Youth unemployment increased significantly in the second quarter of the year, due to staff cuts in the service sector, hotels, bars, restaurants and factories.
According to the summary of labor market indicators estimated according to the Quarterly Labor Force Survey, in the second quarter it turns out that the number of employees aged 15-29 was 262.3 thousand, or about 20 thousand young people employed less compared to the first quarter. Of the 33,000 people who turned out to have lost their jobs in the second quarter alone, 61% were young, aged 15-29.
Even according to administrative data on the labor market reported by INSTAT during the period April-June, almost 19 thousand young people aged 15-29 were registered as jobseekers in employment offices or 16% more than in the second quarter of 2019.
This was the highest level of unemployed jobseekers since the last quarter of 2016.
While according to data from the labor survey the official unemployment rate for young people reached 21.4% in the second quarter. In annual terms, the youth unemployment rate in the second quarter of 2020 is 0.5 percentage points higher. According to the survey compared to the first quarter of 2020, the youth unemployment rate has increased by 1.4 percentage points.
Unemployment among young people, a sharp problem of the transition economy came to alleviate in recent years.
The labor market became more dynamic as a result of the development of call center businesses and a better performance of the service sector by tourism developments. At the same time, the demand for work decreased, as many young people turned to the international market, through permanent or seasonal contracts. Emigration and declining birth rates are bringing about a dramatic decline in the number of young people, a phenomenon that is expected to have long-term negative impacts on the country's economic development.
Labor offices teach that the main cause of rising youth unemployment is the lack of job supply. Currently on the portal of the National Employment Office there are only 270 job offers from businesses. In previous years, job offers from the business sector amounted to about 40 thousand. Even 270 offers come for professions that do not require high qualifications such as waiter, cook, etc.
According to INSTAT data, the largest layoffs during the pandemic were applied by the bars and restaurants sector, where the employment index decreased by 31.8%, followed by hotels with -20.2% and factories with -12.8%.
Rënie të punësimit shënuan edhe disa linja të tjera shërbimesh të tilla si aktivitetet inxhinierike, me -2.5%, informacioni dhe komunikimi me -2.3%, tregtia dhe riparimi i automjeteve me -2.2% dhe agjencitë e udhëtimit me -2.1%.
Në disa linja të sektorit të prodhimit tregu i punës nuk është ndikuar nga pandemia. Furnizimi më ujë dhe përpunimi i mbetjeve shënoi rritje të punësimit me 4.6 për qind në raport me tremujorin e dytë të vitit. Kjo rritje duket se është nxitur nga punësimi në ndërmarrjet shtetërore të ujësjellësit, pasi pjesa dërrmuese e tyre janë në pronësi publike.
The construction sector also recorded annual growth of 1.9 percent during the pandemic in the second quarter. The sector did not stop its activity even during the restrictive measures as the start of the reconstruction process in the areas damaged by the earthquake of November 26, 2019 seems to have stimulated employment in construction.
The electricity sector also had an increase in employment by about 1.2 percent. Electricity production has not been affected by the crisis as employment growth has been driven by increasing investment in HPP construction.