INSTAT reported that in 2024, around 120,000 elderly people over 65 years old will be included in the labor market. The participation of elderly people in the labor force is a growing phenomenon in recent years.
In 2024, the number of people over 65 who were active reached over 120,142, with an annual increase of 46.8% compared to 81,835 people who were part of the labor market in 2023.
The group of retirees showed the highest dynamism in the labor market last year. In contrast, for this age group, labor market participation for the rest of the population has experienced milder fluctuations. In 2024, the total number of labor force reached 1,287,099 people, a modest increase compared to the previous year.
However, a downward trend is observed in younger age groups. For example, the participation of young people aged 15-24 has dropped from 112,267 to 110,459, signaling the gap that emigration is leaving in the younger age groups.
The increase in participation of individuals over 65 is related to economic and demographic factors. Higher life expectancy and improved health have led many individuals to maintain the capacity to be active even after retirement age.
On the other hand, the low level of pensions seems to be a fundamental factor. The average pension in Albania is around 190 euros in the city, much lower in the countryside, and covers only a part of the basic living needs.
For this reason, many elderly people are forced to continue working to cover daily expenses and maintain a minimum standard of living.
The high emigration of the young population has created gaps in the labor market, especially in sectors requiring manual or less skilled labor. As a result, a portion of employees over 65 are returning or extending their professional activity to meet market needs.
Experts warn that the financial balance of the pension scheme will deteriorate, requiring deep structural reforms, such as diversifying funding sources and stimulating private pension schemes.
The increase in economic activity of the elderly keeps consumption alive and increases the taxable income base, and the labor market benefits, especially in sectors where there is a shortage and demand for workers is constant. But if jobs are held for longer by individuals over 65, young people face difficulties in finding a job, increasing the pressure for emigration./ Monitor.al
