This page shows how the six economies compare in the Social area. The charts below show where they stand relative to the EU average, the change over the previous year, and the estimated time needed to reach the EU average if the trends of the past five years continue. They show this first for the area as a whole, then for each of the six indicators in this area, together with their latest values.
Montenegro led the region in the Social area in 2025, at 76% of the EU average. Albania and Serbia followed, at 72% and 71% respectively. Bosnia and Herzegovina, North Macedonia and Kosovo were further behind, at 61-62% of the EU level.
Only two countries improved relative to the EU average in 2025. Montenegro recorded a strong gain, of 4.5 pp, while Bosnia and Herzegovina improved only marginally, by 0.2 pp. Kosovo and North Macedonia slipped back slightly, by 0.1 pp each, while Serbia and Albania saw larger declines, of 0.6 pp and 0.9 pp.
At the pace of improvement from the past 5 years, Montenegro would reach the EU level in the Social area in 13 years, and Kosovo in 26 years. Bosnia and Herzegovina and North Macedonia are more than 100 years away, while Albania and Serbia are diverging from the EU average.
The unemployment rate in 2025 was lowest in Serbia and Albania, at 9.0% and 9.3% of the labour force. Kosovo and Montenegro followed, at 10.7% and 10.9%, while North Macedonia and Bosnia and Herzegovina had the highest rates, at 11.7% and 12.3%.
Relative to the EU average, Serbia and Albania performed best on unemployment, at 68% and 66% of the EU level. Kosovo and Montenegro stood at 57% and 56%, while North Macedonia and Bosnia and Herzegovina were furthest behind, at 52% and 50%.
5 of the 6 countries narrowed the unemployment gap to the EU in 2025. Montenegro and North Macedonia recorded the largest improvements, of 3.6 pp and 2.9 pp, followed by Bosnia and Herzegovina, with 1.9 pp. Albania and Kosovo improved more modestly, by 0.8 pp and 0.5 pp. Serbia was the only country to fall back, by 0.8 pp.
At the pace of improvement from the past 5 years, Kosovo would reach the EU level of unemployment in 7 years and Montenegro in 13 years. Albania and North Macedonia would need 26 and 29 years, and Bosnia and Herzegovina around 5 decades, while Serbia is diverging from the EU average.
The employment rate in 2025 was highest in Albania, at 69.3% of the working-age population, followed by Serbia and Montenegro, at 66.5% and 65.1%. North Macedonia and Bosnia and Herzegovina stood at 58.8% and 55.1%, while Kosovo had by far the lowest rate, at 38.6%.
Relative to the EU average, Albania's employment rate was almost at the EU level, at 98%. Serbia and Montenegro were close behind, at 94% and 92%. North Macedonia and Bosnia and Herzegovina stood at 83% and 78%, while Kosovo was far behind, at 54%.
4 of the 6 countries improved their employment rate relative to the EU in 2025. Bosnia and Herzegovina and North Macedonia recorded the largest gains, of 1.4 pp and 1.1 pp, followed by Montenegro and Albania, with 0.9 pp and 0.6 pp. Serbia and Kosovo slipped back slightly, by 0.1 pp and 0.2 pp.
At the pace of improvement from the past 5 years, Albania and Montenegro would reach the EU employment rate in just 2 years, and Serbia in 11 years. Kosovo and Bosnia and Herzegovina would need around 2 decades (19 and 21 years), while North Macedonia is diverging from the EU average.
The gender employment gap in 2025 was smallest in Montenegro, at 7.5 percentage points, followed by Serbia and Albania, at 10.8 and 13.3 points, and North Macedonia, at 17 points. The gap was considerably wider in Bosnia and Herzegovina, at 26.1 points, and widest in Kosovo, at 34.7 points.
Montenegro is the only country performing better than the EU average, at 116% of the EU level. Serbia stood at 81%, Albania at 66% and North Macedonia at 51%, while Bosnia and Herzegovina and Kosovo were furthest behind, at 33% and 25%.
Montenegro was the only country to improve relative to the EU in 2025, by an exceptional 38.3 pp. All the other countries fell back: Kosovo by 1.2 pp, Bosnia and Herzegovina and Serbia by 2.4 pp and 2.9 pp, North Macedonia by 4.3 pp and Albania by as much as 7.0 pp.
Montenegro has already converged with the EU average. All the other countries are diverging from the EU level at the pace of the past 5 years.
converge2.eu is an evidence-based initiative that sheds light on how the Western Balkans are converging with EU living standards. Our goal is to support evidence-based policymaking, informed journalism, and regional dialogue. We apply rigorous methodology, use comparable data, present them raw on a dahsboard and offer informed, independent and unbiased interpretation and advice.
