ORDER OF THE GOVERNMENT OF THE REPUBLIC OF MOLDOVA

of May 31, 2007 No. 605

About approval of National strategy about politicians of employment of labor power for 2007-2015

For the purpose of improvement of situation in the market of labor power, promotion active the politician, achievements of the most full employment and decrease in unemployment, improvement of quality and labor productivity, consolidation of social unity and social involvement, especially by suppression of any forms of discrimination in the labor market, DECIDES: the Government

1. Approve National strategy about politicians of employment of labor power for 2007-2015 according to the appendix N 1.

2. To the ministries and other central administrative authorities with the assistance of representatives of patronages and industrial trade unions annually:

develop and represent till October 15 to the Ministry of Economy and Trade of project proposal of the National plan of action for employment of labor power;

develop and approve till November 1 industry action plans on employment of labor power with indication of the specific measures which are subject to realization, terms and actionees;

take effective measures for complete realization of the directing lines provided in strategy;

inform till February 10 the Ministry of Economy and Trade on the course of accomplishment of provisions of strategy, including on need of change or amendment of the planned tasks.

3. Recommend to bodies of local public authority to develop annually territorial action plans on employment of labor power with indication of the specific measures which are subject to accomplishment, terms and responsible persons and also to take effective measures for complete realization of the tasks provided in strategy.

4. To the Ministry of Economy and Trade:

develop annually based on offers of the central industry bodies of public management and bodies of local public authority the National plan of action for employment of labor power taking into account the tasks provided in strategy, and the available financial resources and to submit it in accordance with the established procedure to the Government till December 10;

generalize the materials represented by the central industry bodies of public management and bodies of local public authority, to organize monitoring and assessment of realization of strategy and to provide to the Government the relevant information annually till March 30;

together with National bureau of statistics to take necessary measures for enhancement or, in case of need, on development of the new indicators of impact assessment the politician provided in strategy on the market of labor power taking into account their harmonization with the European standards.

5. To the central industry bodies of public management and bodies of local public authority in a month after approval of strategy to make changes to industry and territorial employment plans of labor power for 2007 and to provide relevant proposals to the Ministry of Economy and Trade.

6. To the Ministry of Economy and Trade based on offers of the central industry bodies of public management and bodies of local public authority in 2-month time after approval of strategy to make changes to the Action plan on employment of labor power for 2007.

7. To impose control over the implementation of this resolution on the Ministry of Economy and Trade.

8. Recognize invalid some orders of the Government according to the appendix N 2.

 

Countersign: Minister of Economy and Trade

Igor Dodon

Minister of Finance

Mihail Pop

Appendix №1

to the Order of the Government No. 605 of May 31, 2007

National strategy about politicians of employment of labor power for 2007-2015

I. Introduction

The national market of labor power is inseparable part of economic system in general and fully reflects tendencies of its development. The high level of unemployment, inefficient system of social protection in the labor market, inefficient use of labor power and the available reserves in the organization of wages system concern to them. Dispersion of considerable part of labor power is caused by migration, accomplishment of some types of paid work in "the shadow sector" of economy, part-time employment and economic discouragement of able-bodied population.

Ratification of the main conventions (including eight basic) the International Labour Organization (further - the ILO) and accession to the different international organizations causes the necessity of adoption of accurate decisions on promotion of national policy of employment of labor power. In the context of the European integration the Republic of Moldova reviews and brings into accord with the European standards the national legal system. Thus, participation of Moldova along with other member countries of the Pact of stability in Southeast Europe in the "Review the Politician of Employment of Labor Power in the Countries of the Pact of Stability in Southeast Europe" project ("Employment policy reviews for Stability Pact countries of South-Eastern Europe") testifies to capability of the state to implement international standards in the field of work, including provisions of the Convention of the ILO N 122 of July 9, 1964 about policy in the field of employment, the Convention N 111 of June 25, 1958 on employment discrimination and occupations and the Convention N 100 of June 29, 1951 on equal remuneration of men and women for equivalent work.

Development of this strategy is caused by need of harmonization of national policy with the reviewed European strategy of employment, with recommendations of the Council of Europe and International Labour Organization. Strategy provides four main long-term tasks:

consolidation of long-term economic growth and creation of new workplaces, implementation of mechanisms of decrease in level of poverty by strengthening of social unity and solidarity in the area the politician of employment of labor power and effective and transparent management of the available resources;

increase in level of competitiveness of the Republic of Moldova in the international market from the point of view of the cost of labor power, mobility, professional qualification and capability of human resources to adapt to requirements of the flexible market of labor power;

harmonization of the labor law of the Republic of Moldova with the European Union law, equating with the European standards in the field of economic and human development and providing the minimum guarantees with the state to citizens of the country according to the ratified conventions;

reduction of the national legal system in the field of regulation of work in compliance with the purposes and standards of the Reviewed European strategy of employment.

This strategy determines the purposes, the politician plans the specific directions, processes of monitoring, financing and assessment. The matrix the politician of employment concretizes the main medium-term and long-term actions, the responsible for their accomplishment, indicators of measurement received results. The purposes of strategy will form basis for development of industry strategy and annual plans of actions in the field of employment which accomplishment will be promoted by all interested bodies of public management, the organizations of civil society having experience in the field, the international organizations, labor unions, patronages and other social partners.

Being one of premises of social unity and integration, increase in the employment level will be reached due to providing to all citizens of access to employment on the basis of the principle of the free choice, by creation of highly professional human capital and adequately paid and productive workplaces in private and state sectors of economy. Strategy will take root social partners during 2007-2015 with use of the available public financial resources, financial and technical assistance of the international organizations, technical expertize and human capital of the organizations of civil society.

Implementation in life of this strategy will help:

to increase in the employment level and increase in real wage, and as a result - to increase in the income of the population, increase in level of living and steady decrease in level of poverty;

to elimination of violation of balance in the market of labor power, to expansion of opportunities of reorientation of economically active population to new spheres of work;

to the prevention of massive layoff of workers, reduction of unemployment and increase in quantity of new workplaces, reduction of the social effects generated by dismissal of labor power;

to human development through reforming of system of advanced training, retraining and increase in labor force mobility.

This strategy is developed taking into account the purposes provided in the Strategy of economic growth and decrease in level of poverty for 2004-2006, the Action plan the Republic of Moldova - the European Union, the Millennium development goals, the National program "Satul Moldovenesc", other industry and sectoral strategy. Implementation is possible only when preserving high rates of economic growth, on condition of structural development and economic growth of private sector, through full cooperation of the Government with his partners, including from private sector, and creation of consecutive stable institutional base. This institutional base harmonized with the European principles and standards will promote forming of the economic and social climate favorable for economic development and increase in competitiveness on the international scene.

II. Strategic analysis of the labor market

2.1. Demographic provision

By provision for January 1, 2006, the country population (except for east areas) constituted 3589,3 of one thousand people, from them about 47,9 of % of men and 52, of % of women. According to preliminary data for January 1, 2007 the stable population constituted 3581,1 of one thousand people. Moldova is the European country with the lowest urban saturation, only population % 41,4 lives in the city area. Such distribution of the population in the place of residence substantially affects policy of employment of labor power which is shown by creation of workplaces both in the rural zone, and in the occupational sectors alternative to agricultural industry.

The Republic of Moldova endures pronounced demographic crisis which substantially will be reflected in the labor market in the future. This crisis is caused by demographic transition period which is noted and on a global scale (decrease in birth rate along with growth of level of child mortality). Effects of demographic transition period were aggravated with both difficulties of economic transition period and population shift.

For the last 15 years the permanent growth of coefficient of aging of the population - from 12,8 in 1990 to 14,0 in 2005 is noted (the coefficient of aging means number of persons at the age of 60 years and is 100 inhabitants more senior). Especially quickly process of aging progresses in the rural zone. The specific weight of the young population (up to 15 years) was promptly lost with % 23,8 in 2000 to % 19,0 in 2005.

Growth of coefficient of aging and natural reducing the population will lead to decrease by 2015 more than for 5-6% of total number of the population and persons of working-age. Bystry aging of the population along with low labor force mobility is integrated to serious effects, increase in the future in financial burden on the state system of provision of pensions and health care. If economic growth continues and it will be possible to return to the production rate reached in the late eighties, Moldova will face the fact of lack of labor power.

2.2. Employment of labor power

The market of labor power in the Republic of Moldova still is in transition period, is not flexible and generates severe violation of balance in structure, territorial aspect, types of employment and professional skills. It includes as the mechanisms inherited from socialist economy and the elements inherent in market economy. In recent years in the labor market the tendency to stabilization of some indicators in the field of employment is noted.

In the informal sector of economy 10,7 of % of total quantity of the population occupied in economy worked, and 35,4 of % took informal workplace. From among informally busy persons third was constituted by employees, at the same time 16,2 of % of total number of employees took informal workplace.

The structure of occupied population according to the professional status and the estimates which are carried out in the IV quarter 2006 demonstrates that employees constituted 65,9 of % of total number occupied that is 5,6% more in comparison with the same period of 2005. Working at own expense constituted 30,7 of % of total number of occupied population. Employers constituted 1,0 of % of total quantity of occupied population, from them worked with 54,1 of % in the field of trade.

For 2005-2006 number of the active measures aiming at increase in the employment level of labor power including from ranks of youth was accepted, namely: loan granting from Fund of employment of the population on profitable terms, support of labor force mobility, stimulation of employers for acceptance for work of graduates of educational institutions whose training was financed by means of the government budget, paid social jobs, etc.

The main objective of the passive measures taken in 2005-2006 consisted in expansion of categories of receivers of unemployment benefits. Since July 1, 2005 these categories were expanded and now persons who interrupted labor activity on own initiative can go on the dole.

The purpose of passive measures for social protection of the unemployed is material support of persons which are in searches of workplace by provision of unemployment benefit and payments of social insurance, benefit on professional integration and reintegration, lump-sum allowance to persons exempted from places of detention.

2.3. Unemployment problem

According to the estimates made in the IV quarter 2006, the level of unemployment (ratio of the unemployed according to the International Labor Office to the active population) over the country % 5,6 constituted. At the same time the structural unemployment very strongly varies depending on the place of residence. The most difficult situation is in the field noted in the towns of Moldova which in Soviet period depended on rather small number of industrial enterprises. The considerable specific weight of the unemployed with the long term of unemployment in the small cities has an adverse effect on human potential that leads to loss of professional skills and discouragement of the unemployed who had before high skill level which lags behind technical development more and stronger.

In the labor market it is possible to differentiate accurately several categories of the population, the most strongly subject to risk of unemployment. It is about youth and some socially vulnerable categories, and also about women who after the absence period motivated with stay in child care leave appear in the labor market, handicapped persons, persons without permanent residence, persons exempted from places of detention and organizations of social resettlement, persons having drug addiction, the former military personnel, etc.

2.4. Compensation

The important element characterizing quality of labor power in the labor market is the price of labor power in which the wages share is prevailing. Policy, realized in the field of compensation in 2001-2006, allowed to increase nominal wages in time 4,1, including in the real sector in time 4,2, and in the budget sphere in time 3,8. In this period the real wage increased in time 2,3. Despite actual growth, the nominal wage in Moldova remains extremely low as in comparison with the period previous transitional, so in comparison with other countries of the region.

The existing legislation in the field of compensation provides the maximum independence to the companies of real production sector in which the salary level depends on the located financial resources. For these companies the state establishes only the minimum guarantees in the field of compensation. For budgetary institutions compensation is completely regulated by the state and depends on the financial resources provided in the budget for the corresponding year.

2.5. Professional training in organizations

Preparation of sufficient number of qualified professionals and skilled workers is priority for consolidation of competitive potential of the human resources necessary for the modern labor market. In 2001-2006 the number of the employed young specialists did not exceed the 15,1 level of % of total number of graduates of full-time departments of universities, and on colleges this indicator constituted from 29 to 49%, young specialists in the field of pedagogics and medicine were mainly distributed. In 2006 13,6 of % of total number of graduates of full-time department of educational institutions was employed.

In recent years training process, including in system of secondary professional education amplified. At the same time still there were negative tendencies in training, and passivity of economic agents in relation to the organization of training of human resources is observed, including when training on the basis of the conclusion of contracts with educational institutions of the higher, secondary vocational and professional education.

Process of preparation in the field of entrepreneurship as pupils and students in educational institutions, and adult population, it is inefficient. Rates of continuous professional training of specialists have the academic character. Specific features of small and medium business are not taken into account. Weak coordination between organizations on training and private sector concerning assessment of the current requirements of professional skills in the labor market is noted.

In this strategy the accent in professional training of the unemployed is put on crafts (professions) mainly demanded in the labor market by economic agents and also on crafts, professions which will allow the unemployed to initiate business activity after the termination of rates. B was employed 2006 by 69% from among the trained unemployed.

III. Legislative, institutional and financial base of the labor market

The labor market in the Republic of Moldova is regulated by a number of acts most of which part (about 30 legislative and regulations) was developed and approved in 2001-2006 (the appendix N 1 to this strategy). Among the most important documents it should be noted legal acts in the field of employment of the population and social protection of persons which are in job search, migration, providing equal opportunities to women and men, the Labor code the changes made to the Code of Administrative Offences which fix the administrative responsibility for violation of the law about employment of labor power.

For effective realization the politician in the market of labor power is approved number of regulations on enhancement of regulatory base of carrying out active policy, in particular in the field of stimulation of labor force mobility, professional orientation, training, professional integration or reintegration, support in the questions connected with career development, involvement of the unemployed to accomplishment of social jobs and so forth. Number of regulations is directed to reduction of the national legal system in compliance with international standards and implementation of provisions of the ratified conventions of the ILO.

Development and promotion of state policy in the field of employment of labor power, protection of work and employment relationships, and also regulation of migratory processes are the obligations assigned to the Ministry of Economy and Trade. The politicians led to areas of professional training and training are assigned to the Ministry of Public Education and youth.

Financial resources for realization of state policy in the field of employment of labor power in the most part are allocated through Fund of employment of the population which affirms the law on the budget of the national social insurance for the corresponding year. In 2006 for Fund of employment of the population expenses in the amount of 46,9 of one million lei were approved. The main share of expenses in the total amount of fund of employment of the population is constituted by expenses on provision of unemployment benefit and social benefits by the unemployed - % 41,6, expenses on professional training of the unemployed - % 20,3. From the total amount of fund of employment of the population at the expense of the government budget 1,9 of one million lei, or % 4,1, is provided for financing of measures for social protection of the uninsured unemployed and measures directed to stimulation of employers for employment of graduates.

IV. Key problems of the market of labor power

In the course of permanent market research of labor power number of key problems which at this conjuncture require search of new decisions both on medium-term, and for the long-term period, and also attraction of considerable efforts and means is revealed. Such problems is the following:

large number of workplaces with low production of work and the insufficient pay level of work, not attractive to able-bodied population;

high specific weight of informal activities in a number of occupational sectors and industries;

high specific weight of the population occupied in agricultural industry;

the high level of unemployment among youth;

the high level of unemployment with the long period;

migration of skilled labor force abroad;

not involvement of economic agents in process of professional training of labor power and training without demand in the labor market;

low opportunities of structures of National employment agency of the population (further - the agency) on rendering high-quality services in required amounts for the purpose of integration of the population at the labor market;

passive participation of economic agents in declaring of free vacancies to structures of the agency;

the adverse demographic evolution which is shown in reducing number and aging of the population, strengthened by labor migration;

lack of adequate monitoring system and market forecasting of labor power;

insufficient participation of social partners in development and promotion politician of employment of labor power.

V. Strategic objectives of employment of labor power

The main goal of this strategy consists in ensuring more full, steady and productive employment of labor power, and also in achievement of the worthy pay level of work of human resources. These objectives will be achieved as a result of accomplishment of three tasks approved with the Reviewed European strategy of employment:

increase in number of workplaces;

improvement of quality and performance improvement of work;

strengthening of social solidarity and social involvement, mainly by suppression of any forms of discrimination in the labor market, including by sex, and elimination of regional distinctions in employment of labor power.

Politicians of employment will promote the prevention of effects of structural unemployment, encouragement of participation of labor power, including youth, and increase in efficiency of policy of integration and reintegration in the market of labor power by application of complex of incentive measures.

Tasks of this strategy correspond to the tasks established in Lisbon for member states of the European Union on realization of the Reviewed European strategy of employment. Intermediate and resulting effects of implementation the politician of employment of labor power are provided in the appendix N 2 to this strategy.

VI. Directions specific to employment of labor power

6.1. Strengthening of active and preventive measures concerning jobless and inactive persons

Purpose: increase in the employment level of labor power and decline in unemployment on the basis of active and preventive measures.

Directions politician:

creation of necessary conditions in order that each person to whom unemployment threatens or who is in the beginning of the period of unemployment could use the active measures and specific services adapted for his own requirements to prevent transformation of cyclical, seasonal or frictional unemployment in long-term structural unemployment (through training and retraining, consultation and professional orientation, labor practice);

increase in unemployment benefit along with establishment of more severe conditions for its obtaining: the proof of explicit readiness for professional retraining, to occupation of the available vacancies;

growth in volumes of the public financial resources allocated for realization of active and preventive measures on integration at the labor market, paying special attention to socially vulnerable categories of persons;

informatization of system of mediation in the labor market, enhancement of cooperation with private employment agencies of the population, more effective collection and systematization of data on the market of labor power on categories (age, sex, the region, education, the social and economic status) and creation of effective analysis system and forecasting;

increase in efficiency, degree of scope and compliance of programs of professional orientation, and also the consultation provided by the agency according to work market requirements, more effective monitoring and periodic assessment of these programs;

encouragement of joint initiatives of public sector and social partners in implementation of active measures in the field of employment of the population, the prevention and reduction of unemployment at the level of industry and economic unit;

consolidation of capacity of structures of the agency according to functional market requirements of work.

The expected results:

ensuring satisfactorier informing public on vacant workplaces and conditions of their substitution;

reducing mass unemployment by enhancement of information system and more effective equilibration of the demand and supply;

increase in number of persons employed as a result of realization active and precautionary the politician;

implementation at the level of industry and the economic agent of active measures in the labor market by formation of social partnership at the national and local levels;

improvement of quality of the provided services and capability of the agency to react to the changes happening in the labor market.

6.2. Creation of workplaces and development of spirit of entrepreneurship

Purpose: creation of the workplaces by implementation the politician aimed at promotion of entrepreneurial spirit, support of development of the small and medium companies and their transformation into the large companies creating workplaces for the long-term period with providing safety conditions and health.

Directions politician:

approval by consultations with social partners of the regulatory policy capable to substantially improve the entrepreneurial circle for the companies of all sizes and types (simplification of the legislative and ministerial procedures necessary for organization and development of the companies, simplification of access to borrowing facilities, elimination of internal barriers to export);

creating favorable conditions for increase in number and strengthening of organizations of microfinancing and simplification of access of the small and medium companies (MSP) to these credit facilities;

support of creation and development of the competitive companies in the areas requiring application of the new high technologies constituting the scientific capital;

development and promotion of programs of entrepreneurial training in system of secondary professional, secondary vocational and higher education, support of participation of the unemployed, women, socially vulnerable persons which came back from abroad migrants, youth and persons living in the rural zone in training programs to entrepreneurship or programs for reshaping and increase in skill level for repeated employment in the Republic of Moldova.

The expected results:

increase in long-term employment by means of transformation of the microcompanies and small enterprises to medium and large enterprises;

increase in number of workplaces with providing safety conditions and health by opening of new MSP;

increase in number of self-employed workers due to opening of new types of private business;

development of new types of private business in the rural zone along with increase in demand for new workplaces in areas alternative to agricultural industry;

increase in number of persons from the unemployed, migrants who came back from abroad, women, youth and socially vulnerable persons who opened own business or were again employed.

6.3. Promotion of adaptation and mobility in the labor market

Purpose: increase in adaptation of labor power to economic and social changes and providing premises for its internal geographical and professional mobility.

Directions politician:

expansion of variety of agreements on employment of labor power, increasing flexibility and labor safety and advancing legal and official forms of employment: seasonal, temporary, with part-time, etc.;

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