Employment in the non-agricultural private sector rose by 3.4%, while the unemployment rate declined to 8.5%—one of the lowest levels recorded in recent years. At the same time, average private-sector wages increased by 9.5%, boosting household purchasing power and supporting broader economic activity.
According to the Bank of Albania, this combination of rising employment and higher wages has played a central role in sustaining household consumption and steering the economy toward a stable growth path.
The report highlights that a strong labor market, coupled with resilient household and business finances, continues to provide favorable conditions for investment and job creation.
Looking ahead, economic growth is expected to be driven primarily by private-sector demand, both in consumption and investment. The Bank notes that the sector’s strong connections with the rest of the economy will likely keep reinforcing positive labor-market dynamics. Despite overall improvements, unemployment remains higher among women and especially among young people, underscoring ongoing structural challenges.
