The study is an analysis of the local labour market in Kragujevac, based on the survey on features of labour supply and demand, as well as the adjustment of the education system with local labour market needs. The major aim of the study is to indicate the reflection of social and economic changes on the labour market, to identify the most significant trends and problems in this labour market and to determine the possibilities of improving the conditions and thus local development.

This study has primarily practical significance, since it provides records and analyses necessary for developing more adequate and efficient policies and concrete measures in increasing development and improving living conditions of local population, primarily young people

It contains sets of recommendations, namely measures for improving labour market conditions. Recommendations were defined for the following most important areas: (1) improving employment potential of labour supply; (2) encouraging employers to provide, in its domain, more favourable employment conditions; (3) Improving educational-system responsiveness to local labour market needs.