Foreign workers in Serbia mostly come from Asia, primarily from the Russian Federation, followed by China, Turkey, India, and Nepal, and are mainly engaged in the construction industry. Experts explain that the reason for their arrival is the shortage of domestic labor and the fact that they can earn more here than in their home countries. In the past year alone, the country “imported” more than 50,000 foreign workers. However, despite employing around 170,000 workers in the construction industry, it is evidently not sufficient because Serbia still faces a shortage of construction workers at all skill levels, especially those with lower qualifications such as carpenters, masons, steel fixers, and other support staff.
In the future, an increasing deficit of experienced qualified workers is expected, primarily due to an unfavorable age structure. Recently, Goran Vesić, the Minister of Construction, warned about this, stating that a significant number of infrastructure projects are expected, meaning that Serbia will need a large workforce, and the country will have to import labor. The minister also reminded that Serbia relies on about a third of its workforce in the construction industry being foreign.
In the Association for the Construction Industry at the Chamber of Commerce of Serbia, it is emphasized that the shortage of qualified workforce in the construction industry has been a constant issue for several years. Ivana Vuletić, the secretary of the association, points out that despite statistical indicators showing an annual increase in average wages in the construction sector, there has been a decrease in the number of people interested in enrolling in construction schools.
Given the announced investment cycle and numerous infrastructure projects planned for the upcoming period, the expectation is for new job opportunities in the construction sector. The recently adopted Law on the Employment of Foreigners is expected to facilitate the employment of foreign workers, as the entire worker registration process is planned to be conducted online, significantly speeding up the hiring and work permit acquisition procedures.
We hope that the announced liberalization of the labor market within the ‘Open Balkans’ initiative will create opportunities for easier employment of the missing workforce in the construction industry,” emphasizes Vuletić, reminding that reputable global consulting firms, in their assessments of the construction industry in 2024, state that the shortage of labor due to a lack of qualified workers and an inflexible labor market represents a moderate risk to the unhindered growth of the construction industry in the medium term in Europe
Ljubomir Madžar, a retired professor from the Faculty of Economics, believes that Serbia would not employ foreigners if they were not needed, as local workers cannot meet the demands of the domestic labor market.
Workers move and find employment in other countries, a result of institutional changes that enable greater mobility. While the “iron curtain” was in place, crossing to the other side was not possible. Now, the world is more liberal, and there is greater workforce mobility, so it is natural for workers to go where they can earn more. This is important from the perspective of the global economy because it’s not ideal for a worker in a less developed country to produce value worth 100 units when, in another more developed and emancipated country, they could create value worth 200 units – emphasizes Prof. Madžar.
The departure of qualified and unqualified workers to other countries for better wages is confirmed by economist Milan R. Kovačević.
“Our problem is that we do not have natural population growth, so we will need to import labor for a long time. Foreign workers who come here come from places where they are paid less. That’s why I also believe that the ‘Open Balkans’ initiative will not bear fruit because Albanians and Macedonians would prefer to go to the West than come here, as they can earn more there,” says Kovačević.
The issue of wages is indeed significant, he adds, and it is one of the reasons why workers leave the country. However, these wages cannot be increased beyond what the economy can bear.
If there is pressure in that regard, then our employers will eventually seek workers from Bangladesh rather than local ones. However, the solution is not only in importing workers. We desperately need an institution that will make plans in advance. Currently, Serbia lacks adequately planned and aligned education with the needs of the labor market – explains Milan R. Kovačević.
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