The Republic of Moldova’s public sector faces labor shortage
The labor market in the Republic of Moldova is currently experiencing a significant shortage of employees, particularly in the public sector and other vital areas for the economy. By the end of the first quarter of the year, approximately five out of every 100 jobs were unfilled, with more than half of these vacancies occurring in public institutions, according to data from the National Bureau of Statistics (NBS). Experts emphasize the necessity of increasing, or even doubling, salaries in certain critical sectors.
Since the beginning of the year, the National Employment Agency (ANEF) has successfully placed approximately 7,000 people in the labor market. Ana Neculce, the institution's chief specialist, mentioned during the "Zi de zi" program on Radio Moldova that 14% of these jobs were created in areas experiencing acute staff shortages, such as healthcare and education.
For the summer season, the agency launched a campaign specifically aimed at young people and students for the first time. So far, 35 territorial subdivisions of ANEF identified over 100 seasonal vacancies offered by 45 employers willing to provide summer jobs.
ANEF has recently implemented a series of measures designed to reduce discrepancies between supply and demand in the labor market. These measures include subsidizing jobs for vulnerable groups, creating and adapting positions for individuals with disabilities, forming mobile teams, and conducting vocational training programs. These initiatives demonstrate ANEF's commitment to integrating people into the labor market and addressing employers' needs. The agency actively collaborates with public institutions and international organizations to promote job vacancies in the public sector, particularly in rural or economically less attractive areas.
Recent data indicates that approximately 50 percent of vacant jobs are in public administration, healthcare, and education. Labor market and social policy expert Dorin Vaculovschi believes that one of the main reasons for this is uncompetitive wages in the public sector, which are unable to compete with those in the private sector. While professional reprofiling can be beneficial for some unemployed individuals, it may not be effectively applicable in sectors that require long-term training, such as medicine or education.
Despite a recent revival in entrepreneurship, the real sector's capacity to generate jobs remains modest. Foreign investment flows are limited, and the creation of new businesses is weak. As a result, most of the newly created jobs are in the public sector. The shortage of educators is not a new issue, and the perception of the teaching profession remains negative.
Additionally, according to the expert, labor migration and a decline in the birth rate are other factors negatively impacting the labor market's evolution. The average gross salary in the Republic of Moldova increased by 10.6% compared to the previous year, reaching 14,568 lei in the first quarter of this year, according to the National Bureau of Statistics. In real terms, earnings rose by only 1.7%. The Technology and Communications sector continues to lead in salary rankings, with an average gross salary of 33,819 lei. Conversely, the agricultural sector reports the lowest average gross salary at just 9,244 lei.
