Trends in the Albanian Labour Market: Who are Albania’s Unemployed?

Abstract

Albania’s experience with transition is unlike most Eastern European countries. In particular, transition started from a deeply impoverished state, proceeded faster than other countries in the region, and was disrupted by financial sector crises. In addition, Albania experienced extreme population movements both abroad (to as many as twenty different countries) and within the country (from rural areas to major cities). All these changes combined have altered the composition of the local labour force in unknown ways. Understanding who Albania’s unemployed are at present is important for policy decisions, especially given the double-digit unemployment rates of the last decade. In addition, employment stabilization policies in Albania are important from an international perspective, since Albania exports about 15–20% of its labour force to neighbouring countries. This paper uses administrative data from one of the largest, recently established labour offices, to gain insights into the composition and characteristics of Albania’s unemployed.