Montenegro’s labour market expanded strongly during the first half of 2026, but the increase in employment was accompanied by falling real wages, creating an increasingly visible gap between the number of people working and the purchasing power generated by each salary.
Average employment reached 278,980 during the first six months, up from 265,815 in the corresponding period of 2025. The increase of almost 13,200 workers represented year-on-year growth of 5 per cent.
Employment rose further to 291,262 in June as the summer tourism season gathered pace. That was around 13,000 more workers than in June 2025 and almost 20,000 more than in January 2026.
The expansion was broad but uneven. Construction employment increased 11.6 per cent, manufacturing 8.8 per cent, arts, entertainment and recreation 9 per cent, accommodation and food services 6 per cent, transport and storage 5.1 per cent, and wholesale and retail trade 4.7 per cent.
Professional, scientific and technical activities employed an average of 17,683 people, up 5.4 per cent, while administrative and support services increased 3.8 per cent. Employment in health and social work rose 2.7 per cent, and education advanced 3.1 per cent.
Public administration was essentially unchanged at an average of 23,238 workers. Real-estate employment declined 1.4 per cent, one of the few sectors to record a contraction despite continued property development and foreign interest in coastal assets.
Manufacturing added almost 1,440 jobs on an average first-half basis, reaching 17,813, even though manufacturing output declined slightly. This divergence may reflect hiring ahead of production, lower labour productivity, changes in the industrial mix or formalisation of existing employment.
The most significant tension concerns wages. Nominal net earnings rose only 1.2 per cent compared with the first half of 2025, while consumer prices increased 3.3 per cent. Real net wages consequently declined 2 per cent.
This means employment growth supported aggregate household income, but individual workers experienced weaker purchasing power. Transport, health, housing maintenance, rents and hospitality costs rose faster than the general consumer-price index, increasing pressure on working households in urban and coastal areas.
The geographical distribution shows particularly rapid employment growth in several smaller municipalities, although low starting bases magnify percentage changes. Average employment increased 19.3 per cent in Gusinje, 13.4 per cent in Andrijevica, 12.3 per cent in Zeta, 11 per cent in Petnjica and 9.7 per cent in Žabljak.
Among the larger employment centres, Podgorica recorded growth of 4.5 per cent, Budva 4.7 per cent, Bar 5.8 per cent, Nikšić 5 per cent, Kotor 6.8 per cent and Ulcinj 9.2 per cent. The figures reflect the combined influence of tourism, construction, retail and public services.
Montenegro’s labour market is therefore generating quantity more readily than purchasing power. The next phase will depend on productivity, skills, formal employment and the ability of businesses to move into activities capable of supporting higher real wages rather than relying primarily on seasonal expansion.
