Albania faces rising unemployment and cost‑of‑living pressures

Albania’s unemployment rate stands at 8.4%, placing the country among the highest in Europe and above the OECD average. Experts cite structural labour‑market issues such as a shortage of high‑productivity jobs, emigration of workers, mismatches between education and market needs, and a persistent low‑value added sector. At the same time, the cost of living has surged: consumer prices are now about 103.8% of the EU average, up from roughly 68% in 2013. While the minimum wage increased by 87% since 2013, prices for basic goods have risen far faster – cheese up 243%, eggs 192%, milk and other staples similarly. The rapid price growth outpaces wage gains, squeezing household budgets.

These twin challenges highlight a paradox in Albania’s labour market: a significant portion of the population remains unemployed while businesses struggle to find qualified staff, and rising living costs erode the purchasing power of those employed.