January 20, 2023
According to the most recent annual index produced by the American Chamber of Commerce in Albania, the biggest concern of Albania’s business community is currently the reduction of the labor force owing to excessive out-migration — as well as the lack of competent workers.
According to the research, Albania is also failing to make headway against monopolies, corruption, and unfair competition.
This week, the American Chamber of Commerce released its Business Index for 2021–2022, a study of its 230 members, 230 varied businesses that make up the majority of Albania’s business community.
The index makes clear that increasing emigration is hurting the labor force and has turned into businesses’ top concern right now.
Migration has had a significant impact on the index’s decline. Due to the inability of leaving the country during the epidemic, demand and supply in the labor market were balanced. Neritan Mullaj, the executive director of the American Chamber of Commerce in Albania, stated that after the relaxing of the pandemic measures, space was opened for migration, and now the departure of qualified people has become a significant concern.
The vast majority of businesses acknowledge that their performance is suffering as a result of how challenging it is to recruit competent candidates. Comparing this indicator to a year ago, it got -9 points worse.
“The work pandemic has begun following the Covid pandemic. The low cost of labor has been the only competitive advantage for the Albanian economy thus far. We cannot expect the current generation to work in low-paying occupations because they are growing up differently. I think they’re using this as a silent protest against an economy that hasn’t created competitiveness or high pay. The fact that young people are leaving Albania, which now has the lowest earnings in Europe, is a silent protest, in my opinion “said Ornela Liperi, the Monitor’s top economics editor.
“The work pandemic started after the Covid pandemic. The primary competitive edge for the Albanian economy thus far has been the low cost of labor. We cannot expect the current generation to work in low-paying employment because of the different way that they are growing up. This, in my opinion, is a tacit protest they are mounting against an economy that has failed to deliver competitiveness and high pay. Since Albania now has the lowest wages in Europe, I believe that the exodus of young people is a tacit protest “said Ornela Liperi, editor-in-chief of the financial publication Monitor.
Indicators of the current business climate that are getting worse on the index include monopolies and unfair competition (-2.95 points), corruption (-0.79 points), government bureaucracy (-1.64 points), and law enforcement. 0.32 points.
Respondents claimed that corporations and investors still have little prospect of finding fair, equal, and transparent methods.
Assessments for ministries and interactions with tax authorities both declined (-2.52 points) (-1.57 points).
Source: Tirana Times
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