Research results released: On average, 12,000 people are employed each year in Kosovo

Agim Sahin, head of GDP, said information on the labour market is the most important resource, so job market research or studies of this nature will help all job market actors, especially recipients of decisions or policy-makers.

According to him, drafting employment, education and professional skills policies in the labour market without information or quality data, and without a genuine scientific study of the labour market, the expected results will never be achieved.

“GDP, in continuation like other years even this year, is implementing the research of needs in the labour market. This research is being supported by the Ministry of Labour and Social Management. The main objective of this research was to identify the needs of the labour market”, the UN communiqué says.

Research has been conducted throughout the territory of Kosovo, where 1,000 and 200 businesses or 10 percent of the chosen sample have been surveyed.

The findings show that the total number of employees between 2006 and the end of 2016 has reached 317 thousand and 188 persons, which averages 12,000 people are employed each year.

“As far as registering and closing businesses between 2000 and 2016, an average of more than 80,000 new businesses open each year, with more than 10,000 new businesses registered in 2016 alone. While the closure of local businesses also has increases, with only 2016 in numbers of 2 thousand and 328 closed companies. Compared to 2015, 8.14 percent growth has been recorded, says the UN research.

So 4 grand and 400 businesses have been closed for two years.

According to this research, it turns out that increasing foreign business registration in Kosovo has a positive trend. In 2016 alone, 674 foreign businesses were registered, compared to 2015, with an increase of 41.9 percent. While the closure of foreign businesses proportionally showing low figures. And actually a more pronounced increase was in 2016, where about 50 foreign businesses were closed down, compared to the preceding year there is a 16.3 percent increase in shut-down, says research.

The main causes of business closure, according to the GDP, are primarily inadequate fiscal policies by 15 percent, lack of subsidies by 12 percent, high banking interest rates by 11 percent, expensive energy by 10 percent, and informality and non-fernal competition by 9 percent.

Agim Sahin said the remittances trend in 2016 reached 691m euros, or compared to a year ago, is 3.5 percent more. According to him, over the past five years it is seen that an average of 620m euros were introduced on an annual basis.

As for foreign direct investments from 2008-2016, it is seen that in 2015 there is a very positive indicator that compared to the preceding year has marked increases of more than 103 percent, reaching 308.8m euros but still with a slight decline in 2016, dropping to 215.9m euros or 30 percent. So over 92m euros are foreign investments in Kosovo less in 2016.

Sahin said foreign direct investments in Kosovo 2008-2016 according to sectors lead by 60 per cent in real estate.

Lumije Aydini, the UN manager, showed the findings of research, where the labour market faces many challenges.

On the one hand, the number of free jobs continues to rise, with this increase emerging problems where many businesses in succession complain of an inadequate, non-professive and dexterious job force offer. Free jobs mainly go through various proclamations, but then they register a portion of the Public Employment Service as well as the non-public employment institutions (the private employment mediation sector) aimed at mediating demand with the job bid, serving at the same time with unemployed and employers”, Aydin has said.

The number of employees is mainly concentrated in the trade sector by more than 30% and in the productivity sector by approximately 13%. These two sectors absorb more than 40% of all employees.

She also pointed out the ways to hire staff staffs, where she said that the most frequent way to complete free jobs remains through 42 percent proclamations, and the second way is through relatives or friends at 33.7 percent, while through public employment services at only 14.7 percent.

The primary procedure in most of the businesses interviewed is the lack of professional staff for jobs, or staff lack basic professional skills and less competence. The largest number of free jobs found during research come from the construction sector at 19.9 percent. And free jobs most refer to the tailoring profession with countries found at 15 percent, then to the sales assistant at stores with 12 percent, then to workers to store fruits and vegetables and similar to 7 percent”, she added.

According to her, one problem remains education and training, where professional employee skills are of particular importance not only to the company or the labour organisation, but also to the employee himself. Technological changes and modernisation of many jobs in most of the sectors have prompted this demand for additional training to increase. Given 1200 companies have been part of the research, more than 22% of employees have attended professional training for new skills. Mainly training has been supported by companies themselves. While lack of professional skills comes as a result, given that most professional schools do not offer adequate conditions.

Skender Recica, minister of social welfare work, appreciated the very important research, where his findings will be anchored in policy drafting and work

Drin Haraqi, director of the Employment Agency, appreciated the research that he said would affect the improvement of their work in the future and that finding them facilitates their work.

Bashkim Shala, deputy director of the Tax Administration, said the findings of this research would greatly help in their work.

Alush Sejdiu, deputy chairman of the Union of Unions, praised research and, according to him, among many problems is not harmonising institutions especially in the field of jobs, where there are a shortage of professionals from certain areas. According to him, the problem remains not informing employees and lack of unions in the private sector.