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The high rates of emigration, which in recent years has included skilled labor, accompanied by the gradual aging of the population, are putting more and more pressure on the domestic labor market.
The sectors that are suffering the most from labor shortages are services, especially tourism, which is expected to lead and wage increases this year, followed by information technology, especially programmers.
Erald Pashaj, director of EPPC Albania & Kosovo, a company specialized in employment, claims that as a result, in the near future, employers will compete for employees!
This competition, according to Pashaj, will bring positive developments in the market. “They will raise salaries, significantly improve working conditions, regulate working hours, implement the labor code, etc. All this will come as market pressure, which began to be felt in early 2019, restrained in 2020, but which increased in 2021 and is expected to significantly change the balances in 2022.
The expectations are that the salary increase will be higher for the sectors that pay less today, where the minimum wage according to Pashaj will not be lower than 40 thousand ALL, from 30 thousand ALL that is today. While for high wages the increase is expected to be lower. Positive are the expectations for information technology, whose employees are increasingly in demand.
From the analysis of trends during the past year, the requests that EPPC Albania has had from our clients for search and selection of staff for them, but also from the monitoring of employment in the partner markets in Northern Macedonia, Serbia, Bulgaria, Montenegro and Kosovo , Albania in 2022 will experience the highest salary increase, mainly from 6% to 15%.
“This salary increase will be general in every sector and every position. It will affect everyone. The highest growth is expected to have the services sector and for certain positions it can reach 20-30%. The service sector in hotels, restaurants, bars, or customer service and up to plumbing, electrical, etc. maintenance services will increase significantly. Of course, other personal care services, or household chores, health care, etc. will also see high growth. The double-digit increase will also affect professional services such as legal, accounting, design, training, etc. “All professions in the field of services will grow”, says Pashaj ..
He adds that in 2022 employers will already begin to accept the new reality of the labor market. “The time of complaints that there are no employees or we have so much opportunity to pay, etc., is a thing of the past. These grievances and complaints do not solve the problem. The competition has already started, and who will know how to better hire, develop and retain employees, will be successful tomorrow. “This trinomial, find-develop-maintain, will determine from now on which business will be successful and which will start shrinking and gradually losing its market share.”
Today in Albania it no longer competes only for sale, or cheaper financing, today it competes for people. And people do not become professionals by themselves. There is work and there will be even more, even professionals become. They Are Found, Developed and Maintained.
Of course the above will not happen in the blink of an eye, because shifting the market to new equilibria is a process, and no process happens today with tomorrow, but gradually. Job supply and demand will meet in 2022 at another point, higher than today.
Pashaj adds that based on the factors we have taken into account, lower wages will have the highest increase. Employees who work in tailoring, various construction workshops, various jobs in hotels, etc., who today are paid net from 26,000 Lekë to 30,000 Lekë, will be paid net from 35,000 Lekë to 40,000 Lekë, but even more depending on the case . Very soon in the whole country, including medium or small city, the net salary of 40,000 Lekë will be present.
Secondary professions, Various specialists in sales, finance, marketing, or middle technicians who today are paid net around 50,000 – 60,000 Lekë, will receive a net of 60,000 Lekë – 72,000 Lekë.
Higher or leading professions will have increase, but in percentage slightly smaller than the two groups above. Pashaj deems that there will be no group leader with a salary of less than 80,000 Lekë net. While leaders of other levels will recognize increases from 6% to 10%.
Of course, all increases will be based on the current salary of the employee. Pashaj predicts that a small part of the growth will occur during the first quarter of 2022, while he expects the growth to be greater in April, May, June when the tourism sector will have an acute need for employees. The high demand for employees from this sector will affect all other sectors, which will respond and thus wages will increase in other sectors up to a new equilibrium.
Growth is expected to have all those job positions related to information technology, where the banner of higher salaries and the largest expected increases have programmers. Already the salary increases every year in this segment are an obvious reality, but that will continue even further in 2022.
The question that naturally comes from anyone after reading these predictions, is: – Where will the money be found to pay for these increases? Pashaj says the answer is only one: prices will rise. Prices of services will increase and more than those of products. Getting a service from someone tomorrow will no longer have today’s price. As prices rise, the quality of services and products we receive will also improve. The most classic example that many of you may have noticed is Montenegro.
If you remember the prices in Montenegro about 7-8 years ago, then you can compare them with the prices in the last two years. Montenegro had a very large increase in prices and this was driven largely by the price of labor. Today Montenegro is one of the attractions of the labor force from Albania for two sectors, that of tourism and construction. Wages in Montenegro are significantly higher than in Albania, and so are service prices.
“Today the labor market in Albania is constantly changing. It is influenced by the supply of internal work, but also by the external one. Both influences have strong pressures on the existing workforce and in such periods both parties may err in decisions or choices. The main advice for employers and employees is to already see employment as reciprocal. This is the starting point for a healthy relationship. Second, value each other as a whole as an employer or as an employee and not focus on specific parts. “The whole in a working relationship is more important than a separate part of it”, concludes Pashaj./ Monitor
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