Informal Labor Still a Problem in Albania
Albanian Daily News
Published January 24, 2017

The level of unemployment in
Albania in 2016 was 16.9%, meanwhile 37% of employed people work in black.

According to official data for 2016, in
Albania, at least 15.9% of the labor force lacks a job. Meanwhile, 37% of
people who have a job declare their incomes partially or not at all.

The figures relating to work in black
have been generated following a survey carried out by the Institute for
Democracy and Mediation (IDM).

According to this survey, around 20% of
workers have declared that they have a work contract, but their salary is
higher than what is officially declared.

The same survey points out that 17% of
workers don't have a contract in their primary work and their contributions are
not paid. Most of them who do not have a contract have very little education.
Only 21% of workers, who have little education, have work contracts as opposed
to 89% who are graduated.

"The lower the level of education, the
less likely is for the employee to be protected by a work contract," the survey

The level of informality is higher among
those who have two jobs. 56% of employees with a second job (including self
employment), do not have a work contract.

IMD carried out a survey on field with
1102 participants in Albania, by making a geographical and demographic
distribution of participants in the survey. The respondents have been questioned
face to face and this method is one of the most direct methods to assess hidden
economic activities.

Undeclared work is one of the main
manifestations of hidden economy affecting people within a variety of
socio-economic environments which at the same time is characterized with
possible negative outcomes ranging from social tensions, rising inequalities
and income gaps to corruption and criminal activities. This policy brief is
just the tip of the iceberg of the data describing the hidden economy dynamics
in Albania and in particular undeclared labor.

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