Migration of the human capital and its impact on the labour market in Albania

Abstract

A comparison between the 2011 registration and the 2023 census shows that approximately 481,000 people have left Albania to migrate to the EU or other Western countries. The significant labour shortages the business in Albania has been experiencing have led to a mass exodus and substantial gaps in the workforce, particularly it’s concerning the migration of professionals. This thesis studies the migration of human capital from Albania and the consequences for the labour market. The study highlights the long-term economic and political factors that have shaped migration from the early 1990s to the present. The research combines a qualitative methodology, including two targeted surveys. One with six Albanian business owners and another with six skilled workers and professionals who have migrated, with a review of academic literature, official reports, and demographic data. This mixed method provides a comprehensive understanding of how human capital loss affects labour market performance and business development in Albania.

The conclusions of this thesis show that migration remains driven primarily by economic insecurity, limited career opportunities, low wages, dissatisfaction with public services, and weak institutional performance. Skilled workers and highly educated professionals are a significant portion of emigrants, accelerating the “brain drain” and deepening shortages in key sectors such as healthcare, construction, services, and technology. Survey results reveal that businesses are already experiencing difficulties in hiring and retaining qualified employees, increased competition for labour, and a shrinking consumer base. Despite awareness of the issue, both businesses and government institutions have taken limited and ineffective measures to address the crisis. Participants of the survey stated that improvements in wages, healthcare, education, governance, and anti-corruption efforts would be necessary for potential return. The thesis concludes that if current migration trends continue, Albania risks facing a severe human capital crisis, slower economic development, reduced competitiveness, and long-term demographic decline. To stop these consequences, the Albanian government must address the issues found in this thesis. It is essential for creating a sustainable labour market and preventing further loss of Albania’s human capital base.