Direct Request (CEACR) - adopted 2025, published 114th ILC session (2026)

Employment Policy Convention, 1964 (No. 122) - Montenegro (Ratification: 2006)

Articles 1 and 2 of the Convention. Implementation of an active employment policy. Employment trends. The Government informs that the employment rate increased from 42.5 per cent in 2021 to 55.6 per cent in 2023 and the unemployment rate declined from 16.6 per cent in 2021 to 13.1 per cent in 2023. In this context, the employment rate of men recorded a positive trend and growth from 20.7 per cent in 2021 to 38.6 per cent in 2023 in comparison with women – 16.4 per cent in 2021 and 28.4 per cent in 2023. The Committee notes that the unemployment rate of men decreased from 40 per cent in 2021 to 20 per cent in 2023 and of women from 32.7 per cent in 2021 to 27.7 per cent in 2023. The Committee also notes the concern expressed by the European Commission in its 2024 report on the regional disparities which shows that the employment rate in the Northern region stood at 24.1 per cent in 2023 and the unemployment rate was 37.2 per cent. Regarding the implementation of the Employment and Human Resources Development Strategy 2016–2020, the Government informs about the achievement of a moderate convergence in terms of indicators of development and standard of living in relation to the EU average, primarily in terms of the standard of purchasing power per inhabitant, which reached 48 per cent of the EU average in 2019. The economic growth of an average of 3.5 per cent per year in the observed period was based on tourism, telecommunications, public sector and personal consumption of the population. The Government also indicates that the general goal of the Strategy – increasing the employment rate of the working-age population (56 per cent) was achieved in 2019 while the indicators related to social inclusion and poverty reduction were not reached. The Committee notes that on 29 December 2021, the Government adopted the National Employment Strategy 2021–2025 for stable and sustainable employment growth, based on equal access to the labour market, dignified work, further development of knowledge and skills, and greater social inclusion. The Committee further notes the adoption in January 2024 of the Programme of Economic Reforms for the period 2024–2026 with a focus on two structural reforms: (i) improving the framework for better youth employability and higher quality of education and (ii) increasing the effectiveness of and improving the social and child protection system. The first structural reform aims to increase employability by facilitating youth access to the labour market while increasing the quality of education. The reform also responds to the challenges in the field of vocational education related to adapting education to the needs of the labour market, digital transformation and green transition. The Committee also notes the information on the ILO Internet site that in September 2024 the Minister of Labour, Employment and Social Dialogue and representatives of the social partners signed a Memorandum of Understanding for the Decent Work Country Programme 2024–2027 aiming to promote inclusive and productive employment and to improve working conditions for all workers in Montenegro. The Committee requests the Government to: (i) provide detailed information on the measures adopted and results achieved under the National Employment Strategy 2021–2025, the Programme of Economic Reforms 2024–2026, and the DWCP 2024–2027, including the number and types of jobs created, their quality and sustainability; (ii) report on the mechanisms used to monitor and evaluate the effectiveness and cost-efficiency of active labour market programmes, including their regional impact and gender outcomes; (iii) indicate how employment policies are coordinated across the above strategic frameworks and with the EU employment and social policy agenda, to ensure coherence in achieving full, productive and freely chosen employment; (iv) provide updated statistical information, disaggregated by sex, age, region and population group, on employment, unemployment, underemployment and job quality indicators (contract type, duration, wage level); and (v) describe measures taken to address structural and regional disparities, particularly to foster job creation and investment in the Northern region and to improve access to employment for women and disadvantaged groups.

Specific categories of workers. The Committee notes the information provided by the Government with regard to the number of participants in active employment measures in the period 2021–23. The Committee, however, notes that the Government does not provide information in reply to its previous comments. The Committee, therefore, reiterates its request to the Government to provide detailed updated information, including statistical information, on the active employment policy measures taken or envisaged to increase the employability and the employment rate of members of the Roma and Egyptian communities in the country. The Committee also requests the Government to provide detailed updated information on the measures taken to extend the reach of active employment programmes to benefit a greater number of persons from these communities.

Young persons. The Government informs that the employment rate of young persons (aged between 15 and 24) increased from 18.7 per cent in 2021 to 33.7 per cent in 2023 and the unemployment rate decreased from 37.1 per cent in 2021 to 23.3 per cent in 2023. In the context of reducing youth unemployment, the Government refers to a professional training programme for persons with higher education which aims to facilitate the transition from education to work by providing opportunities for additional acquisition of knowledge, skills and competences. The Committee notes the information provided by the Government with regard to the number of participants in the professional training programme in the period 2021–23. In 2023, the programme was implemented for 2,743 persons with higher education (1,166 in the public sector and 1,577 in the private sector), of whom 59.39 per cent in the municipalities of the Central region, 21.94 per cent in the Northern region and 18.67 per cent in the Seaside Region. The Committee also notes that the Government is in the process of introducing an innovative Youth Guarantee Programme which aims to create conditions for better positioning of young persons in the labour market by facilitating the school-to-work transitions, further developing education and training, and preventing them from getting into the NEET category. The implementation of this Programme implies amendments to the legislative framework and initiatives in the areas of education and training, work and employment, social protection and youth policy. The pilot phase will be implemented in three municipalities during 2025–26 after which the Programme will be implemented on the entire territory of the country. The Committee requests the Government to: (i) provide updated information on the implementation of the Youth Guarantee Programme, including its legal framework, institutional coordination and financing; (ii) report on measurable outcomes of youth employment schemes, including job placement rates, retention, transition to regular employment and quality of employment; (iii) describe efforts to align education and training systems with labour market needs in the context of digitalization and the green transition; and (iv) continue to provide disaggregated statistical data on youth employment and unemployment by age, sex and region.

Informal economy. The Committee notes the concern expressed by the OECD in the report “Western Balkans Competitiveness Outlook 2024: Montenegro 2024” that informal work remains highly prevalent in Montenegro, constituting 26–31 per cent of the national GDP. The Committee also notes the information that in December 2023 the Government adopted a Programme for suppression of the informal economy in Montenegro 2024–26 and an Action Plan for its implementation. The Programme is based on the fundamental principles of equal treatment of all participants in economic activity, by promoting advantages of formal business and reducing the informal economy and its consequences. The purpose of the Programme is mostly related to the reduction of informality among registered companies and entrepreneurs, including primarily tax evasion and avoidance of paying full tax obligations. The Government also states that the general goal of the Programme is to reduce the participation of the informal economy in the overall economic activity through: (i) improvement of the business environment by simplification of tax administration and reduction of taxes; (ii) support for fair entrepreneurship and transition to the formal economy; (iii) transformation of undeclared work into formal employment; (iv) improvement of electronic public administration services; and (v) reducing the social acceptability of the informal economy. The Committee requests the Government to: (i) provide detailed information on the implementation and measurable impact of the Programme for the Suppression of the Informal Economy 2024–2026 and its Action Plan, including the number of workers and enterprises formalized and the reduction in undeclared work; (ii) indicate the institutional coordination mechanisms among labour inspection, tax authorities, and social partners in the design and monitoring of these measures; and (iii) explain how progress is evaluated in relation to the targets established under the National Employment Strategy and the EU accession process.

Article 3. Consultation with the social partners. The Committee notes the Government’s indication that representatives of the social partners participated in the elaboration of the National Employment Strategy 2021–2025 and the annual action plans, as well as in the drafting of the Law on Amendments to the Law on Employment Mediation and Rights during Unemployment. In addition, representatives of the social partners participate in working groups for the preparation of decisions on determining the annual number of permits for temporary residence and work of foreigners which the Government adopts for a specific calendar year at the proposal of the Ministry of Labour and Social Welfare. The Committee requests the Government to continue to provide updated detailed information on the engagement of the social partners in the formulation and implementation of employment policy measures and programmes.