Sefa: Albania holds record for youth unemployment rate

EU financing and venture capital expert Ergis Sefa stated that although Albania is experiencing a decline in overall unemployment, it still holds the record for the highest number of unemployed young people.

“Unfortunately, there is a disparity in employment levels between age groups. It is characteristic that Albania, compared to the rest of the region and certainly the EU, has the highest youth unemployment rate among those aged 18 to 30,” Sefa told Kosovo Online.

Several factors contribute to this, with migration being just one of them.

Sefa also emphasized the lack of interest among young people, regardless of gender, in enrolling in vocational schools that offer training for in-demand professions.

“The fact remains that the youth unemployment rate is almost double that of the general population. While the overall unemployment rate is 8.8%, youth unemployment reaches 19%—more than double. This is the highest rate in the region,” Sefa warned.

Commenting on the European Commission’s report on the Western Balkans and Turkey, which states that the region is experiencing a “historically low level” of unemployment, Sefa pointed to the increasing emigration of young people as a key reason.

“If we compare Albania with other Western Balkan countries, it is among those showing a decline in unemployment. But this is not only due to job creation or continued economic growth—it’s also because of the outflow of labor, primarily young people leaving for EU countries,” he said.

He added that statistics confirm the downward trend in unemployment compared to last year.

“We’re currently at 8.8% unemployment, down from a previous rate of 9.5%,” Sefa noted.

He believes the reasons are multiple, but highlights a rise in employment in the services sector.

“Tourism remains the dominant sector, but we are also seeing growth in more specialized sectors, such as information technology. IT is the highest-paying sector, though even in tourism, wages have increased significantly,” the analyst emphasized.

He identified two major problems in Albania’s labor market.

“The first problem is the decline in sectors that have underperformed, such as agriculture, which is approaching extinction due to a significant decrease in the workforce. This could trigger a new wave of labor emigration from agriculture and related sectors. The second issue relates to changes in the technical skills demanded by the labor market. Some occupations now require new technical and vocational training. Young men and women should head in that direction, rather than continuing with general education in fields like economics, law, or similar disciplines,” Sefa stated.

He stressed that Albania has made vocational training available and that young people have access to public or private training centers offering various courses to help them adapt to the job market.

He also noted that some of these courses are free and urged young people to take advantage of these opportunities to improve their knowledge and skills.

On the other hand, the business sector is facing a loss of labor.

Sefa specified that this applies to agriculture, as well as the footwear and textile industries.

“The reason lies in the depreciation of the euro and the strengthening of the Albanian lek, along with shifts in market demand. Today, there is less demand for simple industrial products and greater demand for higher-quality goods. Workers in these sectors have two options: either retrain and improve their professional skills, as the products being sought are increasingly sophisticated, or change their profession entirely. These sectors must either transform to become more competitive or they will wither and disappear,” Sefa concluded.