Montenegro’s labour market recorded strong employment growth in the first half of 2026, with the average number of employed people increasing by nearly 13,200 workers compared with the same period a year earlier, while real net wages declined due to faster inflation growth. Average employment reached 278,980 people during the first six months of 2026, compared with 265,815 in the corresponding period of 2025, representing a year-on-year increase of 5 per cent.
The number of employed people continued rising during the summer season, reaching 291,262 in June 2026. This was around 13,000 more workers than in June 2025 and almost 20,000 more than in January 2026.
Construction and tourism-related sectors lead employment growth
Employment growth was recorded across several sectors, with the strongest increases reported in construction, manufacturing, tourism-related activities and services. Construction employment increased 11.6 per cent, while manufacturing employment grew 8.8 per cent. Employment in arts, entertainment and recreation increased 9 per cent, followed by accommodation and food services with 6 per cent growth.
The number of workers in transport and storage rose 5.1 per cent, while wholesale and retail trade employment increased 4.7 per cent. Professional, scientific and technical activities employed an average of 17,683 people, an increase of 5.4 per cent year on year. Administrative and support services recorded employment growth of 3.8 per cent, while employment in health and social work increased 2.7 per cent and education rose 3.1 per cent.
Manufacturing employment rises despite lower output
Public administration employment remained almost unchanged, averaging 23,238 workers during the first half of 2026. Employment in the real estate sector declined 1.4 per cent, making it one of the few sectors to record a decrease despite continued property development activity and foreign interest in coastal real estate.
Manufacturing added almost 1,440 jobs on an average first-half basis, reaching 17,813 employed people, despite a slight decline in manufacturing output. The difference between employment growth and production performance may reflect hiring ahead of output increases, changes in labour productivity, shifts within the industrial structure or the formalisation of existing jobs.
Inflation reduces wage purchasing power
The labour market expansion was accompanied by pressure on household purchasing power. Average nominal net earnings increased 1.2 per cent compared with the first half of 2025, while consumer prices increased 3.3 per cent during the same period.
As a result, real net wages declined by 2 per cent. Although employment growth increased overall household income, individual workers experienced lower purchasing power. Costs related to transport, healthcare, housing maintenance, rents and hospitality services increased faster than the general consumer price index, placing additional pressure on households, particularly in urban and coastal areas.
Employment growth strongest in smaller municipalities
Employment growth was particularly pronounced in several smaller municipalities, although percentage increases were influenced by lower initial employment levels.
Average employment increased:
- 19.3 per cent in Gusinje
- 13.4 per cent in Andrijevica
- 12.3 per cent in Zeta
- 11 per cent in Petnjica
- 9.7 per cent in Žabljak
Among Montenegro’s larger employment centres, growth was recorded in:
- Podgorica, where employment increased 4.5 per cent
- Budva, up 4.7 per cent
- Bar, up 5.8 per cent
- Nikšić, up 5 per cent
- Kotor, up 6.8 per cent
- Ulcinj, up 9.2 per cent
The employment trends reflect the combined impact of tourism, construction, retail activity and public services across different municipalities.
