Demographer: Migration Will Decline when Average Salary Reaches €1,000

Experts believe that the outflow of labor can only be stopped through higher wages. However, many companies are not ready to significantly increase salaries due to low productivity levels. Demographer Valeriu Sainsus argues that jobs remain unattractive because young people entering the labor market are offered very low wages, realitatea.md reports. “If we compare those just starting work and experienced employees, the salary difference is 25-30% in favor of experienced workers. Young people will continue to choose work abroad as long as unskilled labor abroad is paid more than skilled labor in Moldova. Migration will start to decline if the average salary in the economy reaches one thousand euros, even if we understand that not everyone will receive such an amount,” Sainsus said. The President of the National Confederation of Employers, Ana Groza, stated that companies cannot endlessly raise wages without productivity growth, as this would undermine competitiveness and risk bankruptcy. “We remain among the least productive countries in Europe in agriculture, industry, transport, and automotive sectors. A whole set of factors, incentives, and state support is needed for companies to become more competitive. There are modernization and efficiency programs, but you cannot expect an employee to produce more in the same hour without new technologies and digitalization,” Groza emphasized. The economy of the Republic of Moldova is facing a shortage of nearly 300,000 workers. Business representatives warn that the labor deficit is negatively affecting economic development and support attracting migrant workers from other countries. Authorities, in turn, insist on more efficient use of the domestic labor force. According to statistical data, only half of Moldova’s working-age population is employed, compared to an average of about 70% in the European Union.