One of the great challenges facing Bosnia and Herzegovina is to reduce unemployment in a situation where the skills of the workforce do not match the needs of the modern labor market. Unlike other environments, Canton Gorazde has made significant progress in reducing unemployment through broad adult education programs that have contributed to reducing the number of unemployed by 35% and increasing the number of employees by as much as 67%. Adult education programs have enabled unemployed people to acquire the skills needed by the growing export industry.
However, labor market demand is primarily focused on workers with low skills and qualifications (semi-skilled and qualified production workers), while demand for workers with four-year secondary education (SSS) and university education is far weaker. This has been particularly pronounced in the past three years (2013-2016), where despite the increase in the number of employees in the canton of 10.3%, the number of unemployed persons with secondary education increased by 15%, while the number of unemployed persons with university education increased by as much as 50%.
The lack of employment opportunities after completing general secondary and university education leads young people into danger of entering a group of long-term unemployed persons, leaving their formal education significantly more important, and thus their chances of finding a job in the profession drop significantly. Their employment opportunities through inclusion in existing training programs are also very weak because there are currently no vocational training programs in Gorazde, through which university-educated unemployed persons can improve their skills and thereby increase their competitiveness in the labor market.
This gap between supply and demand for workers with four-year secondary education and university education can be reduced if their formal acquired skills and knowledge are upgraded with computer skills that would enable them to work more significantly more productively in the workplace using digital skills and knowledge. However, there is no institution in the wider South-East Bosnia and Herzegovina region that would allow interested people to personally develop in digital skills.
Unfortunately, due to the lack of training and training opportunities in the digital skills of the workforce, the private sector makes it difficult for the business development process to expand the application of digital technologies beyond their application in production processes. Only a few companies in BPK Goražde have implemented an informatized resource planning system (ERP), and most companies use IT services outside the cantons to develop and maintain a Web platform. Due to the growing internationalization, the private sector has the need to digitize its business not only to improve productivity and market position, but to meet the increasingly demanding standards that the market demands. Also, while demand for workers with digital skills and knowledge is increasing, this region has very poor opportunities to take advantage of the potential that the software engineering sector provides because without the possibility of training and access to the practical acquisition of the skills of the unemployed persons they have no opportunity to develop their own careers in this authorities. As young people do not have the opportunity to train in digital skills, companies also do not have the opportunity to employ ICT professionals, but also workers with basic digital skills.