Subject of this thesis is analysis of labour economics in public administration. Relative to this, the aim of the paper is to examine constituent elements of labour economics in public administration. Labour economics is primarily an area which contains measures relating to employment and payment of labour resources. In order to examine labour economics, this thesis analyses labour economics in general, as well as public administration. Within public administration economics, the thesis puts emphasis on basic constituents of labour economics in public administration which are the following: classification of posts in public administration, payment system, continuous assessment of work and efficiency, and employment planning. Relevant to labour economics in public administration, a review of Economic-Social Council is given, alongside the public administration reform with the accent on modernization of labour economics.