Kosovo youth unemployment falls to about 10% in 2025
Updated
Updated · Bloomberg · May 1
Kosovo youth unemployment falls to about 10% in 2025
10 articles · Updated · Bloomberg · May 1
In Pristina, the rate for 15- to 24-year-olds has dropped from 61% a little over a decade ago, with Prime Minister Albin Kurti citing tech-led growth.
Kurti said tech and IT now generate about 6% of output and employ around 45,000 people, while wages run roughly double the national average and support wider economic activity.
The turnaround has been driven by a growing IT and outsourcing sector, helped by Kosovo’s flat 10% income and corporate tax rates, as firms including SPEEEX and Starlabs expand hiring.
How might Kosovo overcome barriers in education, gender equality, and affordable housing to ensure the tech boom benefits all citizens?
What risks does Kosovo face if its tech boom relies heavily on diaspora connections and outsourcing for European clients?
Kosovo's Youth Unemployment Falls to 10% by 2025 Amid Persistent NEET and Emigration Challenges
Overview
Kosovo has made impressive progress in reducing youth unemployment from 61% in 2014 to 19.5% in late 2024, with projections reaching 10% by 2025. This success is largely driven by the 2023 SuperPuna wage subsidy program, growth in the ICT sector, and a surge in foreign investment linked to Kosovo's EU integration efforts. However, challenges remain, including a high NEET rate of 31.4%, fueled by barriers like skill mismatches and limited job openings, and low labor force participation, especially among women burdened by unpaid care work rooted in traditional gender roles. Meanwhile, increased emigration of skilled youth threatens the working-age population, risking labor shortages and economic sustainability.