Youth unemployment is one of the most debatable issues in recent years in Albania and in
the European countries. Active labour market policies (ALMP) are designed to help preventing the
increase of unemployment rates and improving the matching of labour supply and labour demand.
This paper examines the effectiveness of ALMP-s in improving the labour market outcomes of the
young people in Albania. The analysis is carried out using micro-data from the National Employment
Service and the Labour Force Survey conducted by the Albanian Institute of Statistics. Our findings
provide evidence that ALMPs as a way of combating youth unemployment seem to be effective in
Albania. However, the results at the macro-level aggregate suggest that only ALMP-s per se cannot
be a panacea for reducing youth unemployment given that the unemployment for young people is
persistent. Recommendations on improving labour market policies and possible actions are also
provided in the paper.