The Western Balkan economies have achieved substantial progress in enhancing employment outcomes, with the average regional unemployment rate decreasing by more than half over the past decade, dropping from 24.4% in 2014 to 11.7% in 2023. Strengthening policies and implementing targeted initiatives are essential for further improving employment and activity rates as well as reducing existing skills mismatches and gaps to bolster the region’s ability to respond to emerging skills needs and maintain its competitiveness.