Unemployment rises, says INSTAT poll

By Gajtis Bejleri
TIRANA, June 18 – In June 2007, 13.5 percent of the working-age population in Albania was unemployed, according to INSTAT. In real numbers, that meant as many as 185.000 people were out of work.
INSTAT notes that unemployment increased by more than 35.000 compared to 2006, when unemployment was at its lowest since 1995. The country had been surging from the peak of almost 240.000 unemployed recorded in 1999, following the 1997 crisis.
According to INSTAT, unemployment numbers are higher for the younger population. Males younger than 30 years old tend to have higher unemployment rates, as do females between ages 35 and 50. Meanwhile, the survey shows that males older than 50 are more willing to find new employment.
In total, the male population has an employment rate of 64 percent, while women stand at 49 percent.
Though 88 percent of the population is of working age, which ranges between 15 to 64 years old, only 1.188.000, or 56.4 percent, are employed. Another 10.000 people above 64 years old are also employed. However, INSTAT reports, employment numbers are most likely higher for both the working and non-working age population, due to black market jobs.
Further, only 15 percent of those employed work for state owned businesses. The highest employing sector, both state and private owned, is agriculture, employing nearly half of the nation’s workers. Those employed in trades, the processing industries and construction made up an additional 28 percent of all employed.
More than one third of the working age population is considered inactive and almost 40 percent of this group is made up of students. But, according to the survey, people who believe there are no available jobs account for 16 percent of all unemployed. Seventy percent of this group are females. According to members of this group, there is a lack of government policies which encourages them to seek work.
Another problem, according to INSTAT, is the lack of interest or belief in employment. Only 21 percent of those questioned stated that they would seek employment by directly applying to a potential employer. Of this group, 82 percent said one of the methods to find a job is to rely on friends and relatives. Finding a job based on acquaintances, rather than professional skill, has been a negative trend over the transition period in Albania.
However, according to the gathered data, unemployment rates are going down with the increase in education in urban areas, while there are no significant changes for those who live in rural areas of the country.
For the first time, the survey matched EU, Eurostat and International Labor Organization criteria and definitions on employment. From 1995 to 2006, INSTAT had been compiling records on unemployment based only on data released by the Regional Job Center.
According to INSTAT, the survey was financed by the government. The survey will now be conducted over the next three years to create a clear picture on the work force in Albania and its dynamics.