Labour migration in the Western Balkans: From challenges to opportunities

As the Western Balkans continues to evolve as as a place of origin, transit and destination of labour migration, leaders, experts, and international partners gathered in Budva, Montenegro, on 15 and 16 May for a regional Ministerial conference to set out a shared course for sustainable, fair, and growth-oriented migration policies. 

Bringing together ministers, senior officials, and representatives from the European Union, international organisations and international financial institutions, the event reflected a growing consensus: labour migration is not a temporary issue, but part of the region’s future. 

The conference explored how the Western Balkans is also becoming an increasingly important destination for foreign workers, including from Asia, North Africa as well as neighbouring countries. It examined the practical implications of these shifts for economic growth, social cohesion, and policy coordination. 

A region on the move 

Opening the conference, Montenegro’s Deputy Prime Minister Filip Ivanović framed the context: “Migration is no longer a marginal trend – it is a central part of the modern labour market. It is both an opportunity and a challenge, and we must learn how to manage it strategically.” 

The numbers are striking. Between 2018 and 2024, the number of work permits issued to foreign workers across the region more than doubled, from 40,000 to over 100,000. Employers cite labour shortages as a more pressing concern than bureaucracy or corruption. In response, countries such as Albania, North Macedonia and Montenegro are reforming legal frameworks, expanding employment services, and engaging in regional cooperation. 

Yet while foreign workers are arriving in record numbers, so too are skilled nationals continuing to leave. As Pilvi Torsti, ETF Director noted, “Roughly a quarter of the entire Western Balkan population is working outside the region. That is the scale we’re dealing with. Our discussions need to reflect both outgoing and incoming migration, not just one side of the story.” 

Moving towards strategic governance 

Across the panels, one theme stood out: the need to move away from reactive, fragmented migration responses towards strategic, harmonised approaches across the region. 

As Arthur Erken from the International Organization for Migration (IOM) put it, “The Western Balkans has historically been seen as a corridor for transit. That is changing. The region is now a destination, and if managed well, labour migration can be transformative for inclusive growth.” 

Speakers pointed out that effective labour migration governance requires more than economic incentives. It calls for strong social protection frameworks, fair recruitment, and inclusive integration policies. It also needs cross-border cooperation. 

“The Western Balkans must stop operating as fragmented labour markets competing for scarce talent,” urged Amer Kapetanovic, Secretary General of the Regional Cooperation Council. “We must act like a single region, diverse, but interconnected, training together, planning together, and growing together.” 

Matching skills and labour market needs 

Pilvi Torsti highlighted the ETF’s role in supporting governments across the region to bridge the gap between labour demand and education and training systems. “We do intelligence and foresight work to help countries anticipate future skills needs. The point is not only to react to shortages, but to build systems that can adapt.” 

She referenced the ETF study entitled Use It or Lose It, which examines how migration, human capital, and labour markets interact in the Western Balkans. The study stresses that without proper upskilling, reskilling, and recognition of prior learning, both native and migrant workers risk being underutilised or excluded from the formal economy. 

The private sector echoed these concerns. Lulzim Rafuna, President of the Kosovo Chamber of Commerce, highlighted the high costs employers face when hiring migrant workers. “The procedures for work visas are too slow, and training costs are too high for many businesses. We need to see governments offer support, perhaps through subsidies or faster processes.” 

The European Bank for Reconstruction and Development (EBRD) stressed the importance of building human capital at all levels. “We work directly with SMEs and larger firms to promote inclusion and equal opportunity,” said the EBRD’s Biljana Radonjic Ker-Lindsay. “Labour migration is not a first resort - we prioritise helping businesses reskill, diversify, and plan strategically. But we’re increasingly seeing reliance on migrant labour in sectors like agriculture, services, and ICT.”  

This discussion was reinforced by the presence of a delegation from Bangladesh led by Mohammed Shaheen, Joint Secretary from the Ministry of Expatriats’ Welfare & Overseas Employment, who outlined the perspectives from countries of departure. 

Integration and return: Two sides of the same coin 

Beyond attracting foreign workers, governments are also working to better facilitate the reintegration of returning migrants, many of whom bring skills, capital, and experience. Albania, for example, has established mechanisms through its National Agency for Employment and Skills to register returnees and provide them with job placements, training, or further education within four months of arrival. 

“The key is not just getting people back, but making them feel valued,” said Jorgietta Marko, Director of Employment Policies, in the Ministry of Economy, Culture and Innovation of Albania. “We have to validate their skills, offer entrepreneurial support, and create local opportunities that match their experience.” 

The World Bank’s Christopher Sheldon added that return migration can have powerful economic ripple effects. “For every 1% increase in returnees to a region, employment can increase by 0.6%, and wages by 2.5%, even for non-migrants. This is about building stronger links between diaspora and domestic economies.” 

Balancing politics, economics and perceptions 

A note of caution came from Oxford professor, Ian Goldin, who recalled the political sensitivities surrounding migration. “There’s a disconnect between the economics and the politics of migration. Migrants are often seen as a threat, especially when public services are under strain. But this is a false dichotomy. Migrants can be part of the solution—if we plan, invest, and communicate well.” 

That sentiment was echoed throughout the event. Participants called for more inclusive narratives and better public communication to help citizens see migration as a shared opportunity, not a zero-sum game. 

A turning point? 

The Budva conference offered no illusions about the complexity of migration. But it did show that a new consensus is emerging - migration in the Western Balkans is here to stay—and if well-managed, it can fuel not only economic growth but also resilience, inclusion, and regional cooperation. 

As Pilvi Torsti concluded, “This is a unique moment. We need evidence, investment, and above all, dialogue. Because migration is not just a challenge - it’s a shared responsibility, and a chance to shape the future.”