Moldova's labor force continued to shrink in 2024, and the number of employed persons decreased, according to data from the National Bureau of Statistics (BNS). Although there was a slight improvement in the unemployment rate, however, indicators point to changes in the structure of the labor market and increased inactivity among certain age groups, IPN reports.

Last year, the labor force amounted to 889 thousand, down 4.3% compared to 2023, while the employed population rate decreased by 3.7% to 854 thousand people. The downward trend reflects, on the one hand, demographic changes and, on the other hand, economic conditions in the country. Despite the decline in the labor force, the unemployment rate decreased slightly to 4%, down from 4.6% in the previous year.

At the same time, the rate of employees aged 20-64 was 56.8%, up more than one percent from 2023. This indicator varies between men and women, urban and rural. Men have a higher employment rate of 58.6%, while women - 55.1%. In cities the employment rate is 63.3%, compared with 51.5% in villages. Nearly two-thirds of the urban population is employed, compared with only half in rural areas.

Most employees work in the service sector, followed by agriculture and industry. Undeclared work is most common in agriculture, construction and trade.

There is also a significant proportion of people who want to change jobs because of unsatisfactory incomes. In 2024, 11.9% of those employed said they would like to change jobs for this reason.

Another concern is the phenomenon of underutilization of the workforce, which affected more than 80 thousand people in 2024. This indicator highlights discrepancies between labor supply and demand, impacting labor market efficiency.

In terms of youth, the labor force participation rate remains low and the number of young people neither in education nor employed is worryingly high, reaching 13.5% among 15-24 year olds.