Average salary rose by 7% in 2016 at ALL 49k

The average monthly salary in the Albanian economy reached about 49,000 ALL last year.

According to data from the Institute of Statistics, the average salaries increased by approximately 7% compared to 2016.

The growth of the average salary in the economy seems to support the improvement of other macroeconomic indicators.

Last year, the economy grew by about 3.8% and the expansion of production has also positively impacted the labor market.

However, the average monthly gross salary refers only to formalized payments and is calculated by the data declared by the enterprises at the General Directory of Taxation.

Since the accounts are based on administrative data, it is not excluded that the increase in the average wage also includes the effects of increasing the formalization of salaries.

Many of those who worked in black or declare the minimum wage were compelled to make full statements, or at least closer to the real wage.

This is also reflected by the decline in the share of employees with a minimum wage, which for 2017 fell below 30% of the total.

It should also be noted that in Albania only 44% of employees are salaried.

Most of them are self-employed or free of charge in family business.

Last year, the ratio of employed and working age population was 57.4%, with a modest increase of 1.5 percentage points compared to the previous year.

The low employment rate, besides the inability to find a job, is linked to the high percentage of inactive population and low participation in the labor market, especially among women.

According to Instat, last year the average unemployment rate was 13.7%, down from 15.2% in 2016.

Unemployment fell especially among young people, falling to 25.9%, from 28.9% a year earlier.

SCAN

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