2. Methods This report aims to investigate the causes of unemployment in Bosnia and Herzegovina, as well as the problems and solutions of unemployment in this country. The exploration of the causes of unemployment is analyzed using the book written by Rajko Tomas titled Nezaposleni. Furthermore, data related to unemployment problems in Bosnia and Herzegovina are collected from Miomir Jaksic's book entitled Makroekonomija. The articles related to poverty and emigration of young people are collected from the book Osnovi ekonomije written by Slobodan Barac and Budimir Stakic and its articles are very useful for our topic. Finally, solutions to unemployment in Bosnia and Herzegovina are analyzed using the online articles “Polovina gradana u BiH zivi na granici siromatva, na korak od gladi”, written by Vecernji List.3. Results3.1 Causes of unemployment in Bosnia and Herzegovina3.1.1 Undeclared workThe first main cause of unemployment in Bosnia and Herzegovina is undeclared work. Undeclared work acquired significant significance during the period of socialist development in this country, where privatization of local companies was frequent. This type of work existed in some sectors, such as agriculture, crafts, construction and catering. In the past, undeclared work was only seasonal and temporary, but now it is common in all sectors of the country. Today, statistics show that some companies do not register any workers, but these companies still exist. They use the method where their workers are placed on a waiting list, but no one guarantees them that they will be registered (Ilic, 2003). The main reason why employers do not register their employees is the high monthly cost for each worker, and by using this method, they try to get ... middle of paper ... employment represents an excellent alternative while these people wait for a long-term job. Examples of programs that build youth experience are internships, temporary work, part-time work and project work. These people are able to carry out these programs during their holidays or semesters, so that they can combine their knowledge from education with that gained in these programs. According to the Boston Consulting Group, 34% of candidates in Sweden had past experience in their industry, and 85% of them obtained full-time employment after a certain period of time. The Bosnian economy lacks a small number of companies capable of offering and implementing programs that build young people's work experience. The government of Bosnia and Herzegovina will have to put pressure on these companies to initiate programs that would lead to a decrease in the unemployment rate.