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INSTAT: Unemployment rate drops to 13.43% in Q1

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Labor unions and the opposition Socialist Party claim the real unemployment rate is at least twice higher than what state institutions like INSTAT and the government officially declare

TIRANA, June 7 – The official unemployment rate remained at high rates even in the first quarter of this year despite a slight drop. Official Institute of Statistics data show the unemployment rate in the first quarter of 2011 dropped slightly to 13.43 percent, down only 0.06 percent compared to the previous quarter and 0.4 percent year-on-year. At the end of March 2010, the unemployment rate was at 13.83 percent– the highest rate of the past five years. The insignificant decrease in the official unemployment rate, which labor unions and the opposition Socialist Party claim is at least twice as high, was a result of 4,120 new jobs in the private sector compared to the final quarter of 2010– taking the official number of people employed in the private non-agricultural sector to 248,375 people or 27 percent of total employed persons. Meanwhile, the number of people working in public administration dropped for the second quarter in a row, falling to 165,400– 600 fewer workers than in the final quarter of 2010. The number of people employed in the private agricultural sector– including rural areas where inhabitants possessing land are automatically calculated as self-employed– remained unchanged at 506,664 people based on the results of a 2009 labor force survey. INSTAT data show the labor force in the first quarter of 2011 climbed by 3,316 people while the number of those employed rose by 3,520 people. Data show that Albania has 142,836 people registered as unemployed a labor force of 1.063 million people. Only 6 percent of the total registered jobless people benefited from unemployment assistance of 6,565 lek (65 USD). The number of unemployment assistance beneficiaries in the final quarter of 2010 dropped to 9,509, some 992 people fewer than the previous quarter. Labor Ministry data published by INSTAT show the majority of registered unemployed are jobseekers who have only finished compulsory education. Slightly more than 62,000 others had finished high school while only 3,763 unemployed people were reported to hold a university degree. A considerable number of registered jobless people– some 9,000– are minors aged from 15 to 19 years old, followed by the age group of 21 to 34 years with 52,560 jobseekers. What’s characteristic about the Albanian unemployment rate is that during the past 10 years it has been dominated by long-term unemployment which ranged from 89.6 percent in 2000 to an average of 92 percent until the end of 2009, INSTAT says. Labor unions claim the real unemployment rate is at least twice as high as what state institutions like INSTAT and the government officially declare. “The real unemployment rate in Albania varies from 22 to 34 percent based on regions and professions but always counting as employed even seasonal workers or homeworkers,” said the Confederation of Trade Unions recently. Informal work arrangements remain widespread across most economic activities. Female participation and employment rates are significantly lower than for males, while unemployment is higher, said the European Commission in its latest report on Albania. Regional comparison shows Albania’s official unemployment rate at 13.5 percent at the end of December 2010 to be far better compared to Macedonia, Bosnia and Herzegovina and Kosovo.

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