Labour Migration in the Western Balkans

The Western Balkan Six economies (Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, and Serbia) have advanced structural reforms to create new jobs, spur economic growth and move closer to European living standards. However, the slow pace of convergence and the sizeable development gap with other European countries have continued to encourage Western Balkan Six citizens to seek employment and educational opportunities outside the region. The emigration rate from the Western Balkan Six has increased by 10% over the past decade; today, about one-fifth of the Western Balkan Six population resides abroad. Continued high levels of emigration can pose severe developmental challenges. They can create labour market distortions and skill shortages, which may lead to fewer investments due to the potential investors not finding the right skills needed. However, the region’s large and growing diaspora can also provide opportunities for its future development. Beyond the substantial remittances they generate, emigrants’ skills and experience gained abroad can benefit the Western Balkan Six – if policies are in place to reap the full benefits, if migrants are returning, and if their integration into local labour markets and skill systems is being supported. Human capital and a skilled workforce that can satisfy the labour market’s skills needs and drive innovation are essential for increasing competitiveness, attracting investment, and navigating the region’s ecological and digital transition. They are also key pillars of an economy’s resilience and prosperity, which is particularly relevant in a changing international environment and the aftermath of the COVID-19 pandemic.This report furnishes an analysis of the many aspects of Western Balkan Six emigration. It explores possibilities for maximising the potential that their large diasporas represent for development, as well as the socio-economic factors that incite people to look for better opportunities abroad. It looks at the region’s labour emigration patterns, investigates the root causes of those patterns as well as their potential consequences, and examines the Western Balkan Six economies’ current migration and diaspora policies. Based on its analysis, the report provides Western Balkan Six policy makers with a set of targeted recommendations they may wish to consider when designing future policies. Those could, in turn, result in the formation of even stronger ties between the WB6 economies and their diasporas.This report was produced by the OECD South East Europe Regional Programme and the OECD International Migration Division. It also benefitted from inputs from a wide range of migration policy stakeholders from each of the Western Balkan Six economies. This work has been co-funded by the Austrian Development Agency and the Swiss Agency for Development and Cooperation.