Albanian businesses feel the pain as labor force shrinks and migration continues
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- Migration wave continues in incomes stagnate and people feel pessimistic about the future
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TIRANA, June 26, 2022 - Help wanted signs are now a permanent feature on the windows of many Tirana cafes and small shops, as businesses face the pain of a labor shortage combined with less consumption due to inflation and uncertainty.
But what's evident on the streets of the Albanian capital is only the tip of the iceberg in an economy-wide problem: from agriculture to IT, workers are packing up for greener pastures due to low wages at home.
Many businesses now list inability to get workers as one of their main concerns. In turn, workers say they cannot afford to work for the wages available in Albania when other European countries offer much higher pay. Recently, several EU countries have made it easy for Albanians to get work visas, as they face their own labor shortages.
"My main main IT guy, just picked up and left, one week notice. He had been working here for five years, and apparently is getting 10 times the salary in Germany," says one Tirana business owner who did not want to be named. "I wish I could pay more, it is just impossible. I might have to close up shop entirely at this rate."
He is not alone. Businesses report losing skilled workers, especially in IT and healthcare, at an unprecedented rate in the past two years.
In rural areas, agricultural work needs are now at their peak, but fewer and fewer people are seen working in the fields. This year, agriculture in Albania is facing a shortage of manpower as well as the high price of oil and the necessary agricultural inputs.
"We are a group of retired people still working in agriculture … There are no more young people,” Prekë Loja, a farmer, says. "Soon, all of agriculture will be retired too."
According to official data from the state’s Institute of Statistics, INSTAT, which tend to be conservative, from 2016 to the end of 2021, more than 221,000 people left Albania to live abroad. Last year alone, 42,048 people emigrated from Albania, most of them young people aged 18 to 40, significantly affecting the shrinking labor force.
Tourism, construction and manufacturing are all hurting too.
Albania is facing a massive demographic decline with huge long term implications and the workforce shrinkage is likely permanent, as population is declining due to low birthrates, in addition to emigration, a regional problem, experts say.
Albanians also seem to be the most pessimistic about the future of their country in the region, according to findings of the 2022 Balkan Barometer by the Regional Cooperation Council showed that 44 percent of Albanians resident in Albania today are seeking to emigrate.
The government says the issue is complex and regional, and Prime Minister Edi Rama went as far as urging businesses to hire people from Bangladesh to fill the labor needs.
The main opposition Democratic Party said this week that “an empty Albania is a national emergency” and should be treated as such.
Many studies have been conducted on reasons behind emigration, which are complex, but earning potential and fear of lack of services at home are at the top.
According to the latest Eurostat data, Albania stands last in Europe at 32 percent of EU average in terms of earnings and purchasing power.