Unemployment is considered far bigger as the jobless people in rural areas have not been taken into consideration because of being considered as self-employed
By ervin lisaku
TIRANA, April 19 – The unemployment rate in Albania during the last quarter of 2009 climbed to 13.75 percent, up from 12.68 percent at the end of 2008, data published by the Institute of Statistics (INSTAT) showed on Monday. Employment offices reported 143,340 registered jobless people in December 2009 compared to 140,000 before the start of the economic crisis in the third quarter of 2008. Data show the number of jobless people has registered an increase for the first time in nearly one decade.
However, the unemployment rate is estimated to be far bigger as data published by INSTAT include only people who register themselves as jobless in employment offices. The unemployed people in rural areas are not taken into consideration because of being considered self-employed.
Only 7 percent of the registered jobless people benefit through modest social assistance from 3,150 Lek to 3,900 Lek per month.
INSTAT data show only 403,000 Albanians received monthly wages in the public and private non-agricultural sectors in December 2009. An estimated 2,500 have lost their jobs in these sectors in the course of one year, some 2,200 people working in private companies and 300 other in the public sector.
INSTAT also reported the number of self-employed in the private agricultural sectors was 496,000 at the end of 2009, 72,000 less than the last estimate of the second quarter of 2007.
However, data show only the presence of people able to work in rural areas and not the real unemployment rate in Albanian villages.
Despite criticism by experts, INSTAT says that calculating as self-employed all people who own land is in compliance with the methodology used by Eurostat.
Experts say the situation appears gloomy even in 2010 because of the difficult financial situation companies in Albania are experiencing and freezing job opportunities in the public sector.
The situation is a result of a sharp drop in the activity of the construction and industry sectors in the last quarter of 2009.
The construction sector is one of the most dynamic in the country contributing to more than 10 percent of the GDP in the past years and employing 18 percent of people working in the private sector.
Recent data published by the Institute of Statistics showed the construction sector was the hardest hit in the last quarter of 2009, recording a 14.4 per cent drop compared with same period of 2008 and an 11.8 per cent decrease from the third quarter of 2009.
Albania’s minimum wage in the fourth quarter 2009, was 18,000 leke (130.08 euros) per month, up 5.9% on the year and holding steady from the previous quarter, the country’s statistical service reported.
The average monthly wage in the public sector was 42,000 leke (303.5 euros), showing a 9.6% increase on the year, and holding steady from the previous quarter, INSTAT said.