This report reflects the labor market situation in the Western Balkan countries - comprising Albania, Bosnia and Herzegovina, Kosovo, FYR Macedonia, Montenegro and Serbia. Its main focus are the key labor market trends (activity, employment, unemployment) between 2010 and 2016, as well as the link between economic growth and labor markets. The labor market developments in the Western Balkan countries in the period 2010- 2016 are presented and compared with selected member states of the European Union (EU). The report finds that the Western Balkan countries have increased employment by roughly 300,000 jobs since 2010, from an estimated 5.5 million in 2010 to 5.8 million in 2016. Overall, the evidence suggests that the jobs challenge in the Western Balkans is structural, and growth alone will not be sufficient to create the number and types of jobs needed in the labor market.