The Government of Switzerland, through its State Secretariat for Economic Affairs (SECO), together with the Government of Moldova and the International Labour Organization (ILO), has launched the second phase of a major employment project aimed at supporting Moldova’s transition toward a more inclusive, productive, and formal labour market. Announced on March 20 in Chisinau, the initiative, titled Inclusive and Productive Employment in Moldova – II, is designed to address persistent structural labour market challenges while aligning with International Labour Standards and relevant European Union legislation.
The new phase of the project is backed by 3 million Swiss Francs, equivalent to approximately US$3.8 million, in funding from Switzerland and will be implemented by the ILO. It responds to a range of long-standing issues in Moldova’s labour market, including low labour force participation, high levels of informality, weak productivity growth, and the limited effectiveness of labour market institutions. Through this support, the programme aims to strengthen the foundations for more sustainable and inclusive economic development in the country.
The second phase builds on the progress achieved during the first phase of the project, which ran from December 2022 to June 2025. That earlier stage delivered several notable outcomes, including the implementation of a National Employment Programme focused on reducing labour market exclusion among women, young people, and other vulnerable groups. It also helped strengthen the capacity of Moldova’s National Employment Agency, advanced efforts toward more modern and evidence-based labour market forecasting, and supported social dialogue that contributed to the implementation of a national action plan on undeclared work and formalisation.
Looking ahead, the 2026–2030 phase will focus on consolidating these results while deepening cooperation with the Moldovan government, employers’ organisations, and workers’ organisations. Key priorities include advancing policy and legislative reforms in employment, enterprise development, and formalisation through social dialogue and tripartite cooperation. The project will also work to strengthen labour market institutions and systems, address informality in the construction sector, and support productivity growth among small and medium-sized enterprises, which are seen as critical drivers of job creation and economic resilience.
A central message of the initiative is that durable productivity growth and the creation of decent work cannot be achieved through government policy alone. For this reason, the project places strong emphasis on strengthening tripartite social dialogue institutions across Moldova, ensuring that government, employers, and workers all play a meaningful role in shaping labour market reforms and implementation. This collaborative approach is intended to help create stronger partnerships, improve working conditions, and support SMEs in becoming more productive and job-rich.
Valérie Berset Bircher, Assistant State Secretary for Labour at SECO, said Switzerland believes that sustainable productivity gains for SMEs and better working conditions must go hand in hand. She emphasized that while policy frameworks are important, they are not enough on their own to guarantee lasting productivity growth or decent work, which is why the project also prioritises strengthening social dialogue structures at all levels in Moldova.
Peter van Rooij, ILO Regional Director for Europe and Central Asia, described the launch of the second phase as an important milestone in the ILO’s partnership with Moldova’s tripartite constituents. He said the ILO would continue to support evidence-based employment policies, stronger institutions, and effective social dialogue in order to promote social justice and decent work for all, while also acknowledging the strength of its ongoing partnership with Switzerland.
The new project also complements the ILO’s broader engagement in Moldova, where it is already running active programmes focused on skills development for a green transition, employment creation in the care and related sectors, and reforms to labour market institutions. Together, these efforts reflect a wider push to support Moldova’s inclusive economic transformation and strengthen opportunities for formal, productive employment.
