International migration can be an important factor in overcoming labor market problems in destination countries, but also in countries of origin. On the one hand, it can help to eliminate imbalances between labor supply and demand, reducing the level of unemployment and bringing new work experiences. On the other hand, the phenomenon of international mobility can lead to a shortage on the labor market when the offered working conditions are unattractive and there are large pay differences compared to those in the destination countries. The labor market trends in the Republic of Moldova and the concept of reforming the labor market were discussed by the experts invited to IPN’s public debate “Romania-Republic of Moldova, joint efforts in reforming the labor market”.
Felicia Bechtoldt, state secretary of the Ministry of Labor and Social Protection, said that the situation on the labor market of the Republic of Moldova is a complex one. On the one hand, many employers say that they experience a labor shortage. On the other hand, the employment rate is low, around 46%, while the rate of job openings is around 55%. The inactive population in the Republic of Moldova in 2023 reached a record level of 999,000 people, a number lower by 130,000 people compared to 2022. The number of active people on the labor market is lower than the number of inactive people, but here too, in 2023, the number of active people increased by 4.4%. The number of employed people also increased, by 25,000, most of them being women. The unemployment rate is 4.6%.
Thus, 99,000 people are inactive on the labor market because they are looking for jobs abroad. 88,000 people are already abroad, working or looking for a job. 137,000 people are inactive on the labor market because they take care of family members, and 97% of these are women. The number of people who decided to go abroad in 2023 decreased by 26,000 compared to 2022. Among the main reasons why the people go abroad are the low salaries in the Republic of Moldova and the precarious working conditions. A solution is for the employers to raise salaries at least up to the minimum pay in the economy, which is 5,000 lei per month, but this is not enough and higher raises are needed therefore.
Camelia Mihalcea, national coordinator of the European Network of Public Employment Services EURES-Romania, said that with Romania’s accession to the EU, the mobility of people for work purposes in the EU has increased. Romania, being seen as a labor exporting country, has encountered particular problems that are now best seen. Now is the time when Romania, similar to countries outside the EU, is facing a shortage of qualified workforce, but also of seasonal workers. All countries face the same kinds of shortages. It is difficult for Moldova and Romania to be in fair competition, as long as the salaries are of a certain level in Romania and of another level in other states.
Camelia Migalcea also said that there is a universally recognized labor shortage. It is caused by the aging of the population, demographic changes, but also by economic changes that require other qualifications. Labor mobility is a recognized right. It is one of the fundamental rights provided for in the European Treaty. No special measures can be taken to stop migration, but measures can be introduced to be taken into account by those who plan to go abroad to work. Mobility also has effects on the exporting country, as the people return to the country. Last year, more returned to the labor market in Romania than left.
Raisa Dogaru, director of the National Employment Agency (ANOFM), said that the Agency’s tasks include knowing the labor market well, identifying employers and knowing what the conditions of employment of all jobs are, and making these jobs available to those who are looking for them. Various events are organized to inform all those who are looking for a job. There are people who apply for a job, but they are employed only when they meet the qualifications required by the employer. The people who are in the Agency’s database are informed that a job appeared and they can apply for it.
The official noted that it is difficult to meet employers’ requirements due to migration and the high share of unskilled labor. Over 60% of the persons in the Agency’s database do not have a profession. The labor shortage is pronounced in many sectors. The Agency’s task is to cooperate with people coming from abroad, to inform them about all the measures and to receive assistance from the Agency. As a rule, the people want a higher salary than what the employers offer. On the other hand, the employers must also understand that without employees in the company, this will not work. “Only with sufficient human capital can you develop the enterprise and the economy,” concluded Raisa Dogaru.
The public debate entitled “Romania-Republic of Moldova, joint efforts in reforming the labor market” was the eleventh installment of the “Double integration through cooperation and information. Continuity” project funded by the Department for Relations with the Republic of Moldova. The content of this debate does not represent the official position of the Department for Relations with the Republic of Moldova.
