o:2408 Labour market efficiency – case of EU members and candidate countries en The main purpose of this study is to identify the groups of countries within EU and candidate countries that share a similar level of labour market efficiency. In addition, the differences among identified groups of counties will be tested to determine whether there is a connection between achieved levels of labourmarket efficiency and employment rates. In order to determine the groups of similar countries within the EU and candidate states, according to the achieved values of labour market efficiency indicators cluster analysis will be applied. The differences among identified groups of countries will be determined using nonparametric Kruskal Wallis test. The results of the analysis reveal that there are statistically significant differences in labour market efficiency values in the last three years of the analysis (2015, 2016 and 2017). The statistically significant differences are identified between candidate countries and countries that founded EU and joined before 2004. Additionally, results of cluster analysis and non‐parametric tests indicated that clusters with efficient labour market have high employment rates. The conducted research provides useful guidelines not only for the candidate countries, for which it was revealed to belong to a group of countries with the lowest level of labour market efficiency, but also for member states in terms of identification of best practices, that is, countries to whose model of functioning should they strive to. Economic policy makers can create adequate economic policies in the area of labour market and direct the development of the country's labour market according to the model of the most efficient countries. Thematic collection of paper: „Enhancing Competitiveness of National Economies and Enterprises“: pp. 65-86. Niš, Faculty of Economics, University of Niš Labour market efficiency, Cluster analysis, Non‐parametric test 1552100 978‐86‐6139‐183‐5 2024-03-10T18:02:36.459Z 44 yes 46 Sandra Milanović Innovation Center, University of Niš 2019 46 Ivana Marjanović Innovation Center, University of Niš application/pdf 3254195 https://phaidrani.ni.ac.rs/o:2408 no yes 18 70 1556235 18A15