The current socio-economic situation of the country requires financial support to combat high unemployment. High unemployment rates and a dominating informal economy create obstacles to social and economic recovery. According to the MIPD the pre-accession assistance to BiH needs to support the country in adopting active labour market measures to combat unemployment in particular long-term unemployment, to reduce fragmentation of labour markets, and to improve mobility.
The organisation system of employment services follows the principle of BiH organisation, defined by the Constitution of Bosnia and Herzegovina. At the state level in the area of employment and labour the Agency for Labour and Employment of BiH is established, and employment bureaus are organised at entity level and at Brčko District. In FBiH employment services are organised at cantonal level. The laws (Besides these laws, in FBiH the Decree on Criteria and manner of Establishment and Acting of the Employment Finding Agencies is issued in the Federation and in the RS the Rulebook on Conditions to be fulfilled by the Employment Agencies is in the effect) regulating the work of public employment services provide the possibility that the employment agencies, established by the physical persons and legal entities in the RS and Brčko District, and in FBiH by legal entities, can perform the work related to mediation in employment.
The EU focus on labour and employment development in Bosnia and Herzegovina is on: