Montenegro’s registered unemployment rate fell to 7.62 per cent in June, reaching the lowest level since the Employment Office began recording the series. The decline follows May’s first recorded drop below the 8 per cent threshold, confirming a continued reduction in the number of people officially registered as unemployed.
The Employment Office reported stronger demand from employers, an increase in registered vacancies and fewer new applications from unemployed persons. During the first half of 2026, the institution launched 15 public calls covering 11 active-employment programmes, compared with nine calls during the entire 2025.
Labour Shortages Increase Across Key Economic Sectors
The reduction in registered unemployment reflects a tightening labour market, with employers in tourism, construction, retail, transport and services increasingly facing difficulties in finding available workers, particularly during the summer season.
The decline in the registered unemployment rate does not indicate that unemployment has been fully eliminated. The indicator covers people registered with the Employment Office, while the unemployment rate calculated through the labour-force survey follows a separate methodology and may produce different results. People can leave the unemployment register for several reasons, including finding employment, stopping active job searches, moving abroad or no longer meeting administrative requirements.
Labour Market Faces Skills and Regional Mismatches
Montenegro’s labour market challenge is increasingly linked to the gap between available workers and employer requirements, including differences in skills, location and willingness to accept available positions. Coastal municipalities experience significant labour shortages during the summer season, while some northern areas continue to face limited opportunities for year-round employment. Worker mobility is also affected by factors such as seasonal accommodation costs, which can represent a substantial share of earnings.
To address labour shortages, Montenegro has increased reliance on foreign workers. This supports the operations of hotels, restaurants, construction companies and retailers, but also exposes the country to competition for labour from regional markets and challenges related to work-permit administration.
Employment Programmes Focus on Training and Workforce Needs
The decline in registered unemployment has increased the importance of active labour-market measures focused on training, workforce mobility and employer-specific demand. Employment programmes based only on temporary job subsidies may improve short-term employment indicators without addressing longer-term skills shortages. Companies increasingly require workers with practical qualifications, including electricians, welders, machine operators, hospitality workers, drivers, technicians and digital professionals. Education and training systems have not always adapted quickly enough to these labour-market requirements.
Lower Unemployment Creates Wage Pressure
A tighter labour market may contribute to further wage growth, as employees gain stronger negotiating positions when vacancies remain unfilled. Employers may need to improve pay levels, accommodation options and working conditions to attract and retain workers. For more productive companies, labour shortages can encourage automation and investment in employee development. For businesses operating with lower margins, higher labour costs may result in increased prices, shorter operating hours or greater exposure to informal employment.
The reduction in registered unemployment marks a new phase for Montenegro’s labour market, where the economic impact will depend on the ability to transform labour shortages into higher productivity and more valuable employment opportunities.
