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Emigration, an aging population, and low participation in training are shrinking Albania's labor force, while the number of vacancies is growing rapidly.
The country's population fell by about 430,000 between 2011 and 2023. The contraction of nearly 14% brought the resident population to around 2.4 million, a decline that the OECD report, “Small and Medium Enterprise Policy Index in the Western Balkans and Turkey 2026 – Albania Economic Profile,” attributes to continued emigration and low birth rates.
The report, which assesses policies and conditions for the development of small and medium-sized enterprises in the country, highlights that the pressure on the labor market goes beyond the number of residents who have left.
The number of Albanians living abroad was estimated at more than 1.2 million in 2024, or over 230,000 people more than in 2015. The emigration rate reached 31.1%, the second highest in the Western Balkans and Turkey.
The trend is likely to continue. A 2023 survey showed that almost two-thirds of the working-age population (about 67%) would consider emigrating if given the opportunity, while about 13% said they were likely to leave in the coming years.
Attrition is increasingly focused on highly skilled workers, increasing pressure on companies looking for specialized staff. Around 95% of businesses surveyed called for stronger government action to retain talent and address gaps in the labor market.
At the same time, the remaining population in Albania is aging rapidly. The median age increased from 35.5 years in 2011 to 44.3 years in 2024.
One in five residents is now 65 years old or older. Between 2024 and 2025 alone, the number of residents over 65 increased by more than 21,000. During the same period, the number of young people aged 15-29 fell by more than 18,000. The combination of emigration and aging has caused the working-age population to shrink by 18.3% since 2011, narrowing the base from which businesses can recruit employees.
Retraining of employees
On the other hand, the pace of retraining of the workforce remains low. Only 1.6% of people aged 25-64 participated in education or training in 2024.
This percentage was only 12% of the European Union average, where participation reached 13.3%. The gap with the EU is widening. Participation in adult education in Albania has increased by only 0.5 percentage points since 2016, while in the European Union the indicator has increased by more than three percentage points during the same period.
Low participation in training is becoming more of a problem as demand for workers increases. Albania registered more than 61,000 job vacancies in 2023, a 54% increase compared to the previous year. About 75% of these were newly created positions.
The increase in vacancies was not accompanied by a similar decrease in unemployment. The unemployment rate remained at 9.4% in 2024, while long-term unemployment was 6.6%, compared to 1.9% in the European Union. Industry accounted for 33.8% of vacancies, trade 14.6%, while accommodation and food services 14.2%.
According to the OECD, the combination of a high number of vacancies with persistent unemployment suggests that the problem is not simply related to a lack of job seekers. It reflects a structural mismatch between the skills employers are looking for and those offered by the existing workforce.
Without expanding retraining and training programs, especially in sectors that are creating more jobs, the report warns that this gap could persist or widen, limiting both economic growth and employment outcomes./Monitor
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