Albania faces demographic shift: aging population challenges
Albania is witnessing significant demographic shifts as revealed by the 2023 Census from the Institute of Statistics, which are impacting both its economy and the labor market.
Why is this relevant
The census highlights a notable decrease in Albania’s overall population coupled with a substantial rise in the number of elderly citizens. Currently, one in five Albanians are aged 65 or older. Over the past 13 years, the average age has risen to 42.5 years, alongside an increase in life expectancy.
The dependency ratio for young people has declined to 24% from 30.4% in the previous census, while for the elderly it has sharply increased to 30.4% from 16.7% in 2011, indicating a trend towards fewer young people and a larger elderly population.
This demographic aging has led to challenges such as labor shortages, increased operational costs for businesses, reduced economic productivity, and strained government revenues. It has also necessitated greater funding for pensions as more individuals reach retirement age.
Besides these trends, the census underscores other socioeconomic challenges such as over 61,000 elderly living alone, attributed to migration patterns, declining birth rates, and evolving demographics.
Regarding housing, Albania has seen a rise in secondary residences despite population decline and peripheral neglect. The census identified over 1 million regular residences, with a significant portion (33%) currently uninhabited.
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