Serbian employment remained stable during the first quarter of 2026, but companies are finding it increasingly difficult to recruit the technical and vocational staff needed to translate new orders into production.
Approximately 83% of surveyed companies did not reduce employment during Q1. For the second quarter, 92%expected to maintain or increase staffing, while only 8% anticipated reductions. The share planning to hire rose to 17%, compared with 12% that expanded employment during the first quarter.
The available educational profiles broadly correspond to company needs, according to 89% of respondents. The problem is quantity. Around 59% said suitable profiles exist but there are not enough qualified people available. Only 30%believed the market offered both the right skills and sufficient numbers.
The shortage list cuts across the industrial economy: heavy-vehicle drivers, production workers, welders, mechanical engineers, locksmiths, CNC operators, construction technicians, electrical engineers, steel fixers, bricklayers, machinery operators, carpenters, electricians, technologists and IT engineers.
These are not marginal positions. They determine whether a factory can add a shift, whether a wind farm can be commissioned, whether a contractor can deliver on time and whether a logistics company can expand its fleet. Shortages increase overtime, subcontracting and recruitment costs while raising the operational risk associated with employee turnover.
Construction companies showed the strongest hiring intentions, with 33% expecting to increase employment in Q2. Public utilities followed at 24%, while tourism, wood processing and energy also planned expansion. These sectors are competing for workers who can often earn higher wages elsewhere in Europe.
Serbia’s demographic structure makes the problem difficult to resolve through cyclical policy. The working-age population is contracting, younger workers continue to migrate and the vocational-education system does not produce enough graduates in the occupations facing the strongest demand.
Foreign workers can ease shortages in construction, hospitality and basic manufacturing, but immigration does not fully address the need for licensed engineers, experienced welders, electricians, CNC operators and commissioning specialists. These roles require technical education, local-language competence, safety training and familiarity with Serbian standards.
Payroll taxation is part of the debate. Business representatives have proposed reducing the combined burden of taxes and contributions from approximately 63% to 46% over five years. Lower employment costs could make formal recruitment easier, but tax relief alone cannot create workers who do not exist.
The stronger response lies in employer-linked vocational training, recognition of foreign qualifications, structured apprenticeships and faster retraining. Large infrastructure and energy projects also need workforce plans that identify labour bottlenecks before construction begins.
Serbia’s industrial investment pipeline can be financed through banks, foreign capital and public spending. Its delivery capacity increasingly depends on whether enough trained people are available to build, operate and maintain the assets.
