Employment versus poverty

The level of employment in a society is calculated as the number of all working age people, who are employed during the time of statistical measurements. Poverty is a concept which is expressed quantitatively based on the indicators of per capita income and the ability of individuals to meet basic living needs.

Open Data Albania has conducted a research related to the correlation that exists between two very important social indicators: the level of employment and poverty.

The trend of two indicators for 2002, 2005 and 2008 is shown in the following graph:
 


^{Source: INSTAT
Analysis and comments: ODA}

The relationship between employment and poverty is an inverse relationship (negative correlation). An increase in employment rate is associated with a greater reduction in poverty rate. The coefficient of employment growth was 4.5% for 2005-2008 interval, while poverty reduction rate was 35.18% for 2005-2008 interval.

^{Source: INSTAT
Analysis and comments: ODA}

This difference in coefficients of growth for two variables can be explained by the fact that the incomes generated by families/individuals do not have a strong relation with incomes from wages. This fact indicates that Albanians use alternative sources to ensure quality of live. Among these sources, informal incomes, benefits provided by loans and other sources are mentioned. Remittances from immigration remain the most important factor. Albania is ranked among the countries with higher dependency on remittances.

The summary of indicators in value and the coefficients of growth are shown in the dynamic table below:

^{Source: INSTAT
Analysis and comments: ODA}