Abstract Technological change has transformed the nature of production, transportation, and communication systems and, consequently, the nature of work and workers. Advances in technology require the continuous upgrading of the labour force. Getting people into employment is a major government objective in order to reduce poverty, promote wellbeing and boost economic growth. Albania is facing today with the problems of unemployment and immigration. The youth is in a disadvantaged position because they are likely to earn lower future earnings due to limited experience, and increased probability of being unemployed or worse still being completely excluded from the labour market. The aim of the study was to examine the factors that determine youth unemployment in Albania. Binary logistic regression model was estimated to determine the socio-demographic factors that influence youth unemployment in Albania. We also seek to determine the role of education and vocational training in explaining youth unemployment. We used secondary data of Labour Force Survey, 2016 gathered by the Institute of Statistics in Albania. Results showed that having received vocational training and education were associated with reduced odds of being unemployed. The determinants as gender, location, education, training and marital status are all significant factors in explaining the difference in youth unemployment status in Albania. We recommend intervention of the government to create more formal jobs. New reforms related to youth people are needed to ensure that all youth with education or skills realize their investments in education and contribute to the country development.