The number of employees has decreased by 13.1% in 2024 according to data from the Ministry of Finance in the Macroeconomic and Fiscal Framework 2026-2028

The Ministry of Finance's report comes at a time when INSTAT has not officially published any data on employment indicators in 2024 since, as official sources for Monitor have explained, the 2023 census data is being integrated into the Labor Force Survey.

The decline in employees is also explained by developments in the real economy, where a series of businesses in the clothing and footwear production sector were closed due to the negative effects on income brought by the fall of the euro and the decrease in foreign demand.

The Ministry of Finance predicts that employment will also have poor performance in the medium term.

“In line with the medium-term growth projections, employment is expected to grow by an average of around 0.1% per year over 2026-2028,” the new Macroeconomic Framework states.

The higher labor force participation rate will be the main generator of labor supply growth, while negative demographic trends (observed for several years now) are expected to continue to have a tightening effect on both labor supply and aggregate employment numbers over the medium term.

Meanwhile, the increase in labor demand is expected to reflect the dynamics of the medium-term outlook of the main sectors of economic activity, mainly in tourism and construction.

Services are expected to contribute more to the increase in labor demand.

Meanwhile, employment in the medium term is expected to be at least not in negative growth (at quite moderate levels, but still positive), reflecting the opposing effects of the increase in the labor force participation rate on the one hand and negative demographic trends on the other.

Overall labor productivity will continue to improve during 2026-2028 and will be an important factor in generating economic growth in the medium term, according to the Minister of Finance.

The government expects employment to be concentrated in sectors with higher relative productivity, reflecting technological improvements in the economy.

The labor market in Albania remains problematic, with high informality, and is concentrated in sectors that do not offer high wages. There are also high youth unemployment rates and low female engagement in the labor force.