Gresa Smolica and Olsë Kajtazi January 2026 Labour shortages due to automation Assessment of Kosovo’s Regulatory Framework against Job Displacements Due to Automation

Imprint Publisher Friedrich-Ebert-Stiftung e.V. Godesberger Allee 149 53175 Bonn info@fes.de Responsibility for content and editing Katharina Hofmann Contact Rudina Nallbani rudina.nallbani@fes.de Design/Layout Trembelat Front page design Trembelat Printing and production Studio Forma The views expressed in this publication are not necessarily those of the Friedrich-Ebert-Stiftung e.V.(FES). Commercial use of the media published by the FES is not permitted without the written consent of the FES. FES publications may not be used for election campaign purposes. This policy brief was developed as part of the project“Assessing the Resilience of Kosovar Society to Ecological and Institutional Shocks”. A comprehensive scoring database, which underpins the analysis presented herein, is available upon request. Please send your requests to info@re-actlab.org. January 2026 © Friedrich-Ebert-Stiftung e.V. Further publications of the Friedrich-Ebert-Stiftung can be found here: ↗ www.fes.de/publikationen 2 Friedrich-Ebert-Stiftung e.V.

Gresa Smolica and Olsë Kajtazi Labour shortage due to automation Assessmente of Kosovo’s Regulatory Framework against Job Displacements Due to Automation Labour shortages due to automation 3

Content Introduction...................................................... 4 Methodology..................................................... 6 Narrowing down automation and its effects on labour markets............ 9 Regulatory Framework............................................ 15 Applying the policy analytical framework................................................... 19 Discussing the findings........................................... 28 Conclusions and recommendations.................................. 31 4 Friedrich-Ebert-Stiftung e.V.

Recommendations Acknowledgement → This policy brief was developed as part of the project“Assessing the Resilience of Kosovar Society to Ecological and Institutional Shocks”. A comprehensive scoring database, which underpins the analysis presented herein, is available upon request. Please send your requests to info@re-actlab.org. The following key recommendations are proposed to build a more resilient regulatory and societal framework: → Establish a Public-Private Council: Foster collaboration between the government, education providers, and businesses(including chambers of commerce) to align education with market demands. This council would update curricula, forecast future skills needs, offer cofinanced training programs, and expand workbased learning opportunities. → Reactivate the Social Economic Council: Strengthen social dialogue and cooperation between trade unions, employer associations, and governmental ministries to facilitate exchanges on labour market issues, including emerging trends and rapid response to shifts. → Expand Labour Market Data Collection: The Ministry of Finance, Labour and Transfers should collect comprehensive real-time data on job vacancies, skill demand and supply, labour market flows, the gig economy, and wage differentials by industry, occupation, and region/municipality. → Enhance and Promote the Superpuna Platform: Tailor the professional training component of the Superpuna platform to offer skills required by the job market, ensuring adequate programs through cooperation with businesses, professional schools, and sectoral institutions. Promote the platform widely to young workers. → Create a Joint Rapid Response Unit: Establish a unit, in cooperation between the Employment Agency and the Ministry of Finance, Labour and Transfers, to provide targeted and immediate support for significant sectoral shifts or widespread job displacements. This includes rapid reintegration job fairs, transitional income support linked to reskilling, and activation of training centres. Labour shortages due to automation 3 5

Introduction In 2013, results from a research study on job susceptibility toward com puterisation were a turning point for different groups of the population. This study indicated that within two decades, almost half the jobs in the United States could be automated. While international organisations, re searchers and academia quickly caught up and tried to either deepen such research or counter such findings, among the population, the panic toward automation continued to rise. The presence of policy challenges such as an ageing population, migration due to different socio-economic and political reasons, the rise of the knowledge economy, etc., was fur ther exacerbated throughout and post-COVID-19 pandemic. As jobs be come more digital, technical and analytical, workers with routine skills become more vulnerable. This policy brief is part of a series of anal In Kosovo, studies reveal yses assessing the resilience of Kosovo’s regulatory framework in addressing insti tutional shocks. In this brief, we analyse an outdated education dressing labour shifts caused by automa the resilience of such a framework in ad system which contributes tion, as a long-term stressor which, over time, significantly changes or influences to difficulties for firms in social systems. To do so, we first con struct a regulatory framework consisting finding qualified of relevant strategies, laws, policies, and interventions in place related to labour employees, thus slowly is assessed relying on the OECD’s classifi market in Kosovo; second, this framework shifting towards cation of shocks and the 4Rs of Resilience methodology: Robustness, Redundancy, automation to fill labour Resourcefulness, and Rapidity. Each com ponent of the regulatory framework is as sessed through a structured scoring sys shortages. tem, with the total resilience score nor malised into a percentage for comparative analysis. We find that while advancements in automation offer potential for in creased efficiency and productivity, they also pose significant challenges to labour markets. Challenges observed across the European Union(EU) are mirrored in the Western Balkans, including Kosovo. The region’s con 6 Friedrich-Ebert-Stiftung e.V.

centration in lower productivity sectors and barriers to automation, such as skill gaps and educational deficiencies, make it particularly susceptible to job losses. In Kosovo, studies reveal an outdated education system which contributes to difficulties for firms in finding qualified employees, thus slowly shifting towards automation to fill labour shortages. The assessment of Kosovo’s regulatory framework reveals a low resilience toward this shock, reaching an overall score of 47%. As per our methodol ogy, such a score indicates weak, inconsistent, or incomplete measures in place to respond to a stressor, in this case, labour shifts due to automa tion. While some recent strategies acknowledge the skills mismatch, older foundational laws lack provisions for structural labour market shifts or rapid crisis response. Most notably, the Law on Labour’s failure to address automation risks showcases the limited redundancy across the framework and the minimal rapidity in response mechanisms. In light of these findings, the brief emphasises the urgent need for a pro active and adaptable regulatory framework to mitigate the socio-econom ic consequences of automation. Considering that a long-term stressor like automation requires sustainable and non-project-based interventions, the brief recommends the establishment of a public-private council to align education with market demands, reactivation of the Social Economic Council to strengthen social dialogue, expansion of labor market data collection, enhancement of existing platforms for professional training, and the creation of a joint rapid response unit. Labour shortages due to automation 7

Methodology Methodology The policy brief is part of a larger research conducted on institutional s T h h o e ck p s ol t i h c a y t b K ri o e s f o i v s o pa fa r c t e o s f . a Th la e rg re e s r e r a e r s c e h ar e c m h p c l o o n y d s u a ct s e y d st o e n m i a n t s ic tit p u o t l i i o c n y al shocks a th n at ly K si o s s f o r v a o m f e a w ce o s r . k T d h e e si r g e n s ed ar t c o h a e s m se p s l s oy t s he a r s e y s s il t i e e m nc a e ti o c f p K o o li s c o y v a o n ’s a e ly x s is is ti f n r g amework r d e e g s u ig la n t e o d ry to fra a m ss e e w ss or t k he (p r o es li i c lien s, c l e aw of s K , b o y s l o a v w o s ’s , s e t x r i a s te in g g ie r s e , g g u o l v a e to rn ry m f e r n am ta e l work(pold ic o ie cu s, m la e w nt s s , , b e y t l c a . w ) a s g , s a t i r n a s t t e s g e ie v s e , ra g l o s v h e o rn c m ks e . n T t h a e l d re o s c e u a m rc e h n p ts r , o e c t e c s . s ) a fo g l a lo in w s e t d several a sh s o tr c u k c s t . u T re h d e p re r s o e c a e r s c s h c p o r n o s c is e t s i s ng fo o ll f o t w h e re d e a m s a tr i u n c p tu h r a e s d es p : ro (i c ) e id ss en c t o if n y s i i n s g tin th g e of three n m a a tu in re p o h f a t s h e e s: s ( h i) o i c d k e , n ( t i if ) y a in ss g e t s h si e n n g a t t h u e re cu o r f re th n e t p sh o o li ck y , r ( e ii s ) p a o s n s s e e s s si t n h g ro t u h g e h cu a rrent s p c o o l r ic in y g re s s y p st o e n m se , s an th d ro (i u ii g ) h de a ve sc lo o p ring s re y c st o e m m m , a e nd a ( t iii o ) n d s e b ve a l s o e p d in o g n r t e h c e om fin m d e ndai t n io g n s s a b n a d s b e e d s o t n pr t a h c e ti f c i e n s d . ings and best practices. T T h h e e c c l l a a s s s s i i f f i i c c a a t t i i o o n n o o f f t t h h e e n n a a t t u u r r e e o o f f t t h h e e s s h h o o c c k k s s i i s s b b a a s s e e d d o o n n t t h h e e f f r r a a m m e e w w o o r r k k develd o e p v e e d lo b p y e t d h b e y O t E h C e D OE in C 2 D 01 in 4, 2 a 0 s 14 e , x a p s la e in xp ed la in e t d he in ta th b e le t b a e b lo e w b : elow: T T a a b b l l e e 1 1 . . C C l l a a s s s s i i f f i i c c a a t t i i o o n n o o f f s s h h o o c c k k s s . 1 1 Type of shock Covariate Shocks (Widespread, Systemic and Infrequent) Seasonal Shocks (Recurring, Predictable and Localised) Long-Term Stressors (Gradual, Cumulative and Systemic Erosion of Resilience) Characteristics Large-scale events that affect a large portion of the population at once. They are not frequent, but their impact is widespread and systemic. Periodic shocks that occur at regular intervals, often linked to seasonal changes or climate patterns. Usually predictable, but inadequate preparedness can exacerbate their impact. Unlike shocks, long-term stressors develop slowly over time and weaken societal systems. These are often structural, environmental, economic or social shocks requiring policy responses. Examples Violent Conflict and political crises, pandemic and health crises, largescale natural disasters, cybersecurity and hybrid threats. Annual floodings and droughts, heatwaves and cold snaps, seasonal food insecurities, recurring health risks. Environmental degradation, demographic shifts, economic stagnation and inequality, weak institutions and governance. To evaluate the effectiveness of the regulatory framework in countering various T s o ho e c v k a s lu , w at e e b th u e ild ef u f p ec o t n iv t e h n e e 4 ss R o s f o t f h R e e r s e i g li u en la c t e or f y ra f m ra e m w e o w rk o . r T k h in is c f o ra u m nt e e w ri o n r g k assess v e a s ri p o o u l s ic s ie h s o a ck g s a , in w s e t b fo u u il r d k u e p y o d n im th e e ns 4 io R n s s o o f f R r e e s s i i l l i i e e n n c c e e: framework. This framework assesses policies against four key dimensions of resilience: 1 Classified based on the OECD(2014)“Guidelines for Resilience Systems Analysis: How to Analyse Risks and Build a Roadmap to Resilience”. OECD Publishing. 8 Friedrich-Ebert-Stiftung e.V. 6 Friedrich-Ebert-Stiftung e.V.

T T a a b b l l e e 2 2 . . T T h h e e 4 4 R R s s o o f f R R e e s s i i l l i i e e n n c c e e F F r r a a m m e e w w o o r r k k Table 2. The 4Rs of Resilience Framework Framework Category Definition Ta Fr b a l m e e 2 w . o T r h k e 4Rs o RC f oa R tb e ug s s i ot l nr i y e e n ss ce Framework TDheefinsittrieonngth, or the ability of elements, systems and other units of anal4Rs of Framework R 4R es s il o ie f nce Resilience 4Rs of Resilience Robustness Category Redundancy Robustness Redundancy Resourcefulness Redsouunrdcaenfuclyness Rapidity Resourcefulness Rapidity yTshise tsotrwenitghtsht,aonrdthaegaivbeinlitlyevoefleolef msterenstss,osrydsteemmasnadnwdioththoeurt usunfitfseroinfganalDdyseeigsfirntaoidtiawotniitohnstoarnldosas goifvefunnlcetvioelno. f stress or demand without suffering Tdehgeraadvaaitliaobniloitryloosfsaoltferfnuantcitvieonre. sources in the recovery process of a sysThe strength, or the ability of elements, systems and other units of analytTeshmise.taovawiliathbsiltiatyndofaagltiveernnalteivelroesfosutrrecsess oinr dtheemraencdovwerityhporuotcseusfsfeorfinagsysdTteehmger.acadpaaticointyotroloidsesnotfiffyupnrcotibolnem. s, establish priorities, and mobilise reTsohuercaceavsapiawlachibteiylnitcyoooindfdeaintlitoiefnrynspaertxoivibseltertemhsaso,tuetrhscteraesbailtniesnthhtpeorridoeicrsiotrivueepsrt,yasponrmdocemeesolsbeiomlifseaentrse,y-stsseyomsutr.ecmes, worhoetnhceor nudniittioonfsaenxailsytstish.at threaten to disrupt some element, Tsyhsetecmap, aocriotythteormuneeittopfriaonraitliyessisa.nd achieve goals in a timely manner in The capacity to identify problems, establish priorities, and mobilise resoTorhdueercrceatsopwaccohinteytnatcionomnlodesiestiteospnrasinoerdxitiasievtsothiadantfdutathucrreheaietdveiensrgutopatdiloissnrinupat tsiommeelyemleamnennetr, in soyrdsteermto, ocroonthaienr luonsisteosfaanndalayvsoisid. future disruption Rapidity The capacity to meet priorities and achieve goals in a timely manner in Each source identified as part of the reg o u rd la e t r o to ry co fr n a ta m in e l w os o s r e k s a a n d d d a re vo ss id in fu g tu th re e disruption E s E a h a c o c h c h k s s s o o i u u s r r c e c e v e a i i d l d u e e a n n t t t e i i f d f i i e e a d d g a a s i s n p p s a t a r r t t t h o e o f f 4 t t R h h e s e f r r r e e a g g m u u l e l a a w t t o o r r y y k f f u r r a s a i m m ng e e w w a o o s r r t k k ru a a c d d t d u d r r e e s d s s s i s i n n c g o g r t t i h n h e g e sys s t s h e h m o o c c , k k a s s s i i s e s x e e p v v l a a a l l i u u n a a e t t d e e d d be a a l g g o a a w i i n : n s s t t t t h h e e 4 4 R R s s f f r r a a m m e e w w o o r r k k u u s s i i n n g g a a s s t t r r u u c c t t u u r r e e d d s s c c o o r r i i n n g g sys s Et y ea s mc t h e , m asso , u a er s xcp e l x ai p din l e a en i d n ti e fbi d eeld b o e wa l s o : w pa : rt of the regulatory framework addressing the s T h a o b c le ks 3. is Sc e o v r a i l n u g at s e y d st a em gai b n a s s t e t d he on 4R th s e f 4 ra R m s e F w ra o m rk ew us o i r n k g a structured scoring sys T t T e a a m b b l l , e e a 3 3 s . . S e S x c c p o o r l r a i i n n in g g e s s d y y s b s t t e e e l m m ow b b : a a s s e e d d o o n n t t h h e e 4 4 R R s s F F r r a a m m e e w w o o r r k k Scoring T RS a co b ob l r e uins 3 gtn . e S s c s oring system based 0 o : n No th ro e b 4 u R st s ne F s r s a — m po e l w ic o y r d k oes not address stability in the face of shocks. Robustness Scoring RRoedbuunstdnaenscsy Redundancy RReedsouunrdcaenfuclyness Resourcefulness RReaspoiduirtcyefulness Rapidity Rapidity 10::WNeoarkobour sstynmesbso—lipcomliceyasduoreess nwoitthalditdtrleesesnsftoarbceilmityenint.the face of shocks. 21:: WMeoadkeroartesymmebcohlaicnmismeasseuxreisst,wbiutht tlihtetlye aernefoinrcceomnseisntte. ntly applied. 32:: MStorodnegra, tweemll-eecnhfaonrcisemd smeexcihsta,nbiusmt tsheenysaurreinigncsotnasbiislitteyn. tly applied. 003:: SNNtoororrnoegdb,uuwnstdenlael-nsecsny—f—oprfocaleiilcduyrmedeoocefhstahnneoistmmaadsindernseyssusstresintmagblsieltaiatdybsiilnittoyt.hceolflaacpeseo.f shocks. 11:: WMeinaikmoarl soyrminbfoorlimc aml eaaltseurrneastiwveitshtlhitattleaerenfuonrcreelmiaebnlet.. 20:: MNoodreedrautnedmaneccyh—anfaisimlusreeoxfistth, ebumt athineysyasrteemincloeandsisstteonctolyllaapppseli.ed. 21:: MSoinmime arel dournindfaonrcmya, lbaulttegranpastievxeisstthinatcoavreeruangreeloiarbelfef.iciency. 33:: SWtreolln-ign,twegerlal-teendforercdeudndmaencchyaennissmursinegnscuornintignusittaybuilnitdye. r stress. 2: Some redundancy, but gaps exist in coverage or efficiency. 003:: WNNooelrrlee-idsnouteungrdcraeanftuecldyn—eresfdas—iulunrredeacontfcivyteheernamstuhareiinnr gtshycasontnetpmirnoulaeictaytdivusentodaepcrposrloltaraepcsshse.. 11:: MLiminiitmedalaodraipntfaobrmiliatyl a-lrteesrpnoatnisveesmtehcahtaanreismunsrealrieabwlee.ak or ad hoc. 20:: SNoomreesroeudrucnedfualnnceys,sb—urteagcatpivseerxaistht einr tchoavnerpargoeaoctriveeffiacpiepnrocya.ch. 21:: LMimoditeerdataedaabpitlaitbyiltiotymorebsipliosensreesmouerccheasn, bisumtsgaarpeswreemakaionr. ad hoc. 33:: WHieglhl-liyntfelegxriabtleedarnedduwnedlla-ncocoyredninsautreindgrecospnotinnsueitmy eucnhdaenrisstmress.s. 2: Moderate ability to mobilise resources, but gaps remain. 003:: HNNiooghrrealyspoifdulerrxceiesbfplueolnnaesnsedsm—wereeclalh-ccatonivoisermdrianst—ahtdeeredltahreyasenpdoponrrosaaebcmtsievenecthaarpenpairscomtaioscn.hs.. 11:: LSilmowiteadndadbauprteaabuiclirtayti-creressppoonnsseemweitchhamnaisjomrsinaereffiwcieeankcioers.ad hoc. 20:: MNoodraerpaidteraesbpiloitnysteommeocbhialinsiesmress—oudrecleasy,ebduot rgaabpssernetmraeainc.tions. 21:: SMloowdearnatdebsupreeeadu,cbrautticsoremspeobnostetlewnitehckmsaejxoirstin. efficiencies. 33:: HHiigghhllyy felfefxicibielenta, nfadswt-terlal-cckoorersdpinoantseedernessuproinnsgesmwiefct haacntiiosnm.s. 2: Moderate speed, but some bottlenecks exist. 03:: HNioghralypiedffriecsiepnotn,sfeasmt-etrcahcaknriesmspso—ndseeleanyseudrionrgasbwseifnttarcetaiocnti.ons. 1: Slow and bureaucratic response with major inefficiencies. 2: Moderate speed, but some bottlenecks exist. The total policy resilience sco 3 r : e H ( i 0 g h 1 l 2 y ) e i f s fic t i h e e nt n , f n a o st r m tra a c l k is r e es d po in n t s o e e a n p su e r r in ce g n s t w a if g t e a , c e ti n on a . b T l h in e g to c t o a m l po a l r i a c t y iv r e es e i v li a e l n u c a e ti s o c n or a e cr ( o 0 s -1 s 2 d ) if s fe th re e n n t n p o o r l m ici a e l s is a e n d d in s t e o ct a or p s e . rcentage, ena T b h li e ng to c t o a m l p p o a l r i a cy tiv res e il v ie a n lu c a e ti s o c n or a e c ( r 0 o s 1 s 2) d is ff t e h rent n p o o r l m ic a ie l s ise a d nd in s t e o c a to p rs e . rcent a T g h e e , t e o n t a a b l l p in o g lic c y om re p si a li r e a n ti c v e e s e c v o a r l e u R ( a 0 e t s io 1 il 2 i n e ) n a i c s c e r t s o h c s e o s n re d n = if o f S r e m U re M a n l t ( is T p o e o t d a l l ic n s i c t e o o s re a a /1 n p 2 d ) e x r s c 1 e e 0 c n 0 tage, ena t b o l r in s. g comparative evaluation ac R ro e s i s lie d n i c ff e e s r c e o n re t = po S li U c M ies (T a o n ta d l s s c e o c re t / o 1 r 2 s ) . x 100 Resilience score= SUM(Total score/12) x 100 Labour shortages due to automation 9 Labour shortages due to automation 7 Labour shortages due to automation 7

Tabl T e a 4 b . le Sc 4 o . r S in c g or int g er i p n r t et r a p t re io ta n tion Scoring Interpretation 0-25% (0-3 points) 26-50% (4-6 points) 51-75% (7-9 points) 76-100% (10-12 points) Very Low Resilience Low Resilience Moderate Resilience High Resilience The policy makes the society highly vulnerable to shocks, offering little protection or response capability. Some resilience measures exist, but they are either weak, inconsistent, or incomplete. The policy provides a reasonable level of preparedness and response, but some critical gaps remain. The policy is well-designed, with strong mechanisms ensuring stability, adaptability, and quick response. For more detailed research methodology, please refer to the Policy Analysis Fram Fo ew r m or o k re de d v e e t l a o i p le e d d r f e o s r e t a h rc is h re m s et a h r o ch d . o Y lo o g u y c , a p n le f a i s n e d r i e t f i e n r th o is th li e nk P . olicy Analy sis Framework developed for this research. You can find it in this link. 10 8 Friedrich-Ebert-Stiftung e.V. Friedrich-Ebert-Stiftung e.V.

Narrowing down automation and its effects on labour markets After the COVID-19 outbreak, technological developments took off at an increasingly high speed to address the gaps created from the period when the world‘slowed down’. While such developments were not entirely new and their potential was highly praised especially in the last decades, after the pandemic, we were able to witness their impact in different practical spheres. Among such developments, task automation has been widely discussed as a new dynamic in labour market organisation. Automation technologies are defined as technologies that can replace human labour input with machine input in different tasks of economic processes. 2 As these technologies advance, concerns over workers’ replacement increase. The labour shifts due to automation are a‘long-term stressor’ which weakens the societal and institutional systems, leading to demographic shifts and economic stagnation. Several debates surround the impact of automation in labour markets and employment generally. The famous study conducted by Frey and Osborne in 2013 examining how susceptible jobs are to computerisation, found that 47% of all persons employed in the United States are working jobs that could be automated within the next 10-20 years. In Europe, such susceptibility to automation is found to be between 45-60% of jobs- data on Figure 1 shows that European countries are close to the 40% already. On the other hand, the main critique toward the automation“panic” suggests that automation usually targets tasks rather than occupations. Additionally, the whole concept of substituting humans for robots or ma chines to perform a job consists of legal and ethical challenges that make the substitution as a concept very difficult to actually happen. 3 Labour shortages due to automation 11

Risk of automation % of total employment of jobs at highest risk of automation, 2019 40 30 20 10 0 Automation technologies are defined as technologies that can replace human labour input with machine input in different tasks of economic processes. Hungary Slovak R. Czechia Poland Lithuania Slovenia Latvia Portugal Italy Estonia Germany Austria Spain Greece France Average Finland Belgium Irleand Denmark Switzer. Iceland United S. Norway Netherl. Sweeden United K. Luxemb. F F ig ig u u r r e e 1 1 . . % % o o f f e e m m p p l l o o y y m m e e n n t t o o f f j j o o b b s s a a t t h h ig ig h h e e s s t t r r is is k k o o f f a a u u t t o o m m a a t t io io n n . . ( ( S S o o u u r r c c e e : : Lassebie L a a n s d se Q b u ie in a t n in d i Q (2 u 0 i 2 n 2 t ) in W i( h 2 a 0 t 22 sk ) i W lls h an t d sk a il b ls ili a ti n e d s c a a b n ili a ti u e t s o c m a a n t a io u n to t m ec a h t n ion lo t g e i c e h s repli n c o a l t o e g a ie n s d re w p h li a c t at d e o a es nd it w m h e a a t n d f o o e r s w it or m ker a s n ? N fo e r w w e o v rk id e e rs n ? ce N , e O w E e C v D id ) ence, OECD) Despite the arguments that machines will not fully substitute jobs, the initial asD su es m p p it t e io t n he th a a r t gu m m ac e h n i t n s e t s h c a a t n m o a n c l h y in rep s l w ac il e l r n o o u t t f in u e lly ta s s u k b s s i t s it n u o te w jo fa b c s i , n t g he significa A n u t tomation i c n h it a ia ll l e a n s g s e u s m . A p d ti v o a n n t c h e a m t e m n a ts ch in in m es ach an ine on le ly arn ep in l g ac , e s r p o e u c tin al e ly t , a h s a k v s e is le n d ow to increas te e c d hnologies are f m ac a in ch g in si e gn ca if p ic a a b n i t lit c i h es al i l n en p g e e rf s o . r A m d i v n a g n t c a e s m ks en th ts a i t n re m q a u c ir h e in th e in le k a i r n n g in a g n , d es re p a e s oning defined as c ( i e a . l g ly . , a h u a to ve m l a e t d ed to d i r n iv c i r n e g a ) s , e a d ls m o a k c n h o in w e n c a a s p g a e b n il u it i i n e e s ly in h p u e m rf a o n rm ta in s g ks t . a 4 s Y k e s t t m ha o t st of t t e h c e hnologies that can r c e h q a u l i l r e e n t g h e in d k o in e g s n a o n t d c r o e m as e on fr i o n m g( m e. a g c . h a i u n t e o s m o a n t l e y d . S d t r u iv d i i n e g s ) f , i a n l d so th k a n t o a w ft n er as the panreplace human labour g d e e n m uin c e o l u y t h b u re m a a k n , la ta b s o k u s r . 4 m Ye a t rk m et o s s s t a o w f t m he as c s h iv a e lle q n u g it e s d fr o o e m s n w o o t r c k o e m rs, e le fr a o v m ing orga in n p ut with machine m is ac ti h o i ns es st o r n u l g y g . l S in tu g d t i o es se fi c n u d re th lab t o a u ft r e a r n t d he le p a a d n in d g em to ic s o u u p t p b ly re -d a e k m , lab n o d u im r balance i s n . p 5 ut in different tasks m A a g r a k i e n t s s t sa u w ch m d a e s v s e i l v o e p q m u e it n s ts f , ro a m ne w w or c k h e a rs ll , e l n e g a e vi a n r g is o e r s g f a o n r is g a o t v io e n rn s m st e r n u t g s g a li r n o g und t o h f e economic processes. t w o o s r e l c d u re ba la la b n o c u i r ng an t d he le e a f d fe in c g ts t of s a u u p t p o l m ya d t e io m n a , n w d h i i m ch ba is la s n u c p e p s o . 5 se A d ga to in b st rin su g c m h ore d e e f v fi e c l i o e p n m cy e a n t ts t , h a e n c e o w st c o h f a a ll r e a n p g i e dl a y r c is h e a s n f g o i r n go l v a e b r o n u m r e m n a ts rk a e r t o c u o n m d p th o e sit w io o n rl . d - balancing the effects of automation, which is supposed to bring more e Y f e fi t c , i m en o c s y t a o t f t w h h e a c t o w st e o k f n a o r w ap u i n d t ly il c n h o a w ng is in b g as la e b d o o u n r p m re a d rk ic e tio c n o s m a p n o d si e ti s o t n im . ations. So, how can we analyse the labour market shift dynamics due to automation? Y L e a t b , o m u o r s s t h o o f rt w a h g a e t s w du e e kn to ow au u to n m til a n ti o o w n i g s ra b d a u se a d lly on bu p il r d ed u ic p ti t o h n ro s u a g n h d a est e i r ies of m ev a e t n io t n s s a . n S d o, w h e o a w ke c n an th w e e ab an ili a t l y ys o e f t s h y e st l e a m bo s u to r m ad a a rk p e t t a s n h d if r t e d s y p n o a n m d, ic p s la d c u in e g them in to automation? Labour shortages due to automation gradually build up through a series of events and weaken the ability of systems to adapt and respond, placing them in the category of long-term stressors. 6 More con 4 Ibid, 3. cretely, it refers to the disequilibrium in the labour market caused by skills 5 Jones, C.(2024) Automation’s Role in Alleviating Labor-Shortage Pressures. SupplyChainBrain Think Tank m Bl i o s g m . atch between labour demand and supply, mainly due to extensive automation in recent years. 12 10 Frie F d r r i i e c d h r i E c b h e -E rt b e S r t t i f S tu ti n ft g u e n . g V. e.V.

the category of long-term stressors. 6 More concretely, it refers to the disequilibrium in the labour market caused by skills mismatch between labour demand and supply, mainly due to extensive automation in recent years. As shown in Figure 2, workers in sectors such as construction, production, A a s nd sh lo o g w i n sti i c n s F a ig re ur m e o 2 s , t w a o f r f k e e c r t s ed in b s y e s c u to c r h s s s h u i c ft h s a a s s c t o h n e s ir tr j u o c b t i r o e n la , t p e r d od s u ki c l t ls io a n r , e and l c o o g n is s t id ic e s re a d re ro m u o t s in t e af s f k e i c ll t s e t d h b a y t c s a u n ch ea sh si i l f y ts b a e s re th p e la ir ce jo d b b -r y el a a d te v d an s c k e il d ls are conside te re c d hn ro o u lo ti g n ic e a s l k r i o ll b s o t t h ic a s t a ca n n d e s a ys s t il e y m b s e . r R e e p l e a n c t e e d rin b g y a th d e va w n o c r e k d fo t r e c c e h h n a o s logical roboti b c e s c a o n m d e sy m st o e r m e d s. if R fi e c u e l n t t i e n ri s n u g ch th c e as w e o s r , k a f s or l c a e bo h u a r s m be a c r o k m et e n m ee o d r s e h d a if v f e ic s u h lt if i t n ed such c t a o s w e a s r , d as di l g a i b ta o l u , r te m ch ar n k i e ca t l n , e a e n d d s a h n a a v l e yt s ic h a if l t s e k d il t l o s. w 7 a A r s d s d u i c g h it , a t l o , t m ec a h k n e ic s a u l r , e and analyti s c e a c l t s o k r i s ll s s u . 7 c A h s a s s u m ch a , n t u o fa m c a tu k r e in s g ur s e ta s y ec a t l o iv rs e, s e u m ch p a o s w m er a in n g uf a a n c d tu r r e i s n k g il s li t n a g y t a h l e ive, emp w o o w rk e f r o in rc g e a b n e d co re m sk e i s lli e n s g se t n h t e ia w l. o 8 rkforce becomes essential. 8 Degree of automation Ranking of occupations from highest to lowerst risk of automatability Construction and Extraction Farming, Fishing, and Forestry Production Transportation and Material Moving Installation, Meintenance, and Repair Building and Ground Cleaning and Maintenance Food Preparation and Serving Related Occupations Protective Service Healthcare Support Office and Administrative Support Arts, Design, Entertainment, Sports, and Media Healthcare Practitioners and Technical Occupations Life, Physical, and Social Science Sales and Related Occupations Architecture and Engineering Computer and Mathematical Business and Financial Operations Legal Educational Instruction and Library Management Community and Social Service 2 2.1 2.2 2.3 2.4 2.5 2.6 2.8 F F i i g g u u r r e e 2 2 . . R R a a n n k k i i n ng g o o f f o o c c c c u u p p a a t t i i o o n n s s b b a a s s e e d d o o n n t t h h e e ir ir ri r s is k k /d /d e e g g re re e e o o f f automatability, f a ro u m tom hi a g t h a e b s i t lit t y o , l f o ro w m es h t. ig (S h o e u st rc t e o : l L o a w s e s s e t b . i ( e So a u n r d ce Q : u L i a n s t s in eb i, ie 20 a 2 n 2 d ) Quintini, 2022) H H o o w w e e v v e e r r , , n n e e i i t t h h e e r r i i n n d d i i v v i i d d u u a a l l s s n n o o r r f f i i r r m m s s a a r r e e p p u u t t t t i i n n g g m m u u c c h h e e f f f f o o r r t t i i n n t t o o e e f f f f e e c c t ive r t e iv -s e k r i e ll in sk g il t l o in a g li t g o n a w lig it n h w m it a h rk m et a d rk e e m t a d n e d m s a . n E d m s p . l E o m ye p r l s oy a e re rs in a c re lin in e c d li t n o e i d nv to est invest in their high-performing or high-value employees, leaving those most at risk behind. 9,10 Despite many jobs being created and vacant po 6 sitio Ib n id s , 1 r . emaining unfilled, different areas are facing high unemployment 7 rate O s E , CD m ( o 20 s 1 t 9 l ) y , O d E u C e D E t m o p t lo h y e me c n o t n O t u i t n lo u ok o 2 u 0 s 1 l 9 y : T in he c F re ut a ur s e in of g W s o k rk i . l O ls EC g D a P p u , b h lis i h g in h g. migration 8 and Wo d rl e d m Ec o on g o r m a i p c h Fo i r c um ch (2 a 0 n 23 g ), e H s o a w m Au o to n m g at t io h n e W w ill o P r u k ll i U n s g Th p r o ou p g u h l t a he ti L o a n bo . u R r S a h t o h rt e a r ge t . han a temporary problem, this labour market transformation is a long-term issue that requires proactive strategies and policies to minimise its conse quences. 11 Labour shortages due to automation 11 Labour shortages due to automation 13

Challenges found across the EU are also present in the Western Balkans region. While in the former several remedies are already at work to ad dress this phenomenon, across the Western Balkans, threats of job and skill losses are ever present. The concentration of employment in lower productivity sectors makes the region more prone to job losses due to automation. However, there are several issues to consider when analysing the impact of automation in this region. Although there is a higher con centration on sectors where automation can substitute some tasks, the region also faces automation barriers such as lack of skills and gaps in education that could allow an amplification of automation potential that goes hand in hand with a more developed workforce. According to a 2020 World Bank report, routine tasks comprise a large share of tasks for work ers across the region. Workers very rarely engage in non-routine tasks that include learning something new or solving more complex problems. Generally ,across the Western Balkans, the probability of automation reaches 50%, a higher share than the one found across the EU. 12 Similar patterns are found in Kosovo as well. Most studies have focused on the quality of education in preparing young people to enter the work force. Here, there are rising concerns regarding Kosovo’s education sys tem, as experts consider it outdated, particularly in vocational training. Although Kosovo has universal access to education, Kosovars tend to have lower educational attainment compared to Europeans. 13 Another issue continues to be educational quality, as reports show 70-80% of stu dents do not attain basic proficiency in reading, math and science. The same World Bank report finds that in terms of quality of education, a child in Kosovo is 5 years behind a child in Singapore and 4 years behind a child in Lithuania. 14 Levels of education also play a role, especially in whether later workers of a certain education level will face automation risks. In Kosovo, workers with tertiary education appear as the least in risk of their job/tasks being automated in comparison with lower and up per secondary education. 15 14 Friedrich-Ebert-Stiftung e.V.

The effects of this issue significantly influence firms to hire through infor Levels of education mal channels, as they do not fully trust formal qualifications, which di also play a role, r T ec h t e ly e a ff f e fe ct c s ts o j f o t b hi s s e i e s k s e u r e s s w ig it n h i o fi u ca t n n t e ly tw in o f r l k u s e . 1 n 6 c 5 e 2% firm of s c t o o m h p ir a e n t ie h s ro in u t g e h r informal especiall L y ev in el w s h o e f ther v c i h ew an e n d e i l n s, a as st t u h d e y y c d o o nd n u o c t t f e u d lly in tr K u o s s t o f v o o rm o a n l s q k u il a ls lif g ic a a p ti r o e n p s o , r w te h d ic d h iff d i i c r u e l c t t i l e y s affect la s ter wo e rk d e u r c s a o t f io a n also i j n ob fin s d e i e n k g er q s u w al i i t f h ie o d ut e n m e p tw lo o y r e k e s s . , 16 p 5 ri 2 m % a o ri f ly co b m ec p a a u n s i e es m i o n s te t r i v n i t e e w re e s d te in d a ca s n t d u i d y con certain e p d l u a c y a a tio ro n le le , vel d d a u t c e t s e l d ac in ke K d o t s h o e vo sk o i n lls sk re il q ls ui g re a d p t r o ep w o o rt r e k d in di r f e f t ic a u il l . t T ie h s e i s n e fi i n n d cl i u n d g e q d u e a s li s f e ie n d tia e l mplo w yill face e a sp u e to ci m al a ly tio in n s e o e f s t , s p k r i i l m ls a fo ri r ly fr b o e n c t a -l u in se e m ro o le s s t , i s n u t c e h re a st s e c d o c m a m nd u i n d i a c t a e t s io la n c a k n e d d a th d e ap s t k a il b ls ili r t e y q . uired risks. to In w Ko h s e o th vo er , later A w d o d r i k tio in na re ll t y a , il a . s T m he o s s e t i f n ir c m lu s d i e n d t e h s is se s n e t c i t a o l r s h o a ft ve sk u il n ls de fo rg r o fr n o e n d ti l g in it e al r i o s l a e t s io , n su i c n h as workers w w o it r h ke t r e s rt o ia f r a y r c e o c m en m t y u e n a ic r a s, ti b o a n si a c n I d CT ad s a k p il t l a s b h il a i v ty e . b A e d c d o i m tio e n i a n l c ly r , e a a s sin m g o ly st im fir p m o s rt i a n n t t h , y is e s t ector educatio c n er a ta p i p n ea ed r u a c s ation have the m un a d n e y r a g p o p n l e ic d a i n g t i s ta f l a is il a e t d io t n o i m n r e e e c t e t n h t is ye re a q rs u , ir b e a m si e c n I t C . T Yo s u k t i h lls a h g a e v d e 18 b e 2 c 0 om we e r i e ncreasleast le i v n e r l is w k il o l f face p in a g rt l i y cu im la p rl o y rt d a is n a t, d y v e a t nt m a a g n ed y , a a p s p t l h ic e an m ts aj f o a r i i l t e y d la to ck m ed ee p t ri t o h r is w r o e r q k u e ir x e p m e e ri n e t n . c Y e o , uth their job a /t u a t s o k m s a b t e io in n g risks. m ag a e k d in 1 g 8 i t 20 ha w rd e e re r f p o a r rt t i h c e u m lar t l o y c d o is m ad p v e a te nt i a n g t e h d e , h a i s ri t n h g e p m ro a c j e o s ri s t . y A l m ac o k n e g d t p h ri e or automat I e n d K i o n sovo, work compari w so o n rk w er it s h w lo it w h er g e r x o p u e p ri o e f nc p e e , o m pl a e k w in h g o it la h c a k r e d d er th fo e r s t k h il e l m s re to qu c i o re m d p i e n te th i e n r t e h t e ai h l i l r a in b g ou p r ro m ce a s rk s e . t A , mon a g nd upper secondary y t o h u e n g g ro p u e p op o l f e p a e g o e p d le 18 w -2 h 4 o , l i a n c p ke a d rti t c h u e la s r k w ill o s m re e q n u , i h re a d ve in th th e e la re rg ta e i s l t la m b i o s ur tertiary market, education. m yo a u tc n h g . 17 p S e i o m pl il e a a r g fi e n d di 1 n 8 g -2 s 4 f , o i l n lo p w ar o t t i h cu e l r a s r e w ct o o m rs e a n s , h w a e v l e l i t n h K e o la s r o g v e o s . t In m a ism re a tch. 17 education c S e i n m t i i l n a t r e f r i v n i d e i w ng w s it fo h ll a o n w a o g t r h o e -e r c s o e n c o to m rs y a e s xp w e e r l t l i i n n K K o o s s o o v v o o , . i I t n w a a r s e h ce ig n h t l i i n g t h e t r e v d iew with appear as the t a h n at a m gr a o n -e y c f o ir n m om s o y p e e x r p a e ti r n t g in in K t o h s e ov a o g , r i i t cu w lt a u s re hi s g e h c l t i o g r ht h e a d ve th t a u t rn m e a d n t y o f a ir u m to s operating least in risk of their job/tasks m in a t t h io e n a t g o ri m cu a l k tu e re up se fo ct r o t r h h e a l v a e bo tu u r r n s e h d o t r o ta a g u e t s o a m n a d ti t o h n e t l o ac m k a o k f e w u o p rk f e o r r s t i h n e labour 18 being automated t s h h is or s t e a c g t e o s r. and the lack of workers in this sector. 18 in comparison with lower and Vacancies by occupation groups upper secondary education. Difficulty filling vacancies by occupational group(%) Skilled agricultural, forestry and fishery workers Technicians and associate professionals Professionals Craft and related trades workers Legislators, Senior Officials and Managers Service and sales workers Clerical support workers Plant and machine operators and assemblers Elementary occupations 0 10 20 30 40 50 60 70 80 F F ig ig u u r r e e 3 3 . . R R a a n n k k in in g g o o f f o o c c c c u u p p a a t t io io n n g g r r o o u u p p s s b b a a s s e e d d o o n n t t h h e e d d if if f f ic ic u u l l t t y y f f ir ir m m s s a a r r e e facing in f f a in ci d n i g ng in re f s in p d e i c n t g ive re w sp o e r c k t f i o v r e ce w . o (S rk o f u o r r c c e e : . K (S ra ou sn rc iq e: i, K B r . a , s e n t i a q l i, . B (2 . 0 , 2 e 2 t ) a K l. o ( s 2 o 0 v 2 o 2) Skills Ba K ro o m so e v t o er S 1 k .0 il ) ls Barometer 1.0) R R e e s s u u l l t t s s f f r r o o m m K K o o s s o o v v o o ’s ’s S S k k i i l l l l s s B B a a r r o o m m e e t t e e r r s s i i n n 2 2 0 0 2 2 1 1 , , a a s s s s h h o o w w n n i i n n F F i i g g u u r r e e 3 3 , , confirm c s o u n c f h irm con su ce c r h n c s o . A nc g e r r ic n u s l . t A ur g a r l ic w u o lt r u k r e a r l s w , f o o r r k e e s r t s ry , f w or o e r s k t e ry rs w a o n r d ke te rs ch a n n i d ci t a e n c s h a n r i e some c o ia f n th s e ar o e cc s u o p m a e ti o o f ns th f e or o w cc h u ic p h at f i i o r n m s s f i o n r K w o h s i o ch vo fi a rm re s m in os K t o ly so s v tr o u a g r g e li m ng o t s o tly find works e t r r s u . ggling to find workers. 16 Ibid, 10. 17 Nora Jusufi(2020) Skills Gap Analysis in the Retail Industry. Kosovo Retail Association. 18 Re-ACT Lab(2025) Interview with Mr. Egzon Bajrami(Agro Economy Expert in Ko L s a o b vo o ) u . r shortages due to automation 15

Looking at the other angle of automation brings interesting results as well. Nowadays, automation is seen as a tool that helps increase efficien cy at work and amplify productivity. When it comes to integrating auto mation in their daily work, a recent survey conducted by Kosovo 2.0 found that almost half of the respondents use AI-powered tools more than once during the day to complete different tasks of their jobs. Such support was mostly sought in tasks such as research, content creation, data analysis, etc. Most importantly, 77% of the respondents answered that they do not think AI-powered tools will replace their jobs or are not worried about such a scenario. 19 In the current situation, the region and Kosovo, more specifically, find themselves Long-term reliance on at a new crossroads in the challenging process of efficiently organising their automation can lead to workforce and dealing with the shock of labour shifts due to automation. On the the disappearance of creasing demands from emerging sectors one hand, there are expectations for in certain jobs, which could such as ICT, green energy, and robotics, requiring a careful revision of current cur further add to the ricula to ensure the new generation of the workforce is equipped with such skills. On imbalance in labour the other hand, the high rates of migra tion are pushing companies and current job providers to rely on automation and market organisation. technological tools to make up for the missing“hands on deck”. On the prior, if the system fails to equip individuals, especially youth, with the skills aligned with market needs, this will not only affect the growth of the mentioned sectors but also economic growth in general, leading to poten tially long-term structural underemployment. 20.21 On the latter, long-term reliance on automation can lead to the disappearance of certain jobs, which could further add to the imbalance in labour market organisation. 16 Friedrich-Ebert-Stiftung e.V.

Regulatory Framework Kosovo’s regulatory framework to address and resolve this shock consists of laws, national strategies, and foreign-funded projects. Although many of the identified components of the regulatory framework precede the existence of automation as a shock in Kosovo, it brings to the discussion how future-proof such frameworks are, their ability to respond to unforeseen challenges, and what new elements must be brought forward to complement such frame works. A resilient regulatory framework allows institutions to better manage labour market disruptions and shocks, however, currently this framework re mains weak and outdated in the face of today’s evolving challenges. The Constitution, as the supreme legal authority of Kosovo, establishes the principles of equality, social justice, and a market economy, forming the foundation for labour market regula tion and policies(Article 7). It guar antees every individual the freedom A resilient regulatory to choose and work in their preferred profession under legally established framework allows the Constitution highlights the impor conditions(Article 49). Additionally, institutions to better the context of the labour market, par tance of protecting children’s rights in manage labour market and unsafe working conditions(Article ticularly from economic exploitation disruptions and shocks, and health protection services, which 50). It mandates the creation of social however, currently this are essential for supporting the work force and addressing issues related to framework remains weak unemployment and underemployment (Article 51). Despite offering a broad and outdated in the face legal framework, the Constitution does not specifically address labour market shocks or structural unemployment. 22 The Law on Labour is one of the of today’s evolving challenges. main laws related to the labour mar ket. It establishes the basis for rights, obligations, and responsibilities in employment relationships in Kosovo. The Law requires that all employment arrangements between employer and employee be formalised through writ Labour shortages due to automation 17

ten contracts, clearly specifying agreed terms and conditions. To promote fair and safe working conditions, it defines working hours, rest periods, and overtime. It also guarantees employees access to annual leave, maternity and paternity leave, and other forms of leave that support their well-being. As protection for both parties, the Law sets clear procedures for contract ter mination, including notice periods and severance pay. Although it provides a solid framework for employment relationships, it lacks provisions and mech anisms to respond to labour market crises. 23 The Law for Vocational Education and Training presents a dual approach to education, where theoretical learning is combined with practical training. It defines apprenticeships as valuable and long-term experiences that con tribute to this approach. The law instructs the integration of labour market demands into the education system as a way of equipping youth with the skills required for employment. It encourages the alignment of the vocational education system(VET) with market requirements and promotes practical training following economic, scientific and technological developments, an initiative that reflects a positive direction toward building a skilled and specialised workforce. However, it does not include mechanisms specifically designed to respond to market disruptions such as widespread labour short ages. 24 The purpose of t he Law on Scientific Innovation and Transfer of Knowledge and Technology is to promote scientific research, technological devel opment, and innovation. By supporting the commercialization of scientific knowledge, the law aims to encourage innovation and develop a knowl edge-based economy. It establishes various forms of innovation infrastruc ture and facilitates cooperation between governmental institutions, univer sities, and the private sector. Its goals include improving research capacity, enhancing the practical use of innovation, aligning scientific work with economic development needs, and creating financing mechanisms such as innovation funds and incentives. However, the law does not directly address automation-driven labour shortages, nor does it provide mechanisms for swift responses to workforce displacement or reskilling needs. 25 The Law on Industrial and Technological Parks establishes a framework for the creation of industrial and technological zones, with the aim of attracting investment, supporting technological progress, and stimulating job creation. It mandates the formation of park management structures and allows for governance flexibility in ownership, administration, and financing. The law also enables the provision of incentives and promotes collaboration among a range of stakeholders, including public authorities, private entities, and ed ucational institutions. However, job shortages resulting from automation are not directly addressed, nor does the law provide mechanisms such as training or reskilling for workers affected by technological change. 26 The Employment Agency was established in 2014, following the ratification of the Law on the Employment Agency of the Republic of Kosovo . The law mandates the Agency to manage employment services, including the regis 18 Friedrich-Ebert-Stiftung e.V.

tration of job seekers and vacancies, and offering services such as guidance, counselling, and job matching. It is also the Agency’s responsibility to over see regional vocational training centres to ensure they fulfil their role in strengthening the skills of job seekers. Furthermore, its mandate includes conducting labour market analysis to support the design and implementation of effective labour market policies and programs. Similar to the previously mentioned law, the Law on the Employment Agency does not specifically ad dress mechanisms to respond to unexpected labour market shocks. 27 Although the primary objective of the Kosovo Digital Economy(KODE) Project is not directly focused on addressing labour market shortages caused by automation, its efforts to ward workforce development are note worthy. Through initiatives such as Work-based learning experiences, such as internships and the Youth Online and Upward(YOU) Program, which offers ICT training apprenticeships, are seen to both employed and unemployed young individuals, the project contrib as important for utes to equipping the workforce with in-demand digital skills. More than addressing labour 1300 young Kosovars have received training in ICT modules such as Java demands, yet such Programming, Web Development, Cyber Security, Python, Big Data An opportunities remain and KODE Project. Additionally, more alytics, etc., so far through IPA 2017 limited for Kosovo’s youth. than 20 business-to-business(B2B) meetings have been held in Kosovo and four outside the country. By promoting digital inclusion and reducing ur ban-rural disparities in access to high-speed, high-quality internet, the project supports improved access to knowledge and can lead to better labour market outcomes. 28 The National Development Strategy and Plan 2030 acknowledges the skills mismatch as a key challenge facing Kosovo and recognises the need for government action to mitigate it. As a result, it includes specific strategic objectives that address this shock, including: developing skills, competencies and narrowing the gap in the labour market, increasing the participation of women in the labour market, and better alignment of education with the needs of the labour market. For example, its strategic objectives include in creasing women’s labour market participation to 40% by 2026 and 50% by 2030. These objectives collectively aim to tackle structural unemployment and underemployment, reduce the share of an unskilled workforce, and pre vent widening gender disparities, especially where access to upskilling is une qual, which can contribute to automation-driven labour shortages. 29 Even though automation is not explicitly mentioned in the Employment Labour shortages due to automation 19

Strategy 2024–2028 , its core issue- skills mismatch- is highlighted as one of the key labour market problems in recent years. The strategy emphasises the urgency of adapting Kosovo’s workforce skills in line with global trends. This policy objective sets two clear targets: reducing the vertical skills mis match among individuals aged 15–64 from 42% in 2020 to 38% by 2026, and increasing the share of adults aged 25–64 participating in training pro grammes to 10%. Work-based learning experiences, such as internships and apprenticeships, are seen as important for addressing labour demands, yet such opportunities remain limited for Kosovo’s youth. It also draws attention to the need for better cooperation between the education system and labour market needs, in order to build a workforce that is resilient to automation and sectoral changes. 30 The mentioned laws provide a foundational legal framework for the function ing of the labour market; however, they remain limited in addressing shocks or disruptions. This may be because most were developed years ago, and now require updates to reflect current labour market dynamics. In contrast, the more recent strategies acknowledge the need for government action to build a resilient workforce. 20 Friedrich-Ebert-Stiftung e.V.

Applying the policy analytical f A ra pp m ly ew in o g rk the policy analytical framework In this section, a thorough analysis of the regulatory framework listed above will be conducted by applying the 4Rs of resilience framework, which inc ludes r c o lu b d u e st s n r e o s b s u , s re tn d e u s n s d , a re n d c u y, n r d e a s n o c u y r , ce re fu so ln u e rc ss e , fu a l n n d es r s a , p a id n i d ty r . a E p a id ch ity o . f E t a h c e h d o o f c t u h m e ents w do il c l u b m e en va ts lu w a i t l e l d be as ev p a e l r u o a u te r d m a e s th p o e d r ol u o r g m y, e a t s ho w d e o a lo im gy t , o as qu w a e n a tif m y h to ow qu r a e n si t l if e y nt t h h o e w la r w es s i , li s e t n ra t t t e h g e ie la s, w a s n , d st p ra ro te je g c ie ts , im an p d le p m ro e j n e t c e t d s i i m n p K l o e s m o e v n o t a e r d e in ag K a o in s s o t vo a a cu re rrent l a a g b a o i u n r st m a a c rk u e rr t e c n h t a l l a le b n o g u e r , m su a c rk h e a t s ch sh a i l f le ts ng d e ri , v s e u n c b h y a a s u s t h o i m fts at d io ri n v . en Du b e y t a o uto h m eir a sign ti i o fi n c . a D nc u e e i t n o a t d h d e r ir ess ig in n g ifi o c u a r n s c ele in ct a e d d d s r h es o s c i k n , g e o ig u h r t s s e o le u c r t c e e d s w sh e o re ck c , h e o ig se h n t s f ou r r t c h e is a w n e a r l e ys c i h s o , s in e c n lu fo d r in t g hi f s iv a e n l a a l w ys s i , s t , w in o cl n u a d t i i n o g na fi l v s e tr l at w e s g , ie tw s, o and at a io W na o l r s ld tra B t a e n g k ie s, pons a o n r d ed a p W ro o j r e l c d t B im an p k le -s m p e o nt s e o d re b d y p K roj s e o c v t a i r m in p s le ti m tu e t n io t n ed s. by Kosovar institutions. Law No.03/L –212 on Labour Rapidity Robustness 3 2 1 0 Redundancy Resourcefulness Figure 4: 4Rs Framework Assesment of the Law No. 03/L-212 on Labour.(Source: O (S w o n ur cr e e : a O ti w on) creation) The Law on Labour remains fundamental in addressing all matters related to K to os K o o v s o o ’s vo la ’s b l o a u b r o m ur a m rk a e r t k . e H t o . H w o ev w e e r v , e w r h , w en he fa n c f in ac g in a g sh a o s c h k oc su k c s h uc a h s au s t a o u m to a tion-ind m u a c t e io d n l a i b n o d ur ce s d ho la rt b a o g u e r s, sh it o s r r t e a s g il e ie s, n i c t e s r is es n il o ie ta n b c l e y i l s o n w o , t s a c b o l r y in lo g w o , n s l c y o a r r in o g un o d nl 1 y 7%. around 17%. While the law covers traditional employment aspects such as working condit W io h n i s le , m th a e te la rn w it c y o l v e e a r v s e t ( r A ad rt i i t c io le na 4 l 9 e ), m a p n l d oy c m hi e ld nt pr a o s t p e e c c t t io s n su (A ch rti a c s le w 4 o 5 r ) k , in it g n c e o it n h er a d n it t i i o c n ip s a , t m es at n e o rn r i a ty dd le re a s v s e es (A r r is ti k c s le re 4 l 9 a ) t , e a d n t d o c a h u i t l o d m pr a o t t io e n ct o io r n a ( n A y rt s i t c r l u e c 4 tu 5 r ) a , l it s n h e if i t s i t n he th r e an la ti b c o ip u a r t m es a n rk o e r t a , d re d s r u e l s t s in e g s r in isk a s r r o e b la u t s e t d ne t s o s a s u c t o o r m e o a f ti 1 o . n T o h r er a e n a y r s e tr n u o ct b u a r c a k l up shifts in the labour market, resulting in a robustness score of 1. There are no backup plans or fallback mechanisms in place for managing long-term Labour shortages due to automation 19 Labour shortages due to automation 21

s p t l r a u n c s tu o r r a f l a s l h lb if a t c s. k In m t e h c e ha e n v i e s n m t s of in m p a la ss ce d f is o p r l m ac a e n m a e g n in ts g o lo r n s g ig -t n e if r i m ca s n t t ru c c h t a u n ra g l es hifts. i I n n t t h h e e l e a v b e o n u t r o m f a m r a ke ss t, d K i o sp so la v c a e r m s w en o t u s ld or re si c g e n iv if e ic n a o nt in c s h t a it n u g ti e o s n i a n l t p h r e ot l e a c b t o io u n r m or arket, s K u o p s p o o v r a t r , s re w n o d u e l r d in r g ec t e h i e ve la n w o n in o s n t it re u d ti u o n n d a a l n p t ro t s e c c o ti r o e n 0 o . r A s lt u h p o p u o g r h t, t r h e e n r d e e i r s in s g om th e e le a g w al n f o l n ex -r i e b d il u it n y, d p a r n im t a s r c il o y re re 0 g . a A rd lt in h g ou c g o h nt t r h a e c r t e ty is p s e o s m (A e rt le ic g le a s l f 1 l 0 e x 1 i 4 b ) i , li s t u y, p p p r o im rt a fo ri r i l n y n r o e v g at r i d o i n g an co d n d t i r g a i c t t al ty a p d e o s p ( t A io r n tic is le l s ac 10 k in 14 g ) , , g s i u v p in p g or i t f a o re i s n o n u o r v c a e t f i u o l n e a s n s d sc d o ig re ital o a f d 1 o . p I t n io t n im is es la o c f k c in ri g s , is g , i l v e in ga g l i p t r a oc re e s d o u u re rc s e a fu re ln s e l s o s w sc a o n r d e r o ig f i 1 d . , In wi t t i h m n e o s o fa f s c t r i t s r i a s c , k legal m pr e o c c h e a d n u i r s e m s s ar t e o s e l n o a w b a le nd a s ri w gid ft , i w n i s t t h itu n t o io f n a a st l r t e ra s c p k on m s ec , h th a u n s is , m th s e t l o aw en s a c b o l r e es a 0 swift f i o n r st r i a tu p t id io it n y a . l response, thus, the law scores 0 for rapidity. Although the law is effective in supporting common disputes in the labour marm ke a t r , k it et is , i n t e is ce n s e s c a e r s y sa to ry a t li o gn al it gn with w p it r h es p e r n e t se c n h t al c le h n a g ll es n . g W es h . i W le h a i t le th a e t th im e e tim th e law t w h a e s la d w raf w te a d s , d a r u a t f o te m d a , t a i u o t n o w m a a s ti n o o n t w m a u s c n h o o t f m a u n c i h ss o u f e a , n in is t s o u d e a , y i ’ n s w to o d r a ld y , ’s it w p o o r s ld e , s a i s t ig p n o i s f e ic s a a nt si t g h n re if a ic t a t n o t t t h h e re w a o t r t k o fo t r h c e e. w T o h r e k r f e o f r o ce re . , T t here la fo w re re , q th u e ire la s w so re m q e ui c r h es anges to s a o d m dr e es c s ha th n i g s e s s h t o o ck ad b d e r t e te ss r. this shock better. Law No. 04/L-138 for Vocational Education and Training Rapidity Robustness 3 2 1 0 Redundancy Resourcefulness Figure 5: 4Rs Framework Assesment of the Law No. 04/L-138 for Vocational Edu E ca du ti c o a n ti a o n n d a T n r d ai T n r i a n i g n . in (S g o . u (S rc o e u : r O ce w : n O c w r n ea c t r i e o a n t ) ion) This law plays a key role in addressing this shock, as it aims to build a skilled workforce, an essential factor in preventing automation-driven labour short ages. a In ge it s s . c In ur i r t e s n c t u f r o re rm nt , f i o t r r m ec , e i i t v r e e s ce a i n ve a s b a o n ve a -a b v o e v r e a g a e ve r r e a s g il e ie r n e c s e ili s e c n o c r e s o c f o 6 re 7% of . 67%. Articles 11 and 12 of the law establish mechanisms to develop curricula based on o la n b l o a u b r o m ur a m rk a e r t k d e e t m de a m nd a . n I d t . p I r t o p v r id ov e i s d s e u s f s fi u c f i f e i n ci t e s n p t a s c p e a f c o e r f r o e r le r v e a le n v t a i n n t st in it s u t t i i t o u n s to t a io lig n n s t t o he al e ig d n uc t a h t e io e n du sy c s a t t e io m n w sy it s h te e m co w n i o t m h i e c co tr n e o n m ds i , c e t q re u n ip d p s i , n e g qu st ip u p d i e n n g ts st w u i th the den m ts an w d i e th d t s h k e ill d s e i m n a th n e de m d a s r ki e ll t s . T in hi t s he pr m ov a id rk e e s t. a T n h i i m s po ro rt v a id n e t s a a ve n n i u m e p f o o r r ta in n s t t a it v u e ti n o u n e s f a o n r d in t s h t e itu la t b io o n u s r a m n a d rk th e e t i l n ab g o e u n r er m al a , r a k s et in in th g e en s e it r u a a l, ti a o s n in of th a e sh si o tu ck at o io r n sh o i f t a s, sh u o ch ck a o s r d s u h e if to s, a s ut c o h m a a s t d io u n e , th o e a r u e t a o r m e a m ti e o c n h , a t n h i e s r m e s ar i e n m pl e a ch e a t n o is p m re s p i a n re p a la n c d e g to uide p th re e p w ar o e rk a f n o d rc g e u . T id h e e t r h ef e o w re o , r i k n fo te r r c m e. s T o h f e ro e b fo u r s e t , n i e n s t s e , r t m he s l o a f w ro r b e u ce s i t v n e e s ss a , m th a e x l i a m w um r s e c c o e r i e ve o s f a 3. m Th ax e im law um is s s c o o m re e o w f h 3 a . t T r h e e du la n w da i n s t s om sc e o w re h 2 a , t a r s ed it u d n o d e a s nt no t sc o o f r f e r 2 e , m as er i g t e d n o c e y s t n ra o i t n o in f g fe p r r e o m gr e a r m ge s n o cy r a tr lt a e in rn in a g te p d ro e g liv ra e m ry s n o e r tw al o te rk rn s, a b te ut d i e t li e v m er p y h n a e s t i w se o s rk li s fe , but it emphasises lifelong learning and provides various forms of education. 22 20 Frie F d ri r e ic d h ri c E h b e E r b te S r ti f S t t u if n t g un e g .V e . .V.

T lo h n e g e l n e c a o rn u i r n a g ge a m nd en p t ro o v f i m de u s lt v ia s r t i a o k u e s h f o o l r d m e s r i o n f v e o d lv u e c m at e io n n t . and the support for in novation and creativity in skills training give this law a high level of resource f T u h ln e e e s n s c o s u c r o a r g e e 3 m . e T n h t is o i f s m d u em lti o -s n t s a t k r e a h te o d ld b e y r t in h v e o i l n v s e t m itu en ti t on a a n l d is t e h d e p s a u r p ti p c o ip rt at f i o o r n ino n f o p va ri t v i a o t n e a s n e d ct c o r r e a a c ti t v o i r t s y a in nd sk s i o ll c s ia tr l a p in a i r n tn g e g r i s v t e h t r h o i u s g l h aw Ag a e h n i c g y h f l o e r v V el o o ca f t r i e o s n o a u l rceE fu d l u n c e a s t s io n sc a o n r d e T 3 r . a T in h i i n s g is a d n e d m A o d n u s l t t ra E t d e u d c b a y tio th n e (A in V s E ti T tu A t E io ) n (A al r i t s i e cl d e p 13 a ) rt a ic n i d pa C ti o o u n n o f c p i r l iv o a f t V e o s c e a c t t i o o r na ac l t E o d r u s c a a n t d io s n o a c l i a a n l d pa T r r t a n i e n r i s ng th a ro n u d g f h or A A g d e u n l c t y s( f C or V V E o T c A a ) t ( io A n rt a i l cl E e d s uca1 t 4 io – n 16 a ) n , w d h T i r c a h in c in o g or a d n in d a A te d i u n l t t e E rn d a u t c i a o t n io a n l p ( r A o V je E c T t A s, E d ) e ( v A e r l t o ic p le oc 13 c ) u a p n at d io C n o a u l n s c ta il n o d f Vo a c r a d t s io , n a a n l d E a d d u v c i a s t e io o n n a V l a E n T d p T o r l a ic in y in re g fo a r n m d . f T o h r e A s d e u m lt e s c ( h C a V n E is T m A) s ( f A o r s t t i e c r le c s ro 14 ss – 1 s 6 e ) c , t w o h r ich c c o o o o p rd e i r n a a ti t o e n in a t n e d rn a a d ti a o p n t a a l b p le ro g je o c v t e s r , n d a e n v c e e l , o k p e o y c e c l u e p m a e ti n o t n s a o l f s r t e a s n o d u a r r c d e s f , u a ln n e d ss advise a o s n d V e E fi T ne p d ol i i n cy th re e f s o c r o m r . in T g h m es a e tr m ix e . c H h o a w ni e s v m e s r, f d o e s s t p e i r te cr t o h s e sc s o e n ct s o ta r n c t oo m p e e n ra ti t o io n n o a f nd r a e d fo a r p m ta s b f l o e r g u o p v s e k r i n ll a in n g ce , , su ke c y h e p l r e o m ce e s n s t e s s o t f a r k e e so ti u m rc e e , f a u n ln d e n s o s a e s m d e e rg fi e n n e c d y in pl t a h n e o s r coring f m as a t t r t i r x a . c H k o r w ou e t v e er f , o d r e r s e p sk it i e lli t n h g e i c s o p n r s o t v a i n d t ed m , e m n a ti k o i n ng of th re e fo la r w ms no fo n r -r u a p p s i k d il li s n c g o , r s e u 0 c . h processes take time, and no emergency plan or fast-track route for reskilling is E p v ro e v n id th e o d u , m gh ak th in e g la t w he d l e a m w o n n o s n t ra ra t p es id s tr s o c n o g re ro 0 b . ustness and resourcefulness, and provides a moderate level of redundancy, the absence of mechanisms f E o v r e r n ap th id ou in g t h er t v h e e nt la io w n d re e m m a o i n n s s tr a at c e ri s ti s c t a r l o g n a g p r , o e b s u p s e t c n i e a s ll s y a i n n d te re rm so s u o rc f e t f h u e ln s e h s o s c , k and w pr e ov a i r d e e a s d a dr m es o s d in e g ra . t T e h l e ev s e u l r o g f e r o e f d a u u n t d o a m nc a y t , io t n he in a w bs o e r n k c p e la o c f es m r e e c q h u a ir n e i s sm a s re f s o i r li r e a n p t id r i e n s te p r o v n e s n e t , io in n t r h e i m s a ca in s s e, a fa cr s i t t i r c e a s l p g o a n p s , e e m sp e e a c s i u al r l e y s i t n o t b er a m la s n o ce f t t h h e e s e h ff o e c c k t w of e t a h r e e ads d h re o s c s k i . ng. The surge of automation in workplaces requires a resilient response, in this case, fast-response measures to balance the effect of the shock. Law No. 04/L-205 on the Employment Agency of the Republic of K La os w ov N o o. 04/L-205 on the Employment Agency of the Republic of Kosovo Rapidity Robustness 3 2 1 0 Redundancy Resourcefulness Figure 6: 4Rs Framework Assesment of the Law No. 04/L-205 on the Employ m Fi e g n u t re A 6 g : e 4 n R cy s o Fr f a t m he ew Re o p rk ub A l s ic se o s f m K e o n s t o o v f o. th (S e o L u a rc w e: N O o w . 0 n 4 c / r L e a 2 t 0 io 5 n o ) n the Employment Agency of the Republic of Kosovo.(Source: Own creation) The establishment of the Employment Agency through dedicated legisla t T io h n e m es a ta rk b s li a sh s m ig e n n if t ic o a f n t t h s e te E p m f p o l r oy K m os e o n v t o A ’s g l e a n b c o y ur th m ro a u rk g e h t. d W ed h ic il a e te th d e le A g g is e l n a c t y ion p m ri a m rk a s ri a ly s s ig er n v if e i s ca a n s t a st r e e p gu fo la r to K r o y so b v o o d ’ y s l f a o b r o e u m r p m lo a y r m ke e t n . W t-r h e i l l a e te th d e m A a g t e te n r c s y , i p ts rimarily m se a rv n e d s at a e s a a ls r o eg in u c la lu to d r e y s b w o o d r y kf f o o r r c e e m u p p l s o k y il m lin e g n , tm re a la k t in ed g m it a d t ir t e e c rs t , ly it r s e m lev a a n n d t a t t o e also a in d c d lu re d s e s s in w g o a r u k t f o o m rce at u io p n s k d il r l i i v n e g n , m la a b k o i u n r g s i h t o d c i k re s c . t I l n y o re u l r e a va ss n e t s t s o m a e d n d t r , e t s h s e in la g w au g t o o v e m rn a i t n io g n t h d e riv A e g n en la c b y o a u c r h s i h ev o e c d ks a . I r n es o il u ie r n a c s e se s s c s o m re en o t f , 5 t 0 h % e . law governing the Agency achieved a resilience score of 50%. Labour shortages due to automation 23 Labour shortages due to automation 21

The Agency’s duties are clearly defined by law, with its central and local structures described in detail.(Articles 4-8) However, certain mechanisms, p T a h r e tic A u g la en rl c y y t ’s ho d s u e ti r e e s la a t r e e d c t l o ea e r n ly fo d r e c f e i m ne e d nt by an la d w q , u w a i l t i h ty it c s o c n e tr n o t l r , a a l r a e n e d it l h o e c r al strucv t a u g re u s e d ly e d sc e r f i i b n e e d d i o n r d d e e t f a e i r l r . e ( d Ar t t o ic f l u es tu 4 re -8 s ) u H b o -l w eg ev a e l r a , c c t e s rt ( a A i r n ti m cle ec 2 h 0 a ), n w is h m ic s h , p m ar a t y icular c ly re t a h t o e s i e m r p e le a m te e d n t t o at e io n n fo c rc h e a m lle e n n g t e a s n . d Fo q r u t a h l is ty re c a o s n o t n ro , l t , h a e re ro e b it u h s e t r ne va ss gu o e f l t y h d e efined or l d a e w fe i r s re c d on t s o id fu er t e u d re m su o b d e l r e a g t a e l w ac it t h s a (A s r c t o ic r l e e o 2 f 0 2 ), . w W h h ic il h e m so a m y e cr s e e a r t v e ic i e m d p e l l e i m ve e ry ntation i c s h d a e llen g g at e e s d . F t or n t o h n is -p re u a b s li o c n p , r t o h v e id ro e b rs u ( s A tn rt e i s c s le o 2 f .4 th ), e n l o aw in i d s e c p o e n n s d id e e n r t e o d r m cl o e d ar e l r y ate d w e i f t i h ne a d s f c a o l r l e ba o c f k 2 s . y W st h e i m le s is o e m s e ta s b e l r is v h ic e e d d i e n li t v h e e ry ev is en d t el o e f g p a r t i e m d a t r o y n s o ys n t e p m ub f l a ic ilu p re o , vid r e e r s s u ( l A tin rt g ic i l n e 2 a .4 re ), d n u o nd in a d n e c p y e s n c d o e re nt o o f r 1. clearly defined fallback system is established in the event of primary system failure, resulting in a redundancy score of 1. Although the law does not actively promote innovation and remains difficult t A o lt o h p o e u ra g t h io t n h a e li l s a e w , i d t o d e o s e n s o e t n a co ct u iv ra e g ly e p c r o o l m lab o o te ra i t n i n o o n v w at it io h n a a r n a d ng rem of ai s n t s ak d e if h f o ic l u d l t e t r o s, o i p n e c r l a u t d io in n g ali o s c e a , l it a d ct o o e r s s, e e n m co p u lo ra y g e e rs c , o a l n la d b e o d ra u t c i a o t n io w n i a th l in a s r t a it n u g t e io o n f s s ( t A a r k t e ic h le o s lders, 1 i 2 n c 1 l 7 u ) d . T in h g is lo m ca u l t a ic s t t o a r k s e , h e o m ld p e lo r y e e n r g s, a a g n e d m ed n u t c s a u t p io p n o a rt l s in a s m tit o u d ti e o r n a s te (A le r v ti e c l le o s f 12-17). a T d h a is pt m ab u i l l t i i t y s , t e a a ke rn h i o n l g de th r e en la g w ag a em re e s n ou t r s c u e p fu p l o n r e ts s a s m co o r d e e o r f at 2 e . D le e v s e p l i o te f a th d e ap p t r a e b s ility, e e n a c r e ni o n f g r t e h p e or la ti w ng a (A re r s t o ic u le rc 1 e 1 f ) u a ln n e d ss co s o c r o d r i e n o at f io 2. n D s e tr s u p c ite ur t e h s e , t p h r e s l e a n w c ’s e r o a f p r i e d p n o e r s t s ing i ( s A m rt o ic d le es 1 t 1 , ) s a c n o d rin co g o 1 r , d a in s a it i l o a n ck s s tr s u p c e tu ci r f e ic s, e t m he er la g w en ’s cy ra p p r i o d t n o e c s o s ls is o m r f o a d s e ts t t r , a s c c k oring 1, m as ec it h l a a n c i k s s m s s p . e I c n if s i i c tu e a m ti e o r n g s en w c h y e p re ro t t h o e co w ls or o k r fo fa rc s e t-t f r a a c c e k s me a c s h s a la n y is o m ff s. a In nd si s tu w a if t t ions i w ns h t e it r u e t t io h n e a w l o a r c k t f ion rce is f r a e c q e u s ir m ed a , s t s h l e ay e o x f is fs tin a g nd pr s o w c i e ft du in r s e t s it r u e t m io a n i a n l b a u c r t e io a n uc is ra r t e ic quired, a th n e d e s x lo is w ti . ng procedures remain bureaucratic and slow. S S i i m m i i l l a a r r l l y y t t o o t t h h e e L L a a w w o o n n L L a a b b o o u u r r , , a a l l t t h h o o u u g g h h t t h h e e f f o o u u n n d d a a t t i i o o n n s s o o f f t t h h i i s s l l e e g g i i s s l l a a t t i i o o n n are a fu re nc fu ti n o c n t a io l, n p a o l, li p c o y l m ic a y k m e a rs ke s r h s o s u h ld ou w ld or w k o to rk w t a o r w d a a r l d ig a n l i i n g g ni i n t g w i i t th w t it h h e t c h u e rr c e u n r t re n n e t eds n o e f e t d h s e o la f b th o e ur la m b a o r u k r e m t. a In rk p e a t. rt I i n cu p l art , i e c f u f l o a r r t , s e s ff h o o r u ts ld sh fo o c u u ld s o fo n c s u t s re o n n g s th tr e e n n i g n t g h redune d n a i nc g y re a d n u d n r d a a p n id cy re a s n p d on ra se pi m d e re c s h p a o n n ism e s m t e o ch en an h i a s n m c s e to he en la h w a ’ n s c o e v t e h r e al la e w ff ’s ectiveo n v e e s r s a i l n l e a f d fe d c r t e i s v s e i n n e g ss fu i t n u a re dd sh re o s c s k in s. g future shocks. L L a a w w N N o o . . 0 0 6 6 / / L L 0 0 4 4 9 9 o o n n S S c c i i e e n n t t i i f f i i c c I I n n n n o o v v a a t t i i o o n n a a n n d d T T r r a a n n s s f f e e r r o o f f K K n n o o w w l l edge e a d n g d e T a e n c d hn T o e l c o h g n y ology Rapidity Robustness 3 2 1 0 Redundancy Resourcefulness F F i i g g u u r r e e 7 7 : : 4 4 R R s s F F r r a a m m e e w w o o r r k k A A s s s s e e s s s s m m e e n n t t o o f f t t h h e e L L a a w w N N o o . . 0 0 6 6 / / L L 0 0 4 4 9 9 o o n n S S c c i i e e n n t t i i f f i i c c Inno I v n a n t o io v n at a io n n d a T n ra d n T s r f a e n r s o f f er K o n f ow Kn le o d w g l e ed a g n e d a T n e d ch T n e o c l h o n g o y l . o ( g S y o . u ( r S c o e u : r O c w e: n O c w re n a c ti r o e n a ) tion) The Law on Scientific Innovation and Transfer of Knowledge and Technology creates a legal foundation for the development of Kosovo’s innovation ecosys24 Friedrich-Ebert-Stiftung e.V. 22 Friedrich-Ebert-Stiftung e.V.

The Law on Scientific Innovation and Transfer of Knowledge and Technology creates a legal foundation for the development of Kosovo’s innovation ecosys tem. It seeks to develop a knowledge-based economy and encourage innova tion-driven job creation by promoting research commercialisation and cooper t a e t m io . n It be se tw ek e s en to a d c e a v d e e l m op ic a in k s n t o it w ut le io d n g s e , g b o a v s er d nm ec e o n n t o a m l a y g a e n n d ci en s, c a o n u d ra t g h e e in p n ri o v v a a te t s i e o c n t o d r r . i I v n en ou jo r b as c s r es a s t m io e n n b t y , t p h r e om law oti a n c g hi r ev s ed ar a ch re c s o il m ie m nc e e rc s i c a o li r s e at o i f on 60 a % nd . cooperation between academic institutions, governmental agencies, and the private s T e h c e to la r. w In es o t u a r b a li ss h e e s s s t m he n c t r , e t a h ti e on la o w f a in c n h o ie v v a e ti d on a i r n e f s r i a li s e t n ru c c e tu s r c e or s e uc o h f a 6 s 0% in . cubators, scientific institutes, and technology transfer centres, and encourages strategic T co h o e p l e a r w at e io s n ta be li t s w h ee s n th h e ig c h rea r t e io d n uc o a f tio n n o a v n a d tio in n d i u n s f t r r a y s . t L ru o c n t g u r t e er s m uc s h tr a u s ct in u c ra u l b a a d to a r p s t , a s ti c o ie n n a ti n f d ic t i h n e st in tu te te g s r , a a ti n o d n t o e f c t h h n e o w lo o g r y kf t o ra rc n e sf d e i r sp ce la n c t e re d s, b a y n a d ut e o n m co a u ti r o a n ge a s re st m ra a te d g e ic po co s o si p b e le ra b ti y on th b e e s t e w in ee st n it h u i t g io h n e a r l e s d t u ru c c a t t u io re n s a . n A d s a in r d e u s s u t l r t y , . t L h o e n l g a w te h rm as s a tr h u i c g t h ur r a o l b a u d s a tn p e ta s t s ion a sc n o d re th o e f i 3 n . t H eg o r w at e i v o e n r, o w f h th il e e w th o e rk la fo w rc i e nt d ro is d p u la c c e e s d m b u y lt a ip u l t e om ac a to ti r o s n w a i r t e hi m n a th d e e i p n o n s o s v ib a l e by th io e n se ec in o s s t y i s tu te ti m on , a it l d s o tr e u s ct n u o r t es in . c A lu s d a e re fo s r u m lt, a t l h fa e l la b w ac h k a p s ro a c h e i d g u h re ro s b if u c s e tn rt e a s i s n s p c a o r r t e ne o r f s 3. H or o f w u e n v d e in r, g w m hi e le ch th a e ni l s a m w s in u t n r d o e d r u p c e e r s fo m rm ult o ip r l f e ai a l. c T to h r i s w lim ith it i s n t t h h e e l i a n w n ’ o s v r a e t d io u n d e a c n o c sys t t o em, i a t d sc o o e r s e n o o f t 1. include formal fallback procedures if certain partners or funding mechanisms underperform or fail. This limits the law’s redundancy to a score of 1. On resourcefulness, the law performs strongly. Through researcher-led spinO of n fs r , e c s o o u fi r n c a ef n u c l i n n e g ss, ch th e e m l e a s w , a p n e d rfo in r n m o s v s a tr i ong v l o y. u T che ro rs u , g i h t e re n s c e o a u r r c a h g e e r s -le fl d ex s i p b i l n e -offs, c im op fi l n e a m n e c n in ta g ti s o c n h . e T m h e e s, e a n n g d ag in em no e v n a t ti o o f n p v u o b u li c c h a e n rs d , i p t r e iv n a c t o e u a r c a t g o e r s s f i l n ex a i d b a le pt im ing pl i e n m no e v n a t t a io ti n on to . T m h a e r e k n e g t a sh ge if m ts e s n u t p o p f o p rt u s b i l n ic st a it n u d tio p n ri a va l t c e re a a c t t iv o i r t s y in an a d da re p s t p in o g ns in iv n e o n v e a s t s i , on t w o h m ic a h rk re e s t u s l h ts if i t n s a su h p i p g o h r r t e s s i o n u st r i c t e u f t u io ln n e a s l s c s re co at re ivi o t f y 3 a . n I d n r c e o s n p t o ra n s s t i , v r e a n p e i s d s it , y w i h s ic m h ore r l e im su it l e ts d. in A a lth h o ig u h gh re t s h o e ur la ce w fu e l na e b ss le s s c t o o r o e l o s f li 3 k . e In st c a o rt n u t p ra s s u t, p r p a o p r i t d a it n y d is te m c o h r n e o li o m g i y te a d c . A ce lt l h er o a u t g o h rs, th th e e l s a e w req n u a i b re le m s t e o d o iu ls m li k t e r s m ta p rt l u a p nn s i u n p g p a o n rt d a l n a d ck tec m h e n r o g l e o n g c y y a p c r c o e t l o e c ra o t l o s rs, t o h r e f s a e st r e t q ra u c ir k e d m ep e l d o i y u m m e -t n e t rm in p cr l i a s n is n s in c g en a a n r d io l s a . c T k h e u m s, e t r h g e en la c w y ’s pr r o a t p o i c d o it l y s i o s r s f y a m st b -t o ra li ck , d sc e o p r l i o n y g m 1 e . nt in crisis scenarios. Thus, the law’s rapidity is symbolic, scoring 1. Overall, while this legislation is forward-looking and encourages structural inn in o n v o a v t a io t n io , n it , i m t a m y a b y e b i e m i p m r p ov ro e v d e i d n i t n er t m er s m o s f o i f ts it a s b a il b it il y it t y o t r o ea re c a t c q t u q ic u k ic ly kl t y o t l o ab la o b u o r ur disruptions brought on in this case by automation. Strengthening fallback capacity across institutions and operationalising fast-response procedures should be prioritised. Law No. 08/L-208 on Industrial and Technological Parks Rapidity Robustness 3 2 1 0 Redundancy Resourcefulness Figure 8: 4Rs Framework Assessment of the Law No. 08/L-208 La o b n o I u n r d s u ho st rt r a ia g l es a d n u d e to automation 25 Technological Parks.(Source: Own creation)

Figure 8: 4Rs Framework Assessment of the Law No. 08/L-208 on Industrial and Technological Parks.(Source: Own creation) The Law on Industrial and Technological Parks establishes a framework for developing specialised economic zones in Kosovo, aiming to attract invest ment, promote technological advancement, and stimulate job creation. While it provides strong institutional and policy structures for infrastructure and private sector development, its direct relevance to automation-driven labour shortages remains limited. The legislation regarding industrial and technical parks received a resilience score of 45% in our evaluation. The law facilitates incentive programs to encourage the creation of new in dustrial areas, integrates with national development plans, and provides a clear governance mechanism. It ensures long-term economic restructuring and institutional coordination, but does not directly address labour market disruptions caused by automation. Its robustness, therefore, is considered moderate with a score of 2. By supporting a diversity of park types and al lowing for different forms of ownership and governance, the law promotes geographical and sectoral diversification. Its redundancy is limited, though, by the lack of specific contingency mechanisms, which also scores 2. The law enables cooperation between government agencies, corporations, and academic institutions, as well as participation from the private sector and donors. This gives it a resourcefulness score of 2, indicating a moderate level of institutional flexibility and adaptation. However, rapidity remains weak. The policy is tied to long-term planning processes such as zoning, in frastructure, and investment cycles. It lacks mechanisms for swift labour real location or fast-track workforce integration in response to automation-related shocks, resulting in a rapidity score of 1. Such legislation would be better utilised in the cases of labour disruptions if it incorporates employment-related protections and reskilling pathways into its park development framework. This would help align infrastructure invest ment with workforce resilience. 26 Friedrich-Ebert-Stiftung e.V.

Kosovo Digital Economy(KODE) Project Rapidity Robustness 3 2 1 0 Redundancy Resourcefulness Figure 9: 4Rs Framework Assessment of KODE Project.(Source: Own creation) The Kosovo Digital Economy(KODE) Project primarily supports the digi talisata io li n sa o t f io K n os o o f v K o o ’s so e v c o’ n s o e m co y n , o w m ith y, a w k it e h y a fo k c e u y s f on cu e s x o p n an e d x i p n a g n b d r i o n a g d b b r a o n a d db a a c n ce d ss to a u c n c d e e s r s d t e o ve u l n o d p er d d a ev n e d lo ru p r e a d l ar n e d as ru . r H a o l w ar e e v a e s r . , H its ow co e m ve p r, o i n ts en c t o s m a p im on e e d n a t t s e a q im ui e p d ping a yo t u e t q h ui w p i p t i h ng di y g o it u a t l h sk w il i l t s h a d r i e gi d t i a r l ec sk tl i y lls re a le re va d n ir t e t c o tl o y u r r el s e t v u a d n y t o to n o a ur to s m tu a d t y io o n n -d a r u iv en t la o b m o a u t r io m n a -d rk ri e v t en sh l o a c b k o s u . r T m he ar p k r e o t je s c h t o d c e k m s. o T n h s e tr p a r t o e j s ec m t o d d e e m ra o t n e s r t e ra si t l e ie s n m ce o , d r er c a e t i e ving a r s e c s o i r l e ien o c f e 5 , 0 r % ece in iv o in u g r e a v s a c l o u r a e ti of n. 50% in our evaluation. In the context of building a more resilient workforce against automation, the KODE Project offers support through digital infrastructure and skills train ing, ini c n lu g d , ing clu in d i i t n ia g ti i v n e it s ia li t k iv e e t s h l e ik Y e o t u h t e h Y O o n u l t in h e O a n n li d ne Up a w nd ar U d p ( w YO ar U d ) ( p Y r O o U gr ) a p m ro . g S r u a c m h . activS it u ie c s h d a ir c e t c iv t i l t y ie in s f d lu ir e e n c c tl e y t i h n e flu d e iv n e c r e si t f h ic e at d io iv n er o s f if t i h ca e ti l o a n bo o u f r t m he ar la ke b t ou an r d m i a n r c k r e e t a a se nd aci c n e c s r s ea to se op ac p c o e r s tu s n to iti o e p s p for t a un h i i t g ie h s er fo s r h a r h e ig o h f e th r e sh w a o re rk o fo f r t c h e e . H w ow rk e fo ve rc r, e o . H th o e w r sectors e o v f e t r h , e ot la h b er ou se r c m to a r r s ke o t f , t b h e e y l o a n b d ou th r e m d a i r g k it e a t, l b d e o y m o a n i d n, th a e re d n ig o i t ta s l u d p o p m or a te in d , , a re re su n lt o i t ng in s a u m pp o o d r e t r e a d t , e re ro s b u u lt s in tn g e i s n s, a s m co o ri d n e g ra 2 t . e T r h o e bu p s ro tn je e c s t s, la s ck o s rin b g ac 2 k . u T p h p e la p n ro s je a c n t d la d c o k e s s not b o a ff c e k r u a p lt p e l r a n n a s tiv a e n s d f d o o r e n s ono d t ig o i f t f a e l r w al o te rk r e n r a s t . iv D e e s s f p o it r e n s o o n m -d e ig c i o ta o l p w er o a r t k i e o r n s. w D it e h sp th it e pris v o a m te e se co ct o o p r e a ra n t d io a n d w ig it i h ta t lh f e oc p u r s iv e a d te st s r e a c te to g r y, a i n ts d r a ed d u ig n i d tal n -f c o y c r u e s m ed ai s n t s ra l t im eg it y e , d it , s with r a ed sc u o n r d e a o n f c 1 y . remains limited, with a score of 1. The KODE Project promotes innovation and multi-stakeholder engagement, and it encourages resource mobilisation as well. However, due to the lack of rapid decision-making mechanisms, its resourcefulness is considered mod erate, e le r n at d e in , l g en a d s i c n o g re a o s f co 2 r . e D o e f si 2 g . n D e e d si a g s n a ed lo a n s g a -te lo rm ng i n te te rm rve inte io rv n e , n th ti e on p , ro th je e ct pro es je p c o t nds r s e lo sp w o ly nd in s t s i l m ow es ly o i f n c t r i i m sis e , s re o s f u c l r t i i s n is g , i r n es a u r lt a i p n i g dn in es a s r s a c p o id re ne o s f s 1. s I c t o i r s e a o ls f o 1. w It o i r s th al c s on w sid o e rt r h in c g o t n h s a id t e d r e in s g pi th e a t t he de p s r p o i j t e e ct h ’s e lo p n ro g j e e r c ti ’ m s l e o l n in g e e , r it im rem eli a n i e n , s it a r p e r m oj a e i c n t s m a o p s r t o ly j f e u c n t d m ed os b t y ly a fu fo n r d e e ig d n b d y e a ve f l o o r p e m ign en d t e a v g e e lo n p c m y, e a n n t d a i g n e l n ig c h y, t a o n f d re in ce l n ig t h c t u o ts f , r c e o c n e c n e t rns c in u c t r s e , a c s o e n o ce n rn th s e in s c u r s e t a a s i e na o b n il t it h y e o s f u s s u ta c i h na in b t i e li r t v y e o n f ti s o u n c s h a i n n d te t r h v e n p t o io te n n s t a ia n l d co th n e sep q o u t e e n n c t e ia s l in co t n h s e e s q c u e e n n a c r e io s s in of th a e id sce u n ts ar o io r s te o rm f a in id at c i u o t n s o o f r s t u er c m h i p n r a o t j i e o c n ts o . f such projects. Labour shortages due to automation 27 Labour shortages due to automation 25

The National Development Strategy and Plan 2030 Rapidity Robustness 3 2 1 0 Redundancy Resourcefulness Figure 10: 4Rs Framework Assessment of the National Development Strategy and Plan 2030.(Source: Own creation) The National Development Strategy and Plan(NDSP) 2030 includes digital transformation and skills enhancement as key objectives on the long-term path way toward sustainable development. Its resilience was assessed as moderate, resulting in a score of 50%. The NDSP 2030 is moderately robust(score 2), as it outlines a detailed plan for labour shifts due to automation and employment strategies by integrating the Kosovo Digital Agenda to strengthen ICT skills and infrastructure(Development Goals 1 and 5). However, it lacks regulatory instruments targeting non-digital sectors. This gap is closely linked to the document’s minimal redundancy- score 1, as it does not include alternative or backup plans for workers in traditional sectors in the event of sudden labour disruptions or digital strategy failures. Cross-sectoral collaboration and resource mobilisation under the Office of the Prime Minister, supported through various strategies and innovative programs, are promoted by the NDSP 2030. However, institutional capacity remains limited in non-digital sectors, affecting its resourcefulness- score 2. Its rapidity is mini mal- score 1, as the strategy focuses on long-term development through specific objectives rather than establishing mechanisms for quick crisis response. As a result, institutions may respond slowly in the event of automation-driven mass layoffs. The NDSP 2030 was developed with a clear focus on digitalisation and its re lated aspects, while neglecting other sectors, ultimately affecting its overall re silience. Policymakers should work toward creating comprehensive frameworks that include enforcement and response mechanisms, as well as skills training for non-digital sectors, in order to better mitigate the consequences of future labour market shocks. 28 26 Friedrich-Ebert-Stiftung e.V. Friedrich-Ebert-Stiftung e.V.

The Employment Strategy 2024–2028 Rapidity Robustness 3 2 1 0 Redundancy Resourcefulness Figure 11: 4Rs Framework Assessment of the Employment Strategy 2024 2028. 2 (S 0 o 28 u . rc ( e S : o O ur w c n e: c O re w a n tio cr n e ) ation) Th h e e E E m m p p l l o o y y m m e e n n t t S S tr t a ra te t g eg y y 20 2 2 0 4 2 – 4 2 – 0 2 2 0 8 28 wa w s a d s e d v ev lo e p lo e p d e t d o t a o dd a r d e d s r s e p s r s e p ss r i e n s g si l n a g bo la u b r our ma a r r k k e e t t c c h h a a lle le n n g g e e s. s. It It pr p o r m om ot o e t s e a s c a t c iv t e iv p e o p li o c l ie ic s ie a s im ai e m d e a d t m at it m ig i a t t ig in a g ti ne g g n a e ti g v a e tive tr r e e n n d d s s in in K K o o s s o o v v o o , , su su ch ch as as hi h g i h gh yo y u o t u h th un u e n m e p m lo p y lo m y e m n e t, n lo t, w lo w w o w m o e m n’s en p ’ a s r p ti a ci r p ti a c t i i p o a n tion in n t t h h e e l l a a b b o o u u r r m m a a rk rk e e t, t a , n a d nd sk s i k ll i s ll m s m ism ism atc a h tc e h s e le s a l d ea in d g in t g o u to ne u m ne p m lo p ym lo e y n m t. e T n h t. e T s h tr e at e s g tr y a ’s te o g v y e ’ r s a o ll v r e e r s a ili l e r n e c s e il h ie a n s c b e e h e a n s a b s e ses n se a d ss a e t s 5 se 0 d %. at 50%. Th h e e f f r r a a m m e e w w o o rk rk o o f f th th e e E E m m pl p o l y o m ym en e t n S t t S ra tr t a eg te y g 2 y 0 20 4 2 – 4 20 – 28 02 in 8 c i l n u c d l e u s d a e c s ti a v c e ti l v a e bo la u b r our ma a r r k k e e t t p p o o li l c ic ie ie s s , , su su p pp o o rt r s ts k s i k ll i s ll t s ra tr in a ing in , g y , o y u o th ut p h ro p g r r o a g m ra s m , a s n , d an fo d st f e o r s s te in r t s e i r n -m te i r n i m s iniste e r r i i a a l l c c o o o o p p e e ra ra ti t o io n n . . H H o o w w ev e e v r e , r n , o n n o n d i d git g a it l a s l ec s t e o c r t s o re s m re a m in a i i n n su in f s fi u c f ie fi n c t i l e y n s t u ly pp su o p rt p e o d r , ted, re e s s u u l l t t i i n n g g in in m m o o d d e e ra ra te te ro r b o u b s u t s n t e n s e s s s s c s o c re or 2 e . 2 W . h W il h e i t le he th s e tra s te ra g t y e o g f y fe o r f s fe in r st in tu s t t i i o tu na ti l onal co o o o r r d d i i n n a a t t io io n n , , it it la la ck c s ks sp s e p c e i c fic fic en e f n o f r o ce rc m e e m n e t n in t s i t n r s u t m ru e m nt e s n a ts nd an co d n c t o in n g t e in n g c e y n p c l y an p s lans fo o r r l l a a b b o o u u r r d d is is ru ru p p ti t o io n n s s ca c u a s u e s d ed by by au a t u o t m om ati a o t n io . n R . e R d e u d n u d n an d c a y nc is y lim s l i i t m ed it e s d co r s e co 1, r a e s 1, as th h e e s s t t r r a a t t e e g g y y la la c c k k s s b b a a ck c u k p up or o f r a f l a lb ll a b c a k c m k e m c e h c a h n a is n m is s m to s t a o dd a r d e d ss re s s h s if s t h s i c ft a s u c se a d us b e y d by au u t t o o m m a a t t io io n n , , p p a a rt r i t c ic u u la la rl r y ly in in tra tr d a i d ti i o t n io a n l a s l e s c e to c r t s o s rs uc s h uc a h s as gr a ic g u r l i t c u u r l e tu a r n e d a m nd an m u a fa n c u factu u r r i i n n g g , , w w h h ic ic h h a a re re h h ig ig h h ly ly vu v l u n l e n r e a r b a l b e l i e n i s n u s c u h c c h ri c se ri s s . es. Th h e e E E m m p p l l o o y y m m e e n n t t S S t t r r a a t t e e g g y y 2 2 0 0 2 2 4 4 – – 2 2 0 0 2 2 8 8 d d e e m m o o n n s s t t ra ra t t e e s s s s u u p p p p o o rt rt fo fo r r re re s s o o u u rc rc e e m m o o b b il il isa s t a io t n ion th t r h o r u o g u h gh a a ra r n a g n e ge of o p f o p l o ic lic e i s es an a d nd pr p o r g o r g a r m am s, s w , w hi h le ile al a s l o so p p ro ro m m o o ti t n in g g in in te te rr m -m in in is terii a s l te c r o ia ll l a c b o o l r lab ti or n at a io n n d a re n f d or r m ef s or t m o s t t r o en s g tr t e h n e g n th th e e n c th a e pa c c a i p ti a e c s it a ie n s d a s n e d rv s ic e e rv s ic o e f s th o e f t E h m e E p m lo p ym loy e m nt e A n g t e A n g c e y n . c H y o . H w o ev w e e r v , e li r m , l it m ed ite in d s i t n it s u ti t t i u o t n i a o l n c a a l p cap ci a ty cit in y i n n o no -d n i g d i i t g a i l ta se l c se to c r s and t s o lo rs w a d n e d c s is lo io w nd m ec a i k s in o g np m ro a c k e in s g se p s r c o o ce n ss tr e a s in co a n d s a tr p a t i a n b a il d it a y p , t re a s b u il l i ti y n , g re i s n u a lti m ng od in er a ate rem so o u d rc e e ra fu te ln r ess ou sc rc o e r f e u ln s e c s o s re sc 2 o . r W e h s il c e o t r h e e 2. st W ru h c i t le ur t e h a e l s lo tr w u s ct f u o r r e c a o l o lo p w er s a f t o io r n c , o i o t p la e c ra k s t m io e n c , h it a l n a i c s k m s s m fo e r ch in a n n o is v m at s io f n or o i r n e n m ov e a r t g io enc o y r r e e m so e u rg rc e e n r c e y a r l e lo s c o a u t r i c o e n r . e R a a ll p o i c d a ity io i n n . t R h a is p st id ra it t y eg in y t i h s i m s s in tr i a m te a g l y - s is co m re in 1 i , m a a s l p o s l c ic o y re m 1 a , k a e s r p s o h l a ic v y e m p a ri k o e r r i s tis h e a d ve lo p n r g io -t r e it r i m sed em lo p n l g o y t m er e m nt e o m b p je lo ct y i m ve e s n o t v o e b r jec s ti a v b e l s is o h v in e g r e m st e a c b h li a s n h i i s n m g s m fo ec r h s a w n if is t m re s sp fo o r n s s w es ift o re a s u p t o o n m se a s to io a n u -d to ri m ve a n tio la n b o d u ri r ve s n ho la rt b a o g u e r s. sh T o h r e t r a e g a e r s e . T n h o e e re m a e r r e ge n n o c e y m p e ro rg to e c n o c l y s p o r r o a to c co ele s r o a r te a d c c t e ra le in ra in te g d o t p ra ti i o n n in s g to op re ti s o p n o s n t d o r r a e p s i p d o ly nd to ra s p u i d d d ly en to jo s b ud d d is e p n la jo c b em di e s n p t l , a a ce n m d e re n v t i , e a w nd cy r c e l es v a i r e e w se c t yc o l n es a a l r o e n s g e t e o r n m a b l a o s n i g s, -t n e o rm t su ba it s a i b s, le no fo t r s ur it g a e b n l t e i f n o t r er u v r e g n e t n i t on in . tervention. Labour shortages due to automation 29 Labour shortages due to automation 27

D D is i c s u cu ssi s n in g g th th e e fi f n in d d in in g g s s T T h h e e 4 4 R R a a s s s s e e s s s s m m e e n n t t o o f f K K o o s s o o v v o o ’ ’ s s r r e e g g u u l l a a t t o o r r y y f f r r a a m m e e w w o o r r k k r r e e v v e e a a l l s s t t h h a a t t , , w w h h e e n n f f a a c c ing l in ab g o la u b r o sh u o r c s k h s oc s k u s ch su a c s h jo a b s s jo h b or s t h a o g r e t s ag c e a s us c e a d us b e y d a b u y to a m ut a o t m io a n t , i t o h n e , t e h x e is e ti x n i g st l in eg g islat le io g n is , l s a t t r i a o t n e , g s i t e r s a , t a e n g d ies p , ro an je d ct p s ro d j e e m ct o s n d s e tr m at o e n m str o a d t e e ra m te od re e s ra il t i e en r c e e sil w ie it n h ce an wi o t v h e a ra n ll s o c v o e r r e al o l f sc 5 o 1% re . o T f h 5 is 1% sc . o T r h e is co s r c r o e r s e po co n r d r s es t p o o a nd si s tu to at a io s n it w ua h t e i r o e n t w he he p r o e li t c h ie e s p a o n li d ci r e e s gu l a a n t d io r n e s g i u n la p t l i a o c n e s p in ro p v l i a d c e e a p r r e o a v s id o e na a b r l e e a l s e o v n e a l b o l f e p l r e e v p e a l r o e f dn p e re s p s a a r n ed d n r e e s s s po a n n s d e r , e b ut s s o p m on e se c , ri b ti u c t al so g m ap e s c r r e it m ic a a i l n g . a T p h s es re e m fi a n i d n i . n T g h s e p s o e in fi t n t d o in a g s s t p ru o c in tu t r t a o lly a w st e ru a c k t a u n ra d ll i y nstit w u e t a io k n a a n ll d y f in ra s g ti i t l u e t f i r o a n m al e ly wo fr r a k g , i r l a e is fr in am g c e o w n o c r e k r , n r s ai a s b in o g ut co it n s c c e a rn p s ac a i b ty ou to t i e t f s fe c c a t p iv a e c l i y res ty po to nd ef t f o ec s t u iv d e d l e y n re la sp b o o n u d r m to a s rk u e d t d d e i n sr l u a p b t o io u n r s m a a n r d ke p t r d ev is e r n u t pt p i o o t n e s n a ti n a d l e p m re p v l e o n y t ment c p r o is te e n s. tial employment crises. T T a a b b l l e e 5 5 : : T T o o t t a a l l S S c c o o r r e e o o f f A A s s s s e e s s s s e e d d P P o o l l i i c c i i e e s s # Policy Score 1 Law No.03/L –212 on Labour 2 2 Law No. 04/L-138 for Vocational Education and Training 8 3 Law NO. 04/L-205 on the Employment Agency of the Republic of Kosovo 6 4 Law No. 06/L-049 on Scientific Innovation and Transfer of Knowledge and Technology 8 5 Law No. 08/L-208 on Industrial and Technological Parks 7 6 Kosovo Digital Economy(KODE) Project 6 7 The National Development Strategy and Plan 2030 6 8 The Employment Strategy 2024–2028 6 Total 49 Aside from the Law on Vocational Education and Training, which demon A st s r i a d t e ed fr h o i m gh th ro e b L u a s w tn o e n ss V , t o h c e at r i e o m na a l in E i d n u g c p a o ti l o ic n ie a s n l d ac T k r e a d in s in u g ff , ic w ie h n ic t h st d r e e m ng o t n h s t t o rated h m ig in h im ro is b e us th tn e e i s m s, p t a h c e t r o e f m s a h i o n c in ks g a p n o d lic m ie a s in la ta ck in ed la s b u o f u fi r c m ien a t rk s e t t re s n t g ab th ili t t o y. m A in v i e m ry ise t c h o e nc im er p n a in c g t o is f s s u h e o p c e k r s ta a i n n d in m g a to in t t h a e in L l a a w bo o u n r L m a a b r o k u et r, s t t h a e b m ilit a y i . n A re v g e u ry la c ti o o n n ce o r n ning i t s h s e ue m p a e tt r e ta r, in is in it g s t f o ai t l h u e re L t a o w ad o d n r L es a s bo a u u r t , o t m he at m io a n i n in r d e u g c u e la d t s io h n or o t n ag t e h s e , m cu a r t re te n r t , ly is i o t n s e fa o il f u t r h e e to m a o d st dr p e r s e s ss a i u n t g om glo a b ti a o l n l a in b d o u u c r e m d a s r h k o e r t ta ch ge a s ll , e c n u g r e re s n . A tly s t o h n e e s o to f c th k e o m f ost p ro r b es o s t i s n i g nc g r l e o a b s a e l s la a b c o ro u s r s m th a e rk E e U t c a h n a d lle b n e g y e o s n . d A , s it t i h s e cr s u to c c ia k l o to f r h o a b v o e ts le i g n i c s r l e a a ti s o e n s in a p c la ro ce ss th th a e t r E e U gu a l n a d te b s e b y o o t n h d t , h i e t i p s l c a r c u e c m ia e l n t t o o h f a s v u e ch leg te is c l h a n ti o o l n og in ie p s l i a n ce th t e ha w t o r r e k g ulates b pl o a t c h e t a h n e d p t la h c e e i m m e p n a t c o t f th s e u y ch w t i e ll c h h a n v o e lo o g n ie t s h i e n w th o e rk w fo o r r c k e p . l I a n c t e h a e n c d as th es e w im h p e a n c s t u t c h h ey w te i c ll h h n a o v lo e g o ie n s t a h r e e w u o se rk d fo d r u c e e. t I o n w th o e rk c e a r s s e h s o w rt h a e g n es s , u s c t h ra t t e e c g h ie n s o o lo n g r ie e s or a g r a e n u is s a e t d io d n ue to w of o t r h k e er w s o h r o k r f t o a r g c e e s c , a s n tra h t e e l g p ie re s d o i n str r i e b o u r t g e an av is a a i t la io b n le o w f t o h rk e e w rs o w rk h fo e r r c e e th ca e n y a h r e e lp m r o ed st ist n r e ib e u d t e e d a . v T a h i e la c b u le rre w n o t rk L e a r b s o w ur he L r a e w th e e x y hi a b r i e ts m ve o r s y t l n o e w ed ro ed b . u T st h n e es c s ur c r h e a n r t a L c a te b r o is u t r ic L s aw e a x s h it ib d it o s e v s e n ry ot lo c w on r s o id b e u r st f n u e tu ss re c s h h a o ra c c k t s e a ri n st d ic c s h a a s lle it n d g o e e s s th n a o t t c c a o n ns h id it e t r h f e ut la u b re ou sh r ocks 30 28 Friedrich-Ebert-Stiftung e.V. Friedrich-Ebert-Stiftung e.V. Max points 96 51%

market. A similar situation was noticed during the COVID-19 pandemic, where companies and workers were faced with several economic challenges, workers were laid off, and no policies were in place to ensure their safety or re-integration in the labour market. The KODE project, on the other hand, along with the two assessed government strategies, reoriented their priorities toward the digital sector, which is positive in light of the current trends, yet a significant portion of the workforce out side the digital sector is left increasingly vulnerable to potential lay-offs. The results of our assessment indicate that the redundancy of the regulatory framework is limited, as in most cases, no backup plan or alternative mechanism is provided in case the primary system fails. A major issue remains the lack of institutional support in the event of labour In the cases when such technologies are used due to worker shortages, strategies on reorganisation of the workforce can help market displacement affecting the pop ulation. Here, institutional coordination redistribute available is crucial to ensure such a hiccup can be overcome. Studies across the EU show workers where they are that sector-specific strategies are crucial to facilitate the integration of automation most needed. in the workforce, while using it as a lever for employment. For example, the integra tion of service robots, particularly in sectors like healthcare, pharmaceuticals, manufacturing, and infrastructure, has led to an increase in employment. While these robots necessitate operational technicians and maintenance per sonnel, they also considerably enhance productivity across various tasks. 31 In this case, complementing existing laws with mandatory guidelines and regu lations tailored to workforce and labour market reorganisation could support both companies and workers in adapting to the new demands of the market. Except for the Law on Labour, which does not mention support for inno vation or engagement with futuristic industries, the rest of the framework shows moderate levels of resourcefulness, fostering cross-sectoral collabora tion and promoting institutional flexibility. The rest of the framework seems to follow EU best practices in dealing with labour shifts, including a higher emphasis on training, focusing on emerging technological sectors, etc. While automation can lead to new job opportunities, it is also important to note that such developments are new for firms as well, meaning that such busi ness models are not yet as sustainable as traditional ones, hence potentially leading to less secure employment relationships. As such, it is crucial for policymakers to anticipate policy measures that can support businesses as well in this journey. 32 However, flexibility remains limited in non-digital sec tors due to institutional capacity constraints and inefficient decision-making structures. The assessed policies were initially designed as long-term strategies, focus Labour shortages due to automation 31

ing on gradual reforms and sustained objectives. That said, the framework demonstrates minimal rapidity, primarily due to the absence of fast-track procedures and emergency protocols, both of which are essential for re sponding effectively to labour disruptions caused by automation. Additional ly, it is worth noting that apart from the KODE project and the national strat egies, the analysed laws have not undergone any relevant changes for years now, such as in the case of the Labour Law from 2010, making it difficult to be useful in an ever-changing labour environment. 32 Friedrich-Ebert-Stiftung e.V.

Conclusions and recommendations Building a resilient workforce against automation-induced shifts is a com plex process. It requires both a mindset shift and a strong political will to develop effective response mechanisms to a challenge that is constantly evolving. The idea of automation in the labour market initially received a negative response and was associated with concerns over job losses and the replacement of human labour by machines. Across the EU, this served as a wake-up call toward different issues such as an ageing workforce, demographic shifts, workers migration, revision of education systems, vo cational education programs, etc. In our region and Kosovo, automation is slowly making its presence in different sectors and industries. While there is no definitive answer whether automation is a negative or positive phenomenon, it is not reversible and will continue to expand its presence. In light of this, a shift is needed to ensure the potential of this tool is em braced and to use it to respond to identi fied socio-economic challenges. To do so, regulatory frameworks are the first pit A long-term stressor, such as automation, requires long-term response interventions. stop. Based on our assessment, Kosovo’s regulatory framework demonstrates very limited resilience, placing the population at risk, particularly given the disruptive nature of automation, which could trigger severe labour market and economic crises. While beyond the scope of this policy brief, such crises need to be researched through a gender lense as well. The disproportionate placement of women in the labour market in Kosovo will undoublty be impacted from such shifts. Therefore further research should aim to better understand how automation might intensify exist ing inequalities or create new opportunities for women’s inclusion in the workforce. Considering that Kosovo is also in the long journey of EU accession, where numerous reforms are being implemented to increase the conver gence with the way the EU works, resilience in labour resilience is crucial to ensure Kosovo’s companies, workers, and market generally can cope with the competitiveness that we find in the EU. Therefore, several policy proposals are outlined below to help mitigate the potential impacts of this shock. Labour shortages due to automation 33

The establishment of a public-private council to foster collaboration between the government, education providers, and businesses including chambers of commerce could prove beneficial, as one of the most commonly cited issues in labour market reports is the misalignment between the education system and the skills demanded by employers. The council would be tasked with updating curricula, forecasting future skills needs, and offering co-financed training programs, along with expanding work-based learning opportunities such as internships and apprenticeships, which remain limited in Kosovo. Such initiatives already exist in some forms around the country, through this council all these stakeholders would be able to channel their work and jointly contribute to a better management of the labour market dynamics in Kosovo. Urgent re-activation of the Social Economic Council must be pursued as a means of strengthening social dialogue and increasing the cooperation between trade unions, employer associations and governmental ministries. This would facilitate more frequent exchanges on critical issues related to the labor market including emerging trends, rapid response to labour market shifts, etc. Across the EU, the strong cooperation between trade unions and employer associations has ensured the isolation of automation as a cause of unemployment, and has led to a new dynamic of using precisely this shock as a means to steer more employment opportunities. Such a cooperative ap proach must be followed from the region as well. Effective labour market monitoring provides critical insights into the health and direction of an economy. By tracking these metrics, stakeholders can identify emerging trends, anticipate potential challenges, and formulate proactive strategies to ensure a dynamic and resilient labour force. For the government, this translates to informed policy decisions regarding educa tion, training, and social welfare programs. As such the Ministry of Finance, Labour and Transfers must expand its data collection scope beyond mere descriptive statistics on employer and job searchers, to include comprehen sive real-time data on job vacancies across all sectors, detailed breakdowns of skill demand and supply, analysis of labour market flows including job creation and destruction or worker transitions, insights into the gig economy and non-standard employment, and granular data on wage differentials by industry, occupation, and region/municipality, etc. Enhancing and further promoting the platform Superpuna and its component on training. Superpuna is a recent platform created by the Kosovo Govern ment to facilitate young people access to the labour market and help compa nies find workers. In light of such dynamics in relation to the labour market, Superpuna’s component on professional training can be tailored to offer training on skills required from the job market. A closer cooperation between the institutions administering the platform with businesses, professional schools, sectoral institutions, etc. could ensure the training programmes are adequate and in line with the demands of the market. Additionally a bigger promotion of the platform with secondary schools around the country, pro fessional schools and universities could ensure opportunities promoted in this platform reach young workers across the country. 34 Friedrich-Ebert-Stiftung e.V.

A joint unit on rapid response born out of the cooperation of the Employ ment Agency and the Ministry of Finance, Labour and Transfers, would serve toward targeted and immediate support in the case of significant, concen trated sectoral shifts or widespread job displacements. Concrete actions of this unit would include rapid reintegration job fairs specifically matching displaced workers with identified on-demand sectors, the provision of transi tional income support linked to participation in reskilling programs, and the activisation of training centers in affected regions to address the immediate skill gaps for re-employment. A long-term stressor, such as automation, requires long-term response inter ventions. Such a challenge is also influenced by political processes. Different political coalitions may choose different responses, however, it is crucial that such responses do not take a project-based approach, as their consequences will mainly be felt by workers themselves. The above-listed recommenda tions aim to build on existing initiatives to ensure we do not face policy accu mulation and non-efficient use of resources, and suggest some new solutions through existing channels and stakeholders in place. Labour shortages due to automation 35

Endnotes 1 Classified based on the OECD(2014)“Guide lines for Resilience Systems Analysis: How to Analyse Risks and Build a Roadmap to Resil ience”. OECD Publishing. 2 Filippi, E., Bannò, M.,& Trento, S.(2023), Auto mation Technologies and Their Impact on Em ployment: A Review, Synthesis and Future Re search Agenda. Technological Forecasting& So cial Change, vol. 191, article 122448. 12 The Vienna Institute for International Eco nomic Studies – wiiw(2020) Western Balkans Labor Market Trends 2020. 13 The Employment Strategy 2024-2028 of Re public of Kosovo 14 Ibid, 12. 15 Ibid. 3 Arntz, M., Gregory, T.,& Zierahn, U.(2016) The Risk of Automation for Jobs in OECD Countries: A Comparative Analysis. OECD Social, Employ ment and Migration Working Papers No. 189, OECD Publishing. 4 Ibid, 3. 16 Ibid, 10. 17 Nora Jusufi(2020) Skills Gap Analysis in the Retail Industry. Kosovo Retail Association. 18 Re-ACT Lab(2025) Interview with Mr. Egzon Bajrami(Agro Economy Expert in Kosovo). 5 Jones, C.(2024) Automation’s Role in Alleviat ing Labor-Shortage Pressures. SupplyChainBrain Think Tank Blog. 6 Ibid, 1. 7 OECD(2019), OECD Employment Outlook 2019: The Future of Work. OECD Publishing. 8 World Economic Forum(2023), How Automa tion Will Pull Us Through the Labour Shortage. 19 Paçarizi, G.(2025) AI po hyn heshturazi në zyra. Kosovo 2.0. 20 Ibid, 12. 21 Hashani, A., et al.(2024) A Comprehensive Study to Identify Skills Gap in the Industry Sec tor Labour Market. Ministry of Industry, Entre preneurship and Trade. 22 Constitution of the Republic of Kosovo. 9 WEF(2025), The Future of Jobs Report 2025. World Economic Forum. 10 World Bank(2019) Kosovo Country Report: Findings from the Skills towards Employment and Productivity Survey. World Bank Group. 11 WEF(2018), The Future of Jobs Report 2018. World Economic Forum. 23 LAW NO.03/L –212 ON LABOUR 24 LAW No. 04/L-138 FOR VOCATIONAL EDU CATION AND TRAINING 25 LAW NO. 06/L-049 ON SCIENTIFIC INNOVA TION AND TRANSFER OF KNOWLEDGE AND TECHNOLOGY 26 LAW NO. 08/L-208 ON INDUSTRIAL AND 36 Friedrich-Ebert-Stiftung e.V.

TECHNOLOGICAL PARKS 27 LAW NO. 04/L-205 ON THE EMPLOYMENT AGENCY OF THE REPUBLIC OF KOSOVO 28 Kosovo Digital Economy(KODE) Project 29 The National Development Strategy and Plan 2030 30 The Employment Strategy 2024-2028 31 de Lange, T., Ghodsi, M.& Tverdostup, M. (2025) Migration or automation? Recommenda tions for how to better navigate labour shortag es in the EU. wiiw Policy Notes and Reports No. 95. 32 Eurofound(2021) The digital age: Implica tions of automation, digitisation and platforms for work and employment. Labour shortages due to automation 37