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40% of active population is employed in Moldova, as opposed to 65% in Europe
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10:00, 13 Jan 2017

In Moldova, 40% of the active population is employed, as against the European average of 65%. This is a risk for society on the whole as the fiscal contributions of those who work are not sufficient for paying pensions in Moldova, expert of the Institute for Development and Social Initiative “Viitorul” Sergiu Gaibu stated for IPN. According to him, the mass exodus abroad is one of the causes of the low percentage of working people in Moldova.

“The average employment rate in Europe is about 65%. I think it would be logical for the same percentage to exist in Moldova. The rest are persons with disabilities and mothers who look after children. These 25% represent the massive discrepancy that was caused by the precarious economic situation in and the rather austere business environment,” considers the expert.

According to Sergiu Gaibu, 25% of the population work both in the East and in the West or stay at home. “If we look at statistics, there are 15% of the active people who do not even try to declare themselves unemployed. Now the jobless rate in Moldova is low. To be registered as unemployed, the person should have been employed at least once. In our country, a part of the population didn’t work at list somewhere,” stated the expert.

He also said that the lack of economic development causes a shortage of jobs or the offer is very low. In particular situations, it is more profitable for the people to stay at home and to provide particular services at the local level rather than to work for a low salary.

One of the risks is the fact that the fiscal contributions of only 40% of the active population are not enough for paying pensions in Moldova. The Government already started to deal with this risk and initiated the pension reform.

Another aspect is the fact that the people in Moldova do not have conditions to work and to start businesses and thus go abroad and take their families with them. “We lose people who are able to work and who work elsewhere, not yet in Moldova,” said Sergiu Gaibu.

According to him, the success stories that are already witnessed in the Free Economic Zones created in Moldova must continue in order to develop the country’s economy. “The models of treating the business entities working in the FEZ must be replicated all over the Republic of Moldova. The way inspections are performed, the customs work and the way in which the demands of businesses are met – such an approach should be replicated all over the country,” stated the expert.

He also said that additional work is needed with the commercial attaches of Moldova’s embassies for attracting foreign investors that would create jobs. The state should also create developed infrastructure in the remote settlements.

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