Swiss funded project Risi Albania is providing useful insights for projects aiming at creating sustainable jobs progress through the innovative study “Estimation of Sectorial Job Multipliers in Albanian Economy”.

Risi Albania brought together representatives from academia, Albanian government institutions, donor community and developing partners, opening discussions on ways how to increase the direct and indirect impact in 35 various sectors of the economy which were analyzed. Discussions among participants led not only to the potential use of the indicators ex post, in the sense of estimating overall impact for monitoring and evaluation purposes, but also on the potential use ex ante, for decision making purposes.

Are we able to compare Albanian job multipliers with regional job multipliers? Which are the most relevant sectors for job creation? Are sectors that are underperforming comparably? How can we increase indirect and induced effect of job creation in a specific sector? How we can use job multipliers for project purposes, beyond monitoring and evaluation? – These questions and the discussions showed how the study opened new perspectives and created opportunities for further research in the development community in the country, which is a positive sign for increasing the impact of both projects and institutional interventions.

Job multipliers estimate the indirect and induced impact that the creation of one job in a specific sector generates in the overall economy.  Job multipliers are considered a good second source of information to estimate and triangulate evidence produced from the monitoring systems of the development projects, but they are not always available. Generally estimated by central public entities such as National Accounts, or Central Banks, these indicators often are not present in developing countries such as Albania. Also the macro data needed for this purpose sometimes are lacking.

RisiAlbania through the study “Estimation of Sectorial Job Multipliers in Albanian Economy”, made a review of previous studies and methodologies used to estimate job multipliers, and finally estimated job multipliers in the different 35 sectors, as classified by the national Accounts in the country, using the EUSTAT methodology. This study provides RisiAlbania with the means to estimate indirect and induced impact in the sector targeted through the business growth oriented interventions.

Curious to learn more about the study and sectors with the highest job multiplying effect? Click HERE.