Montenegro’s investment expansion is coinciding with rising employment and declining unemployment, creating potential workforce constraints for infrastructure, energy and tourism projects. Capital expenditure increased 50% year on year, construction output grew 6.3% in the second quarter, electricity production surged and tourism supported exports, while unemployment fell to 9.4%.
The combination of expanding investment and a tightening labour market presents challenges for project delivery. Major infrastructure, energy and tourism developments can require the same categories of workers simultaneously, potentially increasing wage costs, delaying construction schedules and raising dependence on foreign labour and subcontractors.
The European Commission’s data do not quantify specific skills shortages, meaning that shortages in individual professions would require separate labour-market research. The activity rate has already approached 80%, limiting the scope for further employment growth through the mobilisation of previously inactive domestic workers.
Investors can address workforce risks through earlier procurement, modular construction, productivity-enhancing tools, training, improved scheduling and clearer coordination between contractors. Public authorities can also support implementation by spreading major projects across different procurement periods rather than concentrating tenders within the same market window. As Montenegro advances its investment programme, workforce availability and institutional capacity remain important factors in converting project designs and financing into operational infrastructure and other productive assets.
