Montenegro Leads Western Balkans in Labor Productivity – Albania Placed Last

Labor productivity remains a major economic challenge across the Western Balkans, with significant differences between countries, according to the latest available estimates from the International Labour Organization (ILO)

In 2025, Montenegro recorded the highest labor productivity in the region, at $31.1 in international dollars per hour worked, followed by North Macedonia at $34, while Serbia stood at $29.8. Bosnia and Herzegovina recorded $26.3, while Albania ranked last at $18.7 per hour, a 4.1% decline compared with the previous year. The global average was $23.3 per hour.

The figures measure the economic value generated per hour worked rather than workers’ earnings. The ILO calculates labor productivity by comparing gross domestic product with the total number of hours worked by employed people, using purchasing-power-parity-adjusted international dollars to enable comparisons between countries.

Kosovo is not included in the ILO’s comparable dataset, although World Bank analyses indicate that its labor productivity declined by around 1.4% in 2023, following a 1.1% decline in 2022 and modest growth of 0.4% in 2021. Experts point to investment in technology, digitalization, education, professional skills, innovation and modern equipment as key factors that could improve productivity across the region. Better management, a stronger business environment and the movement of workers into higher-value-added sectors are also considered important.

The relatively low productivity levels highlight a broader challenge for Western Balkan economies: raising economic output without relying simply on longer working hours. For countries seeking stronger growth and higher wages, improving productivity will be essential to increasing the value generated by their workforces.

Have a news tip or story to share? Email us at info@connectingregion.com

Slovenia’s My Voice, My Choice Launches Global Campaign Against Online Harassment

The Love Only campaign, launched by Slovenia’s 8 March Institute, invites volunteers to stand behind journalists, activists, researchers and...

Slovenia Launches eLastovka App to Strengthen Consular Protection Abroad

Developed by the Ministry of Foreign and European Affairs of Slovenia, the app enables users to receive push notifications in...

End of an Era: Renault Clio Production Concludes in Slovenia

Renault has officially ended production of the Clio at its Revoz plant in Novo Mesto, bringing to a close one of...

Serbia Must Keep Pace With AI Revolution

At the opening of the 21st World Congress of Economists in Belgrade, Serbian President said the country must move in step with...

Women In Serbia’s ICT Sector Earn 16% Less Than Men 

The findings highlight one of the key challenges facing Serbia’s rapidly expanding information and communications technology industry. While the sector...
spot_img

Connecting the Adria Region Decision Makers

The Region is more than a publication - it's where the region's elite converge for insights and opportunities