The Agreement on free access to the labor market in the Western Balkans, part of the Open Balkans initiative, entered into force a year ago. However, there are concerns among both business owners and citizens about its impact. The agreement allows citizens of Serbia, Albania, and North Macedonia to access the labor markets of any of the three countries on the same terms as local workers, with equal rights to healthcare and social insurance.
Despite these provisions, dissatisfaction remains. The Serbian Chamber of Commerce (PKS) reported that only 11,000 joint work permits were issued in the first year, mostly for seasonal jobs. PKS President Marko Čadež acknowledged that the lack of high unemployment in the region limits the number of workers seeking cross-border employment.
The initiative, designed to create a common regional market for labor, goods, and services, has faced challenges. While some officials, particularly from Albania, claim it achieved its mission, others argue that bureaucratic obstacles and slow implementation have hindered its effectiveness. As a result, the Open Balkans initiative has not fully taken off among the broader Western Balkan region, including Montenegro, Bosnia and Herzegovina, and Kosovo.
Economist Mihail Arandarenko believes the agreement will have modest benefits for Serbia, especially as it offers slightly higher wages compared to neighboring countries. However, he notes that workers are more likely to seek opportunities in Western Europe.
Citizens are concerned that foreign workers could compete with them for jobs, but experts argue that foreign workers mainly fill positions in sectors with labor shortages, like construction and hospitality, where local workers are insufficient. Additionally, there are no discriminatory practices, and foreign workers are employed temporarily before returning home.
The National Employment Service (NES) confirmed that workers from Open Balkans countries have the same rights as Serbian workers, and employers are not exempt from taxes and contributions unless hiring highly qualified individuals with salaries twice the average wage. Despite public concerns, experts stress that the employment of foreign workers does not pose a significant threat to local job opportunities.
