UNEMPLOYMENT IN BOSNIA AND HERZEGOVINA

Abstract

The economic situation in the country has a direct impact on the level of employment and unem- ployment. Understandably, economic situation determines relations between the labour market and the way it works. Considering the fact that this is a market for specific factors of production, the traditional methods of economic policy for the regulation of market relations (through supply and demand) cannot be consistently applied. This is why the labor market requires special treatment when setting strategy, ma- croeconomic and sectoral policies, as well as specific strategies and policies to tackle problems related to its operation. Naturally, it is a prerequisite for the evaluation of economic conditions. Employment is a waste of both human energy and time in the production process. It represents a work input in the econo- my. On the other hand, within the fields of study in economics, this term describes the creation of all the goods and services which, by definition, is investing in the social product. The essence of such employ- ment, as a part of productive activity, is the fact that the contractor gets the right to his income.