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OECD Reviews of Labour Market and Social Policies: Serbia 2008

A Labour Market in Transition

image of OECD Reviews of Labour Market and Social Policies: Serbia 2008

To catch up with more advanced economies, Serbia urgently needs to improve the functioning of its labour market. This report reviews labour market trends and the principle challenges to  labour market policy, making a series of recommendations.

Despite many reforms, new business growth until now has been far too slow to compensate for job losses elsewhere. Recent reforms of labour law should be followed up by further efforts to improve the climate for business and productive work. Labour regulations must be flexible, but they should also be enforced more consistently. For all this to happen, it is essential that an effective social dialogue can take place and that it encompasses expanding and declining segments of the labour market.

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Serbia's Overdue Transition

significant turnaround in the years that followed its democratic breakthrough in 2000. Successive governments in office since then have sought to restore lost momentum in the long-delayed transition to a market economy. A process of privatisation and economic restructuring has resumed, supported by numerous pieces of new legislation including a labour law from 2001, modified in 2005, and measures to facilitate enterprise start-ups. The social safety-net has been partly modernised within the narrow budget limits that can be afforded. As a framework for many of these reforms, the country has adopted a National Employment Strategy and a Poverty Reduction Strategy that take account of international experiences. This report reviews the key issues of labour market policy from an OECD perspective.

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