In the last quarter of 2024, Serbia’s labor market showed a workforce of 2,894,900 employees, while 273,100 were unemployed. The number of residents outside the labor force reached 2,462,200. These statistics, based on the Labor Force Survey by the Republic Institute of Statistics, indicate an employment rate of 51.4% and an unemployment rate of 8.6%.
Comparing these figures to the third quarter of 2024, the labor market reflects a decrease in the number of employed individuals and an increase in both the unemployed and inactive population. Specifically, the employment rate dropped by 0.5 percentage points, while the unemployment rate rose to 8.6% from 8.1% previously. Over the past few years, however, unemployment has been gradually decreasing; it was at 12.8% at the end of 2020, and now stands at 8.6% in 2024.
Despite these improvements, experts note that Serbia faces a significant labor deficit in many sectors, especially given the negative demographic trends and the growing emigration of workers. Around 40,000 people, or 1% of the working-age population, emigrate annually, leading to a labor shortage and, consequently, a rise in real wages and employees’ bargaining power.
However, experts warn that the increase in wages has outpaced productivity, which could harm long-term economic growth. Between 2019 and 2023, wages increased by 18.2% in real terms, and by 9.2% in 2024, far exceeding productivity growth.
On International Labor Day, attention was drawn to how these statistics affect workers’ positions in Serbia. While labor rights are improving in some areas, there are still widespread violations. Serbia is still classified among countries where labor rights are systematically violated, particularly regarding collective bargaining, union association, working conditions, and payment for overtime.
The textile and automotive industries are among the most affected by labor rights violations. Research shows that workers in the textile industry continue to face poor working conditions, including inadequate temperatures, dust, and noise, while their salaries average around 65,000 dinars (roughly 554 euros). Similar challenges are found in the automotive sector, where workers frequently exceed 40 working hours per week, with the average working week in Serbia being one of the longest in Europe.
On the other hand, industries like IT show a more favorable situation. Despite a decrease in employment in the sector, wages remain high. In February 2024, the average net salary for programmers was nearly 290,000 dinars. Additionally, 96% of companies in the IT sector offer flexible working arrangements, and most provide benefits such as additional health insurance, team-building activities, and extra vacation days.
Economists and labor rights experts agree that there are significant disparities in workers’ conditions across industries in Serbia. The country remains heavily reliant on traditional industries, where working conditions and wages are often inadequate, hindering a noticeable improvement in the standard of living for many workers.
