Exporting and manufacturing companies in Albania are warning that in the early days of January, they will protest the current situation they are facing.

According to them, the loss of competitiveness, the decline in sales value due to the depreciation of the euro, and the increase in direct costs affected by inflation are pushing the overwhelming majority of exporters toward bankruptcy.

On December 20, 2023, a meeting was organized between representatives of export groups and representatives of unions, organizations, and civil society defending workers’ rights.

Exporting and manufacturing companies, according to their financial indicators, are producing less and will also offer fewer products for sale. This also means that companies need fewer employees, often resulting in job layoffs.

Everything happening in the export-producing economy is affecting the job market.

The loss of competitiveness for exporters, the decline in sales value due to the rapid strengthening of the local currency, and the increase in direct costs, along with the impact of inflation on daily expenses, are rapidly creating an unfavorable environment to continue, forcing the vast majority of exporters to close their activities and apply for inactive status.

This drastic measure, forced by the accumulation of losses and the lack of clarity for the market in the coming year, will create an effect in the unemployment rate, increasing it by at least 6% from the current level, with the most significant unemployment felt among women and young people.

Union representatives expressed support, appreciating the fact that exporting companies maintain economic and employment balances. A growing concern is the need for accurate official statistics in real-time to measure the impacts and effects of this situation on the economy, social life, and the state budget, serving as a common basis for social dialogue between the parties.

As a result, these workers and businesses are left alone, and unfortunately, the Government sees this economic problem and the current crisis only through two approaches: leaving the market to address the issues, considering it a failure of the business model, and treating it according to the legal framework for unemployment and job offers in other sectors in case of massive closure of production and export activities.

The current crisis has also highlighted an extraordinary weakness in the preparation of institutions to address such cases of the sudden closure of an entire sector through the creation of special funds to be used for crisis periods in the sector or crises caused by the lack of coordination between institutions and unfulfilled tasks for a competitive environment and market rules of a free economy.

Now is the time that we all feel the crisis. In this extreme situation, there would be a need for awareness by competent institutions to prepare by feeling how difficult it is to face such moments. Potentially, each of us needs institutional support in case of business and job losses. Therefore, confronting and addressing all arguments through institutional tables is a social and economic necessity for the country. It is proposed that the discussion and proposals for dialogue on the situation be placed in the first meeting of the National Labor Council.

As a first and urgent measure, the continuation of technical roundtables and finding solutions to overcome the situation is required.

Meanwhile, other escalated measures will continue to be discussed, where the determination and collaboration of all parties have decided to hold together with unions and employees of export sectors a “Protest in front of the Prime Minister’s Office” in the early days of January.