The heterogeneous development of CEE labor markets! CEE labor markets have improved considerably recently, yet substantial variety persists. Labor markets in Central Europe have reached full employment while those at the Western Balkans are characterized by high structural unemployment, particularly for the youth. Gender gaps with respect to employment in the formal sector are substantial across the region. The trend of ageing populations is currently amplified by emigration, which might soften in some countries if wage growth can be sustained.