Unemployment fell, but employment still remains below pre-crisis levels, the pressure of demographic developments

More detailed data show that the decline in employment is also related to demographic developments. For the active age group in the labor market (15-64 years old) the number of employees in the third quarter 2021 was 1% or 12,524 persons less than in the third quarter 2019. INSTAT reports at the same time that the number of Employees have decreased significantly in the active age group (15-64 years), but on the other hand employment among retirees has increased significantly. In the third quarter 2021 the number of working pensioners has increased by 6400 people or by 10% bringing the total number to over 70 thousand.

On the other hand, the share of the population in the labor force (people looking for a job) reached a record in the third quarter of 2021 over 70.1% for the age group 15-64, but the labor force decreased. The labor force in the third quarter was 8600 people or 0.5% lower than in the same period of 2019, thus reflecting demographic developments and especially the decline of the working age population, which was 1.7% lower in the three the third month 2021.

According to official INSTAT data, the working age population at the beginning of January 2021 was about 32 thousand people less than in January 2020. But meanwhile from the beginning of the year emigration and the decline in births has continued, making the population indicator be even lower in the third quarter 2021.

Emigration is seen as the main cause for the decline in the labor force and the imbalances that have been created. The Covid-19 pandemic which started as a health crisis and then as an economic crisis revived new immigration trends. This trend is being helped by rising job demand from developed countries such as the UK and Germany.

According to Eurostat data, during the period January-July 2021, 3715 people from Albania sought asylum, while in the whole of 2020, 9450 people had sought asylum. Eurostat only counts the number of asylum seekers, but thousands of other Albanians are fleeing to emigrate on employment contracts.

According to Eurostat data from January 2008 to July 2021 there are about 234 thousand Albanians who have sought asylum in one of the countries of the European Union (EU). Most asylum seekers are young in age and employment is the main reason for emigration. The lack of employees has become a serious concern especially for fason businesses that have their activity based on cheap labor. The factories faced an unusual demand for products this year, but the lack of employees prevented them from profiting./Monitor