People are leaving, while the administration is growing.

While Albania's population is shrinking and the private sector faces a severe labor shortage due to emigration, the public administration continues to expand. INSTAT data shows that the number of state employees has reached its highest level in over two decades, while also increasing the share of salaries in the state budget.

Denada Jushi

The private sector is suffering more and more from the consequences of immigration every day. There is a significant shortage of labor, and even the influx from countries like Asia and Africa is not bringing any improvement.

While a large portion of the population seems to have found a "solution" in working in the state.

The number of employees in public administration in Albania has reached its highest level in more than two decades, according to INSTAT.

The latest data from the Institute of Statistics shows that in the last quarter of 2025, the number of employees in the state sector reached 186,581 people, while the annual average for the entire year was 185,386 employees.

According to official statistics, compared to 2024, the public administration has expanded by about 3 thousand employees, or about 1.6% more, marking the highest level since 2002.

In 2002, when Albania had over 3 million inhabitants, the public sector had around 186 thousand employees. Today, after more than two decades, the administration has almost the same number of employees, while the country's population has decreased significantly. According to demographic data, the population has shrunk by about 22%, dropping to around 2.36 million inhabitants. This decline is mainly related to massive emigration and a decline in the birth rate.

However, instead of reflecting this demographic change, the public administration has continued to expand, especially after 2018. This trend has become even more visible in recent years, when in parallel with the increase in the number of employees, the public sector wage bill has also increased significantly.

According to budget data, in 2014, funds for salaries and contributions for state employees were around 71.4 billion lek, while the number of employees in the public sector was around 163 thousand people. Eleven years later, in 2025, the public administration counts over 185 thousand employees, while personnel expenses have increased to around 125.7 billion lek.

This means that while the number of employees has increased by about 12.7%, expenses for salaries and contributions have increased by about 76%, significantly increasing the weight of administration in the state budget.

One of the biggest campaigns of the Rama government in recent years has been the transition to the era of digitalization. Today, many Services are offered online, but this fact has not reduced the administration.

Eurostat data shows that Albanians use e-government Services more than the European Union average. Around 78% of Albanian citizens have interacted with public authorities online in the last 12 months, while the average in EU countries is around 72%.

However, the functioning of digital Services has also shown problems in recent months. The AKSHI is facing problems, but also a series of accusations related to corruption. The lack or interruption of these Services has created difficulties for citizens and businesses in obtaining documents or completing administrative procedures.

In this context, the debate on public administration is not only related to its size, but also to the way it functions. European Union reports over the years have consistently emphasized the need for the modernization and depoliticization of public administration, considering this one of the key elements for the functioning of the state and the European integration process.

In Albania, experts emphasize that public administration continues to face several structural challenges, including politicization, a lack of specialized staff, and increasingly strong competition with the private sector for qualified professionals.

Another factor that has affected the labor market is mass emigration. According to estimates by economists and political actors, the departure of a significant portion of the active labor force has reduced the number of professionals who can be engaged in administration, especially in cities outside Tirana.

On the other hand, government representatives, specifically Minister Adea Pirdeni, emphasize to ACQJ that the public sector offers more job security and guaranteed rights for employees, especially in terms of employment contracts, contributions, and legal protection.

However, while the public sector continues to expand, the private sector job market is changing rapidly. According to employment platforms, the demand for new professions, especially in technology, finance or digital marketing, has increased significantly in recent years.

In a country where the population is declining and the economy struggles to adapt to technological transformations, the bloatedness of public administration remains a debatable issue. For experts, the challenge is not just how big the administration is, but how efficient, professional and depoliticized it can be in serving citizens.acqj.al