By 2023, over 350,000 people had left Kosovo.

The GAP Institute has published the report “Emigration and the Labor Market in Kosovo: The Untapped Potential of the Inactive Labor Force.” According to this report, official data shows that by 2023, 359 thousand people have left Kosovo.

The GAP Institute on Wednesday published the new report "Emigration and the Labor Market in Kosovo: The Untapped Potential of the Inactive Labor Force", which sheds light on the major challenges facing the labor market in the country.

According to the report, by 2023, around 359 thousand people had left Kosovo to various countries around the world.

"By 2023, according to official data, the number of people who have left Kosovo for various countries around the world has reached 359 thousand people, which represents about 22.6% of the country's population, while the number of returned Kosovar citizens and foreigners living in Kosovo is about 99 thousand people. A portion of the people who are emigrating from Kosovo are from the active labor force, which is affecting the increase in demand in the country for local and foreign workers."

This negative migration balance has significantly impacted the labor shortage in the local market.

"According to the data, out of about 1.1 million people of working age, only 43% are economically active, while 57% are inactive. Of the latter, 66% are women and 34% are men, highlighting the low participation of women in the labor market."

The report recommends several measures to address this situation, including training tailored to real labor market demands, policies that help women enter the labor market, professional reorientation for young people not engaged in education, employment or training (NEET), close cooperation between education and the private sector for better professional preparation, incentives for employers who hire people who have been out of the labor market for a long time, support for innovative technologies, and support for the advancement of skills in the field of clean energy.​

The GAP Institute has emphasized that increasing the market inclusion of people who are currently inactive is the most sustainable solution to address the labor shortage in Kosovo.

"This requires joint commitment from public institutions, the private sector and civil society to create a favorable environment for employment and economic development."

In 2024, the Ministry of Internal Affairs (MIA) in Kosovo issued a total of 8,293 residence permits to foreign citizens, of which 3,974 were for employment reasons. Most of these immigrants originate from countries in the region such as Albania, Serbia, North Macedonia and countries outside the region such as Turkey, Bangladesh, the Philippines and other Asian countries. However, over half of these permits issued are a continuation of previous years. As a result, the balance of emigration remains much higher than immigration and foreign workers do not cover the shortage created in the labor market.

The most sustainable solution to address the labor shortage in Kosovo is to increase the market inclusion of people of working age who are currently not active in the market (who are not working and not looking for work).

Kosovo has the highest rate of inactivity in the Western Balkans: out of around 1.1 million people of working age, only 461 thousand people (43%) are economically active, while 613 thousand people (57%) are inactive. Of the inactive people, 66% are women and 34% are men, which means that the particularly low participation of women in the labor market remains a serious challenge. Kosovo ranks first in Europe and fifth worldwide for the lowest participation of women in the labor market. Also, 78 thousand young people (30%) are not engaged in education, employment or training (NEET), a percentage much higher than the EU average (9.9%) and the highest in the region.

The sectors most affected by the labor shortage are construction, wholesale and retail trade, gastronomy and hotels, and manufacturing, from which the tendency to emigrate is also higher. Most job positions in these sectors do not require high qualifications, but involve tasks that can be learned within a short period of time, suggesting that the inactive local workforce could meet these requirements.

The report offers several recommendations and measures aimed at improving the inclusion of the inactive workforce in the labor market, such as: training to advance knowledge and facilitate inclusion in the labor market; support for increasing the participation of women and youth in the labor market; strengthening the role of the Employment Agency; as well as support for innovative technologies and the advancement of skills in the field of clean energy./ Monitor