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On the eve of the elections, employment in the country is increasing, the highest level since 2005

Politiko 2021-03-19 08:06:30
On the eve of the elections, employment in the country is increasing, the
Illustrative photo

Employment in the state administration has advanced significantly in the last quarter of 2020, resulting in the only sector with rising indicators during the pandemic crisis.

According to data from administrative sources on employment (payroll from the General Directorate of Taxes) in the last quarter of 2020 the number of employees in the state administration reached 182.5 thousand people, expanding by about 10 thousand people, in the report with the previous quarter (increase 6%) and over 8 thousand more people compared to the end of 2019 (+ 4.7%).

The state administration expanded just a few months away from the country's general election. On the contrary, employment in the business and agricultural sectors has decreased, according to the payroll. INSTAT reported that in the last quarter in the business sector were unemployed about 4600 people, compared to the same period a year ago. As for the agricultural sector, which accounts for about 40 percent of employment in the country, over 13 thousand people were unemployed, according to data from the Labor Force Survey.

The public administration sector has started to expand at a high pace since the second quarter of 2018. Growth peaked in the last quarter of 2020, setting a record since 2005, compared to the annual average.

Employees in the state accounted for 16% of the total at the end of 2020, up from 15% a year earlier.

Albania enters the former communist countries that inherited an economy where the state was the sole provider of employment until 1990. After this year, the weight of the public sector in the economy and employment would decrease from year to year due to the adoption of the model of market economy.

Reducing the size of the state in the economy was at the heart of the program of governments, which after 2005 further reduced the share of the public sector in the economy in both enterprise ownership and employment.

After 2008 due to the new conditions brought by the economic crisis, with halving economic growth and declining budget revenues, public administration reforms aimed at reducing public spending continued.

The Rama 2 government aimed to further this reform, as the number of ministries in September 2017 reached 11 of the 16 that were before the elections. The reform was done on the grounds of a small and efficient government. But as the number of ministries has decreased the number of public spending units and the number of employees in the state has also increased.

In an analysis of the structure of the economy in the Balkan countries, the European Bank for Reconstruction and Development, EBRD, says that four sectors are of particular importance: domestic trade, industry, public administration and agriculture. Public administration is the third largest economic sector. The sector includes defense, education, social services and other public administration, and on average accounts for 17 percent of economic activity. / Monitor

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