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12.6% of employees in Albania are at risk of poverty

2023-01-09 07:47:55Biznes SHKRUAR NGA REDAKSIA VOX

12.6% of employees in Albania are at risk of poverty

In our country, poverty is not only a feature of the unemployed and people with disabilities, but it affects to a large extent people who are at work.

INSTAT reported that in 2021 over 12.6% of employed persons are at risk of falling into poverty. This indicator was almost the same as in 2020, and did not change even though the economy grew significantly in 2021.

Among unemployed people, the risk of poverty is higher and reaches 39%, among pensioners it is lower at around 14%.

In developed countries, reducing the unemployment rate usually reduces poverty. Exceptions are cases where the fall in unemployment comes as a result of the expansion of low-wage work that does not provide high enough income to lift workers out of poverty. This type of employment is usually widespread in developing countries, including Albania.

In our country, the majority of employees are in some form of self-employment (agriculture and in the informal sector). Employment in these forms is insufficient to raise well-being to levels away from poverty.

The informal sector is also a large employer in our country, and usually people in this type of employment are poorly paid and vulnerable to insurance schemes. This employment category is at risk of poverty and this was proven in the year of the pandemic.

Over the past two decades, employment in the informal sector has increased throughout the developing world. However, employment in this sector is characterized by low levels of productivity and income, and jobs can be insecure.

In Albania, poverty is mainly related to the underutilization of the labor force, either in the form of open unemployment or under mass employment. Most of the poor are either unemployed or constantly face irregular access to work and precarious working conditions.

Poverty becomes aggressive to the employed because the poor will take any kind of work, regardless of pay and working conditions, to survive.

Therefore, the majority of the poor in our country are also concentrated in the informal sectors, combine multiple activities, but are unable to earn enough to meet their basic needs.

The United Nations, through the Department of Labor (ILO), estimated that during 2020, in Albania, 12% of all employees received wages below the relative poverty line of $5 per day. According to ILO calculations, 12% of employees in our country receive a maximum monthly salary of 150 euros (18,000 ALL

Another survey by Eurofound, a project of the European Commission found that 69% of employees in Albania encounter difficulties in meeting monthly needs, a percentage that is the highest in Europe and with a big difference from the countries of the European Union.

12.6% of employees in Albania are at risk of poverty


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