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The Government of Switzerland, in partnership with the Government of Moldova and the International Labour Organisation (ILO), has launched the second phase of a major employment initiative aimed at transforming Moldova\u2019s labour market into a more inclusive, productive, and formal system.<\/p>\n
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Backed by 3 million Swiss Francs (approximately $3.8 million USD) in funding from Switzerland\u2019s State Secretariat for Economic Affairs (SECO), the programme\u2014\u201cInclusive and Productive Employment in Moldova \u2013 Phase II\u201d\u2014will run through 2030 and be implemented by the ILO.<\/p>\n
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The initiative comes at a critical juncture for Moldova, as the country seeks to align its labour systems with International Labour Standards (ILS) and European Union legislation, while addressing persistent structural weaknesses that continue to constrain economic growth.<\/p>\n
\nTackling Deep-Rooted Labour Market Challenges
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Despite steady reform efforts, Moldova continues to face significant labour market constraints, including:<\/p>\n
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Low labour force participation, particularly among women and youth<\/p>\n
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High levels of informal employment, especially in sectors like construction<\/p>\n
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Weak productivity growth across industries<\/p>\n
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Limited institutional capacity in labour market governance<\/p>\n
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The new phase of the programme is designed to directly address these bottlenecks through policy reform, institutional strengthening, and targeted sectoral interventions.<\/p>\n
\nBuilding on Strong Foundations from Phase I
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The second phase builds on the successes of the first phase (December 2022 \u2013 June 2025), which delivered measurable progress in several critical areas.<\/p>\n
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Key achievements from Phase I include:<\/p>\n
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Launch of a National Employment Programme aimed at reducing labour market exclusion among women, young people, and vulnerable groups<\/p>\n
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Strengthening of the National Employment Agency, enhancing its service delivery and operational capacity<\/p>\n
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Introduction of modern labour market forecasting tools, enabling more evidence-based policymaking<\/p>\n
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Advancement of social dialogue mechanisms, leading to the implementation of a national action plan on undeclared work and formalisation<\/p>\n
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These outcomes have laid the groundwork for deeper reforms and more targeted interventions in the next phase.<\/p>\n
\nStrategic Priorities for 2026\u20132030
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The newly launched phase will scale up efforts and focus on four strategic pillars:<\/p>\n
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1. Advancing Policy and Legislative Reforms<\/p>\n
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The project will support reforms in employment, enterprise development, and labour formalisation, leveraging tripartite social dialogue between government, employers, and workers.<\/p>\n
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2. Strengthening Labour Market Institutions<\/p>\n
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Efforts will focus on improving governance systems, data-driven policymaking, and institutional coordination to enhance labour market efficiency.<\/p>\n
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3. Reducing Informality in Key Sectors<\/p>\n
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A targeted push will address undeclared work in the construction sector, one of the most informality-prone industries in Moldova.<\/p>\n
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4. Boosting SME Productivity and Job Creation<\/p>\n
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Recognising SMEs as the backbone of the economy, the initiative will promote productivity growth, better working conditions, and sustainable job creation.<\/p>\n
\nInnovation Through Social Dialogue and Partnerships
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A defining feature of the programme is its emphasis on tripartite cooperation\u2014bringing together government, employers\u2019 organisations, and workers\u2019 representatives to co-create solutions.<\/p>\n
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This approach reflects a broader shift in development thinking: sustainable productivity and decent work cannot be achieved through policy alone, but require active collaboration across all labour market actors.<\/p>\n
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Val\u00e9rie Berset Bircher, Assistant State Secretary for Labour at SECO, underscored this approach:<\/p>\n
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\u201cSwitzerland is convinced that improving SME productivity in a sustainable way and creating better working conditions go hand in hand. However, lasting productivity growth and the creation of decent work cannot be guaranteed by the government policy framework alone. This is also why the project aims to strengthen tripartite social dialogue bodies in Moldova at all levels.\u201d<\/p>\n
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She added that the initiative will help SMEs create jobs, enhance productivity, and improve workplace standards through stronger partnerships.<\/p>\n
\nStrengthening a Strategic International Partnership
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The launch also highlights the growing collaboration between Switzerland, the ILO, and Moldova in advancing labour market reforms.<\/p>\n
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Peter van Rooij, ILO Regional Director for Europe and Central Asia, described the initiative as a key milestone:<\/p>\n
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\u201cThe launch of the second phase marks an important milestone in our partnership with Moldova\u2019s tripartite constituents. We will continue supporting evidence-based employment policies, stronger institutions, and effective social dialogue to promote social justice and decent work for all.\u201d<\/p>\n
\nAligning with Broader Development Goals
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The programme complements the ILO\u2019s broader portfolio in Moldova, which includes initiatives focused on:<\/p>\n
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Skills development for the green transition<\/p>\n
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Job creation in the care economy<\/p>\n
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Reform of labour market institutions<\/p>\n
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Together, these efforts aim to position Moldova for a more resilient, inclusive, and EU-aligned economic future.<\/p>\n
\nA Long-Term Vision for Inclusive Growth
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As Moldova navigates economic transformation and EU integration, the success of this initiative will be critical in ensuring that growth translates into decent work, higher productivity, and reduced informality.<\/p>\n
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By combining targeted investment, institutional reform, and social dialogue, the programme offers a comprehensive pathway to building a modern labour market that works for all.<\/p>\n
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\u00a0<\/p>\n
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