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Unemployment rate decreases in Moldova, not yet because people have work


https://www.ipn.md/en/unemployment-rate-decreases-in-moldova-not-yet-because-people-have-7978_1015045.html

Despite the clearly inferior economic situation, the unemployment rate in Moldova is practically two times lower than the European average. Ghenadie Mocanu, expert of the Institute for Development and Social Initiative (IDIS) “Viitorul”, explains this paradox by the lack of confidence in the services provided by state institutions. Not many Moldovans use the services of the National Employment Agency to be registered as unemployed.

The jobless rate in Moldova in 2013 was 5.1%, while the average in the EU was 10.4%. “The general impression derives from the fact that if the unemployment rate is low, the economy develops and there are no people out of work. But this is not so. The unemployment rate in Moldova is decreeing not because the people have work, but because the number of applications to the National Employment Agency is lower,” Ghenadie Mocanu stated for IPN.

The population does not have confidence in the state institutions even if they not always know about these institutions’ activity. “The labor force mainly migrated or prepares to migrate aboard because the salaries in Moldova are low compared with the growing prices. I do not hurry to give a grade to the Agency’s work because its quality improved significantly in the recent past,” said the IDIS expert.

“There are refresher courses paid by the Agency, but those who attend them later encounter difficulties in finding employment as they are not satisfied with the size of the salary or there are not many economic entities that can survive. There are problems related to the social development of Moldova that must be addressed as a whole.”

According to Ghenadie Mocanu, the responsibility must be assumed by the government and the political parties. “But we know the people’s level of confidence in these institutions. The perspective on Moldova’s social development is not yet discussed much. Economic benefits are now gained from the migrants. But what will happen when they gradually return home and will not have a decent pension?” asked the expert.

Ghenadie Mocanu also said that economic progress and a greater involvement of the institutions in dealing with social problems are required for regaining the people’s confidence.