The strength and ability of the workers for whom it is able to adapt to the demands of the businesses can be considered to be one of the most significant factors impacting the development of a favourable atmosphere for other businesses. Kosovo has been marketed as one of the most appropriate investment destinations due to lower labour costs, allowing businesses to minimize running costs and to be more competitive on the market. However, in recent years, more emphasis has been provided in developing countries, especially in the countries of the European Union, to providing a professional workforce capable of responding to the needs of businesses.

As the unemployment rate is high, from 27 to 40%, Kosovo businesses are constantly worrying about the difficulties they face in seeking skilled workers with the requisite skills, which are necessary for various jobs.

Labour market regulation in the region, and in particular the Basic Labour Law, has always been the subject of discussions on the need to reform it, either in terms of implementing newer requirements in compliance with the World Labour Organization (ILO) or to bring it into line with the economic situation in Kosovo. While the legislation as such should act as a guarantor for the respect and protection of the rights of job-seekers and workers, there have in many cases been concerns about its lack of enforcement. On the other hand, companies have repeatedly submitted their proposal that this legislation be revised in order to make it more applicable in practice, to ensure the development of a competitive labour market and to remove clauses that which encourage segregation in jobs.

Denmark is one of the countries that have consistently done well in terms of primary labour market metrics, both in terms of labour market participation and low unemployment. The entire labour market in Denmark is tightly related to the Versatility scheme.

Flexibility (under the title Flexibility + Stability) is a philosophy of the Danish Government that integrates a stable labour market and an active labour market policy with the rights and responsibilities of the unemployed, including social security. As a result, the working force provides unemployment compensation guarantees and a swift seeking of jobs in the case of dismissal — in return for this form of protection, the taxes paid by the labour force should be considered.

The foundation of this framework is social and public-private dialogue, where diverse parties make a valuable commitment, on the one hand, to making the Danish labour market more competitive and attractive to workers. Although employers’ benefit from policies that promote recruiting and firing, employees, on the other hand, benefit from social security and the many opportunities to engage in training and services that allow them to improve skills during their careers.

During the time of the flexibility scheme in operation, unemployment in Denmark was 4.5 per cent, the lowest in the last 30 years.

Author: Ramë Hajraj, Local Democracy Agency of Kosovo