WORLD BANK APPROVES 50 MILLION FOR EMPLOYMENT IN BIH

The Board of Directors of the World Bank today approved IBRD loan of 50 million euros for Employment Support Project in Bosnia and Herzegovina to increase formal employment in the private sector for the target group, which will start with young people seeking their first job.

The World Bank stated that among the unemployed in Bosnia and Herzegovina, more than 80 percent of the job search for more than one year, which points to the deep structural problems in the labor market, where a large part of the unemployed do not have the proper qualifications for jobs that employers offer.

They point out that it is particularly difficult to find a first job in the formal sector: 67 percent of young people out of work, compared to an overall unemployment rate of about 28 percent.The head of the World Bank Office in BiH Tatiana Proskuryakova said that this project will provide a direct contribution to job creation by providing financial incentives for formal employment in the private sector, starting with young people seeking their first job.

- It is equally important that this project will increase the employability, in other words, the ability of people to find and keep a good job - she said Proskuryakova.

The project has two components. The first - to promote employment, will help governments of the Federation of Bosnia and Herzegovina and the Republic of Serbian to expand and increase the efficiency of their active labor market policies and the delivery of public employment services, to increase formal employment in the private sector for a selected target group of job-seekers (young people, unemployed with low skills, long-term unemployed, older than 40 years, women and other disadvantaged groups). The programs that will be supported include subsidizing salaries, job training, self-employment services for the unemployed and employers.

The second component - systems management, monitoring and communication will provide funding for the strengthening of the management system for the monitoring of active labor market programs and mediation services, and the implementation of effective communication strategies aimed at job seekers, employers and policy-makers.

It will be financed by strengthening the IT system in order to: facilitate exchange of information between the employment services and other institutions; providing online services; monitoring services offered to the unemployed and employers; introduction of monitoring the impact of employment offices, and the monitoring and publication of labor market trends and results of active labor market policies, said the World Bank.

• 6 Jan, 2017
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