February 2026 Disclaimer © 2025 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Internet:www.worldbank.org Some rights reserved This work is a product of the staff of The World Bank with external contributions. The findings,interpretations, and conclusions expressed in this work do not necessarily reflect the views of TheWorld Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. Theboundaries, colors, denominations, and other information shown on any map in this work do notimply any judgment on the part of The World Bank concerning the legal statusof any territory orthe endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encouragesdissemination of its knowledge, this work may be reproduced, in whole or inpart, fornoncommercial purposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to WorldBank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax:202-522-2625; email:pubrights@worldbank.org. Acknowledgments This report is authored by a World Bank team led byDaniel Garrote Sanchez andMauroTestaverde and includingMichael Dowe, Mahi Lal and Polina Zavalina. The material reflectsbilateral consultations and workshops conducted inNorth Macedonia, where the team receivedfeedback and inputs from government representatives, development partners, internationaldonors, academia, civil society organizations, and key sectoral experts. The teamwould like to acknowledge the excellent collaboration and dialogue with thecounterparts and the technical teams in theMinistry of EconomyandLabor(MoEL), theMinistryof Education and Science(MoES), theEmployment Service Agency(ESA),theCenter of VETandtheCenter for AdultEducation. The team would also like to sincerely thank all the stakeholders met bilaterally and duringworkshops for their time, inputs and valuable insights,particularly colleagues from theEconomicChamber,theEngineering Institute ofNorthMacedonia (EIM), Helvetas,the International LaborOrganization (ILO),the Organisation of Employers, the Secondary School “Vlado Tasevski”, theSwedishInternational Development Cooperation Agency(SIDA),the Swiss Agency forDevelopment and Cooperation (SDC),andVrabotuvanje. The team appreciates managerial support and guidance from Xiaoqing Yu (Country Director,Western Balkans Country Unit) Paolo Belli (Practice Manager, Social protection and Jobs forEurope and Central Asia),Carole Megevand(Country Manager for World Bank Office in Kosovo),andMassimiliano Paolucci(formerCountry Manager for World Bank Office in Kosovo). During the preparation of the report, the team also received insightful comments and usefulmaterial by World Bank colleagues includingNicola Bressan,Cornelia Jesse,Stefanie Koettl-Brodmann,Nathalie Lahire, Victoria Monchuk,Harry Moroz,Bojana Naceva,Dhushyanth Raju,Indhira Santos,Tigran Shmis,andCornelius Claus Von Lenthe. This report is a product of the International Bank forReconstruction and Development. Thefindings, interpretation, and conclusions expressed in this paper do not necessarily reflect theviews of the Executive Directors of the World Bank, the European Union, or the Governmentcounterparts consulted or engagedwith during the study process. Contents Acknowledgments.........................................................................................................................................2Abbreviations..................................................................................................................................................6Glossary of terms...........................................................................................................................................7Executive Summary.......................................................................................................................................91.Introduction..........................................................................................................................................151.1.Global and Regional Context.................................................................................................151.2.Labor Market Challenges and Skills Gap in North Macedonia.................................161.3.Objectives and the Focus of the Study...............................................................................192.Institutional Framework of VET system....................................................................................212.1.Governance, Regulatory, and Delivery Framework......................................................212.2.Information Use in Management and Governance.......................................................