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The tourism boom does not affect employment, anemic growth in July-September

2024-12-27 07:45:00, Ekonomi CNA

The tourism sector is involved in rapid developments due to the increase in the number of visitors and the expansion of accommodation structures, but administrative data on employment (employees declared in taxes with insurance) show that in the private sector the number of employees expanded on an annual basis only 1.8 percent in the third quarter of this year.

According to official INSTAT data, in the third quarter of the year, 568,000 people were employed, or 10,486 more than a year ago in the same period (1.8% more). On the other hand, the number of employees in the public sector reached 180,382 thousand or only 1307 people more than the third quarter of 2023 (0.7% increase).

This is why INSTAT has not published this year any data on employment from the Labor Force Survey, which is also the official indicator of unemployment.

Administrative data on employment show that developments in the labor market have been weak, but they do not provide details on the sectors of the economy.

Last year in the third quarter administrative data employment had expanded by 3 percent (16,000) compared to the third quarter of 2022.

Sources from the market claim that employment has been involved in strong restructuring in the last year, where there is an increase in unemployment in urban areas as a result of the closure of many fashion activities and call-center lines.

The fall of the euro has severely weakened profits in the manufacturing sector. The latest GDP data for the third quarter of the year showed a sharp decline in production in the agricultural and industrial sectors.

The fall in the value of the euro systematically in recent years from about 123 lek on average in 2021 to less than 99 lek currently caused significant losses for the production sector and especially export businesses.

Clothing and footwear factory activities fell sharply this year across all indicators, production, sales and wages.

According to INSTAT data, in the third quarter of 2024, the employment index in the textile factory industry decreased by 20.8% compared to the same period a year ago, while the salary index in the same period decreased with 21%.

It is not only fashion factories that are in difficulty, but the entire industry that produces goods and services for export, such as agro-food lines, the automation industry and the call-center sector./ Monitor Magazine