The six-month report from the Montenegro Labor and Employment Agency reveals a stark regional split: coastal cities show unemployment rates below 2%, while northern municipalities face rates exceeding 50%. The data highlights a clear divide between the two regions.
In Kotor, unemployment stands at 1.23%, followed by Herceg Novi at 1.56%, Budva at 1.68%, and Tivat at 1.78%. In contrast, Petnjica records the highest rate at 68.89%, with Gusinje at 61.29%, Andrijevica at 51.44%, Plav at 47.85%, and Rožaje at 47.71%. The rate is calculated as the ratio of registered unemployed individuals to the active population of workers and jobseekers.
The 6 coastal and capital municipalities mostly below the natural unemployment rate
Economic theory often places the natural unemployment rate between 3% and 5%. This includes people who are unemployed by choice or those registered for social assistance or pensions. Beyond Kotor, Herceg Novi, Budva, and Tivat, Podgorica shows 3.64% and Bar 4.39%—also below the typical threshold. Seasonal tourism appears to have a limited effect; six-month averages during winter show 1.57% in Kotor, 2% in Budva, 2.14% in Herceg Novi and Tivat, 3.96% in Podgorica, and 5.15% in Bar.
The north has more unemployed than employed people
Conversely, northern municipalities see more unemployed than employed individuals in Petnjica, Andrijevica, and Gusinje. In many towns, unemployment rates surpass the national average by several times. Except for Pljevlja and Bijelo Polje, the dominant employers remain municipal administrations and public institutions. Year-on-year comparisons show a general decline in unemployment, largely driven by out-migration rather than job creation. Examples include:
- Berane: unemployed fell from 3,912 to 3,434 (−478), while employment rose from 5,691 to 6,030 (+339).
- Rožaje: unemployed decreased from 4,525 to 3,713 (−812), employment increased from 3,806 to 4,069 (+263).
- Andrijevica: unemployed dropped from 786 to 661; employed rose from 600 to 624.
- Petnjica: unemployed declined from 956 to 775; employed grew from 345 to 350.
- Plav: unemployed reduced from 1,866 to 1,388; employed changed from 1,514 to 1,513.
Long-term unemployment remains a concern in the north
More than half of the unemployed in the north have been seeking work for over five years. For instance, Berane reports 58% (2,008 people) and Rožaje 52% (1,935 people). Petnjica stands out with 77% (598 people) in long-term unemployment. In the capital Podgorica, the long-term share is 36%, and in Kotor it’s 29%.
Employers posted 13 thousand vacancies in six months
During January–June, 13,309 job postings were recorded, down by 792 from the previous year. The largest concentrations of ads were in Podgorica (3,313), Herceg Novi (1,826), Budva (1,596), and Kotor (1,044). Less common postings appeared in Šavnik (20), Plužine (30), Gusinje (39), Andrijevica (45), Rožaje (59), and Petnjica (64).
Disability among the unemployed is highest in the north
The share of disabled individuals among the unemployed is significantly above the national average in the north. People with disability status may access financial aid and retirement rights, even if they themselves do not apply. Notable figures include: Andrijevica 60.06% (397 people), Berane 55.71% (1,913), Petnjica 55.35% (429), Rožaje 46.59% (1,730). In the capital, about 597 unemployed people have a disability, while Cetinje has the lowest at 8.49% (53 people). In total, 953 new disability decisions were made across all regions from June 2024 to June 2025, with Berane (230), Rožaje (205), Bijelo Polje (185), and Podgorica (130) leading the count.
Regulatory developments
The government introduced an amendment to the Vocational Rehabilitation and Employment Law for the disabled, proposing a unified disability assessment. The current decisions will not be reviewed retrospectively. Source: Vijesti – 16.08.2025
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