Albanian employment and average salary increases in the second quarter of 2021 – Release
New figures released by INSTAT show wages and employment levels increased in the second quarter of 2021. This could be an indicator of economic recovery, driven in part by the tourist season after the pandemic-induced slowdown .
Data published by the Albanian Institute of Statistics show that the average monthly salary increased by almost 5% compared to the same period last year. The average person now earns 56,710 Lek or 466.72 EUR.
Average wages have been on an upward trajectory, aside from a decline in 2020, since 2018. While the increase is good news on paper, it needs to be seen against the backdrop of rising inflation.
In terms of wages by sector, those working in insurance earned about 2.3 times more than the average wage, while those working in agriculture, forestry and fishing earn 36.7% less.
As for those with the largest increase in wages, retail trade, transport, accommodation and food services rose 9.2% as prices continue to climb, especially in Tirana, surprisingly, real estate agents saw the weakest growth at just 0.7% compared to 2020.
After the financial services sector, those working in information technology, public administration, and arts and entertainment had the highest salaries. Those in the IT sector earn on average just under 90,000 lek (740 euros) per month.
Employment also recorded a slight increase based on the previous year. In Q2-21, the employment rate for 15-64 year olds was 60.7%. This is an increase of 1% over the same period of 2020, and 2.9% from Q1 21.
The official unemployment rate in Albania in Q2 21 is 11.6%. This figure has decreased by 2.5% compared to 2020 as a whole. The average rate in the EU is only 7.1%.
As for the unemployment rate for young people, especially those aged 15-29, it reached 19.9%, although this was a decrease of 1.5 percentage points from the previous year. the previous year. The EU average for youth unemployment is 16.8%.
It is likely that a large part of this increase will be due to work in the tourism sector. The start of the summer season in April / May saw restaurants and hotels hire more staff. These are mostly seasonal roles and by October most will be out of work.
More men are employed than women. Currently, the participation of women in the labor market is 60.9% while for men it is 77.3%, which shows a great disparity between the two. The participation of women only increased by a barely noticeable 0.2% in 2020.
In August, inflation peaked in four years at 2.4%. This is the highest since January 2017, according to INSTAT. This has caused the prices of eggs, dairy products, meat, bread, fruits and vegetables to skyrocket.
The price of coffee has also increased by up to 40%.
The increased costs can be attributed to a variety of factors, including the impact of the COVID-19 pandemic on the global supply chain.
Meanwhile, the U.S. Chamber of Commerce’s Business Index for 2020 found this confidence in business in the country was diminishing. In fact, Albania’s score, which fell to 37.6 out of 100, was the lowest since the index was created in 2012.