TIRANA, November 11
Albania is the country with the lowest average hourly labor cost in Europe at Euro 2.2 for 2014. According to Eurostat the average hourly cost in the countries of the European Union is Euro 24. Even the countries of the Balkan region show higher figures, at least the double of Albania. Labor cost remained low in the Balkans during the crisis years because of a logic followed by the respective governments regarding fiscal consolidation.
Given the conditions, Albania and the other countries of the region must take advantage of the low labor cost for attracting more investors and for making their brands more productive.
Even though wages in the region increased at a fast pace during the years before the crisis, their average is still below the European levels.
Among the structural problems of the Western Balkans’ economies, employment is considered the main challenge for the upcoming years. According to the data provided by b Eurostat, the gap in unemployment rates between the Balkans and the Eurozone is at the level of 14 percent. Despite the fact that an average hourly labor cost of Euro 2.2 and the fact of being last on the continent is no good news for Albanians, it still makes the country able to catch the eye of active investors.
News Source/ Photo Credit: Monitor