In the first half of 2026, Montenegro’s labour market demonstrated significant growth, with the number of employed individuals rising even as real wages declined. The average employment figure reached 278,980, an increase from 265,815 during the same period in 2025, marking a year-on-year growth of 5 percent and adding approximately 13,200 jobs.
By June 2026, employment further increased to 291,262, reflecting a rise of around 13,000 compared to June 2025 and nearly 20,000 since January 2026. This growth was driven primarily by the tourism sector as it entered its peak season.
The expansion in employment was varied across sectors. Notable increases included construction at 11.6 percent, manufacturing at 8.8 percent, arts and entertainment at 9 percent, accommodation and food services at 6 percent, transport and storage at 5.1 percent, and wholesale and retail trade at 4.7 percent. Professional, scientific, and technical activities also saw a rise of 5.4 percent, employing an average of 17,683 people.
Conversely, public administration remained stable with an average of 23,238 workers, while real estate experienced a decline of 1.4 percent. Despite ongoing property development and foreign interest in coastal properties, this sector was one of the few to contract.
The manufacturing sector added nearly 1,440 jobs, reaching an average of 17,813. However, this occurred alongside a slight decrease in manufacturing output, suggesting potential factors such as preemptive hiring or shifts in industrial composition.
A key issue remains the stagnation in wages; nominal net earnings increased by only 1.2 percent, while consumer prices rose by 3.3 percent. As a result, real net wages fell by 2 percent. This indicates that while overall employment growth has bolstered household income, individual purchasing power has diminished.
The rising costs of transport, health services, housing maintenance, rents, and hospitality have outpaced the general consumer price index, placing additional financial strain on households in urban and coastal areas.
<pEmployment growth was particularly pronounced in smaller municipalities with lower initial employment levels. For instance, Gusinje saw an increase of 19.3 percent, followed by Andrijevica at 13.4 percent, Zeta at 12.3 percent, Petnjica at 11 percent, and Žabljak at 9.7 percent.
Larger cities also reported positive employment trends: Podgorica grew by 4.5 percent, Budva by 4.7 percent, Bar by 5.8 percent, Nikšić by 5 percent, Kotor by 6.8 percent, and Ulcinj by 9.2 percent. These figures highlight the combined effects of tourism, construction activities, retail operations, and public services on job creation.
The current dynamics of Montenegro’s labour market indicate a greater emphasis on job quantity rather than quality regarding purchasing power. Future developments will hinge on productivity improvements, skill enhancements, formal employment growth, and businesses transitioning into higher-value activities that can sustain increased real wages beyond seasonal fluctuations.
