Experts say revenues failed to be collected in budget over unregistered labour exceed 7 per cent of Gross Domestic Product in Moldova

Chisinau, 12 January /MOLDPRES/ - Almost each forth person of Moldova’s occupied population works informally and as a result, the revenues failed to be collected in the public budget exceed 7 per cent of the Gross Domestic Product (GDP). Data to this effect is contained in an analysis carried out by the programme manager of the Business Environment and Small- and Medium sized Enterprises programme, Stas Madan.      

According to the expert, both the employees and the employers tolerate this phenomenon for various reasons. ‘’The motivations for this phenomenon are both on behalf of the employees (wish to have a higher current income, citizens’ distrust in the social contract, perception as regards the quality of public services) and on behalf of the firms (persistence of cash money in transactions, perception of high costs of compliance, low costs of non-compliance),’’ Stas Madan said.   

Data by the National Statistics Bureau shows that, in the 2021 year, the number of residents with informal jobs stood at 192,000 people, which accounts for about 22.8 per cent of the working population. According to the economic sectors, most of the occupied population is in agriculture (61.2 per cent) and constructions (22.1 per cent); they are followed by trade and HoReCa (which represents together 6.6 per cent of all informal occupation.) 

The combating of the unregistered labour is among the priorities of the authorities, with a string of policies of backing the transition to the legal labour elaborated.

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