This information is derived from the State Department's Office of Investment Affairs, Investment Climate Statement. Any questions on the ICS can be directed to EB-ICS-DL@state.gov
Last Published: 11/2/2017

For years, Moldova prided itself on its skilled labor force, including numerous workers with specialized and technical skills. However, with economic turmoil, many skilled workers left Moldova for better paying jobs in other countries. This led to shortages of skilled workers in Moldova. There are imbalances in the labor market arising from a general lack of workers with vocational training that employers need on one hand, and lack of job opportunities for academically educated people on the other. Labor shortages are reported in manufacturing and engineering, while language (Moldovans are usually bilingual in Russian and Romanian) and IT skills are thought to be in ample supply. However, low birth rates and an aging population represent a further challenge to Moldova’s labor pool.

Official unemployment was 4.2 percent in 2016, which is misleading given the low labor participation rate of 42.6 percent, owing to large numbers of Moldovans migrating abroad that reduces the number of job seekers at home and informal work. Youth unemployment is more than double the national average at 11.8 percent.

Moldova's Constitution guarantees the right to establish or join a trade union. Trade unions have influence in the large and mostly state-owned enterprises and have historically negotiated for strong labor relations, minimum wage and basic worker rights. Unions also have a say in negotiating collective labor agreements in various industries. Unions are less active and effective in small private companies. Moldova is a signatory to numerous conventions on the protection of workers' rights. The country has moved toward adopting international standards in labor laws and regulations. In recent years, changes were made to labor legislation in favor of employers. Nevertheless, labor legislation is stringent in matters dealing with severance pays or maternity leave – regulations that some foreign investors view as an impediment to labor flexibility and as putting a heavy burden on employers.

The government is currently drafting amendments to the Labor Code and a new law on foreign work and migration. The changes are intended to make the legislative framework better equipped for modernization of the labor market, skills development and vocational education training reform.

The Moldovan General Federation of Trade Unions has been a member of the ILO since 1992, and has been affiliated with the International Confederation of Free Unions (ICFU) since 1997. The Federation split into two separate unions in 2000, but merged in 2007, forming the National Trade Union Confederation (CNSM). After attempts of the previous Communist-led government to interfere in the activity of unions, the CNSM was isolated from the international trade unions movement. With a change in government in 2009 and the election of new trade union leaders, CNSM was given membership in the International Trade Union Confederation in 2010.

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