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The crisis increased poverty, unemployed people who asked for economic assistance will increase by 25% in 2022

Politiko 2023-05-11 08:22:25

The crisis increased poverty, unemployed people who asked for economic

Albania's economy has grown in the last two years above the average of the last 10 years, but the redistribution of added value is becoming more and more unequal.

Throughout 2021 and 2022, the country's economy has expanded 13.2 percent, of which 8.5 in 2021 and 4.8 in 2022, but on the other hand, the number of unemployed people registered for economic assistance has increased at the Labor Offices.

According to INSTAT data, in the last quarter of 2022, the number of unemployed jobseekers registered for economic assistance reached 26,000 people, from 20,656 in the same period of 2021, with a 25% increase.

The number of unemployed jobseekers was systematically decreasing except for 2020 where due to movement restrictions many people lost their jobs and the number of requests for economic assistance increased to about 29 thousand people. Excluding the pandemic year, the number of unemployed people who requested economic assistance in October-December 2022 reached the highest level since the last 3 months of 2017 according to official data from INSTAT.

Despite the fact that the Albanian economy is showing high dynamics in the labor market, employment is still not fairly distributed throughout the country and in different age groups. Data from administrative sources show that unemployment is affecting low-income families who need financial support.

The pandemic and then the war in Ukraine have made it even more difficult for the poorest segment of society, as the phenomenon has further worsened during 2022.

Food accounts for 70 percent of total consumption for the lowest-income 25 percent of the population. This group of families was also exposed to the increase in rental prices and service fees.

Poverty remains a painful reality for a significant part of Albania and the latest shocks have further increased the phenomenon, the World Bank referred to in the new four-year agreement with Albania.

Most of the jobs available offer low wages and limited opportunities for professional development. Good jobs are scarce and remain out of reach for many school leavers who lack the relevant skills and knowledge.

Inequality has increased, especially in rural areas and poor groups. Economic migration is high, especially in rural areas. On the other hand, the Albanian social protection system is limited in its ability to alleviate poverty.

The pandemic highlighted the exposure of the poor to shocks and, on the other hand, highlighted the deficiencies in the social protection systems where the numbers for social assistance and unemployment are low./ Monitor