labor market

Restructuring the Albanian economic model after the 2024 growth

Analysis based on three methods of calculating GDP: Production, Expenditure, and Income.From the data processed and published by INSTAT for the 2024 gross domestic product (semi-final), it appears that the economy needs to refocus priorities as we are within...

Structural gaps on the path to the EU

A critical analysis based on the IMF Framework on Regional Economic Development and Convergence with the EUIn 2024, Albania remains significantly behind the European average in terms of income per capita, particularly when measured by purchasing power parity (PPP).According...

Informal employment in Albania, a reality that speaks louder than reforms

In every development strategy, Albanian governments have identified informal employment as one of the main challenges to a healthy and fair economy. However, despite drafted plans, international recommendations, and occasional interventions, the level of informality remains high and persistent, especially...

EU Membership is not enough: Lessons from CESEE for Albania

From the illusion of proximity to the real challenge of internal transformation – Albania on the verge of a decisive path1. The long and fragmented journey of integrationFor more than three decades, the countries of Central, Eastern, and Southeastern Europe...

Corporate Profit Tax reduction, but average Wages lag behind

According to ALTAX's thematic study, over the last decade, Albania has undertaken significant reforms in tax policy aimed at stimulating economic growth and supporting businesses. One of the main measures has been the reduction of the corporate profit tax, particularly...

The reality of minimum wage increases in Albania and the risks for businesses and citizens

Raising the minimum wage is a complex decision that must consider the balance between workers' welfare and businesses' capacity to bear it. If the minimum wage increases without being based on productivity or economic growth, it may cause issues such...

Wage increases: Who benefits more, the employer or the employee?

Wage growth is a complex issue tied to multiple economic, political, and labor market factors. It has both immediate and long-term impacts on employees and employers—but who is the primary beneficiary of this process? The answer depends on the perspective...

Labor Market Indicators in Albania – Q4 2024

According to official data on the labor market for the fourth quarter of 2024, several important signals emerge regarding the economy and employment policies in Albania.Below, after a careful review and a comparative look at some statistics from neighboring...

Who is to blame for the lack of labor formalization in 2025?

The obstacles to wage formalization stem from multiple causes and involve various actors who influence Albania's economy and labor system. There is no single party solely responsible; instead, a combination of factors and actors contribute to the persistence of informality.1....

Public Debt-to-GDP trend and fiscal consolidation

Public debt is one of the main indicators of a country’s fiscal sustainability. In this analysis, we will examine the trends of Albania’s public debt in relation to GDP during the period 2014–2024, assessing the impact of budget deficit, revenue...

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