Bosnia and Herzegovina is facing a growing labor shortage after its 2026 quota for foreign workers was largely exhausted within the first months of the year. Although the government increased the annual quota to 7,427 permits, businesses say demand remains much higher, particularly in construction, manufacturing, hospitality and retail. Employers are now calling for major changes to the system, including potentially removing fixed quotas altogether.
The shortage reflects a broader problem in the country’s labor market. Companies increasingly struggle to find enough domestic workers, while many working age citizens continue to leave Bosnia and Herzegovina for better paid opportunities abroad. Official data show that 6,702 valid work permits were issued to foreign citizens during 2025, with construction and manufacturing among the biggest employers of foreign labor. Workers from countries including India, Nepal, Turkey, Bangladesh and China made up significant portions of the foreign workforce.
The problem is particularly visible during the tourism season, when hotels, restaurants and other businesses need additional staff. Employers say they are increasingly forced to consider foreign workers because the available domestic workforce cannot meet demand. Business representatives argue that the permit system should become faster and more flexible, allowing companies to recruit workers when there is a proven shortage instead of being restricted by an annual ceiling.
At the same time, Bosnia and Herzegovina continues to have a large number of people registered with employment services. More than 305,000 people were registered at the end of May 2026, yet employers continue to report difficulties finding workers with the required skills or willingness to take available jobs. The number of registered unemployed people was also lower than a year earlier, pointing to a gradually shrinking domestic labor pool.
The government maintains that quotas are intended to respond to labor market needs while protecting domestic employment. However, demographic decline, emigration and an aging population are making the shortage increasingly difficult to address through domestic workers alone.
The growing dependence on foreign workers is therefore becoming more than a temporary response to labor shortages. Bosnia and Herzegovina faces a long term challenge that will require reforms to the work permit system alongside better wages and working conditions, efforts to retain young people and policies aimed at reversing population decline. Simply increasing the quota may provide short term relief, but without broader reforms, demand for foreign labor is likely to continue rising.
