Sarajevo, August 6, 2024 – The Government of the Federation of Bosnia and Herzegovina (FBiH) has taken a significant step to tackle the ongoing labor shortages impacting various sectors across the country. The government approved and forwarded the Draft Law on Amendments to the Law on Employment of Foreigners to parliamentary procedure.
The proposed amendments, submitted by the Federal Ministry of Labor and Social Policy, aim to address the critical issue of labor shortages, particularly affecting manufacturing, service industries, and other sectors vital to the economy. This problem is notably severe among large employers with a strong focus on exports. The changes were drafted in response to an initiative from the Employers’ Association of FBiH.
Key elements of the draft legislation include:
– **Timely Issuance of Work Permits**: The competent cantonal service will be required to make a decision on work permit applications within a maximum of 30 days.
– **Streamlined Procedures for Craft Registration**: The Federal Ministry will regulate the procedure for issuing work permits to foreigners intending to start a business, with regulations to be established within 90 days from the law’s enactment.
– **New Decision on Deficit Professions**: The Federal Employment Institute will issue a new decision on deficit professions based on the current labor market conditions, including the number and structure of unemployed persons and the needs of various economic activities. This decision will be made no later than October 30, 2024, following consultations with representative employers’ associations and with prior consent from the Federal Ministry.
The amendments are designed to address the mismatch between the skills of unemployed individuals and the needs of employers. Despite a notable number of unemployed individuals listed in employment records, many do not actively seek work due to reliance on health insurance and other social benefits.
These legislative changes are expected to improve the efficiency of the labor market, support economic growth, and facilitate sustainable development by better aligning workforce availability with industry needs.
The proposed changes reflect a proactive approach to one of the most pressing economic challenges facing the Federation of BiH and are anticipated to have a positive impact on both local businesses and the broader economy.
