Albania, with the largest number of employees without contracts in the region

2025-03-10 07:32:00, Ekonomi CNA

Albania has a problematic labor market compared to the region and neighboring countries due to high informality, low wages, and insecure employment (without contracts).

The European Training Foundation (ETF), which operates under the EU umbrella, noted in a recent study that employment without contracts is quite widespread in Albania, especially among employees over 55 years old, where a third of them do not have one.

As can be seen from the graph below, employment without a contract in our country in all age groups is higher than in other countries in the region. For example, of young people aged 25-34 who are employed, 16% do not have contracts, the highest regional level. In other Western Balkan countries, employment without a contract in this age group is a maximum of 14% in Bosnia and a minimum of 5% in Serbia, while in the EU it is 3%.

In the 34-44 age group, 17% of employees are without a contract, in the 44-54 age group 18%, while work without a contract reaches its peak in the 55-64 age group with 33%.

Employment without a contract is more prevalent among young workers, those with low qualifications, or workers in elementary occupations. Construction, trade, accommodation, food services, and agriculture are the sectors with the highest percentage of workers without contracts.

The percentage of employees working without a contract is more widespread in the Western Balkan countries than in the EU. Also, the incidence of informal employment is high among older workers (aged 55–64) in Albania, Bosnia and Herzegovina, and Serbia, in contrast to other age groups. In Albania, 33% of employees without a contract aged 55–64 reported working in sectors such as construction or trade.

The type of contract significantly influences job insecurity. In Albania and Bosnia and Herzegovina, half of employees fear losing their job in the next year.

Job insecurity is particularly high among those with temporary or no contracts, a pattern that can be observed across all developing economies.

The employees most afraid of losing their jobs are young people and those with a low or medium level of education. On the other hand, employees in the public sector, those in education and health services, financial and insurance activities, or transport feel less worried about losing their jobs than those working in other sectors.

The ETF estimates that around 47% of employees in Albania were in vulnerable jobs in 2023, meaning they suffer from one of the severe forms (lack of insurance, low wages), etc.

Our country has a high rate of vulnerable employment, as local methodologies consider agricultural workers employed for self-consumption./ Monitor Magazine