Press of the day, Tuesday, March 11, 2025/ Get to know the main newspaper headlines
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The Organization for Economic Cooperation and Development (OECD) has made a new measurement of the convergence indicators of the Western Balkan countries in relation to the EU, and noted that labor productivity in Albania is very low.
The productivity of an employee in Albania was around 25.7% of the EU level during the period 2020–2023, while the highest productivity level was in Montenegro with 48.6% of the EU average, followed by North Macedonia with 46% of the EU average, Kosovo with 41.8%, Serbia with 37.5% and Bosnia with 35.4%.
The Western Balkans region, including Albania, records a labor productivity that remains significantly lower than that of the EU. The labor productivity indicator in the Region reaches only about 40% of the European average, reflecting structural challenges and weaknesses in the practical skills of workers, but Albania ranks very poorly in relation to the region.
Comparative data show that although Albania has a high level of educated population, there is also a disparity between the quality of education and the demands of the labor market. Theoretical knowledge is in some cases high, but the quality of practical training is lacking to translate into an effective increase in productivity.
For Albania, reform of the education system and vocational training programs is essential to raise this indicator, says the OECD.
Albania also has limited access to finance, high tax rates, and bureaucratic procedures, which negatively impact businesses’ ability to invest in technology and innovation. These factors have a direct impact on how employees can improve productivity through the use of modern tools offered by technology.
The OECD noted that to bridge the productivity gap between Albania, the region and the EU, measures are needed aimed at reforms in the education system and the development of vocational training, which more closely link market needs with academic curricula.
Modernization of physical and digital infrastructure is needed to create more favorable conditions for businesses and the use of technology.
Also, encouraging investment in research and innovation can help improve employee productivity. On the other hand, creating a more favorable environment for businesses, by improving transparency, reducing bureaucracy and facilitating access to financing, increases labor productivity./ Monitor Magazine
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