The declared increase in salaries in Albania this year was to the greatest extent in the public sector, while the difference in the average salary between the sectors has deepened more, say local experts, adding that this gap between the private sector and the state will bring discouragement in the labor market.
“On the one hand, it shows the weak policy in coordination with businesses to ease the conditions so that they too are encouraged to increase wages. On the other hand, the logic of who has the easiest approach is followed. Naturally, spending money is the easiest approach, and especially increasing these salaries beyond the inflation, without making a detailed analysis of how much the quality of services has increased”, explains expert Eduart Gjokutaj.
Although there are more than 11,000 job vacancies in Albania, the unemployment figures show that young people are staying away from the market. Only 56% of them are participants, in a 1.2% decrease from the previous quarter. According to experts, this alarming figure requires new incentive policies.
“The rate of participation in work of those who have just graduated in Albania is smaller compared to the Balkan countries which are at average levels. Young people do not feel represented in this labor market, which is small and not diversified to respond to the needs of the economy. Although the salary has increased, it does not justify the standard of living and the demands of young people”, says Gjokutaj.
Nearly 70% of new jobs offered by businesses in recent years belong to the processing industry sector, mainly fashion.
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