Labour market performance in Albania has shown remarkable improvements over recent years and the country's economy continues to expand. Job growth in the country is one of the strongest in the Western Balkans region. Between 2013 and 2018, the number of vacancies registered by the National Employment Service rose by 280%, from 16 175 to 61 391 (NES). The majority of these positions require the completion of upper secondary education and specialised vocational education and training.

However, and despite impressive progress in some schools and sectors (e.g. tourism), vocational education is still not an attractive option for most young people, and young women in particular. The opportunities to access lifelong learning for both young people and adults are limited and the quality of education and training remains an issue. Labour market alignment is still weak: the vocational education and training system does not produce the 'right numbers' of candidates, and most graduates lack the skills that are sought by employers.

Not surprisingly, the country has a high share of young people who are not in employment, education or training (NEETs). Low educational attainment, mainly a legacy of the past, and widespread precarious employment, are also serious challenges in Albania.

The analysis in this report concludes with several recommendations for remedying these shortcomings by reinforcing the contribution of education and training in addressing the challenges to developing human capital in Albania. The annex below summarises these recommendations.