Addressing Youth Unemployment in Bosnia and Herzegovina
Addressing Youth Unemployment in Bosnia and Herzegovina

Summary/Abstract: Youth in Bosnia and Herzegovina face formidable obstacles in entering labor market. Reasons for this are multifold: general weakness of economy, inadequate education system in the country, and dysfunctional labor market, including lack of action by competent authorities. Problems in economic sector are exemplified not only by high rate of unemployment and low GDP, but also in huge proportion of economic processes and employment belonging to the 'grey market', or informal sector. Education system in general does not equip young graduates with knowledge and skills they will need in labor market. As a result, large numbers of graduates, especially those from vocational schools, are unable to compete in the labor market. Labor market is dysfunctional due to inadequate regulations governing the sector, coupled with incompetent and inadequate intervention by relevant authorities. There are several ways to try to address the identified problems with youth unemployment in BiH: unfortunately, government bodies tasked with resolving this problem, are rigid and incompetent, and have not proven adept at designing adequately targeted and efficient measures. Lack of proactive action is symbolic of government's failure to address its stated priorities. Several private employment services have recently sprung up, trying to fill the void. They are, however, plagued by inherent problems of not addressing the needs of those most at risk of unemployment, such as vocational school graduates. Another recently piloted scheme also attempts to address the system weaknesses by creating the 'apprenticeship scheme', designed to assist the youth in gaining initial, legally required, one year of experience, and thus facilitate their entry into the labor market.

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