A shortage of domestic labor, particularly in hospitality and service industries, has led to a growing reliance on foreign workers in Bosnia and Herzegovina.
This trend is especially noticeable in the Federation of BiH, where the number of work permits issued to citizens of third countries has increased year by year, particularly for workers from Asia. It is not uncommon to be served in English by a waiter in Sarajevo, Mostar, or Neum, as some foreign employees are still learning Bosnian.
In preparation for the upcoming summer season, tourism workers in Neum face persistent labor shortages, prompting employers to hire foreign staff. Most of the imported workforce in this coastal town comes from Nepal and the Philippines.
According to data from the Federation of BiH Employment Service, between January 1 and December 31, 2025, a total of 3,698 foreign citizens were living and working in the Federation. The final annual report has not yet been released, so the actual number may be higher.
Among the countries of origin, the largest number of work permits went to citizens of India (553 in 2025), followed by Turkey (479), Nepal (399), Bangladesh (283), Serbia (192), and Croatia (163). A notable number of permits were also issued to citizens of China (101), Kuwait (91), and other countries, highlighting the increasing diversity of the foreign workforce in the Federation.
Hospitality and Service Sectors See Significant Growth
The most notable increase is in hospitality and hotel industries, which have long faced chronic labor shortages. In 2025, a total of 536 work permits were issued in these sectors. Other service industries received an additional 255 permits, indicating that foreign workers are increasingly employed in roles such as cleaning, logistics, personal services, and similar jobs.
Employers have emphasized that without foreign workers, they could not sustain operations, particularly during the tourist season. The emigration of domestic labor to European Union countries, unfavorable demographic trends, and young people’s reluctance to take certain jobs have further strained the labor market.
Workers from India, Nepal, and Bangladesh are most commonly employed in hospitality and hotel positions, as well as in auxiliary and service roles. Employers note that these workers are willing to work longer hours and more readily accept conditions that local employees increasingly reject.
Sarajevo Dominates in Work Permits
Of the foreign workers in the Federation of BiH in 2025, the largest number of permits were issued in Sarajevo. The city accounted for 2,121 permits, more than half of the total in the Federation. This is due to Sarajevo’s role as the administrative, tourist, and economic center, with the highest concentration of hotels, restaurants, and service businesses.
Experts warn that the trend of hiring foreign workers is likely to continue unless systemic measures are introduced to retain local labor. At the same time, they stress the need for better regulation to protect foreign workers’ rights and prevent potential abuses.
Integration, language acquisition, and cultural adaptation are becoming increasingly important topics. While foreign workers currently fill critical gaps in the labor market, hiring abroad is not a permanent solution but rather a response to deep structural challenges in the domestic economy and demographics.
Until long-term solutions are found, the hospitality and service sectors in the Federation of BiH—and across the country—will continue to rely heavily on foreign labor, which has already become an integral part of restaurants, hotels, and other service establishments.
In the Republika Srpska, data for 2025 are still being processed in coordination with the BiH Employment Agency, and official figures have not yet been released.
Source: Klix.ba