Locations
Skills Development for Employment Programme 2023 – 2027 – Exit Phase
Summary
The Skills Development for Employment (SD4E) programme is supporting the Government of Albania in the national VET and Employment policy reform through a comprehensive approach of institutional capacity building on a macro/policy level to enable the key actors (MFE, NAES and NAVETQ) to deliver coordinated and demand-driven services, in collaboration with all the actors of the labour market ecosystem, especially the private sector.
Activities and interventions in the frame of the SD4E Exit Phase 2023-2027 include the following:
- Support to national institutions to consolidate an effective legal framework for successful delivery of new or reformed policies, with a special focus on skills development financing mechanisms, deployment of the quota levy in the frame of the Social Employment fund, the legal framework for quality assurance in VET, recognition of prior learning, diversification of active labour market measures, and outsourcing of employment and training services.
- Facilitation of a participatory approach in the implementation of the optimisation process of the sector, to reinforce a culture of quality and autonomy of VET providers.
- Fostering collaboration and co-shared responsibilities between public institutions and the private sector to improve the current VET system and back the implementation of post-secondary VET programmes with increased participation of the private sector.
- Support to the identification of new financing mechanisms and tools for skills development, building on one of UNDP’s innovative and signature solutions for financing of national development priorities, such as the Integrated National Financing Framework.
- Capacity Support to the Development of the Labour Market Information Observatory in institutionalizing the use of LMIO at all levels, especially the staff of the Employment Offices, like counsellors, directors of EOs, head of services.
- Consolidation of Skills Intelligence through analysis for skills needs on economic priority sectors. Such analysis will aim to endorse effective decision making on programmes that stimulate employment and skills development in these priority sectors.
- Co-design of new Active Labour Market Measures that address the needs of jobseekers and employers alike, for a supported and facilitated transition to the labour market for VET graduates, youth, women, women and long-term unemployed.
- Capacity development through Communities of Practice at NAES in four thematic areas: 1) employment services, 1) ALMMs, 3) digitalization and 4) institutional marketing (promotion).
- Impact Assessment of Active Labour Market Programmes (2019-2022 and 2023-2026) will be conducted jointly with MFE with the aim to inform possible amendments and improvement of the current ALMM portfolio.
- Formative evaluation of the Quality Assurance Framework of the Albanian VET system to align accreditation criteria with the self-assessment approach, roll-out good practices, and address obstacles.
- Development of the quality assurance model for the vocational qualifications for their integration in the Albanian Qualifications Framework (AQF). This was identified as an area that needs improvement in the ETF/CEDEFOP recommendations to the Referencing report of the AQF to the EQF.
- Capacity Support for NAVETQ responsible staff for the development of competency-based VET programmes, in partnership with the Swiss Federal University for Vocational Education and Training (SfUVET).
- Promotion of the Albanian Qualifications Framework to teachers, employers, education institutions, students, parents, and the larger community.
- Support the development and pilot implementation of the Recognition of Prior Learning (RPL), by drafting a roadmap, building capacities of providers, and ensuring the quality of its delivery.
Background
Albania has experienced a consistent decline in population over the past two decades, with projections indicating a further decrease of approximately 86,000 people by 2030. Factors contributing to this decline include negative population growth in 2021, driven by both a negative natural balance and increased outward migration, with over 410,000 Albanians leaving the country in the last decade. These demographic shifts are expected to impact the country's workforce, necessitating responsive labour market policies.
Despite population challenges, Albania's economy has demonstrated resilience, expanding by 4.8% in 2022 and rebounding at 8.5% in 2021 after facing external shocks from the 2019 earthquake and the Covid-19 pandemic. Notably, growth is fuelled by sectors such as trade, construction, and tourism, despite high inflation rates.
Private sector development has been a key driver of economic and employment growth in recent years, with the number of active enterprises increasing by 74% over the last decade. Medium-sized enterprises and large companies have shown potential for job creation. Despite this growth, labour market improvements have not translated proportionally into increased productivity.
As of 2022, Albania's labour force comprises 1,457,959 people, with 72% between the ages of 30-64. The inactivity rate stands at 26.8 %, attributed to factors such as discouragement, home duties, and disability. Labour force participation has reached a record high of 73.2% in 2022, but a gender gap of 13.3 percentage points persists, with lower rates for women (66.7%). While the employment rate increased by 4.1% compared to 2021, reaching 65%, youth employment remains lower at 44%. Non-wage workers constitute one in four employed persons, and employment disparities persist based on education levels and gender.
Major Labour Market Challenges: The Albanian labour market grapples with three main challenges: inadequate job generation, skills-job mismatch, and inclusivity issues, particularly affecting women, youth, people with disabilities, and those in low-income households.
Skills Development Challenges: Albania faces challenges in skills development, characterized by a low level of workforce skills and a significant skills mismatch. Nearly half of the working-age population has only attained primary education or less, while there is a notable disparity between skills supplied and those demanded in the labour market.
Achievements
The Skills Development for Employment Programme Exit Phase 2023 – 2027 builds on a decade of milestones in support of key policy reforms and institutional transformation, especially during its 2019-2022 consolidation phase.
Project Outcomes
To achieve the program's purpose and goal, the SD4E Exit Phase aims for measurable effects in three strategic fields, bringing sustainable changes at the system level and improving the governance and quality of service provision in VET and Employment Promotion in Albania:
Outcome 1: National institutions effectively implement the sector’s policy framework and optimize delivery with innovative tools and financing instruments.
Outcome 2: National institutions deliver individualised and data-driven employment policies and ALMMs, in partnership with the labour market ecosystem.
Outcome 3: Public and private actors involved in the VET system use a standardised and harmonised quality assurance and development framework for self-assessment, accreditation, inspection, and monitoring.
