Gjokutaj: The job market in Albania does not encourage young people, which is why they leave the country

Economist and professor at the University of Tirana, Eduart Gjokutaj, says that while Albania has one of the lowest unemployment rates in the region, a major issue is youth employment, which is also a factor driving young people out of the country.

“The average unemployment rate in Albania, according to 2023 data, is among the lowest in the region, at around 10.7 percent. However, the unemployment rate for the 15-29 age group is over 22 percent, which is significantly above the national average. Naturally, this is also above the regional average and is closely tied to what the job market offers, making it a factor that influences young people to leave. This trend is likely to continue until measures are implemented beyond the concerns expressed in the media by experts or government representatives,” the professor explains.

He emphasizes the need to change the structure of Albania’s economy, which currently relies heavily on construction, services, and trade. He adds that each of these three sectors presents challenges, particularly in an open economy where tourism dominates the service sector.

“Tourism is a key goal for Albania, but it is far from being prepared to handle both the good and bad aspects tourists bring, particularly regarding issues like investment, sewage management, and waste disposal. Tourism shouldn’t be viewed as a self-sustaining industry but as one that requires careful management. On the other hand, construction is an industry that, in the long run, doesn’t attract labor because, once the cycle is complete, it will leave the market empty, creating problems for young people,” Gjokutaj argues.

He believes that the current job market does not encourage young people, whether in Albania or across the region. He suggests that Albania should develop a new model that would benefit more from a “common Balkan market.”

“I would say that Serbia has managed to stand out somewhat by diversifying its economic portfolio and increasing agricultural production and exports exponentially. Kosovo has the potential to emerge as a service exporter in information technology in the future. Albania should adopt a similar model, something between Kosovo, Serbia, and Macedonia, to rotate and serve as a complementary economy, especially now that we have the Berlin Process and all these initiatives and projects aimed at connecting people,” Gjokutaj concludes.