"The impact of the economic crisis in Serbia has been rather mild in terms of impact on the contraction of output, but it has been very severe in terms of job losses, which have seen an already difficult labour market situation deteriorate significantly. Under such circumstances, employment growth, alongside a reduction in absolute and relative poverty, needs to be defined as an explicit final objective of any development strategy for the next decade. Macroeconomic and sectoral policies and institutional reforms need to create an environment which is conducive to job growth. Labour taxes for low wage labour need to be substantially reduced, while making work pay policies need to be introduced. Education policy should improve the quality and efficiency of education and tackle the growing skills gap, while more funds are required for active labour market programmes. Social dialogue should be given more prominence, while collective bargaining in the private sector should additionally be encouraged.. "

Support: Digital;Paper