Albania’s youth emigration poses economic challenge: new report by WFD

A recent report from the Westminster Foundation for Democracy (WFD) has highlighted the significant economic impact of youth emigration from Albania. The study, part of the WFD’s broader Western Balkans Democracy Initiative, explores the financial and social implications of a steady outflow of young people seeking better opportunities abroad. This migration pattern is creating concerns about the long-term economic stability and demographic balance of the country.

Why is this important: The report underscores that Albania, like many countries in the Western Balkans, is experiencing a loss of its most educated and capable young workers. The outflow of youth represents a substantial economic challenge, as it reduces the labor force, weakens future innovation potential, and results in a significant loss of state investment in education. For a developing economy like Albania, these factors combine to limit growth prospects and may increase dependency on remittances from abroad.

Context: Several push-and-pull factors drive young Albanians to emigrate. On the one hand, high youth unemployment rates, currently around 20%, and limited career prospects at home create strong incentives to seek work abroad. On the other hand, countries in the European Union, particularly Italy, Germany, and Greece, offer higher wages, more stable employment, and better social services, making them attractive destinations. The WFD report also notes that quality of life improvements, such as better healthcare, education, and infrastructure, are significant pull factors for emigrating youth.

Impact:  One of the most significant findings of the WFD report is the substantial cost that youth emigration imposes on the Albanian economy. The report estimates that the Albanian government spends approximately €20,000 to €30,000 per person on education from primary school through university. When these educated individuals emigrate, this public investment leaves the country with them. The study also estimates that Albania loses millions of euros annually in potential GDP due to the reduced workforce and lost productivity.

In 2018 alone, over 30,000 people left Albania, with a significant portion being young, highly educated individuals. The report highlights that every young person who leaves Albania reduces the country’s potential economic output by approximately €15,000 to €20,000 per year, based on estimates of GDP per capita.

Remittances:  While youth emigration creates significant economic challenges, the report acknowledges that remittances from the Albanian diaspora help to mitigate some of the economic loss. In 2018, remittances accounted for approximately 9% of Albania’s GDP, with over €1.4 billion sent back to families in the country. These funds help boost household consumption and provide financial support for healthcare, education, and housing. However, the WFD study emphasizes that remittances alone cannot compensate for the broader economic and social effects of youth emigration.

What can be done: The WFD report recommends a series of policy interventions aimed at reducing the negative impact of youth emigration. One key area is improving the employment landscape in Albania by creating more job opportunities and offering competitive wages to keep skilled workers in the country. Additionally, policies that support entrepreneurship, innovation, and technology development could create an environment where young people see more potential for growth and stability in Albania.

The report also suggests improving educational outcomes and aligning them more closely with market needs, which could help reduce the mismatch between skills and job opportunities. Strengthening ties with the Albanian diaspora is another potential solution, encouraging investment and knowledge transfer from those who have settled abroad.

What’s next: Youth emigration presents a significant challenge for Albania’s economy, but it is not an insurmountable one. By addressing the root causes—primarily unemployment and limited career prospects—the government can stem the outflow of young talent and leverage the benefits of its educated workforce for the country’s development. The WFD report serves as a timely reminder that while remittances provide some relief, long-term solutions will require coordinated efforts to retain and attract skilled labor in Albania.