Better, Faster, More Inclusive: Digitalization is Improving the Labor Market in the Western Balkans
With the rapidly changing economic climate and the rise of new skills and competencies needed by the labor market, the modernization of labor market services is becoming increasingly crucial in the Western Balkans. In this environment, the digitalization of public employment agencies is an important step to efficiently respond to the needs of both job seekers and employers.
When 39-year-old Senada registered as unemployed in 2022, she had a whole process in front of her. “I had to bring my documents, both copies and originals, to the public employment agency, then verify them, and go back to the agency to register. After that, I had to visit the agency every 45 days to get a stamp on my registration paper,” she explains.
When she recently got a new job, Senada discovered that nothing had changed. Her de-registration from the agency still had to be done in-person. “Nothing is digitalized,” she says, adding, “Maybe some things are internally digitalized for the agency staff, but this does not include the unemployed. We still have to do everything in-person.”
But time efficiency is not the only advantage that digitalization can bring. Better provision of skills matching, advisory services, stereotype-free career guidance, data gathering and analysis, as well as improved outreach to job seekers with diverse needs and backgrounds are also some of the major opportunities.
RECONOMY, an inclusive and green economic development program of the Swedish International Development Cooperation Agency (Sida), is supporting digitalization by refining the service delivery mechanisms of public employment agencies in Albania, Bosnia and Herzegovina, and Kosovo. RECONOMY is implemented by Helvetas in the Eastern Partnership and Western Balkan countries.
Mismatch of Educational Qualifications and Labor Market Needs
One of the biggest challenges public employment agencies across the Western Balkans encounter is the misalignment between the educational system and the needs of the labor market.
“The workers’ qualifications and labor market needs do not match,” says Nikifor Đaković, an expert advisor from the Employment Institute of Brčko District of Bosnia and Herzegovina (BiH). “We have a number of unemployed people, but their qualifications and requirements of the labor market are not in synergy. They do not correspond well with each other.”
Muhamet Klinaku, director of the Department of the Labor Market of the Public Employment Agency in Kosovo, conveys the same issue. “As we saw in previous years, it is very difficult to find a skilled labor force for different economic sectors. Last year, we registered around 12,000 new jobs, but we succeeded to mediate only half of them,” says Klinaku.
Public employment agencies of two Bosnia and Herzegovina entities, Republika Srpska and Federation of Bosnia and Herzegovina, report that their labor market surveys also show this mismatch. “Employers hire job seekers who come directly from the education system, but they also observe that they lack necessary technical skills needed for the specific job,” states the Public Employment Service (PES) of Republika Srpska.
Digitalization can help overcome the mismatch issue as it enables the collection and analysis of large amounts of data. Public employment services can use this data to better understand the labor market, identify trends and needs, and plan future initiatives. By leveraging digital tools, agencies can also create more gender-responsive and inclusive strategies that better serve individuals and communities.
Career Guidance and Counseling
Career guidance and counseling from appropriate and knowledgeable sources are an important step in choosing the right career. However, the latest survey by the European Training Foundation found that a majority of young people in the region seek career advice from the internet and then parents. While these sources can be helpful, they can also perpetuate stereotypes and biases, leading young people to make uninformed career decisions. These decisions then follow them in their adult lives, reducing their chances of having balanced and successful careers. For instance, traditional gender roles and societal expectations can limit career options for young women and men, steering them away from fields where they might excel or find fulfillment.
The creative use of online tools can provide new opportunities for developing personalized services for better stereotype-free career guidance.
With significant experience in digitalization of public services, the Swedish PES is ready to share their knowledge with their Western Balkan counterparts.
“There are different kinds of applications that you can use for career guidance and counseling,” says Per Lindberg, Project Manager at the Swedish PES. “For example, interactive tools. What is your interest? Okay, you want to be a hairdresser? Click here. Then you go on with questions: How do I become this hairdresser? What kind of schooling do I need? etc. and the application provides answers or necessary data”.
These type of online tools are also excellent as they provide orientation free of cliché and stereotypes and offers facts, experiences and tips for information and counselling.
Reducing Administrative Burden of Public Employment Services
Digital interactions are less time-consuming and reduce the administrative burden on PES. They significantly increase productivity, reduce backlogs and free up resources for other priorities.
“Each of our counselors has a portfolio of around one thousand clients,” says Klinaku. “Digitalization of the services can be helpful in this regard, as it makes life easier for our staff also, because it is impossible to offer quality services with such a high number of clients.”
Digital channels such as websites and social media are opening up new opportunities for public employment services, improving matching between job seekers’ skills and jobs vacancies.
“The idea is to provide tools and channels for job seekers and employers to find each other. So those who do not need additional help from us, they can find each other without our intermediation. So this is one way of doing it efficiently,” says Lindberg.
“We also organize plenty of webinars with experts. This is a more effective way to reach people with the same information, rather than if one expert gives the same information to individual job seekers one-by-one,” says Lindberg. “And they are quite popular. We have topics on how to apply for a job, how to write a CV, how to prepare before an interview with an employer, etc.”
Assisting Vulnerable Job Seekers
Digitalization can also increase equal access to job opportunities for the unemployed. Digitalization makes it easier for PESs to reach and provide services to large numbers of job seekers from various backgrounds and diverse needs, ensuring that no one is left behind.
While for some, like people living in remote areas or people with disabilities, this equal access could mean online access to all forms and procedures, for others it means more in-person time with the staff of public employment agencies.
“In-person is still important,” says Alicia Marguerie, Senior Economist for Social Protection and Jobs at the World Bank. “Digital tools help you be more efficient in general and save time, so you keep your time for those who need it the most. Digitalization is freeing up some of counselors’ time to dedicate it to the most vulnerable.”
Where are Western Balkan Public Employment Services?
While the modernization of the PESs in the Western Balkans has started with functional and relevant websites and social media and databases, there is still a long road ahead to reach the goals of increased capacities, improved service quality and resilience.
On this road, public employment agencies need technical support.
With the support from RECONOMY, training sessions centered on civil servant roles, dedicated personnel for vulnerable groups, efficient service provision, and the incorporation/upgradation of e-services within governing bodies, will be organized to support better employment opportunities for all.
“There is room to improve things,” says Senada. “It would be so much easier for everyone if things that can be digitalized were digitalized.”
About the Author
Aida Šunje Hadžović is a storyteller and communications consultant with a decade of experience working in large international organizations and United Nations agencies. She is passionate about using her skills and knowledge to support positive change in local communities.
