Inclusive and productive employment in the Republic of Moldova

While the development gap between Moldova and the rest of Europe has narrowed down, the country still has one of the lowest per capita incomes and gross wages per worker in entire Eastern Europe. (In 2000, the country’s per capita income was 14 per cent of the average EU income; in 2020 the national income per person reached 29 per cent of the EU average.) Even before the pandemic, economic growth was mostly jobless. Low employment rates and high levels of inactivity, particularly among youth, women, and older workers are prevalent. Other key labour market challenges are aging of the population and continuous emigration, skills mismatches, and high levels of informality. The economy is recovering from the strong recession caused by the Covid-19 pandemic (GDP decline in 2020: -7%, estimated growth in 2021: 4,5%), however, the much-needed recovery of labour markets is lagging. The pandemic has exacerbated the high levels of inactivity. The compounded energy and refugee crisis might add to the pressure on the labour market. Moldova has received the largest number of Ukrainian war refugees per capita among all receiving countries in Europe.

This project builds on the offer of the Government of Switzerland to support the implementation of the ILO Decent Work Country Programme 2021-24 for the Republic of Moldova. The complementary package of interventions will work on creation of more and better jobs, improved employability of people through TVET and adult learning, and formalization of employment. In addition, the project will contribute to the promotion of social dialogue and the digitalization agenda of the Moldovan Government.