In recent years, Albania has made significant strides in promoting gender equality and enhancing the participation of women in its economic landscape. Despite these efforts, there remains a considerable gap in women’s engagement in various economic activities. The latest data from 2020 to 2022 highlights both the progress made and the areas needing further attention to ensure women can contribute fully to Albania’s economic growth.
Economic Structures and Participation
One of the most striking indicators is the disparity in the average number of hours spent on unpaid domestic work. Women spend approximately 5 hours and 43 minutes daily on unpaid domestic tasks, compared to just 2 hours and 6 minutes for men. This significant imbalance limits women’s availability for paid employment and other productive activities, underscoring the need for better support systems to share domestic responsibilities more equitably.
Labor Force Participation
The labor force participation rate for women aged 15 and over has gradually increased from 52.3% in 2020 to 56.5% in 2022. However, this still lags behind the participation rate for men, which rose from 66.9% to 68.4% over the same period. The participation rate for younger women (aged 15-24) also showed improvement, increasing from 28.5% in 2020 to 33.8% in 2022, yet it remains substantially lower than that of young men.
Entrepreneurship and Leadership
Encouragingly, the percentage of firms owned or managed by women has increased, with 31.2% of businesses being female-owned in 2022, up from 24.1% in 2020. This growth is particularly noticeable in micro-enterprises with 0 to 4 employees, where female ownership rose from 25.8% to 32.5%. Despite this progress, women are still underrepresented in larger enterprises with 50 or more employees, although there was a slight increase from 22.8% to 23.9% over the three years.
Employment Sectors
Women and men are distributed differently across various sectors. Women are predominantly found in non-market services and agriculture, with 40.1% of women employed in agriculture in 2022, compared to 28.7% of men. Conversely, men dominate the construction sector, with 13.5% employed there, while only 0.6% of women work in construction.
Informal Employment and Unemployment
Informal employment remains a significant issue, particularly for women, with 33.3% of women in non-agricultural employment working informally in 2022 compared to 21.1% of men. The unemployment rate for women aged 15-24 is notably high at 25.9% in 2022, compared to 24.1% for young men. This gap highlights the challenges young women face in entering the workforce.
Education and Skills
Education plays a crucial role in empowering women economically. The gender parity index in tertiary education has remained high, with more women enrolled in higher education than men. In 2022, the gender parity index for tertiary education was 1.45, indicating a higher proportion of women than men in higher education. Additionally, women represent a significant share of graduates in science, engineering, manufacturing, and construction, accounting for 55.2% in 2022.
Financial Inclusion
Access to financial resources is essential for economic participation. The proportion of adults with deposit accounts at financial institutions shows slight gender differences, with 55.9% of men and 44.1% of women having such accounts in 2022. This marginal gap suggests relatively equitable access to banking services, which is critical for women entrepreneurs and business owners.
The Path Forward
While Albania has made notable progress in integrating women into the economy, significant challenges remain. Addressing the imbalance in unpaid domestic work, increasing female labor force participation, reducing informal employment, and enhancing support for women entrepreneurs are crucial steps. Policies promoting flexible work arrangements, affordable childcare, and equal opportunities in traditionally male-dominated sectors can further bridge the gender gap.
Investing in women’s economic empowerment is not only a matter of equity but also a smart economic strategy. Greater participation of women in the economy can drive growth, innovation, and resilience, contributing to a more prosperous and inclusive Albania.
Women on Boards Albania remains committed to creating “Thriving Women for a Thriving Society”. By helping advancement of women on Boards, we help progress towards better futures.