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How the workforce is eroding in Albania: In two years, the workforce decreased by 32 thousand people

2026-06-10 17:57:21Biznes SHKRUAR NGA REDAKSIA VOX

Albania is facing a rapid decline in its workforce as population decline and emigration are eroding one of the key factors of economic production, labor.

The Institute of Statistics reported that the total labor force in the country, the indicator that includes the employed and the unemployed, decreased to 1 million 258 thousand people in the first quarter of this year, from 1 million 278 thousand people in the same period last year and 1 million 291 thousand people in the first quarter of 2024.

This means that in 2 years Albania has lost over 32 thousand people or 2.5 percent of the labor force. However, even this figure is masked, as it is reported for the population aged 15 and over.

If we compare the vital age, i.e. the population from 15 to 64 years old, then the labor force results in having fallen by a full 54 thousand people in the span of two years or 4.6 percent of the total. These are dramatic rates of decline in the labor force, which are necessarily reflected in the total number of employees in the economy.

According to INSTAT, the number of employed people aged 15 to 64 fell by 40,000 compared to the same quarter two years ago.

The data shows that these people who have left the labor market have disappeared into thin air. This is because the inactive population has remained almost at the same level over the last two years, around 730 thousand people. Consequently, the people who are missing from the labor market have either emigrated or are the result of population decline.

Labor is one of the three key factors of a country's economic production. The other two factors are capital and productivity. The decline in the labor force consequently requires either more investment or higher labor productivity to maintain the same level of production in the economy. Moreover, the reduction in the labor force and the number of employees puts pressure on state finances, as fewer contributors must support a higher number of pensioners. ( Kapitali.al )


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