The Influencing Factors on Unemployment Level in Albania


1Agricultural University of Tirana, Faculty of Economy and Agribusiness, Department of Finance and Accounting / Tirana, Albania
2Agricultural University of Tirana, Faculty of Economy and Agribusiness, Department of Agribusiness Management / Tirana, Albania .

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This paper aims to reveal the importance of the relationship between unemployment and other independent variables in the case of Albania. Many studies have been conducted over the years in different countries to discover a link between unemployment and GDP growth, unemployment and immigration, unemployment and poverty as well as between average wage and unemployment. We have attempted to make a summary of the main studies in the field of unemployment. Undoubtedly a presentation of the performance of this indicator in European countries is needed to understand its current situation. Other important issues are the impact of the economic and financial crisis on unemployment rates and the impact that unemployment itself has on young people life choices. We have included a brief development of the Albanian unemployment history since the 1990s and a comparison with the poverty indicator. Using Gretl, a cross-platform software package for econometric analysis, we aim to discover the important relationships between the variables followed by our conclusions and some recommendations for this current and comprehensive problem.

Keywords: unemployment; GDP growth; poverty; average wage.

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