THE ORIGIN AND DEVELOPMENT OF SERBIAN LABOUR MARKET
- FROM SHELTER TO MODERN INSTITUTION -

The first germs of labour market in Serbia appeared in 1829, in Krusevac (in the form of shelter for unemployed workers). After the adoption of the Decree on Guilds (in the middle of the 19 th century), guild organizations began to act as labour market institutions.

According to the Decree adopted in 1850, governmental bodies of the Serbian Principality were obliged to take care of unemployed workers.

In 1918, the Department for worker’s protection was established within the Ministry of Social Policy. This Department contributed to the establishing of labour market in Serbia.

By the Law on worker’s protection, adopted in 1921, Central Labour Market Office for the Kingdom of Serbs, Croats and Slovenians was established in Belgrade, as well as local labour market offices in all cities with developed economy. The tasks of the labour market were: reduction of unemployment, employment mediation and taking care of workers’ board and lodgings. Labour market offices were obliged to provide services impartially and free of charge.

In 1927, when the International Convention on unemployment was ratified, the system of state labour market offices was transformed into the system of public labour market offices, governed by Managing Boards (composed of the representatives of workers’ and employers’ Chambers). The State supervised their work through the Ministry of Social Policy.

In 1948, the State took jurisdiction over employment.

The Republic Employment Mediation Bureau and its local offices were established in 1952. The Bureau had various responsibilities: to provide information about the situation in the labour market, to keep official records on unemployed persons, to receive vacancy announcements (the first of this kind), to give job referrals to unemployed persons, to issue payment orders for unemployment benefit, to provide information and advice to pupils on their occupational choice and possibilities of training in certain occupations.

In 1963, the employment mediation bureaus were transformed into the employment bureaus, with broader scope of competence, which enabled further decentralization.

By the Law on Employment and Rights of the Unemployed, adopted in 1992, the Republic Labour Market Bureau was established. This was a significant step toward a modern labour market institution (typical for developed countries) that gave an incentive to enterprises, employers and unemployed persons to raise the level of employment.

National Employment Service

The Republic Labour Market Bureau was transformed into the National Employment Service by the Law on Employment and Unemployment Insurance in 2003.

The National Employment Service operates in accordance with the positive practice of PES in developed countries and requirements set by the Serbian Government and the Ministry of Labour, Employment and Social Policy through the National Employment Strategy 2005-2010, Strategy of Poverty Alleviation 2003-2010 and National Employment Action Plan 2006-2008.

The National Employment Service carries out its mission (increase of the competitiveness and employability of labour force and implementation of active labour market measures) according to the Change Strategy of the NES 2006-2008. Consistent implementation of this document will speed up the process of harmonization with EU standards in employment policy and operation of public employment services (as modern public services oriented towards clients: employers and unemployed persons).