Bosnia & Herzegovina’s registered unemployment rate fell by 0.5pp m/m to the historically low level of 39.6% in April, data from the country’s labour and employment agency showed on June 30.

Bosnia has one of the highest levels of unemployment in the world as the country is still suffering from the consequences of the 1992-1995 Bosnian war, which hit all big companies in the country. Also, the ongoing political and economic uncertainty is deterring foreign investors that could create new jobs.

However, in April the jobless rate fell below 40% for the first time in years, mainly thanks to seasonal jobs and programmes to boost employment financed by international institutions.

There were 495,405 registered unemployed in Bosnia at the end of April, and according to data from the statistics office, 753,975 people were in formal employment.

The labour and employment agency also said that the number of registered unemployed moved down 1.61% m/m 487,424 at end-May. It declined by 6.1% y/y, according to bne IntelliNews calculations.

The number of registered unemployed in the Bosnian Federation declined 4.8% y/y to 355,288 at the end of May. The number in Bosnia’s smaller entity, Republika Srpska, contracted 9.8% y/y to 120,868 and the number in the autonomous Brcko District moved down 2% y/y to 11,268.

The International Monetary Fund (IMF) has said that Bosnia should focus on reforms aimed at reducing unemployment and improving the business environment. The 2015-2018 Reform Agenda, required by the European Union (EU), is expected to lead to measures that would lower the jobless rate, including by improving legislation and attracting investors.