A new AI-driven tool, MIRA (Matrix of Risk Assessment and Intelligence), is changing the way Albania addresses informal labor practices. Launched by the Albanian State Inspectorate of Labor (ISHPSH) with the help of the International Labour Organization (ILO) and funding from the European Union, MIRA is revolutionizing labor inspections across the country.
The system replaces outdated methods like the “Matrix of Penalties” and manual assessments, using advanced algorithms and data analysis to quickly detect violations. Inspectors can now identify undeclared work and other illegal activities with greater accuracy, making inspections faster and more efficient.
MIRA uses nine advanced algorithms to analyze historical inspection data, predicting where issues like informal employment are most likely to occur. The tool also provides real-time access to up-to-date laws and regulations, ensuring inspectors are always working with the most current information.
One of the key advantages of MIRA is its predictive capabilities, which allow inspectors to forecast which businesses are at high risk for undeclared work based on factors like location, industry, and seasonal patterns. This helps them target their inspections more effectively and ensures that resources are used where they’re most needed.
The system is already proving to be effective: MIRA has improved the prediction of undeclared work by 30 percent compared to previous methods, and it continues to learn and improve over time. About 70 percent of inspections are data-driven, while 30 percent are randomly selected to ensure that fresh data is continuously collected.
This new approach has been welcomed by many, though it hasn’t been without its challenges. Some inspectors had to adjust to relying on AI predictions, which sometimes clashed with their previous assumptions. However, as MIRA continues to learn from each inspection, it’s expected to become even more accurate.
With more than 12,000 inspections carried out annually in Albania, MIRA is proving to be an invaluable tool in the fight against informal employment. The system helps tackle the widespread issue of informal labor in the country, which accounted for an estimated 56.7 percent of the workforce just a few years ago. Most informal workers are in the agriculture sector, followed by trade, construction, and hospitality.
MIRA’s ability to process large datasets and continuously improve without requiring additional resources makes it a key tool in the Albanian government’s efforts to ensure a fairer and more transparent labor market.
