27 September 2018 | REPORT

Diagnostic Report on Undeclared Work in Montenegro

Undeclared work is a widespread phenomenon, which is present not only in the underdeveloped economies, with inefficient institutions and a lack of trust in the government, but also more developed economies. Globally, undeclared work is rather a rule than an exemption, with over 60% of the total number of employed persons in the world having their main job in this sphere (OECD, 2009). The undeclared economy is deeply rooted into Montenegrin society and economy. Besides undeclared work, the Montenegrin labour market is marked by negative demographic trends, low activity, high unemployment, and the insufficient creation of new and high-quality employment. Different methodological approaches used for the estimation of the magnitude of undeclared work indicate that the share of employees partially or fully engaged in undeclared work, in the last ten years, is more or less stable at roughly one third of the total number of employees (UNDP, 2016).

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