STRUCTURAL DEMOGRAPHIC CHANGES AS A DETERMINANT OF LABOR FORCE DYNAMICS IN THE FEDERATION OF BOSNIA AND HERZEGOVINA

Abstract

Relevant demographic indicators and available projections suggest a continued deterioration in the age structure of the population, accompanied by persistent depopulation trends in Bosnia and Herzegovina. These changes have multiple implications for labor force dynamics, as well as for the overall economic and demographic development of the country. They lead to a reduction in the potential labor force, a worsening ratio between the active and dependent segments of the population, and as such, increase pressure on the pension, healthcare and education systems. In light of the above, the primary objective of the research is to determine the relationship between demographic structures and labor force dynamics in the Federation of Bosnia and Herzegovina. The empirical part of the study is based on official documents and statistical data published by the Institute for Statistics of the Federation of Bosnia and Herzegovina and the Federal Institute for Development Programming. The research covers ten cantons and the time period from 2013 to 2024. Using panel regression analysis, the study establishes a significant link between demographic structures and the economic activity of the population in the Federation of Bosnia and Herzegovina.