Salaries in Moldova rise slower than in the region owing to labor force redistribution

The salaries in Moldova increase at a lower rate than the salaries in the region due to the redistribution of the labor force, say specialists of the International Monetary Fund (IMF), quoted by Info-Prim Neo. “The demand for workforce in Moldova has increased, but the supply has grown even more following the transformation of the labor market. Consequently, the salaries have raised slower,” the Resident Representative of the International Monetary Fund in Moldova Johan Mathisen said at a meeting of the Economic Press Club. According to Johan Mathisen, the fact that that the structure of the workforce in Moldova’s economy sectors more and more reminds of the structure of other economies is a sign that the process of labor force redistribution and of modernizing the structure of the economy is coming to an end. When the labor force redistribution per sectors is complete, salaries will start to grow. According to the IMF, the salaries in sectors in the past few years have increased uniformly following the implementation of the salary grades system. “It is not normal. There should be a greater correlation between the salary rises and productivity. The strongest company should pay more,” Johan Mathisen said. Specialists say that the economy’s structure has changed significantly during the past ten years. In mid 90s, the agriculture’s share in the Gross Domestic Product was 30%, while after 2000 it dropped by about a quarter. The number of employees in agriculture fell by some 400,000, 100,000 of whom moved into other sectors of the economy, 200,000 went abroad, while about 100,000 left the workforce altogether.