Labor force participation rate reached 76.2%/ Agriculture leads employment decline, services show growth
According to the latest data published by the Institute of Statistics (INSTAT), the labor market in Albania presents a mixed picture in the first quarter of 2026. On the one hand, unemployment continues to decrease, but on the other hand, fewer people are participating in the labor market and the employment level has declined.
The data shows that the labor force participation rate for the 15-64 age group reached 76.2%, decreasing by 0.5 percentage points compared to the same period last year. However, compared to the last quarter of 2025, this indicator has marked a slight increase of 0.3 percentage points.
Meanwhile, the employment rate for the population over 15 years old was 58%, marking a decrease of 0.3 percentage points compared to the first quarter of 2025 and 0.5 percentage points compared to the previous quarter.
On the other hand, the unemployment rate fell to 8.4%, a decrease of 0.3 percentage points compared to a year earlier, although compared to the end of 2025 there was a slight increase of 0.1 percentage points.
According to the survey, in Albania it is estimated that there are around 1.15 million employed people, while the number of unemployed reaches over 105 thousand people.
On the other hand, agriculture is the sector where employment has decreased the most compared to a year ago with a decrease of 6.7% followed by services with a decrease of 4.1%. Even if we compare it with the previous quarter, these sectors have a decrease of 2.9% and 5.7%. Meanwhile, services have marked an increase in employment.
The figures suggest that, although unemployment remains at relatively low historical levels, the labor market is facing challenges related to the contraction of employment and population participation in economic activity. This may be related to demographic changes, emigration or seasonal movements of the labor force, factors that continue to affect developments in the Albanian economy.
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