Unemployment and Labor in the Republic of Moldova During the Years of Independence

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There are a lot of problems created by the unemployment as poverty, migration, human traffic, and crime and shadow economy. Of course, unemployment is a permanent phenomenon in any economy, because frictional and structural unemployment exists every time and doesn’t make unemployment rate to be equal to zero, and in this essay I’d like to offer the analysis of the specific of unemployment and labour forces in Republic of Moldova. Firstly, I propose to analyze the unemployment rate, activity rate and employment rate. Secondly, to describe any characteristics of labour forces in my country. And after that to analyze data about the migrant workers, who work or looking for a job abroad. In general my goal is to demonstrate the evolution of unemployment and labor and to determine any problems, which the national economy met during the years after the Soviet Union. First of all I want to note that the definition of unemployment according to International Labor Organization (ILO) has been used in Republic of Moldova only from 1998, before that year the unemployment was equal to the number of official registries unemployed population. It makes impossible to compare the unemployment before 1998 and unemployment after this year. Table 1: Unemployment rate, Activity rate and Employment rate

Source: National Bureau of Statistics of the Republic of Moldova
Trend line on the Graph 1 shows us that in general unemployment rate decreases, but at the same time activity rate (Graph 2) and employment rate (Graph 3) decreases too. It means that number of population, who are working in the national economy, was decreasing during the period from 1998 to 2010 years. Also it’s important to note that the number of economically active people has reduced from 1809 thousand people to 1235 thousand people and it’s 547 thousand people, it equal to 16% of average total population in that period of time and the number of people employed in the economy reduced from 1642 thousand people in 1998 to 1143 thousand people in 2010 and it’s 499 thousand people, but the total population has reduced on 89 thousand people. It means that the weight of economically active and employed population in the national economy in total population reduced. I think that the solution of that problem is an attraction of international investments or entering in the market of international companies which are able to organize modern management and improve the competitiveness of national goods and services. The RM has the positive experience of this kind of collaboration. For example „Draexlmaier Automotive” created 3000 of the new jobs in one of the free economic zones. Graph 1: Unemployment rate

Source: National Bureau of Statistics of the Republic of Moldova Graph 2: Activity rate

Source: National Bureau of Statistics of the Republic of Moldova

Graph 3: Employment rate
Source: National Bureau of Statistics of the Republic of Moldova Graph 4: Employment population by occupations

Source: National Bureau of Statistics of the Republic of Moldova Graph 5: Employment population by areas of the economy

Source: National Bureau of Statistics of the Republic of Moldova

The Graph 4 shows us that the weight of skilled agricultural and fishery workers reduced. Analyzing the Graph 5 it is possible to make a conclusion that...
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