Salary increases become the baseline across Southeast Europe, but hiring uncertainty rises – Manpower Regional Report H1 2026

Southeast Europe enters the first half of 2026 with a labor market defined by a clear shift: salary increases are no longer exceptional — they are becoming the baseline cost of retaining talent.

According to the latest Regional Salary and Employment Trends (SATR) Report H1 2026 by Manpower Southeast Europe, more than three-quarters of employers across Slovenia, Croatia, Hungary, Bulgaria, Serbia, and Bosnia & Herzegovina are planning salary increases, most within controlled ranges of up to 10%. 

At the same time, the report highlights a growing tension: while hiring intentions remain positive, uncertainty is rising, with nearly one in five employers still undecided about workforce expansion.

Salary increases driven by retention and inflation

The data shows that salary increases are primarily driven by two factors: retention pressure and inflation, both cited by around 60% of employers across the region. 

This reflects a structural shift in employer behavior. Compensation is no longer only a reward mechanism, but increasingly a tool for maintaining operational stability and preventing talent loss.

Benefits become a targeted tool

While salaries continue to rise, 77% of companies do not plan major changes to benefits, indicating a more selective approach. 

However, one in five employers is increasing benefits — suggesting that benefits are now used strategically, particularly for hard-to-fill roles and retention-sensitive positions.

Turnover remains stable — but strongly pay-driven

Employee turnover across the region remains relatively stable at around 12%, but its underlying drivers are clear:
better pay at competing companies is the leading cause of employee exits, cited by more than half of employers. 

This confirms that competition for talent remains intense, and that retention strategies are increasingly tied to compensation structures rather than only workplace factors.

Recruitment bottlenecks in core business functions

Recruitment challenges persist across the region, particularly in roles that directly impact business operations.

The most difficult roles to fill are:

• production (34%)
• logistics and warehouse (26%)
• sales and procurement (25%) 

These bottlenecks suggest that growth in many companies is not limited by demand, but by workforce availability.

Hiring outlook: positive, but cautious

Looking ahead, 41% of employers plan to increase hiring, while only 7% expect reductions. 

However, the report highlights a key emerging signal:
19% of companies remain undecided, reflecting cautious planning, cost sensitivity, and uncertainty about market conditions.

About Manpower SEE

Manpower Southeast Europe is a regional cluster covering Manpower offices in Slovenia, Croatia, Hungary, Bulgaria, Serbia, Bosnia & Herzegovina, North Macedonia, Montenegro, Kosovo and Albania. As part of ManpowerGroup, it connects local market expertise with global workforce solutions and insights. The cluster supports companies across the region in recruitment, workforce management, and talent strategy, with a strong focus on operational and industrial sectors as well as growing service industries. Through regional initiatives such as the SATR report, Manpower SEE provides data-driven insights into labor market trends and employer needs. Its integrated approach enables both local responsiveness and regional consistency in addressing workforce challenges.

About SATR

The Regional Salary and Employment Trends (SATR) H1 2026 report is based on data collected through an online survey conducted among companies across Southeast Europe. The complete report can be downloaded from here: https://manpower-see-satr.mailerpage.io/

The research covers six markets: Slovenia, Croatia, Hungary, Bulgaria, Serbia, and Bosnia & Herzegovina. More than 1,000 employers participated in the survey, providing a robust and representative data sample for regional and country-level insights. The study examines key topics including salary and benefit planning, employee turnover, recruitment challenges, and hiring intentions. Regional results are presented as weighted averages based on country response volumes, ensuring a balanced comparative perspective.