Bosnia’s ILO unemployment inches down to 27.5% as of end-Sep 2013

By bne IntelliNews December 18, 2013

Bosnia’s ILO-definition unemployment rate stood at 27.5% as of end-September 2013, down by 0.5 percentage points compared to the end-2012, the head of the country’s labour and employment agency, Adnan Delic was quoted by Dnevni Avaz daily. Based on the number of registered unemployed, Bosnia’s jobless rate is almost twice as high at 44.8% as of end-September. The difference could be explained by the high share of grey economy estimated at one third of GDP according to local analysts.

Delic also said the total number of employed in Bosnia equalled to 683,645 as of end-September, out of which 280,597 were women. In January-September employment in the transportation and storage sector (down by 15.6% y/y) recorded the steepest decline, whereas the sector of other service activities (up 28.2%) increased the most over the period.

Bosnia’s unemployment rate is among the region’s highest and remains a drag on private consumption and its contribution to GDP. The IMF sees the economy expanding by a mild 0.8% this year after contracting by an estimated 1.1% in 2012. The moderate recovery this year will hardly provide for a sustainable reduction of unemployment as it will not create enough jobs to absorb new entrants to the labour force.

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