Emigration, population ageing and low participation in training are shrinking Albania’s labor force, while the number of job vacancies is rising rapidly.
The country’s population fell by around 430,000 inhabitants between 2011 and 2023. The nearly 14% decline brought the resident population to about 2.4 million, a drop that the OECD report, “SME Policy Index: Western Balkans and Turkey 2026 – Albania Economic Profile,” links to continued emigration and low birth rates.
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The report, which assesses policies and conditions for the development of small and medium-sized enterprises in the country, underlines that the pressure on the labor market goes beyond the number of residents who have left.
The number of Albanians living abroad was estimated at more than 1.2 million in 2024, or more than 230,000 people more than in 2015.
The emigration rate reached 31.1%, the second highest in the Western Balkans and Turkey.
The trend may continue. A 2023 survey showed that nearly two-thirds of the working-age population, about 67%, would consider emigrating if given the opportunity, while about 13% said they were likely to leave in the coming years.
Departures are increasingly concentrated among highly qualified workers, increasing pressure on companies seeking specialized staff.
Around 95% of surveyed businesses called for stronger government action to retain talent in the country and address labor market gaps.
At the same time, the population remaining in Albania is ageing rapidly. The median age rose from 35.5 years in 2011 to 44.3 years in 2024.
One in five residents is now aged 65 or older. Between 2024 and 2025 alone, the number of residents over 65 increased by more than 21,000 people.
Over the same period, the number of young people aged 15-29 fell by more than 18,000. The combination of emigration and ageing has caused the working-age population to shrink by 18.3% since 2011, narrowing the pool from which businesses can recruit workers.
Reskilling workers
On the other hand, the pace of workforce reskilling remains low. Only 1.6% of people aged 25-64 took part in education or training during 2024.
This share was just 12% of the European Union average, where participation reached 13.3%. The gap with the EU is widening. Participation in adult education in Albania has increased by only 0.5 percentage points since 2016, while in the European Union the indicator has risen by more than three percentage points over the same period.
Low participation in training is becoming more problematic as demand for workers rises. Albania recorded more than 61,000 job vacancies in 2023, an increase of 54% compared with a year earlier. Around 75% of them were newly created positions.
The increase in vacancies was not accompanied by a similar decline in unemployment. The unemployment rate remained at 9.4% in 2024, while long-term unemployment stood at 6.6%, compared with 1.9% in the European Union.
Industry accounted for 33.8% of vacancies, trade 14.6%, while accommodation and food services made up 14.2%.
According to the OECD, the combination of a high number of vacancies with persistent unemployment shows that the problem is not only linked to a lack of jobseekers.
It reflects a structural mismatch between the skills employers require and those offered by the existing workforce.
Without expanding reskilling and training programs, especially in the sectors creating the most jobs, the report warns that this gap could persist or widen, limiting both economic growth and employment outcomes./ Monitor
