Albania’s labor market showed signs of slowing down in the first quarter of 2026. Data published by INSTAT indicate that, compared to the end of 2025, unemployment increased, while employment and labor market participation declined.

According to the Quarterly Labour Force Survey, the unemployment rate for the population aged 15 and over reached 8.4% in the first quarter of this year, rising by 0.1 percentage points compared to the fourth quarter of 2025. Although unemployment remains lower than in the same period a year earlier, recent developments point to a slight reversal in labor market trends.

At the same time, the employment rate fell to 58%, down by 0.5 percentage points from the previous quarter. Meanwhile, labor force participation increased slightly by 0.3 percentage points, but remained 0.5 percentage points lower than a year earlier, indicating that the labor market is expanding at a slower pace than before.

The manufacturing sector experienced the sharpest setback. Employment in industry declined by 5.7% compared to the fourth quarter of 2025, while employment in agriculture fell by 2.9%. The services sector was the only one to continue creating new jobs, recording a 1% increase on a quarterly basis. Overall, employment across the economy was 1.7% lower than at the end of last year.