Bosnia and Herzegovina has the worst conditions for the creation of new jobs in the Western Balkan region, according to a survey conducted by the experts of the International Monetary Fund (IMF).
The IMF has set certain conditions for the sixth tranche of the loan arrangement with B&H based on the results of this research; these conditions include the requested reforms to the labor law.
In the survey, Bosnia and Herzegovina received an average rating of 1,4, Serbia 1,5, while Montenegro, Macedonia and Albania received better marks, closer to the maximum score.
Extensive research conducted throughout the survey lists several reasons responsible for the high unemployment rate in the region, some of them being a badly regulated labor market, increased contributions, delayed transition and lack of structural reforms.
When it comes to Bosnia and Herzegovina specifically, high social benefits, which generally are not geared toward those in need, have a negative effect on job creation.
In addition, Bosnia and Herzegovina received the lowest ratings regarding benefits for new jobs, the fields of foreign investment, remittances, speed of reforms, the costs of labor and contributions. IMF experts therefore recommend broad measures in legislation reforms as the only way out of high unemployment.