The Governor of the Bank of Albania, Gent Sejko, participated in the International Scientific Conference, on the topic "Demographic changes and labor market dynamics - challenges of sustainable economic development in Albania, Kosovo and the region", organized by the Academy of Sciences of Albania and the Academy of Sciences and Arts of Kosovo.
This conference aimed to bring together academics, researchers and representatives of central institutions from Albania, Kosovo, the region and beyond, to discuss one of the greatest challenges of our time: the interplay between demographic developments and the structure of the labor market, in the context of economic sustainability.
Over the past decade, Western Balkan countries have faced declining fertility, aging populations, and sustained emigration, trends that have affected labor market participation and wage dynamics. These trends have reconfigured the size, composition, and skills of the workforce.
Invited as a speaker at the opening of the conference, Governor Sejko discussed the topic “Demographic Changes and Labor Market Dynamics”. The Governor stated that, in conditions of global growth below the historical average and geopolitical tensions, for small and open economies like ours, these developments are even more decisive, as they affect capital inflows, external demand and the cost of financing. In this context, demography and the labor market are key pillars of sustainability.
He stressed that Albania's economy continues to perform well. Growth remains positive, unemployment is low, inflation is under control, and the financial system continues to be stable and profitable. However, the long-term horizon requires addressing several structural challenges such as: increasing productivity, adapting to technological innovations – including the large-scale development of artificial intelligence and digitalization – as well as resource constraints, especially those related to labor markets.
In light of the objective of EU membership by 2030, European integration will create new opportunities for trade, investment and institutional convergence. However, experience from previous enlargements shows that this integration can accelerate labour mobility, especially of young people and skilled workers, towards member states with more developed economies.
The Governor emphasized that in Albania, as a result of favorable exchange rate conditions and appropriate monetary policy stances, inflation remains close to the central bank’s target. However, in the medium to long term, structural changes in the labor market may cause inflationary pressures. The persistent structural labor shortage, coupled with an aging population, emigration and skills mismatch, may cause irreversible wage growth, especially if not accompanied by productivity growth. In the long term, these demographic dynamics exert pressure, limiting the capacity of monetary policy to stimulate economic activity.
edition
t7 live
