Education and Labor Market in Kosovo

The Government and the Ministry of Education, Science and technology (MEST) is aware of the necessity to bridge the skill gap in many industries and especially in the ICT sector which hinders development and causes economic stagnation. Therefore it has drafted the comprehensive - Kosovo Education Strategic Plan (KESP) - for the development of education in the Republic of Kosovo to improve the conditions.

According to the World Bank the government has not only increased spending on education but also rolled out a plan toachieve more effectiveness in the process. Especially in regard to ICT they recognise, that a swifter movement towards its applicationin classrooms and increased funding of scientific research is necessary.

Although general progress has been made, early childhood, pre-university, and university education still need more attention, according to Prime Minister Kurti. In a speech he emphasised the implementation of digital technology across the board for 2022-2026 to further bolster the trends of digital transformation. For this, EUR 3.5 million have been allocated, 106 scholarships for girls in the STEM field and 1365 university scholarships for female students have been created as well as 1000 information technology courses for graduates of vocational schools (Prime Minster Office 2022).

Nevertheless, and despite all these efforts the country made, and its plans for the future, it is not there yet. Enrolments into ICT related fields are rising but the skill gap which the ICT sector faces is omni present and has many implications, as it hinders the country to reach its full potential.

Programs and Initiatives to alleviate it, like the 2014 Action Program for Kosovo for improving ICT competitiveness, an EU-funded project that has recently trained teachers and students, an initiative for improving woman inclusion in the field, a digital infrastructure project connecting 954 primary and 122 secondary schools to enable ICT education are in progress or have been conducted. And while some have shown results and success stories most of these measures can only bear fruit over a longer time period (WBIF 2023 /WeBalkans 2022 / EC 2017).

Labour Cost

The average monthly salary in Kosovo was around EUR 500 in 2021 but might differ from city tocity. The gender pay gap is slowly closing but still lies as high as 30% (TE 2023 / RCC 2022).

The average salary in the ICT sector is around EUR 756 but might deviate significantly depending on city and region (STIKK 2021).

Call centre employees in Kosovo receive salary between EUR 750 and 1.500 which is way higher than the national average.

Conclusion

Kosovo has experienced solid growth over the last decade and made a remarkable pandemic recovery. While a decline in investment and private consumption, the ramifications of the war in Ukraine which are driving inflation, and a high unemployment rate (around 20%), especially in regard to young people and woman, hamper its development the country is doing everything to remain on trajectory towards amore robust, sustainable, and export-oriented economy.

In regard to the ICT and BPO sector development it can clearly bestated that long time planning paid off in most areas. High internet penetration reached levels, on par with developed economies,and drives further development. Also, the digital transition made can drive an investment dynamic and latest numbers show, that sector segments such as EdTech, cybersecurity, e-commerce and retail tech are growing faster. And while this is a success story, productive use of the internet remains challenging and depends largely on income level and educational attainment.

The UNDP findings show that a large proportion of the population remain digital illiterates or show at least deficits in various digital skills that go beyond social communication and surfing, and recommend, that concrete educational steps should be taken, such as offering education programs specifically for early levels of education(UNDP 2022).

The UNDP findings also bolster ourfindings from the education section above and unveil exactly Kosovos Achilles’ heel. It highlights that despite the governments efforts it could not keep up with the fast pace of the industry as well as their own digitalisation progress; but which government really can? Many industrialised nations still struggle with similar problematics. And while this seems to be the Kosovos main struggle here it also indicates a huge potential for growth in the future, as the high demand for a skilled IT workforce shows that the potential is there. It could close the skill gaps inthe industry, adjust the brain-drain, reduce unemployment, increase investment activity and thus drive the countries overall development.