A recent OECD report highlights significant challenges in Albania’s labor market, with one of the main issues being the lack of adequate skills—far below those in European Union countries.
Although Albania is committed to meeting its EU accession goals by 2030, the workforce remains one of its greatest obstacles.
According to the report, Albania possesses only 37% of the necessary capacity compared to EU standards. The lack of investment in education, youth emigration, and the disconnect between the education system and labor market are key factors holding back development.
If urgent action is not taken, Albania risks falling behind in the era of technology and innovation.
This mismatch between education and job market needs is also one of the driving forces behind the increasing emigration of young people.
Only 23.8% of adults in Albania have basic digital skills, compared to 53.9% in the EU, placing the country below the Western Balkans average.
The OECD warns that the shortage of relevant skills, especially in technical fields, digital literacy, and lifelong learning, is a major barrier to Albania’s economic progress.
Despite these challenges, Albania has made some progress in employment, reaching a 68.9% employment rate, though still several percentage points below the EU average.
Notably, women’s employment reached 61.7% in 2023, close to the EU average of 65.7%, indicating positive steps toward gender equality in the labor market.
To achieve lasting progress, the OECD recommends that Albania implement educational reforms, introduce incentive schemes for the private sector, and promote a culture of lifelong learning.
