World Bank2025-04-292025-04-292025-04-29https://hdl.handle.net/10986/43132The Western Balkans Regular Economic Report highlights the significant impact of extreme climate events on labor markets in the region. Rising temperatures, heavy precipitation, and other severe weather events are exacerbating existing vulnerabilities and creating new challenges for both workers and employers. These climate changes, combined with the global shift towards a low-carbon economy, are reshaping employment patterns in key sectors such as energy, agriculture, and tourism. Direct climate impacts, including heat stress, droughts, and floods, are affecting workers, their families, and businesses. Additionally, structural shifts in employment demand and skills requirements are emerging. For instance, areas dependent on tourism in the Western Balkans are increasingly susceptible to extreme weather events, which can lead to a decrease in visitor numbers, disrupt revenue streams, and threaten local jobs. Looking forward, the changing climate and the transition to a greener economy will necessitate significant workforce adaptation. This includes reforms to social protection systems and employment services to better safeguard individuals and facilitate labor market transitions. These measures are essential to protect people and support the evolving demands of the labor market in response to climate change.en-USCC BY-NC 3.0 IGOWESTERN BALKANSSUSTAINABLE GROWTHWORKFORCE TRANSITIONGREEN CAREERSReportWorld Bankhttps://doi.org/10.1596/43132