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LABOUR MARKET ADJUSTMENTS IN A TRANSITION ECONOMY OF THE CENTRAL AND EAST EUROPE - ALBANIA. Arsena Gjipali, PhD Faculty of Business and Economics Tirana University. General trends of LM in Albania. Double digit unemployment rate Around 15% from 2000 and on.
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LABOUR MARKET ADJUSTMENTS IN A TRANSITION ECONOMY OF THE CENTRAL AND EAST EUROPE - ALBANIA Arsena Gjipali, PhD Faculty of Business and Economics Tirana University
General trends of LM in Albania • Double digit unemployment rate • Around 15% from 2000 and on. • Highest for females than males • High rate of long-term unemployed (90%) • Falling employment • Among the lowest in the region of less than 50% of LF. • Young demographic structure
Adjustment of the LM • Adjustment of LM into non-participation of the labour force; • Emigration ; • Informal labour market; • Hindered unemployment (more than 50 % of labour force in agricultural sector). • Poor labour reallocation • Between sectors • Across regions • Mismatch of human capital supply and demand.
Recommendations for government decisions Improve macroeconomic performance Improve the matching processes Provision of incentives to measure and raise educational and professional attainment. Design a complementary package of policy measures Increase positive externalities of labour demand and supply from investing into human capital. Improve social infrastructure Support productive activities; Encourage capital accumulation, skill acquisition, invention, technology transfer.
Challenges for labour market policy • Redress the problem of low employment • Creation of high productivity jobs in the private non-agricultural sector. • Domestic firms • Attract FDI (improve domestic climate) • Reduce the area of informality • Build a coherent LM policy • Establish proper legal and institutional LM framework • Monitor and enforce procedures • Aim Active labour market policies • Build a system of comprehensive statistical information.