Family-Smart Policies as an Instrument to Address Labour Shortages

Skopje, North Macedonia | 6 April 2026 | – Investment in Family-Smart Policies in the workplace can enhance employee satisfaction and productivity, attract and retain top talent, particularly women, reduce absenteeism and turnover, and ultimately contribute to overcoming the labor shortage currently facing North Macedonia. Such policies can also improve children’s health, learning and lifelong outcomes.

This was the conclusion of the round-table discussion that was organized today at the Faculty of Economics, by the Ss. Cyril and Methodius University in Skopje and the United Nations family in the country, with the support from the national and bilateral Chambers of commerce. 

Around fifty business leaders, policymakers, and academics gathered to discuss how family smart policies can benefit local businesses and contribute to addressing North Macedonia’s growing labour shortages. Like many other, the country is facing a tightening labour market, driven by demographic decline, outward migration, skills mismatches, and population ageing. At the same time, nearly 40% of women of working age remain outside the labour force - primarily due to unpaid care responsibilities and limited access to flexible, family-supportive workplace practices including child-care services. 

“Economic inactivity of Women is an enormous, untapped potential for sustainable economic development of the country Family smart policies are one of the effective ways to unlock that potential for families, for businesses, and for the country’s long-term development,” says Rita Columbia, UN Resident Coordinator in North Macedonia. 

The round-table discussion brought together companies – champions in Family-Smart Policies (FSPs) and representatives of the private sector who are interested in introducing such policies as well as learning from their experiences. Champion companies including Comfy-Angel, EVN, NLB, and Textile Solutions, built their capacities in family smart policies while implementing Austria-funded and UNFPA implemented project, with involvement also of UNICEF “Expanding Choices: Gender-Responsive Family Policies for the Private Sector in the Western Balkans - Phase 2”.  

Furthermore, findings from a UNICEF employer survey and consultations indicate strong interest among companies in supporting childcare solutions, but with Government guidance and incentives. UNICEF is working with the Government and companies to identify policy and funding models for public-private cooperation in addressing this challenge. Aside from childcare, other family‑smart policies empower women by enabling them to enter, remain and progress in the workforce. Other UN agencies such as ILO, UNDP and UN Women are working on the related legislation and skills building for economic empowerment of women. 

Participants discussed motivations, challenges, and lessons learned, emphasizing the positive impact on recruitment, retention, and employee engagement.

This round table positions Family-Smart Policies (FSPs) not (only) as social benefits, but as strategic business tools that help companies attract, retain, and motivate talent in a tightening labour market.