The labor market and young graduates: why higher education is not protecting them from unemployment

Although Albania’s labor market indicators improved during 2025, a considerable number of individuals with university degrees continue to remain unemployed, even though they are actively looking for work.

INSTAT’s “Labor Market 2025” report highlights that 17,800 people with higher education were unemployed. Most of this number belongs to younger age groups, underscoring the difficulties graduates face in finding employment after completing their studies.

According to the statistical data, of the 17,800 unemployed people with higher education who are looking for work, 5,370 are in the 15-24 age group, while 4,323 are aged 25-29. In total, 9,693 people, or about 55% of all unemployed people with a university degree, are under the age of 30. This shows that the main challenge remains the entry of young graduates into the labor market.

After the youth group, the highest number of unemployed people belongs to the 25-54 age group, with 11,284 people, while those with a university education who are over 55 appear at a noticeably lower level.

Overall, INSTAT estimates that during 2025 there were 107,548 unemployed people in Albania. Of these, 45,764 had secondary education, 43,984 had 8/9-year education, and 17,800 had higher education. This means that people with university degrees make up approximately 16.5% of the total unemployed in the country who want to work but are unable to find a job.

The fact that more than half of them are under the age of 30 shows that the transition from university to employment remains one of the most problematic bottlenecks in Albania’s labor market, even though overall employment indicators have improved.

One of the main reasons is the mismatch between the degrees being offered and actual market demand. The Albanian economy continues to create more jobs in sectors such as services, tourism, construction and trade, while many young people graduate in fields that do not always match the needs of businesses.

Another factor is the lack of experience. Young people with higher education often enter the labor market with a degree in hand, but without the technical, digital, language or professional skills required by employers.

Likewise, some graduates have higher expectations for salary and position, and therefore do not accept jobs that are unrelated to their profession or that offer low wages. As a result, the period of unemployment after graduation is prolonged.

At its core, the main problem remains the weak link between education and market needs. Internships, career guidance and cooperation with companies are still not at the right level to make the transition from school to work faster.