Moldova has the second-highest informal employment rate in Europe after Georgia, with both being outliers on the continent with 52% and 56% respectively, according to 2023 estimates by the International Labor Organization, as quoted by Euronews.
Third placed is Turkey with 27%, a staggering 25-point difference from Moldova.
Informal employment, also known as work without a contract, legal protection, or social security, remains prevalent worldwide. 58% of the global workforce is engaged in informal employment. After excluding agricultural workers, the figure drops to 50%.
According to the ILO dataset for 2023 or the latest available figures, Hungary and Poland had the highest rates of informal employment among EU countries, with 17.8% and 9.8%, respectively. Otherwise, the informal economy is much less prevalent in other EU member states, with informal employment rates falling below 2% in a third of EU countries.
Euronews quotes Professor Mihails Hazans from the University of Latvia, who says social norms, traditions, and legislation are key factors contributing to the disparities in informal employment across Europe.
