Young people give way to the elderly! Employment among pensioners doubles in three years

The number of people over the age of 64 who remain employed is rising rapidly, at a time when young people are facing higher unemployment and declining employment.

Official data from INSTAT show that in the second quarter of 2026, the number of employed people over the age of 64 reached around 145,000.

Compared with the same period a year earlier, when 131,200 people were employed, the figure increased by around 13,700, or 10.5%.

The increase was even stronger in the first quarter of the year. From January to March 2026, there were 140,700 employed people over the age of 64 in the labor market, an increase of 14.4% compared with the same period a year earlier.

The expansion of employment among older age groups is taking place in a labor market where companies are finding it increasingly difficult to replace employees who retire.

Emigration and the shrinking number of young people entering the labor market have limited the supply of workers, while young people’s skills and profiles do not always match the vacancies businesses are seeking to fill.

In some sectors, a lack of professional experience, demand for specific skills, and lower interest among young people in certain professions or trades make it more difficult to replace older workers.

Many businesses believe that retaining an experienced employee may be easier than finding and training a new one.

The data show that the increase in employment among people over the age of 64 has become more sustained since the end of 2024.

Over a longer-term period, the change is even more pronounced. In the second quarter of 2023, there were only 71,000 employed people over the age of 64, while three years later the figure had more than doubled.

In addition to businesses’ demand for experienced workers, continuing to work after the age of 64 may also be linked to the need to secure additional income.

For some people who have reached or are approaching retirement age, remaining in the labor market continues to be a way to supplement household income. While wages and living costs are rising, new old-age pensions have been declining from year to year.

Those who retired last year received an average of 14,496 lek per month, or 3% less than those who retired in 2024. As a result, for many elderly people, remaining active in the labor market is their only means of survival.

Official Eurostat data show that Albania’s pension system has the lowest replacement rate in Europe. The country’s average gross pension represents only 30% of the average wage earned by the active 50-59 age group.

This level places Albania not only at the bottom of the Western Balkans, but also at the lowest end compared with all European Union member states, where the bloc’s average remains stable at around 57-60% of the average wage.

According to another report from the European Working Conditions Survey (EWCS 2024), Albania has one of the lowest pension levels in Europe, while Albanian men want to leave the workforce later than any other population in Europe.

On average, they say they would like to work until the age of 67.4, the highest figure among the 35 countries analyzed, which include European Union countries, the Western Balkans, EFTA countries, and several other European states./Monitor