Causes of Unemployment in Bosnia and Herzegovina

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2. Methods
This report aims to investigate causes of unemployment in Bosnia and Herzegovina, as well as problems and solutions of unemployment in this country. Exploration of causes of unemployment is analyzed by utilizing of the book written by Rajko Tomas entitled Nezaposleni. Moreover, data related to problems of unemployment in Bosnia and Herzegovina is gathered from the book by Miomir Jaksic entitled Makroekonomija. The articles related to poverty and going abroad of young population are collected from the book Osnovi ekonomije written by Slobodan Barac and Budimir Stakic and its articles are very beneficial for our topic. Finally, the solutions of unemployment in Bosnia and Herzegovina are analyzed by utilizing online articles “Polovina gradana u BiH zivi na granici siromatva, na korak od gladi”, written by Vecernji List.
3. Findings
3.1 Causes of unemployment in Bosnia and Herzegovina
3.1.1 Undeclared work
First major cause of unemployment in Bosnia and Herzegovina is undeclared work. Undeclared work got significant meaning during the period of socialist development of this country, where privatization of local companies was frequent. This type of work existed in some branches, such as, agriculture, craft, construction and catering. In the past, undeclared work was only seasonal and temporary, but now, it is common in all sectors of country. Today, statistics shows that some companies do not register any worker, but these companies still exist. They use method where their workers are placed on the waiting list, but nobody guarantee them that they will be registered (Ilic, 2003). The major reason why employers do not register their employees is the high monthly cost for each worker, and using this method, they attempt to ma...

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...e of employment represents an excellent alternative while these people are waiting for long-term jobs. Examples of programs that build young people’s experience are internships, temporary work, part-time jobs and project work. These people are able to perform these programs during their vacations or semesters, so they can combine their knowledge from education with knowledge acquired in these programs. According to Boston Consulting group, 34% of applicants in Sweden had past experience in their fields and 85% of them got full time employments after a certain period of time. Lack of Bosnian economy is small number of companies that are likely to offer and perform programs that build young people’s work experience. Government of Bosnia and Herzegovina shall make a pressure on these companies to initiate such programs that would lead to decrease in unemployment rate.

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