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In the focus of this paper are self-employment and its role in decreasing unemployment in Albania. Self-employment is very important for the employment of individuals, especially if there aren’t other employment opportunities due to the reduction of jobs, due to the lack of specialization or specific education. One of the most sensitive social problems of recent decades in Albania is high levels of emigration due to the unemployment and all measures that can be taken to increase the employment in the country are crucial. The country's economic growth is a direct factor that influences the opening of new enterprises or even the expansion of current enterprises, thus increasing employment. The purpose of this paper is to analyze the impact of self-employment on employment. To achieve this purpose, is studied the relation between self-employment, economic growth and exports with the level of employment. The relation between employment as a dependent variable and self-employed people, GDP growth rate and export as independent variables is studied through a linear model. After the analysis using the least squares method, in this paper it is concluded that the self-employed have a significant positive relationship with the level of employment in the country.

Keywords: Self employment, employment, economic growth, GDP, export

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