Abstract

Albania has seen significant political and socioeconomic changes in the last 30 years, owing mostly to its participation in democratization and the transition to an open market economy. The purpose of this study is to investigate demographic dynamics in Albania to better understand the country’s current population situation and the near future projection for the period 2025-2031. The relevance of analyzing this topic is to better understand actual demographic changes in Albania and to have a detailed projection of the situation in the near future. The article begins by analyzing important demographic changes and their effects on a country’s economy, specifically the labor market. Furthermore, we demonstrated the trajectory of demographic changes in Albania for various main demographic parameters such as births, deaths, natural increase, marriage, divorces, and numbers of foreigners in Albania, using data from the Institute of Statistics in Albania (INSTAT). The following are presented population projections for ten coming years. The changes that have happened in the labor market are presented here to better comprehend the effects and repercussions of these demographic changes. The descriptive analysis of the main demographic indicators shows that the population is rapidly declining, posing a serious problem with numerous consequences, particularly in the labor market, necessitating the implementation of immediate policies to mitigate this phenomenon and its consequences. It makes a technical contribution by employing an approach that allows for fresh estimations of the amount of internal migration, demographic changes, and labor market issues in Albania. The results of the research can be useful for policymakers to initiate social, fiscal, and incentive policies to mitigate the decline and aging of the population.

Keywords: development, indicators, migration, policies, population.

JEL Classification: J10, J12, J29.

Cite as: Hoxhaj, M., Muharremi, O., Nushi, E. (2022). Analyses Of Demographic Changes, Labor Market Trends, And Challenges In Albania. SocioEconomic Challenges, 6(2), 29-41. https://doi.org/10.21272/sec.6(2).29-41.2022

This work is licensed under a Creative Commons Attribution 4.0 International License

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