Paper Title
Trends in Unemployment by Educational Attainment in the Republic of Macedonia

Knowledge embodied in human capital and technology is central to economic growth; making education a main engine driving the economy today through the knowledge, skills and creativeness of the human capital. Competitiveness and income generation depends thus not only on natural resources, but highly on the ability of human capital to create and develop new technologies and ability to be innovative. In this context, high unemployment rates present a serious socio-economic problem imposing a high welfare cost to society. This especially in cases, such as in the Republic of Macedonia, with also high youth unemployment and high unemployment among educated segments of the country. The main objective of the paper is to analyze and understand the severity of unemployment in the Republic of Macedonia from an educational attainment perspective using secondary data. The study takes basis primarily on annual Labor Force Survey (LFS) data released by the State Statistical Office of the Republic of Macedonia and Eurostat for the period 2006-2016. The analysis shows that unemployment rates in the Republic of Macedonia among the lower level educated population have seen a more notable decrease in the study period, whereas the unemployment rate among higher educated has only dropped marginally with an overall decrease of 1.8 percentage point in the study period. Findings suggest that despite a positive trend, the country still faces alarmingly high unemployment rates. The 52.8% unemployment rate within the youth segment (age 15-24) is of special concern. Hence, the institutional frameworks governing the labor market and education should increase efforts and formulate policies inclusive of industry, and address measures, more effectively and inclusively of especially young and educated people. Keywords - Education; Unemployment; Activity Rate; Employment