Unemployment in the euro area ticked lower in November 2025, but labour markets in the Western Balkans remain substantially weaker than in the European Union, official data and regional estimates show.
Eurostat reported the seasonally adjusted unemployment rate in the euro area at 6.3% in November, down from 6.4% in October, while the broader EU unemployment rate held at 6.0%. Some 13.2 million people across the EU were unemployed in November, including 10.9 million in the euro area. Youth unemployment in the EU stayed elevated at about 15.1% despite modest month-on-month reductions.
Western Balkans: persistent gap with EU labour markets
Official national statistics and World Bank regional reports indicate that unemployment in the six Western Balkan economies – Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia – remains well above EU averages in 2025.
Recent estimates show:
- North Macedonia’s unemployment rate was about 11.5% in the third quarter of 2025, unchanged from the previous quarter and significantly above the EU average.
- World Bank administrative data for the first half of 2025 point to unemployment of around 10.5% across the Western Balkans region, with Albania at about 8.6% and Bosnia and Herzegovina at roughly 13.3%. Serbia also posted unemployment near the lower end of the regional range, while other countries such as North Macedonia and Montenegro recorded higher jobless rates.
- Historical labour force trends indicate unemployment in Montenegro and North Macedonia has hovered above 11–12%, and Bosnia and Herzegovina above 11%, reflecting slower job creation compared with EU member states. Meanwhile, Kosovo traditionally shows one of the region’s higher unemployment levels, although the latest quarterly breakdowns are less complete.
These figures are not harmonised with Eurostat’s monthly release but are drawn from national statistical data and World Bank compilations for 2025, highlighting persistent structural gaps in labour market performance between the Western Balkans and the EU.
Structural and demographic headwinds
Analysts say the region’s stronger joblessness reflects structural challenges, including lower labour force participation, skills mismatches, a sizable informal sector, and demographic pressures from emigration and population ageing. A recent World Bank report noted that Western Balkans growth will slow to about 3.0% in 2025, underscoring the importance of improving job prospects to sustain convergence with the EU.
“The labour market in the Western Balkans has improved modestly, but unemployment remains stubbornly high relative to the EU average, and youth joblessness is particularly severe in several states,” said a regional economist.
Economists expect euro zone unemployment to stay relatively stable in early 2026 as labour demand holds up despite subdued growth prospects in key economies such as Germany and France. For the Western Balkans, sustained structural reforms, investment in skills and stronger private-sector job creation are seen as key to narrowing the labour market gap with the EU.