Lack of market-relevant skills is still an obstacle to Albania’s economic development and to reduce (youth) unemployment. The project is supporting the government to address this by reforming the vocational education and training (VET) system. Private sector will continue to play a bigger role in VET definition and provision. Already more than half of all VET students and 10% of all (short term) trainees will have access to improved and labour-market oriented skills development enhancing their prospects for a decent job and increased income.
Young women and men from all social groups in Albania find attractive and gainful employment thanks to improved skills.
The Albanian economy has maintained limited but positive growth and the labour market has experienced positive changes in the last 4 years. Overall, the labour market is characterized by decreasing but high unemployment (12.5%), by informality, low participation of youth (45.2% overall; gender gap of 15%) and women. The share of youngsters not in employment, education or training is above 27%. More efforts are needed towards an inclusive labour market and VET sector. VET continues to follow a traditional input-oriented approach. There is no standardized instrument for graduate tracing introduced at the system level. A national model for work-based learning (WBL) adapted to the Albanian context is still missing despite several promising pilot projects that have been tested by various donors. Reforming the VET system and targeting the employment situation of youth is a priority of the Albanian Government. Reforms aim at increasing the quality of education, developing adequate qualifications and fostering skills recognition, improving the attractiveness and relevance of the VET to match the skills demand of the private sector. The relevant policy framework is currently improved and will also restructure the governance of the sector.