THE CONFIGURATION OF LABOR MARKET IN ALBANIA AND ITS CHALLENGES

When the economy goes in recession, the necessity of state intervention for its regulation becomes inevitable. Often, the monetary and fiscal policies undertaken by the government with the aim to achieve this target, may result with different economic configuration, probably undesirable. That’s by the other steps undertaken in the priority economic sectors. Actually, the Albanian government has taken some measure in order to reduce the informal economy (focused especially on business agent) and to regulate the market labor in the country. As any reforms, the effectiveness of those initiatives will be seen after some years, but actually, some questions bring in mind: what is the impact of those in the economic performance of the agents (business-employee), and can improve their conditions? Is the labor market in able to handle the initiatives and have been those in the appropriate levels? How are the actual report private employment and state employment, and has been rise the employment rate during this time? Is the possibility that higher employment rate will be a good indicator for the improvement of the economic welfare? The configuration of the labor market in the country and its challenges will be the focus of this article.