This note forms part of a broaderengagement between the World Bank and the Government of FYRMacedonia on how to foster more and better jobs and makesure that more marginalized groups, women, low earners,skilled and unskilled youth, for example - can participateand benefit from those jobs. It focuses on providing updatedlabor market diagnostics based on the labor force surveysbetween 2007 and 2011. The findings will be used as a basisfor further policy analysis. The remainder of this note isorganized as follows. Section two describes labor marketdevelopments since 2007 and the conditions prevailing in2011. Subsequent sections address the remaining challengesand key policy options. The third section thus focuses onraising productivity – critical to national economicdevelopment and to ensure sustainable increases in earningsover time in Macedonia. The fourth section discusses thegenerational divide in terms of challenges in labor marketopportunities for the younger versus older generations. Thefifth section looks at workers that are particularlydisadvantaged in the labor market with a particular focus onwomen. The sixth section concludes with the policy leversthat may help Macedonia move forward on the jobs agenda.