SAO: 23.4 million euros were spent on employment measures, but the allocation does not respect balanced regional development

The State Audit Office (SAO), in its audit of the operations of the Employment Agency of the Republic of North Macedonia, found that in 2024, 1,442,207 thousand denars, or 23.4 million euros, were paid out for active employment measures, but that their distribution did not comply with the principle of balanced regional development.

According to the audit findings, more than half of the funds for individual measures were concentrated in a limited number of employment centers. Specifically, 62.05 percent of the self-employment measure, as well as more than 50 percent of the wage subsidy measures and those for the employment and growth of legal entities, were implemented only in several cities, namely Skopje, Tetovo, Struga, Kumanovo and Probishtip, while the rest of the country benefited significantly less.

The auditors identified irregularities and inconsistencies in the work of the Employment Agency, and therefore issued a qualified opinion regarding the truthfulness and objectivity of the financial statements, as well as an adverse opinion on compliance with legal regulations, guidelines and policies established for 2024.

“In 2024, the Employment Agency paid 1,326,958 thousand denars or approximately 21,541,526 euros in cash compensation in the event of unemployment, of which 876,960 thousand denars (14,236,364 euros) for cash compensation and 449,998 thousand denars (7,305,162 euros) for material security, which represents 40.6% of the Employment Agency’s total expenditures in 2024. Payments for cash compensation are 27.13 percent higher, or 187,148 thousand denars more, compared with 2023,” the SAO said.