The Western Balkans face a pressing challenge: aligning education and vocational training with the evolving demands of local economies and the global job market. During last month’s Butterfly Innovation Forum in Podgorica, Montenegro, Jelena Manić Radoičić of the Western Balkans Regional Challenge Fund addressed the crowd of innovators, educators, and entrepreneurs with a presentation on the topic.
“How could it be even better,” she asked, “if we had an educational system, especially vocational training, better aligned with what young people and economies need?” Her remarks set the tone for a broader discussion on equipping the region’s workforce with essential skills.
Youth unemployment as a persistent challenge
Despite improvements over the past decade, youth unemployment remains a critical issue in the Western Balkans. While the region has seen the rate drop from nearly 50% to around 20%, it still significantly outpaces the European Union average. As Radoičić noted, “It’s not only about unemployment but also employability.” The mismatch between skills taught and skills demanded is evident, particularly in digital and technical fields.
The issue isn’t confined to technical skills alone. Radoičić emphasized the importance of soft skills, including emotional intelligence, stress resilience, and adaptability to technological change. “These are the skills that allow individuals to thrive not just personally but also within their communities and economies,” she explained.
Bridging the gap between education and employment
A recurring theme during the event was the disconnect between education systems and the labor market. Traditional educational models in the region tend to emphasize theory over practical application.
While general knowledge remains essential, Radoičić highlighted the need for more demand-driven education systems that integrate real-world skills. She cited the success of Switzerland’s apprenticeship model, which seamlessly connects students with businesses to provide hands-on learning experiences.
“In the Western Balkans, there’s an issue with a lack of demand-driven education. What does this mean? It means that education often exists in isolation, focusing on imparting skills and knowledge without necessarily aligning with practical applications. As many of us educated in the region know, there’s a heavy emphasis on theory and science, but is it truly practical or applicable? Striking the right balance remains a significant challenge,” Radoičić explains.
Moreover, dual education models are emerging but remain inconsistent. For example, Montenegro and other regional economies are piloting vocational education and training programs. However, as Radoičić pointed out, “It’s not just about sending students wherever they can learn, but ensuring quality through regulatory frameworks, licensed mentors, and clear qualification standards.”
Innovation and the role of private sector partnerships
The private sector has a pivotal role to play in addressing these challenges. Companies need to collaborate more actively with educational institutions to ensure that training programs align with industry needs. Radoičić shared a compelling example of a mechatronics program that partnered with ten companies to provide students with practical experience. “All of their students secure placements in these companies, acquiring skills that are both recognized and valued,” she said.
Such partnerships require mutual commitment. Governments and educational institutions must create incentives for businesses to invest in workforce development. In Serbia and North Macedonia, financial subsidies and capacity-building initiatives are helping to encourage greater private-sector involvement. These measures, while promising, need to be scaled and sustained across the region.
While youth unemployment garners significant attention, the need for lifelong learning is equally critical. As Radoičić observed, “Why not talk about adults who want to change career paths or acquire new skills?” Lifelong learning ensures that workers remain competitive in an ever-changing job market. It also addresses the issue of workforce migration, which has seen many skilled individuals leave the region for better opportunities abroad.
To support lifelong learning, the Regional Challenge Fund has been investing in modernizing educational institutions with up-to-date technology and teaching methods. These efforts aim to reduce the gap between educational offerings and industry standards, helping graduates and mid-career professionals alike to compete effectively in the global marketplace.
As the Western Balkans faces this complex landscape, collaboration remains key. Radoičić’s closing remarks encapsulated the sentiment of the event: “Let’s explore what is available for us as entrepreneurs, educators, and policymakers to benefit from these opportunities. Together, we can unlock the potential of young and not-so-young people alike.”
