economy
March 13, 2026
Wages are rising, employment is falling: What do these figures tell us?
Lately, there has been frequent discussion about the growth model Serbia has had so far, and the growth model it needs in the future. It is said that the time when economic growth could be driven by subsidizing foreign investments is over, partly because Serbia is no longer a country with cheap labor. It is now important to invest in high-tech sectors and products that can support high salaries for skilled professionals.
TL;DR
- Serbia's economic growth model is shifting away from subsidizing foreign investments and cheap labor towards high-tech sectors.
- The number of employed individuals decreased in the last quarter of the previous year compared to the same period in 2024.
- Real net wages increased significantly in both 2024 and 2025.
- The labor market is entering a phase of moderate adjustment, with stagnating employment and rising inactivity.
- Global factors like geopolitical uncertainty and the slowdown in the German economy are impacting Central and Southeast Europe.
- The largest employment reduction was in manufacturing, particularly in labor-intensive branches like clothing and electrical equipment production.
- Service sectors, administration, information, communication, accommodation, and food services also saw employment decreases.
- Employment is growing among entrepreneurs while decreasing in companies, and concentrating in Belgrade while declining in Southern and Eastern Serbia.
- Demographic changes, including an aging population and a declining birth rate, are contributing to a shrinking labor supply and shifting demand towards health and social services.
- Job creation is expected to slow down in the coming years, with a greater focus on replacing existing workers rather than expanding roles.
- Employers are facing difficulties in finding suitable workers, indicating a tightening labor market in certain segments.
- The future of the labor market depends more on productivity and technological transformation than on numerical expansion of jobs.
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