Montenegro has adopted a new employment strategy aimed at increasing the employment rate among people aged 20 to 64 to 75 per cent by 2030, compared with the current baseline of 69.7 per cent. The strategy also sets targets to reduce unemployment to 8.9 per cent and decrease the share of young people who are not in employment, education or training from 19.2 per cent to 15 per cent.
The first implementation plan, covering 2026 and 2027, includes approximately €18.72 million in state budget funding. Additional financing is expected through Montenegro’s Reform Agenda and the European Union’s IPA III funding mechanism.
Employment Measures Cover Industry, Entrepreneurship and Regional Development
The programme includes measures supporting industrial production, women’s entrepreneurship, regional investment and active-employment initiatives implemented through the Employment Office.
The strategy’s unemployment objective is based on labour-force indicators, while the Employment Office’s registered unemployment figure is calculated from administrative records. The two systems therefore produce different results, including compared with the 7.62 per cent registered unemployment rate recorded in June. The strategy focuses on increasing labour-market participation by bringing more women, young people and economically inactive citizens into formal employment, while expanding job opportunities beyond the seasonal tourism cycle concentrated along the coast.
Youth Employment Remains a Key Policy Focus
Reducing the share of young people outside employment, education or training is one of the main indicators included in the strategy. The target is to reduce this group from 19.2 per cent to 15 per cent by 2030. Achieving this goal will require measures beyond employment subsidies, including closer alignment between education programmes and employer needs. The strategy highlights the importance of apprenticeships and practical training becoming a regular part of recruitment processes.
Support for Women Entrepreneurs and Regional Investment
Women’s entrepreneurship is identified as another priority area within the employment programme. Support measures are expected to improve access to finance and business advisory services, while the long-term development of women-owned companies will depend on their integration into supply chains and expanding economic sectors.
Regional development is also considered important for achieving employment targets. While coastal areas generate significant numbers of seasonal jobs, Montenegro aims to strengthen year-round employment opportunities in the northern and central regions to address migration pressures and demographic challenges. Investment in sectors including manufacturing, food processing, energy, logistics and mountain tourism is identified as a potential source of more balanced employment opportunities across the country.
Funding Implementation and EU Support
The initial €18.72 million action-plan allocation represents the first stage of implementation, with additional resources expected from European support programmes. The effectiveness of the funding will depend on links between employment programmes and measurable outcomes, including long-term employment, wage development and employee retention after subsidies end.
European financing through programmes such as the EU IPA III mechanism and Montenegro’s Reform Agenda can expand available resources, but implementation requires administrative capacity, project monitoring, reporting and verification. The strategy establishes employment targets for 2030, with implementation focused on connecting education institutions, municipalities, employers and investment policies to create formal employment opportunities.
