Even if the population of the Republic of Moldova has continuously decreased during two decades, there are important human reserves that can ensure sustainable economic growth. These are determined by the demographic dividend, shows the Demographic Barometer “How to correlate economic and demographic development or what is the demographic dividend?” that was produced by the Center for Demographic Research in partnership with UNFPA, IPN reports.
According to a press release of UNFPA in Moldova, the period of the demographic dividend appeared after 2000, when the number of people able to work started to increase and reached 60-61%. The demographic burden of children and elderly people on the working-age population diminished and the costs incurred by the state for children and elderly people decreased relatively. The extension of the retirement age lengthens the period of the demographic dividend. According to the study, the Republic of Moldova has a rather great workforce potential. It is important to realize this for obtaining economic growth.
UNFPA Representative to Moldova Rita Columbia said that for the demographic dividend to be put to good use, the Government, civil society and the development partners of the Republic of Moldova, alongside UNFPA, should give priority to investment in young people and their health, including sexual and reproductive health, education and employment. The Strategy “Moldova 2020”, which is the framework for implementing the Association Agreement with the EU and achieving the Sustainable Development Goals, should be reviewed based on the development of the demographic dividend.
Presenting the results of the study, Tatiana Tabac, scientific researcher of the Center for Demographic Center, said the demographic dividend in Moldova is now insignificantly used. The employment rate is very low and represents only 40%. About 27% of the people aged between 15 and 29 do not work and do not study. This figure is two times higher than the EU average.
Emigration flows continue to be large. It is estimated that Moldova lost 16% of the population. Mass migration reduced the size and period of the demographic dividend. The migration flows among the 25-29 age category have intensified. The people’s health indicators such as the death rate among children younger than one and the death rate among children younger than five remain high compared with the EU rates. The mortality rate among working-age population is also high and this leads to the immediate loss of the human potential and demographic dividend.
Olga Gagauz, vice director of the National Institute for Economic Research, said the goal of the barometer is to accentuate that now, even if the Republic of Moldova witnesses a demographic decline, the population’s age structure at present and during the next two decades is favorable and can facilitate economic growth. The working-age population now represents over 55%. Measures are thus needed to realize this potential.
