Unemployment in Albania
Unemployment is the most popular indicator of the labor market. The official unemployment rate in a country represents the unemployed persons as a percentage of the labour force. It is probably the best-known labour market measure and one of the most widely quoted by media in many countries. It reflects the inability of an economy to generate employment for those persons who want to work but are not doing so, even though they are available for employment and actively seeking work.
Higher unemployment for women than for man
The Albanian unemployed rate was 11.5% in 2021. About 163,000 persons were unemployed. The unemployment rate was 11.3% for men and 11.8% for women (Figure 1).
Fig.1 Unemployment rate by gender, 2012-2021
Source: INSTAT, Labour Force Survey
More young people are working than before
Young people have a higher unemployment rate than other age groups. During 2021, the youth unemployment rate was 27.1%, about twice as high as the unemployment rate for the whole population aged 15 (Figure 2). The youth unemployment has fallen in recent years though there is a slight deterioration in 2021, partly because of employment policies promoting, like professional and vocational trainings, though there is a slight increase in 2021.
Fig.2 Unemployment rate by age groups, 2012-2021
Source: INSTAT, Labour Force Survey
Youth unemployment rate is calculated by dividing the number of unemployed persons aged 15–24 by the labour force (employed or unemployed) of the same age group. This indicator may indicate an overall probability of youths being unemployed and the associated underutilization of their skills.
Youth unemployment ratio as a better measure
Since not all young people are in the labour force, but many of them are still in education Youth unemployment ratio can create room for some misinterpretation. A youth unemployment rate of 30%, for example, does not mean that almost one third of the people 15-24 are unemployed. It means that almost one third of young people in the labour force (but not of those that are in education) is unemployed.
Eurostat and the EU members therefore also use an indicator called the youth unemployment ratio. It is calculated by dividing the number of unemployed persons aged 15–24 by the total population of the same age group.
Fig.3 Youth unemployment ratio by gender, 2012-2021
Source: INSTAT, Labour Force Survey
In 2021, the youth unemployment ratio in Albania was as low as 9.8%, 10.5% for males and 9.2% for females (Figure 3).
Narrowed gender gap in long term unemployment
The long-term unemployment rate measures unemployment in relation to the duration of unemployment. That is how many persons have been out of work and actively searched for employment for over 12 months. The long-term unemployment rate in 2021 for the population 15 years and over was 7.2% (Figure 4). Until 2014, men have been more affected than women by this phenomenon, while the situation seems to have changed with a narrower gender gap and a prevalence of unemployed women in the recent years.
Fig.4 Long-term unemployment rate by gender, 2012-2021
Source: INSTAT, Labour Force Survey
Where to put the attention
Persons not in employment, education or training, also called NEET, is another important indicator that gives information on young people aged 15–24 that are not employed (in other words, they may be unemployed or inactive); and have not received any education or training in the four weeks preceding the survey.
The indicator is calculated as a percentage of the total population of the same age group and gender and reached 24.0% in 2021 (Figure 5). This indicator measures the youth population most at risk of being marginalized from the labour market.
Fig.5 Youth not in employment, education or training by gender, 2012-2021
Source: INSTAT, Labour Force Survey
