According to MIP (Macroeconomic Imbalance Procedure) indicators, it can be concluded that there have been positive changes in the labour market over the past decade in Serbia. Most of the indicators, such as the activity rate, youth unemployment rate, and long-term unemployment rate, remained stable during this period. However, these indicators also showed that the situation in the Serbian labour market was considerably less favourable than in EU countries, although more favourable than in Western Balkan countries. The following text will delve into the main characteristics of the labour market in Serbia and the changes that have occurred over the past decade. We will explore the key causes and consequences of imbalances, with the first part of the paper focusing on labour force loss due to emigration and the second part analysing employment trends in Serbia during the second decade of the 21st century. We will also examine the most important characteristics of the labour force in Serbia and how labour market supply and demand are perceived. Finally, we will present the results of the Labor Cost Survey, which enables a comparison of the labour market situations in Serbia and the European Union.