Analysis of Principal Tendencies of Labour Market in the Republic of Moldova

This article presents the analysis of the principal tendencies in development of labour market in the Republic of Moldova in the period 2014-2020, including the period of the COVID-19 pandemic crisis. Negative natural growth and increased external migration over the last two decades have led to the population’ decline by about 25%, which had the negative impact on labour market contributing to the quantitative and qualitative decline in labour supply. The irreversible ageing process has led to a change in the structure of economically active and employed population by age and sex, as labour market has aged. The increase in the share of elderly population, who have a lower level of participation in labour market, has also influenced the rates of economic activity, which have decreased from 60% to 40%, while having a slight recovery in recent years. In addition to the problems mentioned above, there are also qualitative problems, including the informal employed population, whose share, after a period of decline in recent years, has begun to rise again (mainly in agriculture and construction), which indicates a slow pace of structural change in the national economy.

A negative impact on labour market has caused by the economic shock caused by the Covid-19 virus due to the reduction in economic activity and, as a result, the decrease or stopping of employment. The consequences of the shock include rising unemployment and declining employment, as well as a medium-term increase in the economically inactive population, which will aggravate the problem of labour shortages after the period of economic recovery.

The labour market tendencies outlined above require a wide range of interventions to address the risks and challenges of given market at the actual moment. In this context, some proposals have developed to improve the situation on labour market in the Republic of Moldova.

The article was elaborated within the framework the project of the State Program (2020-2023)

20.80009.0807.21 Migration, Demographic Changes and Policies of Stabilization the Situation.