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NewsPublic sector employment surge poses challenges for private sector in Montenegro

Public sector employment surge poses challenges for private sector in Montenegro

One in three employees works in the public sector, and many workers are transitioning from the private sector to the state sector in search of better salaries and working conditions. As a result, private employers are finding it increasingly difficult to compete with the public administration and attract workers. Experts interviewed by TVCG’s Daily News suggest that this system is unsustainable and call for stricter criteria and conditions for public sector employment.

A stable, well-paid job has long been a dream for every worker, and recently, it has become a reality for many employees in the public sector. Due to better wages and working conditions, numerous workers are shifting from private to public sector jobs.

“We predominantly see the transfer of established personnel who have aged in the real sector, and they are being offered conditions that are not focused on additional work and engagement, but rather on benefits. These benefits include flexible working hours and vacation time. While employers, especially in tourism and hospitality, are forced to import workers, the number of public sector employees is increasing,” said Slobodan Mikavica from the Employers’ Union.

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He noted that the state is becoming the largest employer.

“As we heard just a few days ago, the state has employed around 5,000 new people in the past three years, both in public enterprises and budgetary units. This system, of course, cannot function in the long run. The cost structure in public administration must be reduced and brought to an optimal level,” said financial consultant Stevan Gajević.

A bloated administration is often inefficient, and in many cases, political affiliation is more important than knowledge and experience when hiring in public administration. So, how can the private sector compete with the unfair competition of the public sector?

In Montenegro, according to data from the Tax Administration, there are 240,000 employed citizens, of whom nearly 80,000, or one-third, work in public administration.

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