Construction workers

Informal Employment in Trade, Construction

The informality in the employment sector followed by avoidance of social and health insurance payments continues to remain problematic in Albania. 

The State Labor Inspectorate during the year 2023 found 1965 informal workers during the inspection process of which 1949 or 99.1% of them were insured. Cases for which formalization has not been possible during the process, have been delegated to the Tax Authorities on a case-by-case basis.

Divided by region, out of about 216,000 inspected employees in total, it turns out that the highest unemployment rate is found in the Tirana region, with 643 employees, followed by Korça, Shkodër, Vlora and finally in the last place is ranked Dibër region with 168 informal workers.

As for the informal employees found in the private sector, the largest share is occupied by the trade sector with 965 employees, followed by construction with 489 individuals, and the third place is held by manufacturing enterprises. In other sectors, informality appears at much lower levels.

A measuring indicator for the efficiency of inspectors' work is the average number of informal employees detected per inspector. This average for 2023 is 25 Informal/Inspector. Compared to a year ago, it reflects an improvement in work, since for 2022 this indicator results in the measure of 21 Informal/Inspector. About the indicator calculated as the number of undeclared (informal) employees per subject inspected, for the year 2023 there is 5 informal/subject.

Based on Law 9634/2006 "On Labor Inspection" (amended), the definition "Informal employment" defines an employment relationship, which is not legally and in practice subject to the requirements of labor legislation.