Labor market supply vs. Demand characteristics in the northeastern planning region of Macedonia

Abstract

Unemployment remains one of the largest issues in the Northeast planning region (NERP) in the Republic of Macedonia. The employment rate of 30.3% in the region is well below the national average and unemployment rate of 44% is almost 16 percentage points above the national average, and highest rate compared with the rest of the regions in Macedonia. Thus the issue of unemployment is a strong reason and an incentive to analyze in-depth: what are the characteristics of the labor supply among young people - unemployed, in terms of demand; what are the constraints of the labor supply versus demand; what policies / reforms / actions are appropriate for resolving potential gaps between the labor market supply and demand etc. This research revealed a number of interesting characteristics of labor demand/supply - that the business sector, especially in NEPR requires a workforce with skills and knowledge in order to carry out specific working tasks and higher education, focusing on the possession of professional, technical skills in order to respond to specific tasks for industrial processes and the use of technology. In addition, the need for possession of personal skills such loyalty, ambition, seriousness in carrying out tasks and sense of teamwork is emphasized. A significant portion of the business sector in the region is willing to cooperate with educational institutions in order to generate the necessary human resources. On the side of the supply, the larger portion of the unemployed youth in the NEPR,44perceive their ideal job in starting own businesses and public administration positions. In addition the majority of the unemployed youth: are interested in internships, have not received an assistance from the Employment Agency of the Republic of Macedonia (EARM), and almost half of the respondents are not aware of the current active employment measures etc.