Structure of each economy, especially those in transition, is in constant change.Shift-share analysis is widely used for studying of regional economic change. Themodel in which the present analysis is conducted has three components: (i) the nationalgrowth component (in this paper the entity level of Federation of BH is usedas reference level), (ii) the industry mix component, and (iii) the competitive component.Each of them is measured on the basis of employment. The analysis enablesassessment of economic performance of a region (here cantons) in comparison to areference level (here the Federation of Bosnia and Herzegovina).In this paper authors aimed at capturing economic change at regional level. Authorshave compared the economic change in two time periods, 2006-2011 and 2012-2018.Changes in employment are expected in a small transitional and open economy suchas Bosnia and Herzegovina. Obtained results indicate that regional economy wentthrough considerable transformation. Some policy recommendations for policy decision-makers in the fields of education and labor market are also given in the paper
