Youth Unemployment in Albania, Causes and Consequences

The purpose of this paper is to look into the cause, effect and solution to youth unemployment problems in Albania. The youth unemployment rate reached the highest level of 40.34% in 1993, while the lowest level was 21.44% in 2006. Data for this paper was obtained from the World Bank and, processed by the SPSS.20 program. By linear regression, we have analysed the youth unemployment relationship with some of the main economic indicators. The link between economic growth and youth unemployment is weakly negative, while the link between foreign direct investment and youth unemployment is also negative.Youth participation from the workforce is positively linked with youth unemployment. The main problem for youth unemployment in Albania is “economic growth that brings poverty”, which does not bring employment and bridge the gap between the labour market and skills.