FYR Macedonia has experienced a declinein poverty in the post global financial crisis period(2009-2013) in spite of a weak macroeconomic performance. Incontrast to the pre-crisis period when growth was robust butpoverty stagnant, poverty indicators indicate an improvementon the living conditions of the bottom of the distribution.Employment gains were the main reason for the increase inwelfare among the less well-off, while other income sourceslike pensions, social assistance or remittances have playeda limited role. Labor income at the bottom of thedistribution continues to be very low, however, and thesustainability of the employment gains is uncertain as thepublic sector played an important role for employmentexpansion in the period. Still, FYR Macedonia faces manychallenges looking forward. Despite the recent improvements,poverty and inequality is still high when compared withother countries with similar levels of GDP per capita in theregion. Income-generation opportunities for the poor arelimited as the poor have very weak labor market attachment,their employment quality is lower than for the rest and aremore likely to be employed in low productivity sectors.Inclusive growth seem also to be challenged by thedifferences in access to high wage jobs for women and theyouth. Demographics seem important looking forward, sincethey will shape future labor markets performance.
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