Documents Stamenkovic, Mladen 1 results

"Current trends in Serbia show that employment has decreased by 23 % compared to the previous year. The trend in the average wage per employee is also negative, both in nominal and in real terms (due to the effects of inflation). These trends have had a negative impact on the purchasing power of the population. The effects of these shifts have been that people are focusing their activities on consumption at the expense of savings, since the cumulative effects of unemployment, an unrealistic exchange rate and the rate of inflation represent limiting factors to the entry of foreign direct investment and in the growth of output as the main driving forces in raising the level of employment. In such circumstances, key labour union efforts must be focused on the creation of an economic environment that will stimulate a raising of the levels of investment and production. The current circumstances require a strategic approach to address the problems of businesses and of liquidity, but this is problematic in a country which does not have an entrepreneurial culture or tradition. "