A home at the crossroads: impact of labour market globalisation as illustrated by demand from foreign-registered employers for Serbian remote workers

The Covid pandemic has seen a dramatic increase in demand for Serbian remote workers, as revealed by the latest findings of a study done by the Public Policy Research Centre (CENTAR). The research looked at 1,344 vacancy advertisements posted by foreign employers registered outside Serbia on the Poslovi Infostud web site from 24 April 2020 to 20 October 2021.

The rising demand for Serbian teleworkers is part of a global shift, with companies increasingly recruiting remote workers in countries with educated workforces and low labour costs. These workers are often termed ‘telemigrants’, as they never physically leave their countries of origin but populate virtual offices elsewhere.

In the 18 months covered by this research, vacancy advertisements posted by employers registered outside Serbia on the Poslovi Infostud web site increased nearly fivefold, from some 30 in April and May 2020 to 132 in September 2021.

Most foreign employers looking for Serbian workers came from the US (45 percent) and EU27 (36 percent), with the remainder based in Asia. No single European country stood apart from the rest, although the largest number of advertisements (7 percent) were posted by Swedish firms. Interestingly, regional companies also seemed to recognise the potential of Serbia’s labour market, with as many as 5.7 percent of all ads taken out by Bulgarian employers, and 1.7 percent by Croatian
ones.

In the reporting period, demand was greatest for workers in the software development and tech industry, but the emergence of teleworking apps has seen the scope of remote work also extend to pharmaceuticals and healthcare, transport and infrastructure, automotive industry, and
construction.

CENTAR’s findings reveal that nearly 46 percent of all ads were in the software development and tech sector. Another 18 percent of the advertisements sought workers in professional services. Sales and marketing support skills were in demand in about 15 percent of the ads, whilst 12 percent
offered jobs in less challenging administrative positions.

The advertisements generally looked for experienced university graduates, but some positions were open to students too. Some 20 percent of the software dev and tech ads sought senior or mid-level professionals, whilst students could apply to about 17 percent of the IT industry positions.

Almost all employers offered full-time employment (this was the case with 95 percent of the advertisements), with very few part-time positions advertised. Taking into account all job advertisements that gave salary details, the average monthly gross salary earned by a Serbian working for a foreign employer was estimated at $1,200. This figure should
nevertheless be treated with caution, since salary information was disclosed in only 343 of the 1,344 advertisements.

CENTAR also analysed how many Serbian workers, on average, applied to each of these ads. Most prospective workers applied for call centre positions (530 on average), followed by jobs in human resources (460) and administration (413).

These figures both reveal the breadth of the pool of candidates and illustrate how this work can be done by people with a variety of qualifications. No more than 40 candidates, on average, applied for each software dev and tech position, suggesting the undersupply of this workforce is also visible in
the local market.

These trends matter both for young Serbians, who may be unable to find work suited to their knowledge, skills, or interests in the local labour market, and for Serbian employers, who face foreign competition for already scarce staff.

CENTAR will continue to research these developments, which can affect employment, migration patterns, and salary levels in Serbia.

About the research

Using the Poslovi Infostud database, the researchers analysed 1,344 vacancy advertisements published on this platform by foreign employers between 24 April 2020 and 20 October 2021. Demand for workers was analysed with reference to employer location, skills/knowledge and educational qualifications sought, remuneration, and type of employment offered (full-time or part-time). Supply patterns were examined by looking at the frequency of applications and skillsets of applicants. Where possible, salaries offered in the ads were compared with remuneration for similar jobs in the Serbian market. CENTAR partnered with Poslovi Infostud for this study.

Detailed findings of the analysis are available from CENTAR online at www.publicpolicy.rs.