemployed in 2022 (ILO, 2024) and the share of youth not in employment, education, or training (NEET) reached 17.6 per cent the same year (ILO, 2024). The share of informal employment in total employment is relatively high and stands at 20 per cent (ILO, 2024). In addition, emigration has become a pressing concern, depriving Bosnia of the young and skilled workers on which the development of its labour market will depend. 

 
Social dialogue remains weak and the involvement of social partners in the implementation of policies is limited. Economic and Social Councils (ESC) operate at entity level, although the ESC in the FBiH has been facing difficulties in its work over the past couple of years. There are no general collective agreements in place, but several sectoral agreements are active, mainly covering the public sector.   
 
The current ILO projects support 

• local employment partnerships  (tailor made interventions agreed upon by labour market actors to come up with local solutions to specific employment challenges of a municipality or district), 
• public employment services in reaching out to vulnerable groups, such as long term unemployed, persons with disabilities, ethnic minorities; for the most recent initiative see here   
• youth employment through the Youth Guarantee 
• labour inspectorates and institutions for the mediation of labour disputes,  
• combatting undeclared work   

Text last updated March 2024