Montenegro’s labour market looks stronger than it has for some time. Employment is rising, registered unemployment is falling and private-sector industries are hiring. Yet real wages slipped in June, offering a reminder that more work does not always mean greater prosperity.
The number of employed people reached 291,262, up by 4.67% from a year earlier. Registered unemployment fell by 14.05%, to 24,027. Both measures also improved from May.
Construction led the hiring, with employment increasing by 10.89%. Arts, entertainment and recreation grew by 10.32%, other services by 8.77% and manufacturing by 7.61%. Tourism-related accommodation and food services added 4.34%more workers.
Only real estate and public administration recorded declines. Employment in property activities fell by 4.31%, despite the continuing importance of real estate to construction and foreign investment. Public administration, defence and compulsory social security declined by 0.25%.
The figures suggest a labour market shaped by construction, tourism and services. These sectors can create jobs quickly, but they are also exposed to investment cycles, seasonality and foreign demand.
The wage data are less impressive. Average gross earnings rose by 0.24% from May and net earnings by 0.29%. After inflation, real net pay declined by 0.1%.
That is hardly a collapse in living standards. But it shows that employers are adding workers without generating wage increases sufficient to move decisively ahead of prices. Food, health and accommodation costs all rose during the month.
Registered unemployment should also be handled carefully. It does not capture everyone outside work and can fall because of migration, changes in registration or lower labour-force participation. Even so, a double-digit annual reduction alongside rising employment is a genuinely positive combination.
The next question is whether Montenegro can turn a tighter labour market into higher productivity. If job growth remains concentrated in seasonal services and construction, real wages may continue to lag. More workers are useful; more output per worker would be better.
