Low labour force participation and high outward migration
Lasting transition to a market economy and lingering effects of the 2009 recession have had inevitable repercussions on people’s employment and livelihood in Moldova. While the economy recovers gradually, remittances, indexation of public transfers and moderate increase in wages ignite the growth. The EU Association Agenda urges a more sustainable economic paradigm for Moldova based on investment, production, competitiveness, export-oriented industries and a knowledge-based society.
Volatile macroeconomic environment and political instability made a dent in the performance of the labour market. With a low unemployment rate, Moldova continues to struggle with the lowest labour force participation in the region, skills mismatches, large outmigration flows, high inactivity and a great incidence of youth neither in employment nor in education or training. Informality continues to be high, the quality of jobs requires substantive improvement and there is a need for a consistent reform of the occupational safety and health system. The ongoing labour legislation reform is relevant both for EU association aspirations and for advancement of social dialogue.
To overcome these challenges, the ILO is offering assistance in:
1. Promoting comprehensive employment policies and inclusive labour market solutions for vulnerable job-seekers;
2. Enhancement of social dialogue and collective bargaining through capacity building of the social partners and tripartite skills sectorial committees; and
3. Strengthening labor inspection and occupational safety and health in the critical sectors.
The ILO in Moldova has been active since October 2005 with a focus on major nation-wide challenges identified with its constituents and emphasized in its Decent Work Country Programme. ILO assists ongoing reforms, including public sector pay reform and modernization of the Public Employment Service (PES). The organization builds knowledge on better working conditions with regard to working time, contractual arrangements and employment protection. ILO helps Moldova meet reporting obligations to ratified International Labour Standards (42 ILO Conventions), including the 8 Fundamental Conventions.