The Labor Market in Macedonia and the Region – Situations and Analysis

Abstract

The recovery of the economy from the recession caused by the pandemic and the energy crisis brought new challenges, which necessitated the need for targeted fiscal support of the most energy-vulnerable households and companies in the entire Western Balkans. Rising consumer prices, fueled by energy and food prices, have caused a double-digit increase in the minimum wage and inflationary pressures since March 2022. There is a slow improvement in the labor market, but high unemployment requires policy intervention. The reduced growth projection for 2022 to 2.7 percent and the intensification of downside risks require a planned approach to return public finances to a sustainable path, acceleration of human capital development and reforms for competitiveness and the labor market.