Adjustment Capacity Of Labour Markets Of The Western Balkans, With A Focus On Labour Markets
Source: European Communities
The main question addressed in this paper is the performance of the labor markets in the Western Balkans. The aim was to find out whether they can deliver growth of employment and decline of unemployment in the medium run and whether they can withstand short-term shocks due to changes in demand or supply. The main shock in transition is that of productivity. Indeed, in this region, as in more advanced countries in transition, productivity growth is the main source of GDP growth. With employment stagnant or falling and recovering only in one or two cases, inflationary pressures should be quite moderate.