Hemorrhaging of the mass departure of Albanians to European countries has significantly increased the costs of production companies, due to the increase in wages.

Salary increases in different sectors range from 70% to doubling.

But the increase in labor costs has already been reflected in increased prices for some goods and services. Other sectors such as bread producers warn that the increase in prices for dough products remains inevitable.

Erjon Harizi, Chairman of the Board of the Association of Builders of Albania, said that in the last 4 years, the lack of labor has increased the costs of construction companies by 40%.

In addition to costs from the workshop, builders will be charged with more fiscal burden for the payments of the tax on the impact on the infrastructure and the tax of 3% of the contribution to the social shelter.

For these reasons, the Association of Builders earlier warned that the prices of new housing will increase from 150 to 300 euros per square meter.

Increase in salaries for joiners from 80,000 to the level of 120,000 lek per month, according to one of the furniture manufacturing companies "Trin Mobileri", has increased the cost of production by 25%.

The head of the company, Dritan Cacaj, said that for this reason, furniture prices have increased by 15%.

While the prices of raw materials have normalized, returning to the levels before the COVID-19 pandemic. Despite the increase in prices, the demand for furniture remains high.

Bread and pastry producers unanimously affirm that the risk for their exit to the free market of electricity supply, the price of flour and other raw material components, as well as the increase in cost from the increase in wages due to the lack of workers , is expected to bring higher prices of dough products.

"I think bread will become more expensive due to high production costs.

"Compared to the region and other neighboring countries such as Italy, the price of bread is sold at a cheaper price," said the bakery "George Bush Bakery".

Even from "Caka Group" they say that the price increase for all types of bread remains inevitable, due to the increased costs of energy, the supply of raw materials and the lack of labor.

From March 2022, the price of mass bread continues to be 100 ALL. In the period 2021-2022, the price of bread increased three times in a row with a total increase of 71%. The first tightening started in September 2021, when mass bread increased to 80 Lek, from 70 Lek.

The 14% price increase was influenced by the increase in the price of bread flour from 50 ALL to 55 ALL in August (10% increase). In the middle of March 2022, the price of bread increased again by 20%, reaching 100 Lek per piece, due to the increase in the price of flour.

In districts such as Korça, Pogradeci, Gjirokastra or Saranda, due to the increase in the cost of transporting flour from fuel, the price of mass bread reached 120.

But from April 1, 2022, the labor shortage brought another increase in the price of bread in the country. The increase in the price of mass bread by 20 Lek (20%) was reflected in some bakeries in the city of Berat. The producers claimed that they are forced to increase the price, as they have increased the wages of the employees.

According to Eurostat data, Albania is the country with the highest weight of expenditure on food in relation to the total.

This is indicative of a low level of income, which dictates the fulfillment of basic needs, before starting to think about less necessary expenses and even those that are not necessary, such as entertainment.

The average per capita income of Albanians is 31% of the average of the European Union, the lowest in Europe (behind us is Bosnia-Herzegovina, with 32%).

According to Eurostat tables, food and alcoholic beverage expenses account for 38% of the total for Albanian families, compared to 13%, which is the average of the 27 countries of the European Union, and 30.6%, which is the second country on the list after Albania is North Macedonia.

(Source: Monitor)