1. Docent Dr.sc. Asim Ibrahimagić
Bosna i Hercegovina
Agencija za rad i zapošljavanje
Bosne i Hercegovine
S A R A J E V O
Bosnia and Herzegovina
Labor and Employment Agency of
Босна и Херцеговина
Агенција за рад и запошљавање
Босне и Херцеговине
С А Р А Ј Е В О
LABOUR MOBILITY IN BiH WITH AN EMPHASIS ON THE EMPLOYMENT ABROAD
Docent Dr.sc. Asim Ibrahimagić
Sarajevo, 6 . November 2017.

2. Economic trends in Bosnia and Herzegovina are largely related to the external environment, which mostly relates to economic trends in the EU and the region. Thus, the gradual economic recovery in the Eurozone and the countries of the region, manifested through a slightly higher level of economic growth compared to the previous year, had positive implications for Bosnia and Herzegovina. ● The average monthly net salary per employee in 2016 was 838 KM. ● The average monthly paid off net earnings per person in employment in BiH for July 2017 amounted to 849 KM compared to July 2016, which is nominally by 1.9% higher. ● Source: Agency for Statistics of BiH

3. - Observed on an annual basis in 2016, the volume of industrial production grew by 4.3%.
- In the period January-July 2017, compared to the same period of 2016, industrial production in Bosnia and Herzegovina increased by 2.6%.
In this period, a positive trend in the labor market was recorded.
With the increase in employment, there was a decrease in unemployment, which also directly affected the reduction of the unemployment rate.
The average number of employed persons in BiH in the first seven months of 2017 recorded growth in relation to the same period in 2016 and increased by 2.5%. The unemployment rate, which stood at 39.4% in July 2017, was 2.2% less than in the same period of 2016 (July %).

4. In 2016 the number of persons employed from the records of the institutes and employment services increased. In total 132,191 unemployed persons were employed, which is for 20,795 persons or 18.7% more than in the previous year. Also, in the period January - December 2016, employers reported to the institutes and employment services a total of 62,528 need for recruitment of new workers, and this number is higher than the same period last year by 19,049 or 43.8%.
In 2017, the trend of reducing unemployment continued, and in the period January-July 2017, a decrease in the number of unemployed persons was registered by 5.7% in relation to the same period in 2016.
In the period January-July 2017, in total were registred 82,213 employed persons from the evidence, which is 7,159 persons or 9.5% more than in the same period last year.

5. According to the Agreement between the Council of Ministers of Bosnia and Herzegovina and the Government of the Republic of Slovenia on the Employment of Citizens of Bosnia and Herzegovina in the Republic of Slovenia,
Through the Labor and Employment Agency of Bosnia and Herzegovina, in cooperation with the Entity Employment Offices and the Employment Service of the Brčko District of BiH, from 2013 to 31st August 2017, under this Agreement, there are 16,198 employees in total.
I-VIII 2017 – 6,212

6. According to this agreement, in Slovenia, persons who meet the conditions from the advertisement of Slovenian employers in terms of qualifications, work experience and special conditions can be employed. The following professions are most required:
- Drivers (various categories including international transport)
- Welders
- Masonries
- Electricians
- Carpenter
- Locksmiths

7. Agreement on mediation in the employment of workers from Bosnia and Herzegovina in the Federal Republic of Germany (caregivers) for a fixed time. This arrangement is implemented through two procedures: 1. Trough Triple win project in cooperation with GIZ (Deutsche Gesellschall fur internationale Zusammenarbeit), which involves interviews of candidates, attendance of a German course and professional preparation for work in the Federal Republic of Germany and
2. Procedure for a well-known employer - where the candidate finds an employer in the Federal Republic of Germany. According to the Arrangement on Mediation in the Employment of Workers from Bosnia and Herzegovina in the Federal Republic of Germany since the beginning of the implementation of the Arrangement, a total of 3,276 employees are employed, by age: , , ,
2016 – 1.079,
I-IX 2017 – 575.

8. - .
- In the reckless period, it is necessary to work more harder to create a favorable climate for domestic and foreign investors in order to create new jobs through improvement (tax policy, education policies, financial incentives, labor legislation). The launch of capital projects would enable greater employment, which would also be reflected in the labor market.
- The processes that await Bosnia and Herzegovina will even more clearly determine the directions of the activities of public employment services, especially in the area of adoption and implementation of laws and by-laws, as well as instruments and measures that can directly help further economic and social reforms, harmonize the education system with the needs of the labor market, the development of entrepreneurship, the creation of new jobs, and the faster process of European integration of Bosnia and Herzegovina.

9. In the Reforne Agenda all levels of government in BiH have committed themselves to implementing reforms in the field of labor market. In order to move steadily through sustainable growth, Bosnia and Herzegovina must rely on its strategic advantages.
These include significant potential in the workforce, which is currently not sufficiently exploited. Low rate of active working age and high unemployment rate, which is largely a consequence of the mismatch of supply and demand for qualified labor, and limits development opportunities. In BiH there is a significant number of long-term unemployed who are discouraged to seek employment.
Existing labor laws to a significant extent no longer reflect social and economic relations in BiH, and in certain provisions are contradictory to other laws and in some terms vague and insufficiently flexible.

10. It is necessary to launch measures for a significant reduction in the contribution of social protection (especially for those with lower incomes) in order to reduce labor costs, and it will helped attract investors, which would contribute to a greater number of employees in the formal sector (and reduce the dominance of employment in the informal sector).
In the medium-term period, the education system needs to be reformed in order to increase its links with the labor market.
Consider introduction of financial support for first-time job seekers.
Actively resolved the legal solutions for discouraging work in the gray economy and by preventing lower income applications as the basis for calculating and paying taxes and contributions.
Other measures to reform the labor market should be adopted as agreed with the IMF and the World Bank and in consultation with social partners.

11. - Entity governments, cantonal governments and Brčko District need to improve drafts of their labor laws, in consultation with social workers, in order to increase the flexibility of working conditions (including enabling part-time employment) and allow differential wage determination based on skills, qualifications, level of experience and performance.
- At the same time, entities, cantons and Brčko District shell strengthen their labor inspections and increase penalties for violations of labor laws and will endeavor to protect workers' rights in accordance with labor standards of the International Labor Organization and EU labor directives.
Institutes/employment services should improve management practices to improve the return of people to working status and ensure the separation of compulsory health insurance from the function of mediation in employment.

12. - In the context of the new challenges expected in the labor market, it is proposed to the competent institutions in Bosnia and Herzegovina to further improve the following activities:
- Reduce tax burdens on work and improve laws that regulate the economic environment in general, with the aim of relieving the employer, in order to enable the development of new employment. (Tax wedge, i.e. labor cost, is the largest in the region and higher than the EU average, and as such is disincentive to new employment);
- Reform fiscal policy in terms of introduction of tax incentives and incentives for new employment;
- It is urgent to make and harmonize the term plan of activities to align the enrollment policy in secondary and higher education with labor market needs (the enrollment policy in secondary and tertiary education is not compatible with the needs of the labor market and more than 1/3 of the unemployed persons in the labor force are unemployed for that reason );

13. - Curricula and quality of education should be aligned with the needs of employers, because the completed pupils and students do not possess a sufficient fund of knowledge, skills and abilities;
Continue the process of harmonization of labor, employment, education and other regulations related to labor market policies to enable vertical and horizontal mobility of students, students and labor force;
- Enhance the system of statistical indicators with a view to better monitoring the movement in the labor market and adopt a transparent and efficient model of public information on labor market trends (percentage of employment opportunities in time);

14. To make changes to the existing legal solutions in order to free up employment and employment services from dealing with passive employment measures (health insurance, compensation payments, etc.) and focus their activities on active employment measures (retraining, training and training);
Enable tripartite representation of social partners in the Steering Committees of the Employment Service, Cantonal Employment Agencies and the Disability Employment Fund at the level of authorities where this has not yet been done;
Improve the lifelong learning system.

15. THANK YOU FOR ATTENTION
Agencija za rad i zapošljavanje
Bosne i Hercegovine
Агенција зa рaд и запошљaвaње
Босне и Хeрцeговине
Labor and Employment Agency of
Bosnia and Herzegovina
THANK YOU FOR ATTENTION