Expert-Grup

How Appropriate Is Liberalising the Admission of Foreign Workers to the Moldovan Labour Market?

Piața munciiProtecția socialăPolitici de creștere economicăMonday, 13 February 20235489 views
Project:
Strengthening the Monitoring Capacity of Civil Society in Moldova

Automatically translated summary. The full text is available in Romanian.

As Moldova's working-age population shrinks, easing the admission of foreign workers is increasingly discussed as a way to ease labour market imbalances. An Independent Think Tank “Expert-Grup” commentary, produced with NED support, weighs the potential benefits and risks of liberalising economic immigration and calls for policies based on actual needs.

In 2022, 17% of firms surveyed by the National Employment Agency reported labour shortages, citing a lack of experienced skilled staff (71%), few applicants (60%) and inability to offer the required pay (16%). Research suggests immigration has little or no net effect on native workers' wages and employment, may raise productivity, especially with highly skilled migrants, lowers prices of personal services and yields a positive net fiscal contribution.

The risks are also notable. Gains accrue mainly to business and wealthier groups, while low earners may lose. Unskilled immigration can discourage investment in technology and may push up housing prices. It also pressures the balance of payments through remittances: outflows already stand at USD 300-400 million, or 2.5-3% of GDP. A further 35-40 thousand immigrants would add about 1 percentage point of GDP in pressure. Decisions should rest on real constraints and domestic labour potential.

View the original in Romanian