Moldova Poverty Assessment 2016 : A Jobs Diagnostic for Moldova - 10 Key Facts
Moldova has experienced rapid growth and increases in living standards in the past decade. The economy has grown by an average 5 percent a year in the past 15 years, while the national poverty rate declined from 26 percent in 2007 to 11 percent in...
| Main Author: | |
|---|---|
| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/909591486010045029/Moldova-poverty-assessment-2016-a-jobs-diagnostic-for-Moldova-10-key-facts http://hdl.handle.net/10986/26041 |
| Summary: | Moldova has experienced rapid growth and
increases in living standards in the past decade. The
economy has grown by an average 5 percent a year in the past
15 years, while the national poverty rate declined from 26
percent in 2007 to 11 percent in 2014; there are sharp
declines observed in the early 2000s as well. However,
Moldova’s growth model has relied on remittances, with
limited job creation. The World Bank (2016) report Moldova:
Paths to Sustained Prosperity finds that Moldova’s growth
model triggered a cycle in which men and women migrated in
search of better economic opportunities and sent remittances
home that continued to support consumption-driven growth,
and that this contributed to poverty reduction and welfare
improvement among the less well off, particularly those in
rural areas. The 10 facts presented in the note are as
follows: fact one: job losses are increasing overall, with
productivity-driven economic growth since the 2000s
benefitting a smaller number of people who were able to find
jobs; fact two: workers left agriculture and industry for
services, but the 2009 global crisis dampened the job
prospects in services; fact three: out-migration means that
Moldova failed to fully capture a demographic dividend for
the economy, and is now an aging country; fact four:
employment and wage patterns show that job outcomes are
becoming less inclusive; fact five: despite their rising
educational attainments, young people face significant
challenges finding non-farm jobs; fact six: as inequality in
earnings widens, post-secondary education still earns more,
but is becoming less of a guarantee of a better job; fact
seven: efficient firms are raising their productivity by
shedding jobs, not creating them, while firm entry and
survival rates are low; fact eight: the most productive
firms (small, young, foreign, and private) firms have the
most productive jobs, but they are not increasing their
share in employment; fact nine: while productivity is
increasing, a growing share of jobs is in less-productive
firms; fact ten: firms providing employment are typically
larger and older, while younger firms are struggling, and
fewer new firms have been launched since the crisis. It is
key to continue monitoring these trends over time and, after
the release of the 2014 census data, the labor market and
demographic challenges that the country faces will need to
be revisited to reflect a more current picture of the
situation and the prospects. |
|---|