Rural Employment in Bosnia and Herzegovina - an Overview and Outlook

Type Conference Paper - I World Bank Conference on Poverty and Social Inclusion in the Western Balkans WBalkans 2010
Title Rural Employment in Bosnia and Herzegovina - an Overview and Outlook
Author(s)
Publication (Day/Month/Year) 2010
City Brussels
Country/State Belgium
URL http://siteresources.worldbank.org/INTECAREGTOPPOVRED/Resources/BajramovicPaper.pdf
Abstract
Unemployment is still the greatest economic and social problem in Bosnia and Herzegovina (BH) having the same importance in both its rural and urban areas and an annual rate between 31.1% (2006) and 24.1% (2009). The structure of rural employment as well as the basic characteristics of the labour force is similar to those in the other countries in transition in the region. This means that the age and educational structure of the population is unfavorable compared to that of the urban areas, the unemployment rate of the active population is higher, agriculture is the dominant economic activity (participation in total employment is around 35%) and the share of the tertiary sector in employment is very low. The labour market in BH is burdened with numerous problems. It is still fragmented and does not ensure mobility of the labour force. Actual legislation on work is harmonized with the market economy, but, in practice, discrimination on ethnic, age or gender grounds still sometimes takes place. The political situation also contributes remarkably to the insufficient mobility of the labour force. Factors that could influence changes in the rural labour market in BH in the coming years are: the implementation of the main orientations set out in the entity’s strategies of employments; carrying out the reform of the educational system; the improvement and modernization of existing professions; harmonized development of all regions within the country; and harmonization of laws in BH with those of the EU in order to create better conditions for foreign capital investment, the land market and changes in size structure of family farms and changes in structure of farm production.

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