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

  • Labour Market, Technology and Monetary Policies
  • Published:
Transition Studies Review

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.

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Notes

  1. Although migration data are limited, in 2000 it was estimated that at least 15% of the Albanian population was living abroad. In addition, internal migration resulted in the growth of the urban population from 32% in 1970 to 42% (Albanian Center for Immigration Research 2002). For a description of Albania’s migration during this time, see Kule et al. (1999) and Coulon and Piracha 2003.

  2. See Jarvis (2000) for an overview of the pyramid scheme crisis.

  3. According to the Albanian Central Bank, about 35% of the country’s GDP is generated through informal (underground) activities.

  4. Current law requires that unemployment benefits be paid out for 1 year to those who have paid unemployment insurance for a minimum of 12 months. Payment of unemployment benefits can be extended to 18 months if the person enrolls in training courses (vocational, formal, on-the-job, etc.), and does not receive any other compensation during the training period. People who have substantial assets, especially real estate or land, cannot receive unemployment benefits.

  5. According to surveys by Papapanagos and Sanfey (2001) older Albanians are less likely to emigrate.

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Acknowledgments

I am deeply indebted to the staff of the Tirana Labour Office for providing the data for this study. All errors are mine.

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Authors and Affiliations

  1. Graduate School of Business and Public Policy, Naval Postgraduate School, Monterey, CA, USA

    Elda Pema

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  1. Elda Pema
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Correspondence to Elda Pema.

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Pema, E. Trends in the Albanian Labour Market: Who are Albania’s Unemployed?. Transit Stud Rev 16, 860–871 (2010). https://doi.org/10.1007/s11300-009-0119-5

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  • DOI: https://doi.org/10.1007/s11300-009-0119-5

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