Employment and average salary in the second quarter of 2023 in the eyes of the fiscalist

The average gross monthly salary for an employee, during the second quarter of 2023, is ALL 70,905, increasing by 16.9%, compared to the same quarter last year. The average salary in the public sector is 82,207 ALL/month and in the private sector it is 65,901 ALL per month. The difference between salaries in the two sectors has deepened, reaching 26% against the private sector. All this single statistic shows a lack of effectiveness of policies in the private sector and a rush and lack of analysis for the reasons for the increase in the level of the average salary, in the conditions of a structured corruption and a still poor quality of services public as a whole.

Another even more tangible statistic is employment. In the second quarter of 2023, the number of employees increased by 2.7%, compared to the second quarter of 2022, and by 0.1%, compared to the first quarter of 2023.

Meanwhile, according to the report published by the Institute of Statistics (INSTAT), the total number of unemployed decreased by 1.9%, compared to the same quarter of 2022, and by 0.7%, compared to the previous quarter, leading at 10.7%, the official unemployment rate in Albania, for the population aged 15 and over.

The labor force participation rate for women is 70.2%, while for men this indicator is 81.7%. The labor force participation rate for men is 11.5 percentage points higher than for women. Compared to the same quarter of 2022, the labor force participation rate for women has increased by 4.1 percentage points, and for men by 1.9 percentage points.

During the second quarter of 2023, the labor force participation rate for youth aged 15-29 is 56.7%. This indicator increased by 1.4 percentage points compared to the second quarter of 2022, and decreased by 1.2 percentage points compared to the first quarter of 2023.

It is precisely the statistics for young people that should be the main concern for society, the economy and the new minister who covers this sectoral policy together with that of education. This second quarter 2023 statistic underlines the urgency for immediate and targeted action and contains a comprehensive set of policy measures to help shape national youth employment policies. Youth guarantee schemes are part of a set of policy measures that, together with employment and economic policies, as well as youth rights, are instrumental in improving both the quantity and quality of youth employment.

According to numerous research analyzes they have made their findings that work with young people is still at levels of little effective intervention for their employment and therefore a key part of the solution for employment concerns remains in the dialogue between institutions between each other and with the private sector, to reach a new context for the New Social Contract. Although in various strategies and policies and action plans, the role of young people is considered the main one in supporting and strengthening the economy, it is clearly seen that each of the young people, such as those with professional education, but also graduates with higher education, face with many obstacles in performing this role.

To be closer to the arguments, let’s look at the percentage of employment of graduates in the countries of the Western Balkans and the EU

First, the employment rate for graduates in the Western Balkans is as follows (based on the official statistics of the Balkan countries):

Albania …………………..57.5%

B. Herzegovina ………..57%

Kosovo ……………………54%

Macedonia V. ………….47%

Montenegro …………….68.2%

Serbia ……………………..77.8%

Second, the level of employment in some EU countries is as follows (based on EU statistics):

Austria…………………….88.4%

Belgium …………………..82.9%

Bulgaria…………………..78.8%

Czech Republic ………..82.2%

Denmark. ……………….85.1%

Germany …………………92.2%

Estonia ……………………77.4%

Finland……………………83.9%

France…………………….78.6%

Hungary………………….88.9%

The Netherlands………92.9%

Ireland ……………………87.2%

Iceland…………………….92.1%

Italy………………………..65.2%

Croatia…………………….78.5%

Latvia………………….…..85.3%

Lithuania…………………83.4%

Luxembourg…………….93.4%

Greece……………………..66.1%

Norway……………………89.7%

Poland …………………….84.7%

Portugal ………………….81.7%

Romania………………….69.9%

Spain. …………………….79.1%

Slovenia………………….84.2%

Sweden…………………..88.1%

In this presentation of the employment level of recent graduates, there is a clear understanding of the structuring and organization of the economy and the market, which, where it is oriented by the demands of young people, has managed to include it in its own bosom. On the other hand, the statistics above serve as an indicator or dividing line to observe the accountability of governments by showing the difference between political statements and the real effectiveness of government policies.

Young people with unfavorable education and skills for the small labor market and with a small offer of jobs (as a result of the lack of diversification of the economy) are more likely to be neither in a situation of improving professional skills, nor in safe and decent employment relationship. This is the necessary signal for the institutions in dialogue with businesses to bring it back into focus, where the business adapts the conditions for the improvement in employment relations and the government builds the policy with all the instruments it plans in the strategy for employment and training.

Otherwise, statistics such as those issued every quarter will clearly indicate the low effectiveness of employment promotion policies, a fact that is evident if we read the statistics for the peers of young people in the richest countries.

Work experience and employment opportunities are influenced by where we live and family income, where although Albania has an increase in wealthier areas and families, experience of life, education and employment abroad is more available.

From the thematic analysis, it appears that young people are over-represented in sectors that are expected to see lower productivity growth and/or automation in the long term and where vital middle-skill jobs are in decline.

Our recommendations focus on a number of up-to-date developments that are required from government, where not only the need for a National Strategy, but an effective policy with actionable measures is needed. This modeling applies to not remaining mere policy in the annual programs, but an increase in the support of those sectors and incentives that young people value and target the most.

Through this approach it is given a boost with an accessible vision and new mindsets for inclusiveness rather than isolation and insular politics.