Direct Request (CEACR) - adopted 2023, published 112nd ILC session (2024)

Employment Policy Convention, 1964 (No. 122) - Bosnia and Herzegovina (Ratification: 1993)

Previous observation

The Committee notes with regret that the Government’s report does not respond to the 2017 observations made by the Confederation of Independent Trade Unions of Bosnia and Herzegovina (SSSBiH) and the International Trade Union Confederation (ITUC). The Committee once again requests the Government to provide its comments in this respect.

Articles 1, 2 and 3, of the Convention. Implementation of an active employment policy. Consultation with the social partners. The Committee notes the comprehensive information provided by the Government on legislative developments and on active labour market programmes. Concerning the Republika Srpska (RS), it notes the Adoption of the 2021-2027 Employment Strategy, aimed inter alia at increasing employment of the productive workforce through the harmonization of supply and demand, facilitating internal mobility, improving the functioning of the labour market and social dialogue as well as the Adoption of 2022 Employment Action plan. It also notes that in the Federation of Bosnia and Herzegovina (FBiH), the Law on Mediation in Employment and Social Security of Unemployed Persons, for which on 12 July 2022 a tripartite advisory committee was formed, is still the cornerstone for the development of such policies as part of which four programs were implemented in 2021, taking into account special gender and social sensitivities and focusing on young people, women, long-term unemployed persons and other categories of unemployed persons with difficulties finding employment and included trainings, advise on self-employment, especially through start-ups and the creation of new temporary jobs mostly in the public sector or through public works. These groups were also the target of the measures employed by the Employment Office of the Brčko District of BiH in 2020 and 2021. The Committee also notes the Government’s indication that the positive trends in the labour market resumed post-COVID as illustrated by the increase in the number of employed persons and decrease of the number of unemployed persons. While according to ILOSTAT, the overall unemployment rate in 2022 stood at 12.7 per cent (10.7 per cent for men and 15.4 per cent for women), Government data shows that in August 2023, the number of registered unemployed persons was 350 316, out of which 205 634 were women, which constitutes a decrease by 2,8 percentage points (4.2 percentage points for men and 1.8 percentage points for women) as compared to August 2022. The ILO registered a labour force participation rate of 47.3 per cent (59.4 per cent for men and 35.9 per cent for women) in 2022. For August 2023, the Government reported that the number of persons in paid employment was 843,876 out of which 378,462 were women. The Committee requests the Government to continue to provide detailed updated information concerning the size and distribution of the labour force, employment and unemployment disaggregated by age, sex and entity, as well as on the impact of the policies and measures implemented to promote full, productive and freely chosen employment, including the activities carried out under the 2021-2027 Employment Strategy and the 2022 Employment Action plan in the RS as well as the programs implemented in the FBiH. Lastly, the Committee requests the Government to provide detailed information on the nature and extent of the involvement of the social partners in the development, implementation, monitoring and review of employment policy measures and programmes in the entities.

Undeclared work. The Government highlights that combating the grey economy – pre-dominantly through taxation and social security incentives – remained a focus area in the RS during the reporting period, contributing to the decrease of the informal economy. The Committee wishes to stress that employment policies play a significant role in promoting transitions from the informal to the formal economy by addressing the factors that drive individuals and enterprises to operate informally. As such, national best practices suggest that when properly designed and implemented, such policies can play a catalytic role in accelerating the transition from the informal to the formal economy, leading to more inclusive, productive, and resilient labour markets by creating an enabling environment that encourages formalization, while also providing targeted support to facilitate the transition process. The Committee would be interested to receive further information on specific measures taken to tackle the multiple challenges proper to work in the informal economy, indicating in particular whether the measures taken or envisaged have included some of the following examples of good practices in this regard: (i) reducing administrative burden and red-tape; (ii) strengthening and extending social protection as a means to incentivizing the enrolment of enterprises and, with them, also of their workers; (iii) promoting access to finance and business development services, including access to credit and training, as these are often lacking for informal enterprises; (iv) enhancing labour market placement and intermediation and skills development services; (v) raising awareness and promoting formalization; (vi) tailoring policies to specific sectors and occupations as the informal economy is not monolithic, and informalization patterns vary across sectors and occupations; (vii) promoting dialogue and collaboration among all relevant stakeholders for effective policy formulation and implementation; (viii) monitoring and evaluating policy impacts as this is crucial to assess policy effectiveness in promoting transitions from informality to formality.

Persons vulnerable to decent work deficits. The Committee notes the detailed replies to its previous request concerning the improvement of the labour-force participation of persons with disabilities and of women and the implementation of measures under the Fund for vocational rehabilitation and employment of persons with disabilities 2021–23 and the Gender Action Plan of Bosnia and Herzegovina 2018-2022 and the trainings on entrepreneurship for women, for demobilized soldiers, in which 58 per cent men and 42 per cent women participated. It also notes that as part of the 2022 Employment Action plan, programs in the RS aimed at supporting the employment and self-employment of persons vulnerable to decent work deficits, which included a programme budgeted at Bosnian Convertible Marka (BAM) 138,000 to increase the employment of Roma, and in which 23 persons participated. Through the “Let’s find employment together” benefitting the children of the fallen, demobilized soldiers and disabled war veterans of the Army of the RS for which a total of BAM15,640,000 was allocated, resulting in the employment of 1,651 persons belonging to these categories. With a similar aim, funds in the amount of BAM7,650,000 were allocated for unemployed persons over the age of 40, and women victims of domestic violence, or who were victims of war crimes, or are from rural areas as well wards of orphanages who completed their education – 1,775 persons participated in these programs. The Committee recalls the observations of the workers’ organizations as part of its last request and notes that with a total unemployment rate of 31.7 per cent (28 per cent men, 38.1 per cent women) based on ILOSTAT, youth unemployment in 2022 is significantly higher than the overall unemployment rate, which the government sought to address through various measures, including a programme to support the employment of young people with university education, in which 979 persons of the RS took part. The Committee requests the Government to continue to provide detailed updated information, including statistical data disaggregated by age and sex in all the entities, on the nature and impact of measures taken to promote full, productive, freely chosen and sustainable employment for persons vulnerable to decent work deficits, including women, young persons, persons over the age of 50, informal workers, the long-term unemployed, persons with disabilities and members of the Roma community and on specific measures taken to promote employment of these groups at all levels and across all sectors, including in decision-making positions.

Vocational education and training. The Government highlights the amendment of the Law on Adult Education and trainings in the area of tourism and hospitality industry for adults. It further refers to the activities of the Centre for Providing Information, Advise and Training (CISO centres) and Job Clubs to increase the labour-force participation of unemployed persons, especially young persons and persons who are long-term unemployed inter alia through the development of active job-seeking skills. In 2021, 940 persons participated in these activities in CISCO centres and 1,843 persons in the Job Club resulting in the employment of 123 persons, of which are 68 women. The Committee requests the Government to continue to provide information on the nature and impact of measures taken to improve vocational education and training for all age groups and on their impact on the employability and competitiveness of the national labour force and their capacity to find and retain lasting employment.