Serbia Economic and FDI Outlook
Favourable Developments in the Labour Market
National Bank of Serbia
Single-digit unemployment rate in the whole
2023 (9.5%)
Chart 17 Labour market indicators according to the LFS*, (in %)
and Productivity Growth
Significant
contribution of total factor
productivity and capital to GDP growth
Chart 18 Contribution of factors of production to GDP*
(in pp, period average)
60,0
51.8
52.4
52.9
52.9
53.9
54.7
55.6
7.7
8.0
52.2
50.3
7.0
50,0
6.0
49.5
50.3
4.4
47.0
47.1
47.9
5.0
40,0
44.8
45.6
43.3
4.0
40.7
2.4
4.0
2.5
3.0
30,0
2.0
18.9
20,0
16.4
1.0
14.5
13.7
11.2
11.1
0.0
9.7
9.5
9.5
-1.0
10,0
-2.0
-0.9
0,0
-3.0
2015
2016
2017
2018
2019
2020 2021**
2022 2023
2015-2017 2018-2019
2020
2021
2022-2023
2024-2025
Source: Statistical Office Republic of Serbia.
* LFS data revised according to the new methodology from 2021.
** From 2021 data aligned with the Census 2022.
Employment rate
Unemployment rate
Activity rate
■TFP
Capital
■Labour
◆ GDP
Sources: SORS, NBS calculation.
* NBS estimate.
• According to data from the Labour Force Survey, the
unemployment rate was on a single-digit level in 2023 and
amounted to 9.5% (same as the level in 2022), while the
employment rate amounted to 50.3%, which is an increase
of 0.8 p.p. compared to 2022. In 2023, the rate of informal
employment was 12.5% (-0.5 p.p. compared to 2022).
The activity rate (persons 15+) in 2023 amounted to 55.6%,
which is 0.9 p.p. higher compared to 2022.
•
.
Acceleration of economic growth in the period 2018-2019
was driven mainly by faster productivity growth.
In 2020, similar to other countries, there was a temporary
drop in productivity and a negative labour contribution due
to reduction in the participation rate due to the pandemic.
From 2021 productivity was the main driver of growth,
along with investment.
In the medium term, we also expect from productivity and
investment to be the main drivers of GDP growth, while the
contribution of labour will be lower.
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