THE ROLE OF EDUCATION AND ARTIFICIAL INTELLIGENCE IN YOUTH LABOR MARKET INTEGRATION IN ALBANIA

In Albania, youth face significant challenges in accessing stable and meaningful employment, particularly in rural areas where educational opportunities and technological infrastructure remain limited (World Bank, 2022). This study examines how education, complemented by the strategic application of Artificial Intelligence (AI), can facilitate the integration of young people into the labor market by enhancing both employability and social inclusion (OECD, 2021). Adopting a mixed analytical approach based on literature review and empirical evidence, the study evaluates current educational frameworks, labor market dynamics, and the role of emerging AI-driven tools. The findings indicate a persistent mismatch between skills acquired through formal education and labor market requirements, especially in digital competencies (European Commission, 2023). AI-based solutions—such as intelligent career guidance systems, personalized learning platforms, and job-matching algorithms—demonstrate strong potential in bridging this gap and improving school-to-work transitions (UNESCO, 2021). Furthermore, the study highlights the social dimension of youth employment, emphasizing that equitable access to education and AI resources contributes to reducing regional disparities and promoting inclusive development (International Labour Organization, 2022). However, challenges related to digital infrastructure, institutional capacity, and unequal access to technology continue to limit the effective implementation of AI in education and employment systems. The paper provides policy-relevant recommendations, including strengthening digital education, fostering collaboration between academia and industry, and promoting inclusive access to AI tools. These measures are essential for empowering youth and supporting the development of a more adaptive and inclusive labor market in Albania.