The labor market in the Republic of Moldova has become one of the country’s main economic vulnerabilities, as fewer people are available to work, while demographic decline and migration continue to place direct pressure on businesses, wages, and inflation. Experts from the World Bank Group presented these conclusions during discussions with the Economic Press Club on Moldova’s economic outlook and labor market transformation, according to BANI.MD.
Data shows that nearly 50% of working-age adults remain inactive, while the working-age population continues to decline and is expected to keep shrinking until 2050. At the same time, overall unemployment stays below 4%, and youth unemployment stands at 7.4%, which indicates not a lack of jobs, but a shortage of people available to fill them.
Experts describe the labor market as “tight,” as labor shortages already push wages upward. Without effective policy measures, this wage pressure risks further fueling inflation, which remains elevated due to external price shocks and regional instability.
Migration remains one of the most serious challenges. Many young people and working-age men leave the country instead of seeking employment in Moldova. The report shows that more than half of NEET youth (not in education, employment, or training) already work abroad or prepare to leave. Among young women, two-thirds cite caregiving responsibilities and the lack of social services as the main reason for exiting the labor market.
Moldovan salaries are increasingly compared with diaspora incomes, according to World Bank experts. High remittances raise wage expectations, and many workers reject low-paid or low-productivity jobs. The data shows that 42% of unemployed young people refuse job offers due to low wages, influenced by income levels of relatives abroad.
The situation worsens due to the emigration of skilled professionals. More educated and younger workers leave disproportionately, creating a skills shortage and slowing economic transformation.
Experts warn that increased labor participation does not automatically translate into higher domestic employment. Without creating more productive jobs, the additional labor supply is likely to be absorbed abroad rather than within Moldova.
The data also shows that male labor force participation remains below EU and Western Balkan levels across most age groups. Female participation stays closer to Western Balkan levels but still lags behind the EU average, especially among people aged 25–54. Youth participation remains stagnant, reflecting a structural issue tied to demographic decline.
To prevent a deeper labor market crisis, the World Bank recommends increasing participation of women and young people, expanding childcare and eldercare services, facilitating diaspora return, modernizing education, and developing digital skills. It also recommends simplifying investment rules and creating more productive jobs to retain workers in the country.
Moldova’s economy continues to face external pressures. The World Bank estimates economic growth of 1.9% in 2026, following 2.4% in 2025, while warning that the impact of the Middle East conflict, rising energy prices, and agricultural pressures will keep inflation elevated through 2027.