Montenegro’s labour market remains one of the strongest parts of the economy in the first half of 2026. The number of employees in January-May reached an index of 105.0 compared with the same period of 2025, while persons seeking employment fell to 87.1. In simple terms, more people are working and fewer are registered as seeking jobs. For a small open economy heading into the summer tourism season, that is a significant stabilising factor.
The May figure is even more striking. The number of employees rose to an index of 105.4 compared with April, reflecting the seasonal build-up before the main tourism months. May employment reached an index of 107.6 against the 2025 average, confirming that the labour market is running above last year’s baseline.
But the wage side is less comfortable. Average net earnings reached €1,033 in May 2026, with gross earnings at €1,234, yet the real wage index for January-May stood at 99.0. Nominal wages rose by 2.2%, but real wages slipped by 1.0%. This is the key household story in the bulletin: employment is improving, but purchasing power is not moving at the same pace.
The pressure is important for retailers, banks, hospitality operators and policymakers. A household sector with more jobs but weaker real wage growth can still sustain consumption, but it becomes more selective. Spending shifts towards essentials, seasonal services and short-term needs, while discretionary purchases become more sensitive to price increases.
For Montenegro, the labour market is therefore not the weak point. The issue is whether wage growth can regain real momentum without reigniting inflation. The May numbers show a country capable of generating jobs, but not yet fully capable of converting that employment growth into stronger household purchasing power.
