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Western Balkan Partners Unite to Harness Labour Migration for Economic Growth
Budva, Montenegro, 16 May 2025 – Ministers and high-level representatives from the Western Balkans today endorsed a landmark Joint Statement during the Conference “Labour Migration: Supporting Economic Growth in the Western Balkans”, hosted by the Ministry of Labour, Employment and Social Dialogue of Montenegro and the Regional Cooperation Council (RCC), in collaboration with the International Organization for Migration (IOM), the International Labour Organization (ILO), and the European Union Delegation in Montenegro.
The region stands at a critical juncture amid mounting labour shortages and shifting demographics. Forty percent of employers are unable to recruit workers with the skills they need, as a result of rapid population decline, among other factors. To address this critical gap, governments are recognizing the urgency of strategic, rights-based labour migration policies. The demand for migrant workers has more than doubled in recent years. In 2024, over 100,000 work permits were issued to foreign workers in the Western Balkans, compared to just 46,000 in 2018.
“Labour mobility and migration are no longer merely demographic or economic issues – they represent key challenges and opportunities for modern public policy. In the Western Balkans, where traditional migration flows intersect with emerging global trends, joint and strategic action is essential to retain the workforce, enhance integration, and ensure a sustainable future for all citizens. We believe that migration can be a driver of development – with smart policies and regional cooperation, we can create conditions in which people do not feel compelled to leave, but rather choose to stay and build their future here,” stated Naida Nisic, Minister of Labour, Employment and Social Dialogue of Montenegro.
The Conference reflects a shared commitment to position well-governed labour migration as a strategic enabler of economic development, regional cooperation, and EU integration. Participants emphasized the need to align national migration frameworks with broader regional efforts, such as the EU Growth Plan, the Common Regional Market, and the Skopje Declaration on Sustainable Migration Governance, while reinforcing a whole-of-government and whole-of-society approach.
“Labour migration is no longer something we can plan for tomorrow – it is already reshaping our societies today. In the Western Balkans, we are both a region of departure and arrival. This dual reality calls for smart, inclusive, and human-centred policies. In 2023, the Western Balkans reached a record-high employment rate of 56.5% and a record-low unemployment rate of 12%. And yet, employers still face growing labour shortages across key sectors. This tells us that economic indicators alone don’t solve structural challenges. At RCC, we believe that well-governed migration, aligned with EU standards and grounded in regional cooperation, can help bridge this gap. With the new CRM Action Plan, we’re moving beyond agreements to real, human-centred solutions that protect workers’ rights, match skills with demand, and give everyone, whether they were born here or just arrived, a fair shot at building a future here,” said Amer Kapetanović, Secretary General of the Regional Cooperation Council.
The Joint Statement adopted at the conference sets a common agenda to enhance regional policy coordination, promote ethical recruitment, and develop inclusive, data-driven labour migration systems that respect migrants’ rights and strengthen integration services. These efforts aim to foster resilient labour markets, reduce skills mismatches, and improve migration governance aligned with EU standards.
“IOM reaffirms our commitment to advancing policies and programmes that support people-centered and inclusive approaches to labour migration and migration governance in the Western Balkans. With a common agenda, we look forward to making swift progress towards addressing labour shortages, engaging the diaspora, and ensuring long term stability and wellbeing of the region's labour force,'' said Arthur Erken, IOM's Regional Director for Europe and Central Asia. Highlighting the private sector's growing readiness to recruit internationally—especially in construction, digital, agriculture, tourism, and health—leaders stressed the need for stronger and inclusive partnerships where migrants are seen as economic drivers of change in a changing demographic landscape for this vibrant region.
“By focusing on labour markets and bringing together actors in the world of work, the Conference has helped to bridge the economic and social dimensions of migration, and emphasized the need to ensure well-functioning labour markets while protecting labour rights and fostering cohesion. Labour migration is a critical component of a broader policy package to address labour shortages and imbalances. We need to have more of these discussions where the social partners are able to bring their unique perspective: they have first-hand knowledge of, and possible solutions for, some of these challenges”, underscored Ms. Beate Andrees, ILO’s Assistant Director-General.
The conference also underscored the importance of labour migration in the region’s path towards European Union membership. The EU Acquis covers these matters comprehensively, from free movement of workers economic and social rights, labour mobility reforms to improved migration management and fighting against irregular migration.
“The EU fully supports that Western Balkans engage in labour mobility agreements to face labour shortage. The EU also follows comprehensive engagement with third countries which along labour mobility covers other strands of cooperation which are indispensable for effective migration management and avoid abuses, including readmission agreements”, noted Mr. Olivier Onidi, Deputy Director General, Directorate General for Migration and Home Affairs, European Commission.
This Conference marks a major step toward building labour migration systems that are future-oriented, fair, and inclusive—anchored in regional cooperation and aligned with EU standards. It reflects a shared vision that, if well-managed, labour migration can become a catalyst for growth and development, also in a region traditionally associated with other dimensions of migration.
For more information, please contact iomwesternbalkans@iom.int.