Business news from Ukraine

At the end of 2024, the Serbian labor market showed stability with a gradual increase in employment. The unemployment rate decreased to 9.2%, down from 10.1% in 2023. Economic recovery from the pandemic and the inflow of investments in key sectors are contributing to job creation, but the country still faces a shortage of skilled labor.

The key characteristics of the labor market in Serbia are:

1) The employed population is about 2.9 million.

2) The main employment sectors are:

1. • • Industry – 25%;
     • Agriculture – 18%;
     • Services – 45% (including IT, trade and tourism).

3)Average salary level:

1. • The average salary in Serbia is 770 euros and in Belgrade 950 euros.
   • The highest salaries are observed in IT (up to 1,500 euros), pharmaceuticals (1,200 euros) and financial sector (1,000 euros).

4) The most demanded professions are:

IT specialists;

Engineers;

Medical personnel;

Workers in the construction and agricultural sectors.

The role of migrants in the Serbian labor market

Migrants play an important role in the Serbian economy, especially in sectors where there is a labor shortage. In 2024, the number of registered foreign workers exceeded 120,000, including citizens of Ukraine, Bosnia and Herzegovina, North Macedonia, Russia and China.

Main migrant groups and their roles:

1. Ukrainians:
   • Official number: about 30,000 people.
   • Areas of employment: construction, agriculture, services, technical professions.
   • Ukrainians are actively involved in infrastructure projects such as building roads, bridges and industrial facilities.
2. Citizens of Bosnia and Herzegovina:
   • Number: about 25,000 people.
   • Priorities: service industries, including trade, hospitality and repair work.
   • Due to the proximity of language and culture, Bosnian citizens are easily integrated into the Serbian labor market.
3. Citizens of Northern Macedonia:
   • Number: about 20,000 people.
   • Main sectors: industrial production, agriculture and transportation.
4. Russian citizens:
   • Numbers vary greatly depending on the data source from 70,000 to 150,000 people.
   • Areas of employment: IT, real estate, education.
   • Russians are more likely to hold highly skilled positions, especially in Belgrade, and invest in their own businesses in the areas of catering, IT, other .
5. Chinese:
   • Number: about 30,000 people.
   • Role: development of retail trade, management of enterprises in the service sector.

Regularities:

• Ukrainians and Balkan migrants (Bosnia, Macedonia): more likely to work in positions requiring physical labor or technical skills, and focus on entrepreneurial activities.
• Russians: hold positions in technology, finance and education.
• Chinese: focus on entrepreneurship, starting small and medium-sized businesses.

Challenges of the labor market with regard to migration

1. Shortage of skilled labor:
   • Serbia attracts foreign workers to compensate for shortages in construction, medicine and IT.
2. Competition among migrants:
   • Citizens of neighboring countries such as Bosnia and Macedonia have an advantage due to similarity of languages and easier integration process.
3. Migration regulation:
   • Paperwork procedures for work remain relatively simple, but require streamlining to reduce bureaucracy.

Experts predict that Serbia will maintain a high share of migrant workers in the labor market, especially in construction, agriculture, and IT. Key factors:

• Attracting investments in infrastructure and industry.
• Increased demand for qualified specialists due to the outflow of local staff to EU countries.
• Simplification of labor migration procedures.

Serbia’s labor market in 2024 is developing against the backdrop of an influx of foreign workers, including a significant share of Ukrainians. This allows the country to address the problem of staff shortages in key sectors. However, Serbia’s further growth will require not only attracting migrants, but also improving working conditions and incentivizing local workers.