Albania in the number one spot, employment and real wages expected to fall by 2030

2025-12-05 14:23:00, Ekonomi CNA

Albania in the number one spot, employment and real wages expected to fall by

Employment and income from work in our country will be under pressure and on a downward trend in the coming years due to structural developments in the economy and population, the World Bank analyzes in a recent global study on the "Impact of Climate on Employment".

According to the data in the graph below, employment in Albania will remain stagnant until 2030 and income from work will fall by -0.1%.

The analysis shows that our economy is failing to create enough new jobs to cope with structural pressures, such as an aging population, increasing immigration, and slowing productivity.

The Bank's projection shows that even in the absence of major crises, the labor market in our country remains fragile and exposed to unfinished reforms, especially in education and technology.

The impact on labor income is more pronounced. Albania registers a decline of around -0.1% by 2030, signaling that real wages and labor income are expected to remain subject to the pressures of low productivity and slowing labor demand.

Economies like Albania are heavily dependent on low-value-added sectors where informality is high. The Bank's projections show that household incomes could grow more slowly than expected or even decline, further strengthening social pressures and subsequently increasing emigration.

Compared to other countries with similar development conditions, Albania is positioned in the segment of those expected to experience slight fluctuations. While in some countries, such as Armenia and Ecuador, fluctuations are much stronger, Albania remains closer to the group average. However, the fact that neither employment nor incomes are projected to increase signals that the economy is failing to benefit from transformative reforms that could generate new productivity gains.

The World Bank's analysis shows that our country's economy will move at a slow pace until 2030, without a dramatic decline, but without the dynamism necessary to improve living standards.

As a country with high levels of immigration, the World Bank suggests reforms that can increase labor productivity and thus a more equitable distribution of value added in the economy. All reforms, according to the Bank, should have human capital in focus./ Monitor Magazine