One of the major challenges of the post war Kosovo has been establishment and reform of education system and education
institutions. Thus, this research aims to address effect of education in labour market outcomes for the period 2009 until 2013,
through a theoretical discussion of four main points: the process of establishing the education system in Kosovo in post war
period, the effect of education in labour market, participation of education in Kosovo's GDP and countries in the region,
investments on education as the main opportunities for reduction of unemployment in Kosovo. In the methodology of this
research paper are used secondary data and they are calculating by STATA program. The main analyses in this research
paper are: descriptive statistics, regression method and correlation matrix. The results of analyses have shown that in one side
education has positive impact on employment and youth employment rate, but it has shown negative impact on job seekers
rate; then, on the other side vocational training has shown negative impact on employment but it has positive impact on youth
employment rate and job seekers rate. In T-statistical analysis, all analyses have shown non-significance on both variables
(education and vocational training) during the period 2009 - 2013. In this research paper is concluded that Kosovo has high
unemployment rate 35.3% (KAS Report, 2015) and most of Kosovo population is constituted by young people, thus this
remains one of the biggest challenge for Kosovo state. Education (including vocational trainings) is shown as the best
opportunity to reduce unemployment, especially at younger people, and to integrate them in domestic and international labour
markets. Thus, the authors conclude that in order to reduce the high level unemployment rate, Kosovo institutions should focus
constantly in creating and improving the education policies.