The economic activity in Albania peaked in the third quarter of the year due to extraordinary developments in tourism, as agricultural production is at its peak, but the labor market in the same period showed weaknesses in the employment of young people.

After the Covid-19 pandemic, youth employment indicators have further worsened, while, on the other hand, sectors of the economy are in emergency need of employees.

Data from the Institute of Statistics (INSTAT) report that in the third quarter of this year, 74,507 young people aged 15-29 were unemployed, with an increase of 5,300 people since the same period in 2022.

In June-September 2023, youth unemployment was at its highest level since the first quarter of 2021 when the economy was experiencing a strong wave of the Covid-19 pandemic. The youth unemployment rate is a negative signal at a time when this age group is continually shrinking due to high emigration and declining births.

The official unemployment rate for young people aged 15-29 is 22.0%. Compared to the third quarter of 2022, it has increased by 1.6 percentage points.

Compared to the second quarter of 2023, this indicator has decreased by 0.6 percent. On the other hand, the unemployment rate for the age group 30-64 is 7.6%. Annually, this indicator has decreased by 0.1 percentage point, and compared to the previous quarter, it has decreased by 0.1 percentage point.

The increase in youth unemployment at a time when their total numbers are decreasing indicates that the labor market has problems with young people. The foreign exchange sector, which was a major employer of educated youth, is going through a period of investigations that have led to the closure of many companies. On the other hand, the job offers from Albanian businesses are often not preferred by young people.

The economic model based on the free labor market is not favored by the younger generation, who see more benefits in emigration than starting work in a garment factory or construction company.

The labor market in the country has always suffered from a gap between the supply and demand for jobs. Job offers are dominated by elementary professions that do not require skills, while job seekers often have higher education.

However, education, on the other hand, does not meet the business requirements for skills. Businesses complain that professionals produced by the education system are not skilled, and often additional time and investment are needed for their training.