Supporting Moldova in the formalization of informal economy

Participants of a conference discussed results of an ILO project which promoted the formalization of informal employment and the reduction of undeclared work in Moldova.

Press release | 08 January 2016
One of the major outputs highlighted by conference participants on 14 December 2015 in Chisinau is a study on Informal Economy in the Republic of Moldova: a Comprehensive Review. It will help public authorities to improve existing policies and identify new solutions to support the transition from the informal to formal economy.

Furthermore, it was announced that the ILO will launch an awareness raising campaign on 18 January 2016 in Moldova. The campaign will promote the formal employment to those who are currently or potentially involved in informal employment.

Finally, the project recommended legal and practical measures conducive to the formalization of informal enterprises and workers and the reduction of undeclared work, provided advice as well as training of tripartite beneficiaries and promoted exchanges of experiences including at the sub-regional level.

Informal economy and undeclared work are major problems affecting the labour market and social security system of the Republic of Moldova. In 2014, a total of 385,500 persons had an informal job as their main occupation, which represents 32.5 percent of the employed population in Moldova.

As Deputy Minister Iurie Crăciuneac highlighted on the conference: "This situation requires all stakeholders, including the Government, employers' and workers' organizations, legal entities and Moldovan partners to identify and take effective measures to formalize the informal economy" .

In the final session of the conference, the Deputy Minister of Labour, Social Protection and Family thanked the ILO representatives for supporting both the relevant Ministry and other public institutions.

The Conference was attended by participants from the Ministry of Labour, Social Protection and Family, State Labour Inspectorates, National Health Insurance Agency and National Office of Social Insurance, National Statistical Office, as well as social partners.

The ILO project was implemented between June 2014 and December 2015 with the objective to strengthen the capacity and commitment of the Government and social partners to design and implement policies and measures that will improve the quality, decency and productivity of jobs through the formalization of the economy. The project serves as a model case for inter-disciplinary collaboration within the ILO to address the key challenges to combat the informal economy in a comprehensive manner.