Torino Process 2018–2020 Moldova - National Report

The transition to the market economy, the socio-economic situation at national level, as well as the crises at European level, had a considerable impact on the labor market in the Republic of Moldova, both in terms of labor demand and labor supply.

The labor market is a loyal barometer of economic developments, strongly influencing both internal and external factors. Against the backdrop of the drop in employment, there are also observable fluctuations of occupational nature, both by gender, age, residence, and by form of ownership, field of activity, occupational status, etc.

Unemployment, precarious employment, underutilization of existing human capital, low levels of labor and wage productivity, international labor migration, discriminatory treatment of some groups of the population on the labor market - all these phenomena frequently encountered in the labor market, inevitably, to adverse repercussions on the social and political balance in the country.

According to the data of the National Bureau of Statistics (NBS) in 2018, the economically active population of the Republic of Moldova (employed population plus the unemployed) constituted 1290.7 thousand people, increasing (+ 2.5%) compared to 2017 (1259.1 thousand ).

There were no significant gender disparities in the labor force: the share of men (49.9%) was virtually equal to that of women (50.1%) and the share of economically active persons in rural areas was higher such as in urban areas: 56.5% and 43.5%, respectively.

The employed population constituted 1252.2 thousand persons, increasing compared to the level of 2017 by 3.7% (1207.5 thousand). As in the case of the economically active population, there were no gender disparities (50.3% women and 49.7% men), and the share of the employed persons in the rural area was higher than that of the employed persons in the urban area respectively 57.2% rural area and 42.8% urban area).

The Moldovan labor market has reached a balance in recent years. There is a stabilization of the activity rate around the 42% level and the employment rate around the 40% level (Figure 8). It is worth mentioning that in 2018 there is an increase in both the activity rate and the employment rate. Also, in recent years there has also been a decrease in the unemployment rate. (see Figure 8 in the report in PDF p.51).

At the same time, data from the NBS show that these 3 indicators are higher for the male population compared to the female population. Depending on the means of residence, both an activity rate and a higher occupancy rate in the urban area are attested, leading to a lower percentage of the unemployment rate in urban areas as compared to rural ones. This indicator is practically three times higher in rural areas.

As far as the age indicator is concerned, there is a lower percentage of activity and employment rate among the young population aged 15-29 years. (Table 11).

The number of unemployed, estimated according to the definition of the International Labor Office, was 38.4 thousand in 2018, decreasing compared to the level of 2017 (51.6 thousand). According to NEA data, unemployment has affected men in a larger proportion - 58.4% of the total unemployed and 65.6% of the urban population.

See Figure 9 in the report in PDF p.52.

According to the distribution of persons employed by economic activity, 452.0 thousand people or 36.1% of the total number of employed persons were active in the agricultural sector. Of these, 49% (or 17.9% of the total occupation) are those engaged in the production of agricultural products exclusively for their own consumption.

In non-agricultural activities, 800.2 thousand persons were employed, decreasing by 2.1% compared to 2017. The number of persons employed in industry (147.3 thousand) was increasing compared to last year by 2, 0% and in constructions constituted 59.5 thousand, increasing by 5.1% compared to 2017. In the services sector they activated 593.4 thousand, their number decreasing by 3.7% compared to 2017. (see Figure 3 in the report in PDF p.52).

In terms of ownership, 76.6% of the employed population worked in the private sector and 23.4% in the public sector.

In the informal sector, 15.9% of the total employed persons in the economy (2017 - 14.9%) worked and 38.5% had an informal job (2017 - 34.7%). Of the number of people employed informally, the employees accounted for 11.8%.

Of the total number of employees, 7.3% had an informal job. Wage salary is 7.1% of employees (including: 8.8% men and 5.7% women) and their largest shares are estimated for agriculture (48.2%), trade ( 17.1%), industry (7.1%) and construction (6.8%).

There is a decrease in the number of young NEETs from 320.8 thousand in 2017 to 302.7 thousand in 2018, their weight constituted 27.1% of the total number of young people aged 15-29 years (except for those who went abroad at working or looking for work).B.1.1. Situația pieței muncii.

 

The education system manufactures annually cadres that do not always meet the needs of the labor market, always evolving. In the context of the emergence and application of new technologies and requirements, the education system does not always manage to adapt to them. However, efforts are being made to improve the current situation.

In order to forecast the changes in labor demand structure as well as to increase the efficiency of employment policies, the National Employment Agency prepares an annual "Labor Market Outlook" and "The Barometer of Professionals", in which the year 2017 included a compartment with the necessary skills in the labor market. The labor market forecast provides general information on the main trends in the labor market. It is also a source of information for pre-university graduates in choosing the profession, including being an effective marketing tool for the labor market.

The above mentioned results are also confirmed by the results of the Research carried out by NEA collaborators in cooperation with World Bank experts, based on the interview of economic agents, in 2017 on the lack of skills, which are an obstacle to increasing the productivity of enterprises and the competitiveness of the force labor market in the Republic of Moldova.

According to the analysis of the data obtained in the study , the insufficient skills of the employees impede the activity of the Moldovan enterprises. According to employers, the major impediment to business activity is the lack of three skills: inadequate technical skills specific to occupation, poor motivation and unsatisfactory knowledge in the field of work ethics. These skills gaps are particularly pronounced in the case of medium-skilled workers (manual and non-manual) (workers) as opposed to highly-qualified employees (specialists). Employers say that middle-class workers lack motivation, they lack analytical and problem-solving skills, computer skills and do not want to learn new things (Figure 9). On the other hand, the activity of specialists is most often affected by insufficient knowledge of foreign languages. Although, on average, the skills gap among specialists is lower than among the average skilled workers, this is often a bigger burden on business activity, especially in sectors with a large number of skilled workers, as would be in the area of financial services, public administration and social services. Also, some employers express critical remarks about the skills of young workers compared to older workers, which is an alarming signal for the education system. The skills gap varies greatly between regions. In some regions there is a considerable lack of fundamental cognitive skills (literacy and math skills, Figure 10). In general, the results of the study suggest that education and training policies should focus more on developing competencies that are lacking in employees but are demanded by employers. It is not just technical skills and cognitive skills specific to the occupation, which are usually the focus of the education system, but also of socio-behavioral abilities. The development of socio-behavioral skills tends to be neglected in the Republic of Moldova (as in many other countries), while employers appreciate at least as much as the specific technical abilities of the occupation. Education and training policy must respond to this challenge and give young people the skills they require in the labor market to increase their employability and reduce structural unemployment on the one hand and to support the increase of productivity and competitiveness of Moldovan enterprises, other side. (see Fig. 9, 10 in the report in PDF p.54).

According to the "Agro-Food Sector Analysis" study, in order to develop the agro-food sector, it is proposed to provide support in creating the infrastructure necessary for the development of the business environment by creating Clusters, developing training programs focused on export procedures and interaction with partners aliens; developing training modules on specific activity domains; development of consultancy services in the field of export, process optimization, elaboration of marketing plans; implementing on a regular basis the periodic information seminars of Level III and II LPAs on existing support opportunities for SMEs, the benefits of AA and DCFTA, including on how to associate entrepreneurs; training and assistance in setting up producer associations .

Agrarian entrepreneurs in interviews / monitoring sheets under the PARE 1 + 1 "Remittances in Economy" programme mention that they have difficulty in hiring people who can drive modern agricultural techniques, so they often give up buying cars and advanced agricultural machinery. This is why there is a need to train agricultural machine drivers in line with market trends.

ICT Sector - Identified Issues :

1) The capacities and the number of IT specialists do not correspond to the needs of the local IT industry and the potential IT projects of large scale

• Causes of employee shortage lie in training methods that do not meet the demands of the labor market.

• Companies find it difficult to recruit experienced staff.

2) Limited investment in training and development of IT specialists.

Emigration of skilled labor.

Permanent shortage in the IT labor market.

Limited opportunities for new business deals.

• Labor shortage qualified by sector.

• The problem is more in the quality of people than in their number.

• The culture of IT certifications is still underdeveloped

 

Migration is a phenomenon of major importance for the Republic of Moldova, based on the fact that, according to statistical data, the Republic of Moldova is a country of origin rather than a destination. According to official data received from the consular offices and diplomatic missions of the Republic of Moldova abroad, in the year 2016, abroad, there were 805,509 citizens. At the same time, among the countries of destination with the highest rate of Moldovan citizens working or looking for a job are: Russian Federation, Italy, Turkey, Israel, Greece and others.

Nowadays, there is an increase in migratory flows between the ages of 25-29 years. An estimated 1% of the population of the Republic of Moldova is estimated to migrate annually. The number of Moldovans who emigrate for a long period (more than 12 months) oscillates within the range of 45-50 thousand persons per year. Thus, the aging of the country's population is amplified, because in the migration mainly young people, who are able to work, participate.

Thus, in order to efficiently manage the migration flows, the state develops policies aimed at stimulating the return of Moldovan citizens abroad, as well as creating the conditions for the legal employment of Moldovan citizens abroad, including the development of circular migration schemes.

In this respect, the Republic of Moldova develops the bilateral legal framework for the implementation of circular migration schemes aimed at facilitating the employment of Moldovan citizens abroad, but also their return and the use of the skills / abilities gained in the development of the community.

At the moment, the Republic of Moldova is implementing 2 such agreements with Israel (in construction) and Bulgaria. Please note that the Agreement signed with the State of Israel on temporary employment of Moldovan citizens in certain sectors in Israel is a genuine circular migration scheme that is successfully implemented. At present, 14 stages of recruitment and employment of citizens of the Republic of Moldova took place within the Agreement, during which 7140 Moldovan citizens working under an individual labor contract were employed in more than 20 Israeli companies.

In order to promote return and reintegration, the Government concludes treaties, including reintegration. In this regard, the Framework Partnership Agreement between the Ministry of Health, Labor and Social Protection of the Republic of Moldova and the French Office for Immigration and Integration of the Republic of France was signed for the implementation of the program of the OFI for reintegration assistance in the Republic of Moldova, concluded on 02 October 2017 for one year, with the possibility of tacit prolongation. Regarding the results of this Agreement, we mention that at the moment 158 projects of return of citizens of the Republic of Moldova to be financed by the French Immigration and Integration Office were selected in two stages.

At the same time, in order to implement the reintegration policy, the Diaspora Bureau has developed a Reintegration Plan for citizens returning from abroad for the years 2017-2021 approved by the Government Decision no. 725 of September 8, 2017, which aims at favoring the return of the citizens Of the Republic of Moldova by undertaking actions of a social, economic nature, as well as increasing the employment of returning migrants in the workplace.

Another priority direction of labor migration policies is directed to providing accurate information about employment opportunities in the country. Thus, citizens are informed about employment opportunities and unemployment protection measures that have been taken through the territorial employment agencies through the automated labor market information system of NEA, The Call Center and the electronic resources of the National Agency (site and portal) that have been permanently updated.

In this context, the National Employment Agency organized information activities (informative seminars, meetings of the Labor Club, round tables, debates), with the participation of the unemployed and young people from the graduates from all the localities of the country. Within them, information was disseminated on employment opportunities in the Republic of Moldova and services provided to jobseekers, including returnees, as well as opportunities for legal employment abroad and the risks of illegal migration.

To inform migrants about opportunities to launch and develop their own business in Moldova, we continue to administer the OSMED and the SME Portal web pages, which are continually updated with the latest news, events and useful information for entrepreneurs and those who want to launch a business in the country.

Provocări și oportunități specifice: migrația

The "PARE 1 + 1" Remittances Program for the years 2010-2021 enjoys increased interest among migrants and their relatives, which leads to a steady increase in the number of people interested in returning home or investing in remittances in the creation and development of one's own business.

During the years 2017-2018, through the "PARE 1 + 1" Program, access to finance was facilitated for 433 economic agents who signed non-reimbursable financing contracts amounting to 98.29 million lei and the volume of investments in the economy is around ROL 257.64 million. Out of the total number of enterprises with which it has signed grant agreements during the years 2017-2018:

- 174 enterprises (40.18%) are newly created;

- 125 enterprises (28.9%) are created / administered by women;

- 189 enterprises (43.64%) are created / managed by young people.

Through the "PARE 1 + 1" Programme during 2018, migrants and first degree relatives of theirs, who earned income in 26 states, received training as follows:

Training participants come from 35 districts of Moldova, covering 100% of the entire geographical area of the country, being a relevant indicator corresponding to the objectives of the PARE 1 + 1 Program.

The training course of the PARE 1 + 1 Program lasts 10 days, during which the participants are trained on the following modules: Business registration and legislation; Business management; Business Planning; Financial Management; Business accounting; Marketing and sales; Human resources management; Export procedures and DCFTA. The most appreciated way among the training participants in both analyzed periods was to be marketing and sales  .

 

The development of Moldova's information and communication technology (ICT) sector has seen an upward trend in recent years, becoming a sector of increasing importance for the national economy, with a capital stock of 7.75 billion MDL in 2016. The ICT sector has consistently contributed steadily to growth in gross domestic product over the last five years. In 2016, it provided 7.7% of the economic advance of 4.1%, due to an increase in the volume of services rendered by 4.6% compared to the previous year. International ratings position the Republic of Moldova as a state with an optimal electronic communications infrastructure, favorable to business development in the field of information and communication technology.The ICT sector is the catalyst for building a competitive regional and global economy.  Moldova's IT experience has given the country a good overall rating, which is confirmed by the country's position in international ICT ratings. (see Fig.10 in the report in PDF p.57).

However, the Republic of Moldova, as well as all countries over Europe, faces an increasing ICT skills gap and with a low level of digital literacy. The Stategy  on the development of the information technology industry and the digital innovation ecosystem for the years 2018-18-2023 states that the capacities and number of IT specialists do not meet the needs of the local IT industry and the potential IT investment projects - the core business of ICT is human capital. Although there are around 12.5 thousand employees in the approximately 750 active IT companies, of which IT professionals - about 8 thousand people - there is a shortage of qualified specialists estimated at 1000 persons. This, although only in 2016 the number of graduates in this field was about 823 people. Causes of employee shortage lie in training methods that do not meet the demands of the labor market. The same source reveals that companies face major difficulties in finding and recruiting  qualified staff. Limited investment in the training and development of IT specialists and the emigration of skilled workers create a permanent shortage in the IT labor market and limit the possibilities of launching new startups - the estimates show a shortage of skilled workforce in the about 1,000 people, the problem being more in the quality of people than in their number.

According to the National VET Student Council, ICT is still not used widely and smartly in the classroom. Often teachers lack ICT skills and competence to use these skills for didactic purposes. In many schools, there is a lack of access to computers and/or internet. In some schools, there are interactive boards but the teachers do not know how to use them. [CNE IPT 2018-02]

 These drawbacks caused by the insufficient use of information society advantages, remove many citizens from ICT-based society and economy. Since a large part of the population does not have sufficient knowledge and digital skills throughout their lives, can also reduce the access to public and social services, that will be increasingly online, as well as will hamper the Moldova‘s opportunity to participate in the global digital economy. The project ”Digital skills for employment in modern economy ” (2018-2021) aims to contribute directly to this goal, by offering VET graduates more relevant skills for information/digital economy and opening access to education for the vulnerable groups, including PwD, students from rural areas, from single-parent families, from families with income below minimum consumption basket, etc. as defined by the Law on Social Assistance no.547/2003 and the Draft Strategy Moldova 2030, anytime, from anywhere.  

 

The development of the national economy largely depends on the human capital on which it can be based, which presents a stock of education, professional training and the health of the population. This stimulates the governments of many countries to increase investment in strengthening human capital and increasing its competitiveness.

Ensuring an increase in the level of education of the population and the degree of compatibility of qualifications with current labor market requirements is an indispensable element.

At present, both the activity rates and the employment rates in the Republic of Moldova are very low in all age groups. Attracting the inactive population to the economic circuit involves strategies and training programs for this population in relation to the needs of the national economy.

In order to prevent and reduce unemployment and its social effects, reducing the risk of unemployment and ensuring a high level of employment and adapting the labor force to the requirements of the labor market was adopted in 2018 Law no. 105 on the promotion of the labor force and unemployment insurance. It comes with a diversified and modernized set of employment measures.

These measures also come as a solution to alleviating labor market demand disparities. The law provides for vocational training measures through: qualification, re-qualification, training and specialization courses; on-the-job training within the unit, for the unemployed without a profession or profession; professional traineeships for the unemployed without work experience in their profession.

At the same time, one of the main documents approved by the Government is the National Employment Strategy for the period 2017-2021 (SNOFM), approved by the Government Decision no. 1473/2016, which presents an integrated approach to relevant policies, both in terms of demand development and from the perspective of efficient labor market management. The Strategy proposes realistic solutions and measures that, under appropriate funding, contribute to the overall objective of increasing formal employment based on economic competitiveness, skills and qualifications, under conditions of sustainable and inclusive development.

In the context of the Turin Process, one of SNOFM 2017-2021's main objectives is to correlate the education system with labor market requirements for better qualifications and skills. Priority 2 of SNOFM 2017-2021 "Developing Human Capital for Higher Employment Opportunities" aims to increase the attractiveness, relevance and inclusion of the VET system and to raise awareness of the importance of lifelong learning. To achieve these targets, SNOFM 2017-2021 provides for a number of actions, such as:

1) strengthening the link between the labor market and the vocational training system in the Republic of Moldova;

2) improving the image of vocational-technical education and its promotion;

3) to improve the practical skills of graduates using the forms of internship training, apprenticeship at the workplace to facilitate the transition of the school - the labor market;

4) ensuring vulnerable groups' access to education and training;

5) improving the legal framework on lifelong learning;

6) stimulating cooperation and establishing partnerships between R & D institutions, public authorities, educational institutions and enterprises.

The implementation of SNOFM 2017-2021 is carried out in accordance with the Annual Action Plans, approved by Government Decision, which include actions that are implemented during one calendar year. The Annual Action Plan is elaborated by MSMPS with the support and involvement of public administration authorities, non-governmental organizations and development partners with competences in the field, according to internal documents.

In order to integrate young people from the Republic of Moldova into the economic circuit by facilitating the launching and development of sustainable businesses, the Government Decision no. 973 of 10 October 2018 on the approval of the "Start for Young People: A Sustainable Home At Home" programme, which has the following specific objectives:

- stimulating entrepreneurship among young people;

- developing entrepreneurial skills by providing information, advisory and educational support;

- financial support for young people to start and develop a business, with a strong focus on innovative businesses that are aligned or would contribute to sustainable development;

- facilitating the implementation of innovation, technology transfer and know-how;

- increasing the number of active enterprises and jobs in rural areas.

Under the Programme, young people will benefit from entrepreneurial training; consultative assistance; access to the databases of business service providers, suppliers of material and equipment resources, intellectual property, technology transfer and know-how, etc. necessary to carry out the activity; assistance in establishing collaboration with potential business partners, suppliers and customers, etc.

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In order to create the conditions for increasing competitiveness, diversification of the information technology industry and its orientation towards digital innovation in all sectors of the economy, the Moldovan Government endorsed the Strategy on the Development of the information technology and ecosystem for digital innovation for the years 2018-2023 and the Action Plan on implementation of the Strategy. The specific objectives of the Stategy  aim at:

-    increasing the number of people choosing an IT career and activating in the IT field by at least 25%,

-    achieving an IT employment rate of at least 50% and the degree of retention of IT specialists in industry,

-    increasing lifelong training of IT specialists and certification of at least 2000 IT specialists annually,

-    creating a minimum of 10,000 m2 of physical education infrastructure based on ICT innovation.

 

With the entry into force of Law 105/2018 on the Promotion of Labor and Unemployment Insurance, the employment measures were diversified, modernized in order to adapt them to the individual needs of the unemployed and to the circumstances of the labor market.

These measures also come as a solution to alleviating labor market demand disparities. The law provides for vocational training measures through: qualification, re-qualification, training and specialization courses; on-the-job training within the unit, for the unemployed without a profession or profession; professional traineeships for the unemployed without work experience in their profession. These measures aim to increase the chances of employing the unemployed.

At the same time, the Law also provides for the subsidization of job creation for employers employing unemployed persons requiring additional support on the labor market; employers who create jobs or adapt existing jobs for people with disabilities. Similarly, the unemployed who initiate an entrepreneurial activity, through which they create their jobs, as well as the employers who create new jobs in rural localities and employ unemployed, through subsidizing policies will be supported.

All these measures will lead to an improvement in the situation on the labor market.

Please note that Law 105/2018 entered into force on 10 February 2019 and the results of the implementation of employment measures will be visible later.

The data presented by NEA show a reduction in the number of registered unemployed from 50.1 in 2016 to 35.5 in 2018, as well as the number of unemployed persons in the labor market (Table 13). This is due to the lack of attractive active labor market measures. The enforcement of Law 105/2018 on the promotion of the labor force and unemployment insurance and the implementation of new employment measures will increase the number of persons addressed to STO.

The analysis of the distribution of the employed population registered as unemployed and placed on the labor market by sex (Table 13) does not reveal major disparities. Both the structure of employment and labor market participation show an almost uniform distribution over the reference period.

Against the backdrop of the drop in the number of registered unemployed and employed persons, a steady decrease in the share of the young population in the total employed population is observed (Figure 4). As a rule, youth is less present on the labor market, because much of it is part of the education system. On the other hand, the low share of young people in the total employed population is also determined by the difficulties they face in the employment process, especially because of the employers' requirements regarding the work experience and skills they have, but also the inadequacy job offers with their expectations. Also, long-term migration is widespread and growing among young people, a phenomenon that will continue to negatively influence the evolution of the population of working age. 

During the last years, there is a trend of diminishing the number of unemployed registered at NEA, having the same decreasing trend as the ILO unemployed according to NBS data, while the share of the number of registered unemployed registered an increase trend from 35,3% in the year 2016 to 41.4% in 2018.

In terms of gender, the number of women addressed to territorial agencies remained at the same level, accounting for about 47% of the total number of registered unemployed.

There is an increase in the share of registered unemployed with primary / secondary education and a decrease in the share of those with college / university studies compared to previous years (Figure 11). A higher share was recorded for primary / gymnasium students (52% followed by secondary-vocational (20%), high school (15%) and college / university studies (13%). (see Fig.11, 12, 13 in the report in PDF p.61).

A challenge for the labor market in the Republic of Moldova is the number of vacancies, registered and vacant. According to NEA, most of them are addressed to people with secondary vocational technical education, general environment and for unskilled workers (75%) and a lower proportion of people with higher technical and post-secondary technical education (25%). The factors that make it difficult to fill vacancies are the low level of qualification of potential employees, the inadequacy between the level of education and the workplace, and the low level of wages offered, as well as labor migration, especially of skilled workers. (see Fig. 14 in the report in PDF p.62).

During the years 2016-2018 it worked with about 5500 economic agents. The number of vacancies registered at NEA is growing. Most of the vacancies are usually offered to workers around 70% annually. Leading from: light industry, commerce, public catering, etc. The most demanded job by employers remains the searcher / seamstress, for whom the number of vacancies remains rising from 12% in 2016 to 23% in 2018 of the total number of vacancies registered during the year.

Classifying the vacancies according to the economic activities, the weight in the processing and mining industry is about 30%, followed by wholesale and retail and agriculture, forestry and fishing. For specialists, the employers' demands were mainly focused on the fields of medicine, finance, information technology, etc.

NEA is responsible for providing services (Table 14) and implementing active employment measures, such as:

- Intermediation of work, which is the priority link in the work of the agencies, which leads to the achievement of the main objective: increasing the employment rate of the population.

Over the year, the service for the inter-mediation of the work benefits in average about 25 thousand people annually, including unemployed about 22 thousand. Approximately 19 thousand individual annual employment plans were prepared to individually plan the services and measures needed for the person to be more easily integrated into the labor market. As a result, 33% of the beneficiaries were placed in the workplace and 7% were enrolled in vocational training courses. Work brokering has been carried out, including through the holding of job fairs. Thus, during 2011, 73 fairs, 2017 - 66 fairs and 2018 - 62 trade fairs and mini-fairs were organized, resulting in about 19% of the participants.

- Vocational information and counseling is a key active measure that contributes to increasing the chances of finding a job that suits the aspirations and professional training.

Over the years there has been a tendency to decrease the number of persons who have received professional information and professional services, of which: 70% have been unemployed; 30% - people aged 16-29; 46% were women; 2% - people with disabilities; 1% under 16; 1% graduates of boarding schools and orphans; 86% benefited from individual informative consultations; 13% of people received group consultations; 7% participated in the Labor Club; 1% participated in training seminars on techniques and job search methods; 1% benefited from other professional guidance activities.

- Vocational training, providing unemployed people with the growth and diversification of their professional skills in order to integrate more easily into the labor market.

During the years 2016-2018, as a result of the centralized public procurement procedures, approximately 15 educational institutions were contracted annually, offering around 39 professions / trades / vocational training programs for specialties. Most graduates of vocational training courses were trained in the professions: chef, barber, accountant. computer operator, manicurist, stitch (confectionery), confectioner.

The number of people attending annual vocational training courses is about 2.5 thousand persons, of which:

about 73% - qualification;

21% - retraining;

 6% - improvement;

57% - had primary / secondary education;

13% - general / high school general education;

11% - higher education;

13% - secondary professional;

6% - specialized secondary education;

70% - women;

57% - from the rural sector;

62% - young people aged 16-29;

58 - people with disabilities.

The share of training graduates placed after graduation is about 85%

- Public works are one of the active measures on the labor market, which contributes to the increase of the employment rate of the population and is aimed at the temporary improvement of the situation of the unemployed from the vulnerable groups, especially of the rural people.

It should be noted that, with the entry into force of 10 February 2019 of Law 105/2018 on labor force promotion and unemployment insurance, the unemployed are no longer trained in public works.

As part of the ILO Grant Agreement, in July-December 2017 NEA piloted the training of the unskilled unemployed at work, focusing on disadvantaged young people. The piloting was attended by 7 territorial agencies: Chisinau, Balti, Cahul, Soroca, Donduseni, Rascani and Hancesti. In total, 65 unemployed (average age 23) were trained in the pilot training program for the unemployed, of which 26 were chefs, 39 siblings, 52 women, 22 unemployed from rural areas.

In order to increase working capacity through training, OSMED organized several training courses during the years 2017-2018 within the programs it manages.

- 1,899 young people, including 784 women and 405 men, were trained in the "Efficient Business Management" Program;

- 278 young people, including 86 women and 192 men, were trained in the "PARE 1 + 1" Remittances Removal Program ";

- 994 young people were trained in the PNAET Program;

- 408 women were trained in the "Women in Business" Program.

In the course of 2018, in order to increase the entrepreneurial skills of economic agents and potential entrepreneurs, OSMED systematically organized information sessions on technical and financial assistance programs for SMEs in the territory under the LPA level II in 11 districts and municipalities of the country. Over 750 young people and students from secondary and higher education institutions were informed about OSMED's entrepreneurship support programs. 

Information campaigns took place at the following educational institutions:

Commencing the year 2009, NEA develops the Labor Market Forecast and Barometer of Professions. Labor market forecasts are being developed at national level in response to the need to obtain qualitative and quantitative labor market indicators and to assess the possibilities of matching and structuring labor supply. It also provides general information on the structure of employment by activity, creation of new jobs, labor shortages, cooperation of employers with territorial agencies in vocational training programs, etc.

When developing the Labor Market Outlook for 2017, a new module on competencies was introduced. As a result of this research, it was found that the lack of competencies to specialists poses a greater obstacle to the functioning of the enterprise than the lack of skills for workers, while the lack of skills for workers is considered to be more frequent than for specialists.

At the same time, the results of the Labor Market Forecasting and the Barometer of Professions are transmitted annually to the Ministry of Education, Culture and Research as a basis for the future actions of the education system, which would improve the skills situation that impedes the activity of enterprises.

As a result of the reorganization of the National Employment Agency, the Labor Market Observatory (OPM) was established within the institution, in accordance with the Government Decision 990/2018 on the organization and functioning of the National Employment Agency. The OPM operates on the basis of the a partnership signed between MHLSP, NEA on the one hand and the Ministry of Economy and Infrastructure, the Ministry of Finance, the Ministry of Education, Culture and Research, the Ministry of Agriculture, Regional Development and Environment, the National Bureau of Statistics, the National Institute for Economic Research, the National Confederation of Employers, The National Trade Union Confederation, the Chamber of Commerce and Industry, the Migration and Asylum Bureau, on the other. The purpose of the OPM is to collect, systemize and analyze the statistical data produced by NEA and other public institutions, to develop analytical studies, to forecast and forecast labor supply and demand, and to disseminate labor market information to different actors on the labor market.

During 2018, OPM developed the following analytical notes:

- "The analysis of vacancies registered in the NEA database";

- "Labor Migration and the Impact on the Labor Market of the Republic of Moldova" with the support of the MiDL project;

- Infographic with various themes.

At the same time, Law 244/2017 on Sectoral Skills Committees was adopted, which allows us to support these committees from the state budget, as well as ensures a organizational-legal form of the sector committees.

We would like to mention that the Sector Skills Committee is a responsible structure for ensuring the correlation of vocational training with the requirements of the labor market in the respective economic sector, training a skilled labor force by participating in the process of promoting vocational training policy.

There are currently 6 Sector Skills Committees, which have developed 3 Occupational Standards and 9 Projects designed to develop the communication platform in the sectors they represent.

In 2017, the National Program for Economic Empowerment of Youth (PNAET) was finalized, which was financed by the Government of the Republic of Moldova on the basis of the Government Decision no.364 of June 3, 2008, with the subsequent modifications of the Program's action until 2017. Beneficiaries The program was the young entrepreneurial individuals and legal entities in all areas of rural areas aged 18-35. Sources of financing of the program: state loans and state grants of the Investment Development Projects, recredited by the Ministry of Finance of the Republic of Moldova. As a result, there was a need for another program for young people and their active involvement in the entrepreneurial activity, which was approved by the Government Decision no. 973 of 10 October 2018 on the approval of the "START FOR YOUNG PEOPLE: A Sustainable Home Business" program.

Although the range of entrepreneurship support programs in the Republic of Moldova is quite varied, there is a lack of support for young people to start or develop their business, where their share remains relatively small, 2.4% of entrepreneurs are aged up to 24 years and 20.3% are aged 25-34 years. The statistical data identified in the entrepreneurial research process show that young people in the Republic of Moldova are more likely to start a business (44.40%) compared to adults (24.99%). Young entrepreneurs are more creative and innovative, more open to implementing innovations or introducing business methods and models that can contribute to their rapid growth and internationalization. The main problem for young entrepreneurs remains to be access to cheap and easily accessible financial resources. Thus, the involvement and support of young people in entrepreneurial activities would be a valuable solution for reducing the unemployment rate, but also for the development of the economy of the state. The few existing programs do not cover the needs of this population, which stimulates young people to seek opportunities to capitalize on their knowledge and skills in the field of entrepreneurship outside the country .

At the sectorial level, there is no common methodology applied for identification and anticipation of demand for skills in the labour market. In spring 2019 in the Agri-food Sector there were provided researches to identify the labour market needs. The Labour Market forecast was provided within the EU project DEvrAM. The results are to be used to   develop the Annual enrolment plan in VET institutions. 

The identification of the demand for skills in the labor market can also be formed on the basis of the letters of intent from the economic agents to the IIPT for the training of qualified personnel, as expected by the companies. As a result, dual co-operations are formed between partners: IIPT and economic agents, as requested by economic agents.

 

In order to facilitate integration into the labor market, the citizens returned from abroad registered as unemployed, have benefited through the NEA of vocational training services. During the year 2016, 79 citizens returned from abroad have completed qualification, retraining and refresher courses.

During the year 2017, 97 citizens returning from abroad have graduated from qualification, retraining and refresher courses.

During the year 2018 they have graduated from the qualification, re-qualification and refinement 32 citizens returned from abroad.

In the period 2016-2018, 1, 2 and 1 person from the ranks of the refugees were registered as unemployed.    

Under the conditions of the development of the market economy, the small and medium enterprises sector contributes to the improvement of the economic situation, stimulates the increase of production volume, implements new technologies and creates new jobs. A special contribution to the development of local entrepreneurship, the channeling of money obtained abroad and the return of migrant workers to the country is the responsibility of the state through the implementation of the "PARE 1 + 1" Remittances in Economy Program. Through this Program, migrant workers and their first grade relatives can benefit from a 50-hour academic training in the field of initiating, creating and developing a business; consultancy throughout the business start-up phase and support in developing business plans; of non-reimbursable financing up to 250 thousand lei on the basis of the "1 + 1 rule", ie each leu invested in remittances will be supplemented by a lion within the Program.

During the years 2017-2018, within the Program "Removing Remittances in Economy" "PARE 1 + 1", 21 training courses were organized and 613 beneficiaries were trained. Of the trainees trained, 40% (243 persons) of the participants are migrants, including 24.5% (150 persons) returning home and 60% relatives of the first degree. The share of women participating in the training is 32.5%. The geographical area of the training participants is varied, with applicants from 26 countries of the world. Most migrants returning to the country and investing in Italy are ranked I, accounting for 29.2% of the total, followed by the Russian Federation and Germany by 13.8%. Of the total number of people trained under the "PARE 1 + 1" Program, 257 young people are migrants returning home. Also, 189 enterprises created and managed by young people were funded through the Program.

The dynamic analysis of the share of newly created enterprises, created by women and young entrepreneurs, reports that in the last year the share of these indicators in the total number of enterprises contracted in 2018 tends to decrease compared to the period of 2017. (see Fig.15 in the report in PDF p.67). 

 

There were developed normative acts and implemented concrete measures aiming to strengthen professional skills of TVET students through WBL and dual TVET targeting to make the educational offer relevant to the labour market and increase the employability of VET students. To achieve the set targets there were approved

-    the Regulation on organization of dual TVET (2018),

-    Regulations on the organization of internships in secondary, post-secondary and post-secondary non-tertiary (2016), 

-    Frame Curriculum for dual secondary TVET  (2018),

-    Frame Curricula for secondary, post-secondary and post-secondary non-tertiary TVET. 

Entrepreneurship education is a compulsory subjecte in all VET programmes. This also contributes to develop entreprenoreal skills and enhance the self-employment of VET graduates.  

Furthere more, other agencies like NEA, OSMED support transition to the labour market. OSMED supports guidance on self-employment, entrepreneurship training and business start-ups, etc. The target groups cover a large share of beneficiaries including women, migrants, Roma people, disabled people, ex-prisoners and other vulnerable groups.

NEA through the territorial subdivisions trains jobseekers to vocational training courses, including the management profession (the foundations of entrepreneurship). Thus, during the year 2016, 56 unemployed graduated management courses (the foundations of entrepreneurship), of which 36 unemployed were placed in the labor market.

During the year 2017, 76 unemployed graduated the professional training courses and 53 unemployed were placed in the labor market.

In 2018, 32 unemployed people graduated from vocational training courses in the management profession (the foundations of entrepreneurship), of whom 31 unemployed were placed in the labor market. From the data, there is a decrease in the number of unemployed graduates of these courses by about 42% in 2018 compared to 2017.

As a result of the implementation of the PNAET Programme, during the year 2017, 308 young people were employed;

  - Through the "Women in Business" Program, 289 youth jobs were created, and 406 youth jobs were created through the PARE 1 + 1 Program.

Within Business Incubators, there are 110 businesses created and managed by young people, and 411 young business incubators . 

The main indicator of the quality of the VET is the rate of employment of the graduates.  Yet, there is no data avalable on the employment path of VET graduates neither on their social insertion. Thus, a functional graduate tracer studies is needed to track employment paths of VET graduates in order to monitor the impact of the VET programmes and find out whether the VEToffer converts into efficient employment.

 

In Moldova entrepreneurship is promoted by VET provider as well as NEA, OSMED and other agencies. 

Entrepreneurship education (Basics of Entrepreneurship) is available at all levels of education, be it compulsory or optional. Pursuant to Education Code no. 152 of July 17, 2014, art. 11 education mainly ends with the formation of an upright character and developing a system of skills that include knowledge, skills, attitudes and values that allow the active participation of the individual in the social and economic life, pursuing at the same time the formation of key skills, which include some entrepreneurial skills common to the entire educational system of the country, including VET. Entrepreneurship education as a compulsory subject is found in all VET programmes.

The duration of the Basics of Entrepreneurship course in VET institutions is of 120 hours (96 hours theory/practice and 24 hours consultations) and post-secondary VET institutions -(120 hours, including 90 hours of direct contact). All students of those institutions received Specifications for students and the teachers benefited from the teaching material: Tips for designing lessons and Methodological Guide for teachers.

For unemployed who have post-secondary/higher vocational education, the NEA organizes training courses in management (basics of entrepreneurship).

With the entry into force of Law no.105 / 2018 on the promotion of employment and unemployment insurance, the National Employment Agency together with the territorial subdivisions will provide advice, assistance and support in starting an unemployed business, including TVET graduates. This is an active measure of employment, aims at financially supporting the unemployed who want to start an entrepreneurial activity and regaining financial independence, creating jobs, developing the entrepreneurial skills of the unemployed, stimulating the development of new enterprises, facilitating access to finance them. Thus, the unemployed will benefit from subsidies that will compensate 50% of the expenses related to the creation of a business, but no more than 10 average monthly salaries for the economy for the previous year.

During the years 2017 and 2018, four TAIEX missions were organized in order to facilitate cluster development in Moldova by identifying the industries with the greatest potential for clustering and establishing a clear methodology for creating and developing a cluster. Thus, on September 10, 2018, in Cahul, the CREATIVE Regional Cluster, which focuses on the creative industry, was launched. During the event, the partnership agreement was signed between the 12 members representing the business environment, vocational schools and local public authorities.

And on September 11, 2018, the SORINTEX Textile Cluster was launched, bringing together 38 members. Association models applied by clusters in Soroca and Cahul have potential for replication in other industries and will serve as an example for new initiatives coming from the territory. Initiatives were made public in a Cluster Policy Cluster and Cluster Initiative Support Workshop.

Also, for the development of the entrepreneurial spirit and the employment of the graduates of the technical vocational education institutions, OSMED during the period 2017-2018 initiated and further promote the Women's Business Support and Involvement Program, the Attraction Program of the "PARE 1 + 1" Remittances in Economy, in order to create entrepreneurship support areas in the South Development Region in April 2018, started the "South Open Gate of Moldova for Businesses and Investments Promotion" project, which is implemented in partnership with the Council Raional Cimislia, South Regional Development Agency and 7 rayon councils from the South Development Region.

Taking into account the importance of supporting young people in business start-up and development, in March 2018, the Joint Opportunities in Business for Youth (JOBs for YOUTH) project was launched. On December 13, 2017, the implementation of the project began, with a total duration of 15 months. The project "JOBs for Youth" is financed by the European Union under the Moldova-Ukraine Cross Border Cooperation Program and implemented by the Organization for Development of the Small and Medium Enterprises Sector (OSMED) in partnership with Ukraine's "New Generation of Youth" . The aim of the project is to support 60 young people aged 18-35 from the Republic of Moldova and Ukraine (Odessa region) in initiating innovative businesses with a strong social and economic cross-border impact. Thus, the target group of the project is 60 young people aged 18-35 from the Republic of Moldova and Ukraine (30 from Moldova and 30 from Ukraine), 4 business consultants from both countries (2 from Moldova and 2 from Ukraine). In accordance with the grant agreement and the international treaties, the project was included in the Government Decision no. 246 of April 8, 2010 "On the application of the tax and customs facilities related to the implementation of the ongoing technical and investment assistance projects, which fall under the international treaties to which the Republic of Moldova is a party", modified by GD no. 1142 of December 20, 2017, MO nr. 451 - 463 of 29 December 2017 . 

 

At the beginning of the 2018/19 study year, 15.3 thousand pupils were enrolled in secondary technical education or 9.7% less than the previous year of study. Distribution by study programs shows that 50.7% of students are studying a job (2 years), 40.3% - two related professions (3 years), 8.5% were interested in dual education (1 -2 years) and 0.5% - a job (1 year). Compared to the 2017/18 study year, there is a clear decrease in the number of students in the 2-year training programs (by 18.8%), less in the 3-year training programs (by 6.3%), while increasing (twice) the number of students in dual education.

The gender structure of secondary VET school students shows a higher share of boys (72.6%) than girls (27.4%).

In the structure of pupils' age we recorded higher weights for 16 and 17 years of age (respectively 33.4% and 30.9%), and for the age of 18 years - 16.8% (corresponding ages secondary technical education).

Enrolment. In the 2018/19 academic year, 7.7 thousand people were enrolled or 2.0% less than the previous year of study. Of the total number of enrolled pupils, 97.3% had secondary education, over three quarters of them (76.8%) being graduates of 2018. As in previous years, the share of students enrolled in budget-financed studies was the majority (94, 3%).

Based on the secondary education, 4.0 thousand pupils were enrolled for training in a profession (of which 92.4% was financed by the budget) and 2.5 thousand were related to trades (of which 95.7% were financed by the budget). At the same time, the number of pupils enrolled for training in a trade fell by 15.6% compared to the study year 2017/18, while those enrolled in related jobs increased by 7.7%. The promotion of dual education results in a higher number of enrolled apprentices - 1.1 thousand persons compared to 0.6 thousand in the 2017/18 study year, and the persons with general or high school education who have chosen this level educational value is 0.1 thousand.

The most demanded trades were the following: car mechanic (7.2% of total registered), chef (5.5%), technical support of computers (4.1%), stitch in the garment industry (4.1% ), plasterer (3.7%), electrogazosudor-montator (2.8%), etc. At the same time, some of the crafts are also found in related professions. Thus, there are preferences for the following related professions: electrogazosudor-montator - gas cutter (5.3%), electrician-automotive auto mechanic (3.7%), chef (3.2%), electromonitor electrical - locksmith-electrician electrical equipment (3.0%), tailor made tailor-made clothing - seamstress (2.5%), etc.

Compared to the 2017/18 study year, the structure of general enrolled pupils changed, mainly for business, administration and law (1.3 percentage points increase), and for engineering, manufacturing and construction (1.6 percentage points decrease ).

Graduates. In 2018 the number of graduates constituted 7.1 thousand persons, showing a decrease of 7.0% compared to the previous year. Of the total graduates, 10.2% obtained the qualification of cook, 9.0% - computer technical support, 8.7% - auto mechanic, 8.3% - electrogazosudor-montator, 5.0% - plasterer, 4 , 4% - seamstress, 3.3% - sewing in the clothing industry, 2.6% - electromonitor electric equipment, etc.

Post-secondary non tertiary VET

At the beginning of the 2018/19 study year, post-secondary technical vocational education was 29.0 thousand students, down 2.0% from the previous year. Most students enrolled in this educational level are studying in state institutions (27.2 thousand or 93.8%).

Of the total number of students enrolled in state institutions, 13.3 thousand (48.9%) undertake contract studies.

At this educational level the share of girls is higher than that of boys (53.8% and 46.2%, respectively).

The distribution of pupils by age is as follows: 3.4% of students enrolled at this educational level are up to 16 years of age, 22.7% - 16 years old, 22.2% - 17 years old, 22.0% - 18 years old , 18.8% - 19 years, and 10.9% of pupils aged 20 and over. 

Enrolment. In the year 2018/19, 8.4 thousand persons were enrolled, of which 92% were on the basis of the gymnasium certificate.

In the state institutions, 7.7 thousand people were enrolled, including 3.7 thousand with budget financing and 4.0 thousand on contract basis. Compared to the 2017/18 study year, the number of students enrolled with budget funding decreased by 3.1%, while those registered on a contractual basis increased by 2.7%. At the same time, there was a 1.4 times increase in the number of students enrolled in non-state institutions (0.7 thousand compared to 0.5 thousand in the study year 2017/18).

In general, the largest share of students is in engineering, manufacturing and construction (29.1% vs. 30.7% in the study year 2017/18). Similarly, significant shares were recorded in the areas of business, administration and law (19.6% vs. 18.6%), health and social work (16.4% vs. 16.9%), services ( 11.0% vs. 11.8%). (see Fig.2 in the report in PDF p.72).

The most demanded were the following specialties: care of the sick (9.8% of the total enrolled), accounting (7.0%), tourism (4.2%), social assistance (2.9%), early education 9%), hairdressing and cosmetics (2.8%), wholesale (2.9%), retail (2.8%), computers (2.6% and so on

Graduates. In 2018, the number of graduates constituted 7.0 thousand people, 10% more than in the previous year. Each third specialist graduated in engineering, processing and construction, and each fifth in the field of business, administration and law, and each sixth in the field of health and social care. Of the total number of graduates, 87 percent attended high school studies and specialized courses. The number of students who passed the baccalaureate examinations in post-secondary VET institutions in the year 2018 constituted 2.5 thousand persons.

Overwall, it is important to mention, that unlike in many countries VET system in Moldova  enjoys relative social prestige. However since 2012, the number of enrolled students in VET system plummeted down, with a significant drop of 22% compared to 2012. This was due to the negative demographic trends and a downward trend in the number of gymnasium graduates (potential applicants to VET) and less likely because of the lack of attractiveness of the VET  system. Due to a generally ageing population and significant youth migration, the number of students is decreasing at all levels year by year. Apart from these, many young people migrate to study abroad. In 2014 24 200 Moldovans were studying abroad (Grigoras, 2015).

 

Equal opportunity for everyone to access VET are the key principle of the actual polices and strategies. Accessibility of VET is part of the VET strategy 2013-2020. Concrete measures have been taken to make the TVET system accessible to everyone.

According to art. 27, Law no. 60/2012 persons with disabilities have access to education at all levels (initial and continuous VET) on equal conditions with other citizens. Regulations on VET admission  reserve 20 % (secondary VET) and 15% (post-secondary VET) of the total number of places (per each specialty/trade) provided in the admission plan with budget funding for children with disabilities, orphans, children with parents with severe disabilities, children from families with four or more children, Roma children and other children from disadvantaged groups.

Many VET students are provided accommodation. Almost all students in secondary VET get stipends and all students receive free lunch and those enrolled in dual VET are paid monthly apprenticeship allowance. These benefits enable young people to take up and complete VET courses.

Access conditions to VET are stipulated by article 60 of the Education Code of the Republic of Moldova no. 152/2014. The admission to VET institutions is made based on gymnasium education (lower secondary) or lyceum (upper secondary education).

The admission plan in VET with financing from the state budget is established by the Government. The admission plan can be modified by the MECR under the condition that the modification is justified and has no impact on the budget.

The training of people with special educational needs shall be carried out according to the Nomenclature of professional training fields and of trades/professions and the Nomenclature of professional training fields, specialities and qualifications in the trades’ classes from the special schools and within the vocational education and training.

 

According to national normative acts, qualifications are defined by learning outcomes expressed in terms of knowledge, skills, responsibility and autonomy accumulated during a vocational training programme or obtained in non-formal or informal contexts and recognized according to the normative acts in force.

The description of learning outcomes in terms of learning outcomes enables all beneficiaries to better understand the qualifications they have gained in different contexts to translate them into the national and European qualifications system. The National Qualifications Framework focuses on learning outcomes and does not focus on studies.

At present, it is not regulated to obtain and recognize partial qualifications.

VET qualifications are to be developed based on Occupational Standards (OS), in line with EQF and labour market needs. At present, there are only 33 approved OS for level 3 and 81 professional qualifications (out of 200). The NQF does not have a functioning register yet. In the absence of respective OS, most of the existing qualifications were not based on an OS, thereby not following the official methodology for the development of qualifications. It is likely that these qualifications and curricula are therefore not based on labour market needs. This calls for an urgent development of new OS, qualifications and corresponding curricula, as well as a revision of existing ones. 

There is limited autonomy in curricula flexibility as it is centralized and they cannot create new TVET courses/programmes by themselves.  

First steps towards a formal Recognition of Prior Learning (RPL) were taken in January 2019: MECR approved the Regulation on validation of non-formal and informal education , to be provided by VET institutions. Four institutions (Coleges and CEx) were approved by MERC to pilot the mechanism on validation in the period from March 1st – October 1st 2019. 

Once a functioning system is established, Recognition of Prior Learning (PRL) has the potential of benefitting a wide array of learners, including returning migrants. Fees for RPL are set by VET Institution, following a pre-established cost-effectiveness ratio. For certain disadvantaged groups (unemployed, disabled, etc.), preferential financial arrangements are foreseen. However, a sustainable mechanism for recognition and validation of prior learning is still to be developed and established. 

Apart from training-related active labour market programmes for the unemployed, continuing professional development is delivered by public and private educational institutions, OSMED and some companies provide short courses for continuing VET Also some institutions for initial VET provide short courses for adults and professional retraining courses for the unemployed. Despite the high numbers of young people and adults benefiting from continuous professional training, there is no coordination between providers and no mechanism to evaluate the impact.

Regulation on validation of non-formal and informal education was aproved by MECR Order no./2019. The Regulation establishes the normative framework for the functioning of the National Validation System for non-formal and informal education, which carries out the process of identifying, documenting, evaluating and certifying the knowledge and skills acquired in contexts of non-formal and informal education, in line with the European recommendations on lifelong learning. According to the Regulation VET institution are to provide the validation of prior learning. Four VET institutions were approved by MERC to pilot the mechanism on validation in the period 1 March -1 October 2019. 

The amount of fees for validation of PL is set by VET Institution and coordinated by MECR, respecting the cost-effectiveness ratio and the certification fee will not exceed the actual costs incurred.

For certain risk groups (unemployed, disabled persons, etc.), the fee may be spread over the application of preferential financial relations or the reimbursement of candidates through funding programmes.

However, a sustainable mechanism for recognition and validation of prior learning and qualifications is still to be developed and established. 

 

Equal opportunity for everyone to access VET are the key principle of the actual polices and strategies. Accessibility of VET is part of the VET strategy 2013-2020. Concrete measures have been taken to make the TVET system accessible to everyone. 

According to art. 27, Law no. 60/2012 persons with disabilities have access to education at all levels (initial and continuous VET) on equal conditions with other citizens. Regulations on VET admission  reserve 20 % (secondary VET) and 15% (post-secondary VET) of the total number of places (per each specialty/trade) provided in the admission plan with budget funding for children with disabilities, orphans, children with parents with severe disabilities, children from families with four or more children, Roma children and other children from disadvantaged groups.

Many VET students are provided accommodation. Almost all students in secondary VET get stipends and all students receive free lunch, and those enrolled in dual VET are paid monthly apprenticeship allowance. These benefits enable young people to take up and complete VET courses.

Although, the legal framework ensures equity and equal opportunities for everyone, at institutional level most of the time VET provides lack financial and human resources to implement it. 

In order to insure that all enrolled students, including those from disadvantaged and marginalized groups, and students with special educational needs (SEN) can succeed it is necessary to develop individualised learning plans, provide additional teaching support to SEN students, free-of-charge remedial lessons to vulnerable and marginalized students that lag behind, smaller classes for SEN students, etc. Apart from this, a quality assurance mechanism is needed, for example to develop assessment and evaluation and certification tools for SEN students and other categories of students. Furthermore, new policies are needed to facilitate the social and professional integration of this category of students.

 In 2018 there was developed the Guide to Good Practice on Career Guidance and Counseling for Students and Youth with Special Educational Requirements. The Guide was developed within the VET-I project: Inclusive VET- Career guidance and counseling to support access to relevant education and training. The project is being implemented by KulturKontakt (Austria) in partnership with two NGOs working with disabled students and pupils - the "Staze" in Montenegro and the "Speranta" Center in the Republic of Moldova. The VET-I is part of the Danube Region Strategic Fund Fund, the European Union and the Vienna Municipality.

The VET-I project aims to improve career guidance and counseling for pupils with SEN in Austria, Moldova and Montenegro to ensure equal access to vocational technical education and to increase their employability. In order to achieve this goal, the three partner organizations organized a number of activities within the VET-I project. These included the assessment of existing career guidance and counseling services, the exchange of experience and best practices, consultancy activities and workshops involving key actors from different levels in each country as well as capacity building measures. This project aimed at a better understanding of the career guidance and counseling process for pupils and young people with ESCs in order to develop recommendations for improving and strengthening the capacities of service providers in partner countries.

 

According to art. 27, Law no. 60/2012 persons with disabilities have access to education at all levels (initial and continuous VET) on equal conditions with other citizens. 

Thus, even though the inclusion is grounded by legal acts, further measures are needed to implement legal provisions. VET providers face deficite of trained personnel to work with children with SEN and the infrastructure of the VET institutions is not designed to provide appropriate access to people with disabilities. On account of the architectural barriers, deficiency of adequate equipment, lack of assistant teachers and trained personnel and absence of appropriate career guidance the school environments do not favor their maximum academic and social development. Thus, financial support and human recourses capacity building is needed.

In order to implement the Inclusive Education in VET, MECR approved the Order no.1430. 9 VET institutions were selected to pilot the process in the period   between September 2018 and  June 2020 

Figure XX: The vision of the implementation Inclusive Educationin VET

Employment varies by educational attainment, with a 25.4 % gap between the high and low skilled (56 6 % and 31.2 % respectively) in 2018 (NBS, 2019). This indicator reached higher values among the male population with higher level of education – 61.1%, compared to the feminine with high level of education – 53.3%. The lowest rate of employment was registed by women with low level of education (30.1%). The same tendency was regested in the last  four years. A high level of employment (60,5%) is regested among VET dual training graduates.

In 2018 unemployment reached the highest rates (4.1%) among men with low level of education compared to the female with low level of education  with 1.8%. This is mostly due to the fact that women are more likely to accept a low-paid job, while men would rather go abroad in search of better job opportunities. Young people with secondary general education and VET indicate a higher unemployment rate compared to those with university degree, while young people with a low level of education register a lower unemployment rate, it would be due to their low activity rate and acceptance of any job with a minimum wage. The highest unemployment rate is registered among young people with secondary general education and VET and young people with post-secondary VET. Unemployment is lower for young people with a low level of education, which might be explained by their low activity rates and their acceptance of any vulnerable employment to get a minimum income.

Despite the fact that, the youth unemployment rate (age 15+) decreased from 5.0% in 2015 to 3.0 % in 2018, it remains relatively high. Nevertheless, the decrease not necessarily reflect improved employment prospects, but more likely a dwindling population, particularly young persons.

This is due to high emigration rates among young people with university degrees and a tendency among the least skilled to accept any job at minimum wage. In 2018 the employment rate of the population aged 15 + was 42.0 % and the employment rate is also higher among men (44.2 %) than women (40.0 %), despite the fact that the education level of women is generally higher than of men. In the distribution per residence area, this indicator was 42.8 % in rural areas and 40.9 % in urban areas (ibid, 2019). 

Youth inactivity  (59.6 % per cent of 15-29 year-olds in 2015 (NBS)) is a bigger concern than youth unemployment (2015-79.2 %, 2016-80.4 %, 2017-80.5 %, and 2018-79.2 %) (NBS).  The share of NEET among young people has decreased in the past five years, but remains high at 27.1 % in 2018. Reasons for neither engaging in work, nor in education or training, in particularly among disadvantaged groups, are low self-esteem, poor communication and job searching skills and low adaptation-capacities. This adds to a general sense of passiveness and discouragement in the face of Moldova’s economic situation.

Employers constantly complain about the lack of skilled workers. Companies have difficulties finding people with adequate qualifications or skills in the labour market. In a recent employer survey, carried out by the NEA and the World Bank, employers highlighted that insufficient technical skills, poor work ethic and shortage of motivation hinder the performance and development of the company (World Bank, 2017). Employers declare that young workers lack inadequate ocuppational-specific skills as well as key competences.  Thus, skilled workers have poor knowledge of foreign languages, while medium-skilled workers do not master adequate analytical and problem solving skills. Some regions of the country are strongly affected by insufficient literacy (46% in Gagauzia) and insufficient numeracy (56% in the South). More than a quarter of companies experienced labour shortages, the most common reason being a lack of qualified staff, followed by a lack applicants (ibid, 2017).

Thus, on the one hand the main obstacles of employment and problems with unemployment among youth are the lack of skills and work experience. On the other hand, the low wages and unattractive working conditions keep young people from getting employed.

Further structural reforms are needed to improve the business climate and create decent jobs in the country. 

Most of the challenges summarised above are caused by the emigration phenomenon that largely increased in the last 5 years. Emigration has an important impact on the Moldovan economy and society in terms of remittances, as well as brain drain. Being defied by economic and political instability, collapsing incomes and rising unemployment, people emigrate from Moldova on a large scale.

 

Over the last few years, the labor market of Moldova has been characterized by a large fluctuation, where employees frequently change their jobs in search of wages and better working conditions. The discrepancy between demand and supply per residence persists: 64% of registered unemployed are from rural areas, and most of the vacancies registered are urban (85%). The labor market is characterized by a prevalence of poor quality jobs and low paid jobs.

The main challenges identified with regard to the labor demand are:

- The unfavorable environment for economic growth and the creation of sustainable and quality / attractive jobs (slow progress in improving the business climate, the existence of the consumer-based economic development paradigm, the high degree of the informal economy, the lack of priorities for promoting productive transformation and support for sectors with growth potential and creating sustainable jobs, unsustainable growth with limited job creation potential, asymmetric growth, expansion of subsistence farming activities, lack of genuine social dialogue on measures and macroeconomic policies, low labor productivity).

- Lack of suitably skilled labor force, especially in rural areas, for both the agriculture and the development of business in non-agricultural sectors.

Supporting transition to the labour market 

There are significant challenges in the transition from education to the labour market. Young graduates do not have much work experience, nor do they have experience in job search. To address the challenges there are various measures implemented by public authorities focused on both the supply and demand sides.

Actions centered on the providers’ side include WBL provisions and services of career guidance and counseling. WBL is considered a win-win situation for the learner, employer and entire society and it is mandatory at all levels of TVET. Thus, much effort is invested to strengthen WBL, targeting to improve the skills and employability of young people. The implementation of dual TVET is also considered of high importance to increase the transition to the labour market. 

Other important measures are career guidance and counselling in the school system. Additionally, there are actions aimed at entering and remaining in the labour market, employment conciliation services provided by public employment services (ex. NEA , National Youth resources, CEDA, ARTICO), support of self-employment, OSMED’s support to entrepreneurship and business start-ups, etc. The target groups cover a large share of beneficiaries including women, migrants, Roma people, disabled people, ex-prisoners and other vulnerable groups.

Notwithstanding, due to the shortage of financial  and  human resources, particularly professional personnel,  and low motivation among stuff, the institutions face difficulties in implementing effective measures to support the transition to work. According to ILO evaluations in 2017, the NAE have low capacities and scarce measures to support unemployed and efficiently perform other of their operations.  Thus, capacity-building activities are needed to enhance the effectiveness of human resources in many organizations, including NAE, educational institutions. For this purpose the NEA cooperates with ILO, WB, UNDP being provided technical support. 

It is important to notice that despite the variety of services provided by different entities, the activities and programmes are sporadic and fragmented. There is a lack of cooperation between the providers of the services and a national coordination mechanism is missing. More than that, solid measures are needed on the demand side in sectoral policies, job creation, labour market regulations to ensure an effective transition to the labour market.

 

The creation of quality jobs for the young generation entering the labor market is a basic component to richer economies, fairer societies and stronger democracies. Young people are our future and our present. The opportunities that are created for today's young people lay the foundation for what they will be able to achieve tomorrow's savings.

Reaching each young man is a government priority. We want educated, active, civic-minded, professionally trained young people to start their families and work in the Republic of Moldova. In this sense, the Government's priorities in the field of youth employment are stable in several strategic documents.

One of the main documents approved by the Government, which comes to solve a number of problems faced by young people in the labor market, is the National Strategy for Employment, which has as priorities:

- strengthening the link between the labor market and the vocational training system in the Republic of Moldova

- applying incentive policies to create jobs at central and local level, stimulating young people's involvement in business, through grant programs and grant policies.

Implementation of the Strategy is achieved through Annual Action Plans, approved by Government Decision.

Another priority and strategic document is Law 105/2018 on the Promotion of Employment and Unemployment Insurance. This law comes with a number of active measures on the labor market, totally new, dedicated to young people, such as:

- Vocational training of the unemployed through training, retraining, training and specialization courses

- Workplace training within the unit

- Professional training

- Subsidized employment (young people with disabilities)

- Support for job creation

- Self-employment support

- Stimulate labor mobility

Career education is part of the policies promoted by the MECR and MHLSP, NEA and other agencies.

Systemic changes occurred in Moldova over the last 4 years in the field of career guidance.

Career guidance has been promoted in the VET system within the projects supported by development partners.

 

The Reconceptualizing Professional Orientation and Career Counseling (REVOCC) project, implemented by the Center for Entrepreneurial Education and Business Assistance (CEDA) in partnership with the Ministry of Education and NEA financed by ADA, supported a number of structural transformations related to career guidance. It  included the revision and implementation of the module “Personal Development and Career Design” within the Civic Education and Class master discipline in grades V-XII and secondary VET. There were developed and distributed two sets of teaching materials in all educational institutions and various seminars and training  were organized for about 1035 civic education teachers.

Within the framework of the same project, in 2016, three Career Guidance Centers at NEA territorial agencies (Chisinau, Soroca and Cahul). The Career Guidance Centres were equipped with technology, furniture, the CCP electronic platform that allows the identification of professional interests, helps young people in career choices, selecting from the 1250 described occupational profiles which professions fit them and presenting over 350 videos about professions.

Within the Career Guidance Centers  was created access for people with disabilities and the Chisinau Center was equipped with an electronic platform CASPER .

The project focuses on professional orientation and career counseling in order to identify solutions to existing problems, based both on the reality of the Republic of Moldova and on the international experience. Beneficiaries of the Centers are jobseekers, students and young people to explore labor market opportunities, the diversity of professions / trades, the assessment of their own skills and professional capacities, as well as professional guidance for successful socio-economic integration. 

Thus, during the year 2017, 3314 job seekers were trained (44.1% women) with 305 more people than in 2016. 168 seminars were organized with orientation professional, with 9 more seminars than in the previous year.

Within the three career guidance centers (Chisinau, Soroca and Cahul) during the year 2018, 169 activities were organized with the participation of about 4.3 thousand beneficiaries (pupils, young people and people looking for a job) , of which 52% were women. Activities aimed at exploring labor market opportunities, the diversity of professions / professions, assessing their own skills and professional capacities, as well as professional guidance for successful socio-economic integration. 655 people were screened through the CCP Platform (59% women).

In 2016 an online platform for professional guidance and orientation for children and youth – Cariera Mea, was launched addressing  the needs of students between the age of 11 and 18, and is designed to give them the opportunity to take well-informed decisions about their future career path. The portal was developed by MiLab (a joint UNDP Moldova and E-Governance Centre project) and the Republican Children and Youth Center (ARTICO) and a few volunteers. Also, ARTICO committed to take the ownership over the portal and ensure its development in the long run.

In 2018 there was developed the Guide to Good Practice on Career Guidance and Counseling for Students and Youth with Special Educational Requirements. The Guide was developed within the VET-I project: Inclusive VET- Career guidance and counseling to support access to relevant education and training. The project is being implemented by KulturKontakt (Austria) in partnership with two NGOs working with disabled students and pupils - the "Staze" in Montenegro and the "Speranta" Center in the Republic of Moldova. The VET-I is part of the Danube Region Strategic Fund Fund, the European Union and the Vienna Municipality.

The VET-I project aims to improve career guidance and counseling for pupils with SEN in Austria, Moldova and Montenegro to ensure equal access to vocational technical education and to increase their employability. In order to achieve this goal, the three partner organizations organized a number of activities within the VET-I project. These included the assessment of existing career guidance and counseling services, the exchange of experience and best practices, consultancy activities and workshops involving key actors from different levels in each country as well as capacity building measures. This project aimed at a better understanding of the career guidance and counseling process for pupils and young people with ESCs in order to develop recommendations for improving and strengthening the capacities of service providers in partner countries.

The CCI and CEDA signed a cooperation agreement aimed at guiding young people in their career to support vocational training, obtaining a qualification in a field and facilitate their integration into the labor market.

Overall, we can state that career guidance in VET regested signigficant, yet, segmented emprovments in the last four years. However, many young people still do not benefit of any counceling or guidance in this field and a better career guidance is needed while still in general school (primary/gymnasium, lyceum). Young people need a comprehensive career guidance system and better information on education choices and employment opportunities, reveals the World Bank’s report From Aspirations to Occupations: The Role of Information in Educational and Labor Market Decisions in Moldova . The study stated that 39% of undergraduateds in their final year, 43% of college graduates and 52% of vocational school graduates do not have a clear idea about their future career. 

VET provides as well as VET Centre and Methodical Centre  have to increase their capacities to offer career guidance and promote VET as a valuable career choice. 

Further more a systemic approach is neede to make career guidance efficient and  involvement of numerous actors well beyond the education system is essential.

Conclusions and recommendations.

The presentation of the general employment framework was aimed at identifying the general features of the labor market in order to identify areas where measures can be taken to improve the quality of the education system to increase the skill level of the workforce.

According to NEA's forecast, the lack of investment in the sectors requiring skilled labor and the discrepancy between knowledge gained and those actually demanded by employers will maintain the current underutilisation of human capital. This is, among other things, a result of the gap between the educational system and the needs of the labor market. Thus, a better vocational technical education system, increasing the adaptability and flexibility of the workforce to changing demands are essential to meeting the current challenges.

The interaction between the vocational training system and the labor market in the Republic of Moldova is still insufficient, with economic agents facing labor shortages and low skills. Thus, it is necessary to strengthen and expand the cooperation of vocational education institutions with employers and professional associations. This collaboration can be achieved through the modernization of the vocational guidance system, of the dual-based training programs, the more active involvement of employers in anticipating sectoral qualifications and their development.

 

Teaching and learning environment are essential for iensuring the quality of VET  process.

The initial and continuing training of teachers, school environment, the requied equepment and the provission of curricula and didactic materials have a direct impact on the quality of the professional training process. Given that VET also involves the development of practical skills in real working conditions, a quite important factor is the training of the staff involved in the VET process and the learning environment at the company.

In the last four years, within various projects many teachers benefited of continuous training cources aimed to develop and enhanche their teaching skills.

WBL is part of the VET at all levels: secondary, post-secondary and non-tertiary post-secondary VET both in the initial and continuous VET.

WBL is essential in acquiring practical skills, relevant for labour market needs and it is a compulsory element of all VET programmes. 

The main types of WBL include on-the site learning - in school practical training (2-3 days per week), carried out mostly in VET institution (workshops, labs, production sites, mini-factory, greenhouses etc.), on-the-job training - internships in companies (12-14 weeks), ordinarily realized in a business unit and dual education, mainly organized in companies (about 70% in company-practical training and about 30% theoretical training). WBL in all its forms represent the mechanisms that facilitate the transition from VET to the workplace. 

All types of WBL, and namely, in-school-practical training, internships and dual VET are mandatory, being conducted under the legal framework in force. This explains the high percentage of students carrying out WBL in the period 2012/13–2017/2018, the number being directly proportional to the number of students in VET system.

A new model of WBL, dual VET, emerged in 2014. MECR, MARDE, CCI, VET institutions, the GIZ (through a EUR 2 million project Structural Reform in VET in Moldova for the period 2015‒18) Austrian Development Agency, LED and Swiss Cooperation Office (SDC) joint their efforts to promote the implementation of dual VET. These resulted in an increased interest of youth in dual VET with the number of enrolled apprentices being 2 times higher in 2017/18 compared to the 2016/17, reaching the share of 8.5% out of the total number of enrolled students in secondary VET. Dual VET has a positive trend in the last years. Yet, theaching and learning environment differes a lot from one case to another as well as the degree of satisfaction of the apprentices. Dual VET requires investments and shared responsibilities between companies and VET institutions. It also depends on the companies’ desire and readiness to assume a high level of responsibility and on their technical and human capacity capacity. In this context, dual VET remains in little demand in the agro-food area, due to the shortage of big companies cooperating with TVET institutions, while small businesses and individual farms, mostly present in the rural areas, are not motivated and fully prepared to provide dual TVET. 

Thus, regardless the strong recognition of the importance of WBL, VET institutions still face difficulties in establishing long-term relations with the companies and the latter miss the mechanism for ensuring the quality of WBL, as firms lack the pedagogical know-how to train efficiently. 

The active involvement of the private sector in VET is essential here. However, the cooperation with the private sector is not fully exploited, mostly being limited to providing places for WBL.

The National VET Student Council reported repeatedly about a negative learning environment and about the lack of many teaching staff to create a positive atmosphere conducive for learning or to react on negative behaviours of others (e.g. bullying). [CNE IPT 2017-09, CNE IPT 2017-11, CNE IPT 2018-02; CNE IPT 2018-11]

Also, the Council reported also massive pressure of some school administrations and teachers on members of the council. This pressure increased with the receptiveness of central authorities to the Student Council. Some school administrations are welcoming a functional school council where students can form their own opinion.  Others misuse school councils for organizing extracurricular activities, or policing students. [CNE IPT 2017-09, CNE IPT 2017-11, CNE IPT 2018-02]

There is a general lack of manuals, especially regarding the occupational subjects. Also, many workshops are not equiped with the necessary equipment and tools. [CNE IPT 2017-09]

Costs for consumables (for practical lessons) are very often transferred to students. Students who cannot come up with the necessary resources risk to be in a disadvantage. [CRIC/LED 2014]

In the cold season it is often cold in the classrooms and workshops which makes learning difficult. [CRIC 2016]

Food is a regular problem. This relates to the quality of food provided by the school (canteen) or the options for the VET students to [CRIC/LED 2014]

The living and learning conditions in the dormitories are often bad. Factors are both physical (sanitary facilities, kitchen, rooms, common rooms) as well as governance related (house rules, badly motivated and trained educators and auxiliary staff). [CRIC/LED 2014; CNE IPT 2018-11]

 

There were developed normative acts and implemented concrete measures aiming to strengthen professional skills of TVET students through WBL and dual TVET. To achieve the set targets there were approved

-    the Regulation on organization of dual TVET (2018),

-    Regulations on the organization of internships in secondary, post-secondary and post-secondary non-tertiary (2016), 

-    Frame Curriculum for dual secondary TVET  (2018),

-    Frame Curricula for secondary, post-secondary and post-secondary non-tertiary TVET. 

Concrete actions were taken to implement the provisions of the above mentioned regulatory acts.  

The reform in the agricultural sector has been launched in 2019. The Action Plan  enforced by the GD 1283/ 26.12.2018 sets severel objective  including the development and consolidation of human resources capacitiea, restructuring of the infrastructure and technical-material basis and aligning curricula with the NQF 

Furtheremore, In the last 4 years various teacher trainings on modern teaching methods (action oriented) in the context of dual VET were organized by GIZ.  

Peer learning and support is a central tool of training in all KKA activities. A strong focus is put on the self-evaluation of institutions in order to challenge current methods, identify best practices and dissemination of those through peer exchange.  

In the I-VET Project new teaching methods focusing strongly on individualization through competency-based learning are introduced. In all KKA workshops teachers are trained in problem based and solution-oriented teaching and learning that is profitable not only for SEN-students but all pupils. 

Through the development of an inclusive teaching manual for VET and the training of regional institutions such as the psycho-pedagogic assistant centers a long-term knowledge transfer of the newly introduced methods is secured. 

Within the project Partnerships for quality and relevance in ICT vocational education in Moldova  an in-service training department has been established at Center of Excellence in Informatics and Information Technologies. The department became operational and provided for the first time professional development  trainings to ICT teachers from VET.

Through ADA projects it was possible for VET ICT institutions to be trained in new methods of teaching and learning, such as interactive teaching strategies, strategic management, project management, soft skills, using ICT in teaching, etc.

Despite various trainings organized by state and within various projects the system for continuous education for teaching staff in VET is not working efficiently and the trainings are sporadic and not always based on the real needs of the teaching staff. According to legal framework the Centers of Excellence should provide continuous education for teaching staff, but currently these institutions have neither the capacity, nor the resources. There is no legal provision related to alternation of specialty teaching staff of activity in real economic sector and teaching work, as well as no obligation to have a certain level of professional expertise or number of years worked in real sector of economy, fact that determines the quality of education process;

Difficulties of VET institutions to attract representatives of real economic sector working in education system, because of low salary, strict schedule and  lack of incentives.

 

The modification Nr.844, 12.09.2018 of government decision Nr. 1077, 23.09.2016 introducing financial autonomy for VET institutions has created the possibility for VET institutions to accumulate money generated from entrepreneurial activities and use that money from extra-budgetary sources for the institution’s development. 

In accordance with the Programme on Inclusive Education 2011-2020, regulation Nr.1430, 25.09.2018 on inclusive education in VET was introduced. The regulation is currently valid for nine pilot institutions until the end of the pilot-phase in 2020 and is then to be broadened to national context. The regulation allows for the introduction of resource centers for SEN-students and multidisciplinary-commissions at VET institutions in order to facilitate inclusive education at the respective institution. Furthermore, institutions are provided the possibility of employing support teachers. One support teacher per ten students with disabilities or five students with severe disabilities can be applied for by the institutions. 

The MECC and other central authorities are actively supporting the National VET Student Council and the work of student councils on the level of VET institutions. In some VET schools, the student councils are supported by the school administration.

Some projects invest in teacher training to enable teachers to create a more youth-friendly learning atmosphere. Some also improve classrooms and workshops.

The ADA projects Partnerships for quality and relevance in ICT vocational education in Moldova, implemented between 2016-2018, have focused on IT specialization by modernizing VET TIC curricula, equipping schools with IT infrastructure. Within the project an in-service training department and Multimedia Laboratory have been established within the CEITI.  In this context, it was endowed with technical equipment of last generation, among which: 12 desktop computers with licensed operating systems, 3 laptops, scanner and copier, interactive whiteboard, digital projector, educational programs and equipment that allows distance learning. The Multimedia Laboratory was equipped with 11 computers with design programs Adobe licensed, video camera, and digital projector.

The project Digital skills for employment in the modern economy – SHIFT EDU expected outcome is that the Information and Communication Technologies are effectively integrated into the vocational education and training system (based on Moldova Education Strategy 2020) thus enhancing the access to qualitative and relevant education (based on SDG 4). 

 

The NBS communicates that in the 2018/19 academic year, the network of VET institutions comprises 89 units. The number of students in VET at the beginning of the study year 2018/19 amounted to 44.3 thousand persons (4.8% less compared to the study year 2017/18. Educational and training activity in VET system is provided by 4.1 thousand teaching staff.

The teaching staff consists of teachers (teacher, foreman-instructor), methodist, psychologist, pedagogue, and  concert master, group leader, choir, orchestra conductor in other specialized VET institutions.

The auxiliary teaching staff consists of librarians, laboratory assistant and the social teacher from the

dormitories for students.

TVET institutions have the autonomy to hire and dismiss staff. Hiring of senior personnel and staff is made by competition, organized  accordance with the Regulation approved by the MECR.

Educational system including VET sector remains unattractive for young specialists, 24% of teachers being retired or about to retire. The auxiliary technical staff accounts for 56% in colleges and in the centre of excellence and for 45% in vocational schools. The number of teachers with a teaching degree is rather low (56%). In addition, there is a shortage of psychologists. 

 

The initial training of teachers, methodologists, psychologists and psycho-pedagogues for the technical and vocational education and training shall be carried out in the higher education institutions, and the initial training of teachers for specialized subjects and the social pedagogues from the pupils’ hostels – in the post-secondary non-tertiary vocational and higher education institutions within the profile programmes. 

People with qualification and professional experience in the area, regardless of the initial training may be employed as master-trainer and circle mentor after having completed the psycho-pedagogical training module successfully. 

The specialists from the economic or artistic sectors shall take a psycho-pedagogical training module to obtain the right to practice as teacher.  

It is worth mentioning that it is not necessary to experience the real sector of the economy in order to teach a VET specialty. This has a negative impact on the quality of the training process as the process is predominantly theoretical.

One of the conditions for establishing the compliance of the economic agent, for participation in the technical training programs, is the possession of a master instructor in production, certified by the CCI.

The Training and Certification Program for Production Masters is approved by the Joint Order of the CCI RM and the MECC in 2017.

It is a practical application program, with modern methods used for the transfer of work experience.

At present, there are 79 master-instructors in production.

 

The elaboration / improvement / supplementation of the normative and methodological framework to ensure the entity's functionality and quality promotion in the education system, including VET, was a concern of NAQAE throughout the year 2018, especially in the context of NAQAER reformation with the assignment of new functions and responsibilities.

In this context, in the reference period, in accordance with its functional competencies, set out in the NAQAER Organization and Functioning Regulation, the Agency has developed and submitted for approval to the MECR "Methodology for the evaluation of teaching staff in general and VET institutions "(Http://www.anacip.md/index.php/en/transparenta/consultari-publice-2 NAQAER Activity Report for 2018, Development of Normative and Methodological Support, page 11). The elaborated methodology regulates the evaluation procedure of the teaching staff of the general and technical technical education institutions in the country and establishes the objectives, the annual internal evaluation procedure of the teachers, the procedure for awarding and quantifying the score in the self-evaluation / evaluation process of the teachers, assessment tools.XXXXX……

A recent study revels that many teachers have very limited digital competences and an insufficient use the information technologies in teaching .

A baseline study on inclusive education in VET in Moldova, realized by KKA during December 2017 - January 2018  has shown significant shortcomings in the quality of VET staff in regard to inclusive education. The study has shown that "the staff of VET institutions, including support staff introduced in 2016 and 2017 (psychologist, psycho-pedagogues), lack the necessary skills to work with SEN-students and to establish partnerships with different stakeholders, which would facilitate the training process and ensure possible employment.”

The KKA I-VET Project is aiming to address these problems. Nationwide trainings in this field are planned throughout the ongoing project phases and process. Yet so far, trainings on inclusive education in VET are only available to the nine pilot institutions and three regional psycho-pedagogic assistant centers. 

 

In 2018 free continuous professional training benefited about 11,500 teaching and managerial staff and 420 teachers participated for the first time in free professional retraining courses. Also, 23 thousand pedagogues across the country have benefited from internships in curriculum reform. Furthermore the same provision remained valid for 2019. The continuous vocational training courses, quantified with 20 professional credits, according to art. 134, par. (4), lit. b) of the Education Code; additional qualification and re-qualification programs.

In order to ensure the attractiveness and retention of teachers and instructors in TVET institutions, a dual training course for instructors in production is carried out within DVT. The graduation of this course can be a part-time employment opportunity for TVET teachers from partner companies.

Teachers are unmotivated, at present, to work in VET. In addition to low wages, there are no growth opportunities for them.

Many teachers do not know a foreign language, an impediment that does not allow them to initiate collaboration with similar institutions outside the country, to access specialized information, etc.

Lack of digital knowledge is another impediment. Modern education is using IT technologies - on-line courses, the possibility of on-line and distance learning, for students, at hours that are best suitable for them. Teachers could provide trainings for different institutions in the country and thus exchange experience between institutions without transport and logistics costs, via internet platforms.

VET institutions should integrate in the teaching process new IT technologies that are already being used by companies. For example in the agricultural sector - to introduce IT integration technologies - sensors that check in real time the humidity and soil structure, how to use of drones, GPS systems, robots, etc.

In order to do this, it is necessary for VET institutions to have exchange programmes with other similar institutions abroad, to integrate into the European academic system through bilateral cooperation programs, to be transformed in development and promotional o new technologies platforms, that can immediate implemented by  local companies.

 

A factor for improving the teacher training system in TVET is the assessment of the providers of Continuing Teacher Training for authorization of provisional functioning / accreditation of study programs / educational institutions, granting the right: in case of evaluation making provision, conducting the process of education and organizing admission to studies, and in the case of accreditation, conducting the process of education, organizing admission to studies and completion of studies, as well as the right to issue diplomas, certificates and other study documents recognized by the MECC.

In this context, in the course of 2018, ANACEC, in priority, received the applications / files of the providers of Continuing Teacher Training, including TVET, finally summing up 140 applications / evaluation files of the in-service teacher training programs within the 13 higher education institutions providing educational services in the country, out of which 25 programs, with a view to authorization of provisional functioning and 115 programs, for accreditation.

Of the total number of programs, 2 programs were assessed for provisional authorization in 2018, the others will be evaluated in 2019.

Another factor for improving the VET teacher education system is the motivation of institutions and the stimulation of teachers for professional development.

In this context, it should be mentioned that a separate point of the External Evaluation Guide for Vocational Training Programs in Technical Vocational Education (hereinafter "External Evaluation Guide") (http://www.anacip.md/index.php/en / legislation / anacip / guides), elaborated on the basis of the External Quality Assessment Methodology for Authorization of Provisional Operation and Accreditation of Study Programs and of Higher Technical and Higher Technical Education Institutions, approved by GD no. 616 of 18.05.2016 (hereinafter referred to as the Methodology for External Evaluation of Quality) is Standard 5, Teaching Staff; which implies the assessment of the staff development strategies by the evaluation experts of ANACEC, including the support of the institution regarding the continuous training of the teaching staff, expressed through various incentives, including financial ones.

Training for teachers and foremen from VET institutions conducting dual programs is organized with the participation of experts from Germany. Also, training sessions were organized in Germany for a number of management and teaching staff from VET institutions.

Within VET, teachers have increased access to modern technologies within their partner companies, thus assuring the development of technical skills in line with modern standards and technologies.

Within the ADA projects, for quality and relevance in ICT vocational education in Moldova, implemented between 2016-2018, a series of professional development trainings have been organised for IT teachers in VET in partnership with IT companies, such as IT Essentials, CCNA Training, Java fundamentals, ASP Net, NET fundamentals, Cisco ITE, Robotics, etc. Within the project an in-service training department and Multimedia Laboratory have been established within the CEITI and the trainers have been trained. It is already operational and provide professional development opportunities for teachers of IT specialties and trades from VET institutions. 

Projects like REVOCC and CALLIDUS for Centers of Excellence are directly contributing to the capacity building of teaching staff. 

CONSEPT regularly dedicates management courses for administration staff of VET schools to topics like HR management/leadership/teambuilding. A good team spirit should help retain good teachers.

 

LED is playing and important role in supporting the teaching staff from VET institutions concerning the implementation quality management and implementation of all the provisions related to quality education in VET. GIZ provides training sessions for teachers and foremen instructors within companies.

In  2019 the Twining Project was launched. One of the components of the Twining is Improvement of Quality Assurance mechanisms for VET and Life Long Learning at all levels of education. The expected results of the Component 1 are the following: Institutional and operational capacities and staff competences of the National Agency for Quality Assurance in Education and Research (ANACEC) are strengthened and National Qualifications Framework of Republic of Moldova is further implemented.   

In inclusive education a system already established in general education is now introduced as well in VET. Through close cooperation of VET institutions and regional psycho-pedagogic assistant centers the effectiveness of teachers in the area of inclusive education is monitored in a regular exchange between the institution and its regional assistant center in which didactic support and training on current teaching methods is offered. This collaboration was established trough MECC regulation Nr.1430, 25.09.2018.

 

According to the Education Code, quality in education is one of the main principles and it includes “… all the characteristics of a study programme and the providers, by which expectations of beneficiaries are met in terms of quality standards”. 

At national level quality management is ensured at all levels of education by MECR and NAQAER, established in August 2014) and at the institutional level-by the respective quality assurance structures in education. 

Every five years TVET institutions and training programmes (initial and continuous) offered by them are subject to external quality assessment carried out by NAQAER.

Quality assessment is a complex set of self-assessment, internal evaluation, and external quality assessment activities, in line with approved accreditation standards, criteria and indicators.

 Quality assessment refers to: institutional capacity; educational efficiency, including academic achievement/ learning outcomes; the quality of initial and continuous training programmes; institutional quality management; the consistency between the internal assessment and the real situation.

In 2017, NAQAER launched the procedure of external quality evaluation for accreditation of VET institutions, private and public ones, and VET programmes.

In 2018, NAQAER evaluated 16 programs from 4 VET institutions for temporary / accreditation authorization, which were authorized for provisional / accredited operation by the NAQAER Board of Directors decision of 19.12.2019, which is around 5% of the total number of VET programs / institutions in the country, so it is currently premature to make substantiated findings on the relevance and quality of VET content.

At the same time, in the context of VET quality, the first positive results related to dual education, alternative form within the technical vocational education system, which are organized by granting the theoretical and practical training within the technical vocational education institution and the economic agent, with the use of its means in order to acquire knowledge, skills and competences, recorded in the Memorandum on Partnership for Development of Dual Technical Education in the Republic of Moldova, signed by the Chamber of Commerce and Industry of the Republic of Moldova, the Ministry of Education and the " Structural Reform in VET in the Republic of Moldova "on December 14, 2016, https://chamber.md/invatamant-dual/.

Out of the 16 training programmes mentioned, 3 programs (from 2 TVET institutions) are with dual education (http://www.anacip.md/index.php/en/transparenta/consultari-publice-2 ANACEC. Activity Report for 2018, VET, p. 17). (to be verified at MECR)

According to the Education Code, professional qualifications are awarded in line with the NQF. The NQF was approved by Government Decision in November 2017, aiming to establish an integrated, open and flexible national qualification system covering all levels and forms of professional education, including lifelong learning, oriented to meet the needs of the labour market, align to the country's economic development and align with European policies. The NQF is developed by MECR in collaboration with line ministries, SC, TVET institutions, employers’ representatives and it is approved by the Government.

The NQF of Moldova has 8 levels, following the model of the EQF. Secondary, postsecondary and post-secondary non-tertiary TVET cover levels 3, 4 and 5 of ISCED. The qualification levels delimit the quantitative and qualitative parameters of the professional skills possessed by the graduate to be able to practice the trade/ specialty in line with the NQF.  Education outcomes, by qualification levels of the NQF, determine the general requirements of knowledge, skills and competencies that a person can demonstrate after completion of studies. Structure description of qualification levels in the final chapter of study/learning outcomes is analogous to that of EQF.

The qualifications in TVET are to be developed based on OS for each level of TVET, in line with EQF and needs for skills in the labour market. At present, there are only 33 approved OS for level 3 and 81 professional qualifications (out of 200) and NQF does not have a functioning register yet. In the absence of OS most of the Qualifications were not developed based on OS as stipulated in the Methodology for the development of qualifications. Hence, the compliance of the contents of Qualifications and Curricula with the labour market needs is questioned. In this context, there is an urgent need of new OS and Qualifications to be developed as well as a revision of the existent ones including the revision and modification of the Curricula to make the TVET offer relevant to the labour market needs.

There is no commonly shared understanding of quality in VET. There are teaching standards, but they are not valid for VET (but for general education).

MECR is funding specialized teacher training courses for better assessment of knowledge but also for skills offered by the Centre for Continuous Training of the Technical University. Some donors do the same.

According to the Education Code, quality in education (including TVET) is the set of characteristics of a study program and its bidders, which satisfy the expectations of the beneficiaries in relation to the quality standards.

The external quality assessment criteria and the accreditation standards are set out in the External Quality Assessment Methodology.

The operational and instrumental mechanisms of external evaluation of the quality of study programs and educational institutions, institutions and organizations providing educational services are stipulated in the External Evaluation Guidelines.

External evaluation of quality in TVET, according to the Education Code, art. 65, is carried out by ANACEC, as well as by other authorized structures.

The external evaluation shall be carried out on the basis of the accreditation standards, the criteria and the performance indicators set out in Annexes no. 2-7 of the External Quality Assessment Methodology, as well as the evaluation standards and the mandatory minimum evaluation standards set out in the External Evaluation Guide for Vocational Training Programs in Technical Vocational Education, elaborated on the basis of the mentioned Methodology, approved by the Council of leadership of ANACIP from 23.06.2016 http://www.anacip.md/index.php/ro/legislatie/anacip/ghiduri).

CNCRM is a tool that contributes to quality assurance and mutual trust building at the international level: it ensures the transparency of the national education and training system, the exchange of information at the level of institutions, the labor market, educational systems in the European space.

The development and revision of the qualification standards is carried out according to the Methodology of elaboration, revision and validation of the qualification standards. All stakeholders are involved in the process of developing, validating and revising qualification standards: line ministries, sectoral committees, employers, training institutions and other relevant social partners. The qualification standard also includes the chapter on the quality assurance process.

At the basis of the process of ensuring the quality of education and training are the principles:

1) the responsibility of education and training providers for the quality of the educational offer;

2) the internal (self-evaluation) quality assessment carried out at the level of the education and training provider;

3) external quality assessment by the competent authority in the field;

4) Demonstration of the fulfillment of the quality criteria by presenting evidence by the education and training provider.

The external evaluation of the quality of vocational training is carried out by the National Agency for Quality Assurance in Education and Research or by another quality assessment agency accredited according to international standards and / or included in the European Quality Assurance Register for Higher Education on the basis of the Methodology of external quality assessment with a view to authorization of provisional functioning and accreditation of study programs and technical, higher education and continuous training institutions, approved by Government Decision no. 616/2016.

The processes through which quality is ensured are:

• Planning learning outcomes;

• monitoring the results;

• internal and external evaluation;

• Continuous improvement of educational outcomes.

 Quality control

Quality control includes operational activities performed to meet quality requirements by regulating performance and is a process of maintaining standards, not creating them.

In vocational school these are done both through permanent internal assessments by the school administration and a planned complex evaluation of each department / section, of other subdivisions.

In the Administrative or Teaching Boards the activity reports of different subdivisions of the school are evaluated and presented. Also, at the end of the study year, the departmental chairs, other subdivisions of the schools present activity reports.

Quality controllers are:

• Director of the institution;

• Deputy directors;

• Internal Evaluation and Quality Assurance Committee

• Heads of sections;

• Other persons designated by order.

                  Improving quality

• Strategic guidelines for improving the quality of school education are:

• Strategic planning at school level and subdivisions;

• Attracting financial sources for the development of the technical-material base;

• Attracting national and international educational projects;

• Ensuring high school success;

• Decrease in school absenteeism, etc.

Considering that we are in a society that is constantly transforming and these transformations are at the moment very accelerated, sure that quality assurance mechanisms at different levels of education require a perpetual update.

 

In accordance with the External Quality Assurance Methodology, the ANACEC Board of Governors, after approving the decision to initiate the external evaluation procedure, designates the nominal membership of the external evaluation commissions consisting of evaluating experts with competences in the field of vocational training of the program which verifies the achievement of accreditation standards by examining the institution's self-assessment dossier and visit to the institution, as well as the evaluation standards and the minimum mandatory evaluation standards set out in the External Quality Assessment Guidelines.

Within 30 working days of the day of the visit, the external evaluation committee shall prepare the external evaluation report, which contains a qualitative and quantitative analysis of the self-assessment report submitted by the educational institution, validated by the evaluation visit , the trends from the previous evaluation (in case of re-accreditation), the strengths and weaknesses identified at the institution evaluated and validated by the external evaluation committee, as well as a series of recommendations on improving the quality of the study program that are transmitted to the institution, as well as the MECC.

These recommendations can serve as a basis, including for initiating change or for improving training programs.

 

An important component of the External Quality Assessment Guide is Standard 3, Student-centered Learning, Teaching and Assessment, on the basis of which the External Evaluation Committee can assess the existence of existing competences related to the Vocational Training Program. This standard includes such performance indicators as: the forms of organizing the teaching-learning process; Student-centered teaching teaching methods; the use of ICT tools in the teaching-learning-evaluation process; organizing internships; the existence of collaboration relations with institutions - bases of practice; organizing the process of evaluating learning outcomes; organizing the process of evaluation of internships.

In order to remedy the situations identified during the external evaluation of the study programs, ANACEC elaborated and approved by the Decision of the Management Board of the Agency (as of March 15, 2019) "The monitoring procedure can evaluate the study programs and the technical vocational education institutions , which aims at: continuous monitoring of the actions and measures to improve the quality assurance process undertaken by technical, higher education and in-service training institutions as a result of external evaluation activities study programs and educational institutions.

This procedure describes the stages that the educational institutions will undertake in the post-evaluation period in order to achieve the intended purpose and will be applied by the ANACEC Continuing Technical and Continuing Education Assessment and Higher Education Evaluation Directorate following the following steps :

1. Study programs and educational institutions shall be subject to the external quality evaluation procedures periodically (once every five years or at the expiry of the provisional / accreditation authorization period).

2. Educational establishments will initiate and complete corrective / preventive actions when the external evaluation process is completed to eliminate the causes of non-conformities detected in the external evaluation process or to prevent possible future non-conformities.

3. The recommendations made by the evaluating experts in the external evaluation process of the quality of the study programs and the educational institutions will be optionally applied by the institution in the subsequent development of the programs / educational institutions.

4. Educational institutions shall develop within 3 months (6 months in the case of the summer period) from the approval of the decisions of the Board of Directors of ANACEC, corrective action plans for the mandatory improvement areas and recommendations made by the members of the Commission external evaluation with provisions, responsibilities and deadlines.

5. For accreditation standards which partially meet the requirements (where 50-90% of the performance indicators correspond to the minimum level established by the Agency), the educational establishment will develop the Corrective Action Plan based on the Commission's recommended recommendations and areas of improvement evaluation in the External Evaluation Report and will present the actions undertaken to remove the non-compliances identified in the external evaluation process until the final decision on the accreditation of the study program is taken.

6. In the case of study programs that have obtained the non-accreditation decision, the educational institution will present annually a plan of progressive measures taken to improve the quality of the study program. In the event of serious non-conformities, ANACEC reserves the right, with the prior prevention, to carry out monitoring visits to the institution.

7. In the case of authorized / accredited study programs for a period of 5 years, the corrective and preventive measures will be implemented by the educational institutions during the period of validity of the decision to authorize the temporary functioning or the accreditation of the study programs or of the educational institution .

8. Corrective action plans will be developed separately for each evaluated study program as well as for institutional assessments. Corrective action plans may be included as part of the Business / Operational Plans of the institutional quality assurance structures.

9. Corrective action plans will be submitted for monitoring to the Agency's Specialty Direction (paper and electronic format) within the deadline set earlier.

10. The educational institutions shall draw up a Report on the implementation of the Corrective and Preventive Action Plan undertaken as a result of the external evaluation of the quality of the curriculum / educational institution, indicating the results obtained from the corrective actions.

11. The report on the implementation of the Corrective Action Plan is presented together with the minutes on the examination of the observations and the decisions made by the educational institutions as part of the self-evaluation dossier at the expiry of the provisional authorization / accreditation / re-accreditation period of the program education / educational institution (indicator 10.1.2 External evaluation guide).

 

TVET Governance is centralized. The Ministry of Education, Culture and Research (MECR) is the key actor responsible for  TVET governance and policy development. It acts through its bodies which including 

-    TVET Department, 

-    LLL Department, 

-    TVET Centre and 

-    National Agency for Quality Assurance in Education and Research (NAQAER). 

TVET institutions in the agro-food sector and in healthcare professions have a double subordination to MECR and to their line ministries (Ministry of Agriculture, Rural Development and Environment (MARDE) and Ministry of Health, Labour and Social Protection (MHLSP)). 

TVET Centre  (TVET Centre) and Methodical Training Center  (MT Centre) are supposed to provide a solid technical support to TVET system, MECR and MARDE. Their objectives include promoting TVET policies, analysis of the situation; development of policy documents; to assist MECR/MARDE in developing the regulatory and normative framework; elaboration of the curricula, development of methodologies, carrying out training in career guidance and counseling; coordination of the continuous training of the teaching/managerial staff, through conferences, seminars, round tables, etc. However, these entities face difficulties to fulfill their attributions due to the lack of financial and human capacities and both entities are understaffed because the wages are very low. 

The role of social partners, SC (sector committees), CCI, Organization for Small and Medium Enterprises Development (OSMED), business associations, NAE is essential to approach labour market demand and TVET offer by improving the acquired professional skills. They mainly have a consultative role in TVET. Social partners are involved in the process of SO and qualification development, facilitate the transition to the labour market, strengthen the link between private sector and TVET system, etc.  

In spite of good progress in reforming the legal framework, the implementation of the new legal provisions lags behind, which seriously hinders reaching the set policy results and policy integration. This is to a large part due to weak institutional capacities, understaffed institutions but also to poor coordination and cooperation between key TVET stakeholders, in particular in the context of the National Coordination Council for TVET, but also in terms of multi-level and multi-stakeholder governance.

 

Social partners, civil society and TVET providers are consulted in the process of development, implementation and monitoring the new strategies and policies. They participated in the development or validation of the policies, strategies, regulatory documents. Among the key stakeholders with a consultative role in VET governance and policy making are the CCI , SSC, Employer’s Organizations, Trade Unions, Council  of VET students, donors (LED, ADA, GIZ, SDC) and bilateral development agencies. The OSMED is active in policy implementation, with training projects focused on developing entrepreneurial skills. International stakeholders (ETF, USAID, UNDP, WB, ILO) provide technical support for capacity building and VET reform implementation. The development of NQF (National Qualification Framework) is coordinated by MECR in collaboration with other line ministries, SC, VET institutions, employer’ organizations.

Other important actors are to be SC. In November 2017, the Parliament approved the Law on sectoral committees, adopted by the Parliament. The need for this document was dictated by the lack of legal personality of SC, which hindered their interaction between the VET system and the labour market.

SCs are set up at the level of the branches of the economy for general consultations and negotiations. SC aim to boost the correlation between TVET offer and requirements of the labor market. Some of the envisaged functions of the SCs include: 

-    providing a platform for communication and cooperation between the social partners and public authorities and VET providers;

-    contributing to the development of the normative framework on VET;

-    elaborating and revision of OS,  

-    participating in the elaboration, development and updating of the qualifications;

-    participating in the elaboration of the NQF;

-    promoting and encouraging the participation of employers, employees in IVET and CVET;

-    encourages the participation of social partners, other physical and legal persons in the promotion and development of VET;

-    participating in the qualification exams, the certification of prior learning;

-    engaging in skills needs analysis and anticipation;

-    make proposals for updating the Occupational Classifier, 

However, SC are not yet in a position to play these roles efficiently.

In 2014 MECR approved the concept of the "Social dialogue platform in TVET" aiming to strengthen and maintain an effective dialogue and partnership relations between business environment and TVET system. In December the same year, the National Coordination Council for VET (VET NCC), is set up by the Government as an advisory body targeting to create the platform for dialogue in TVET. The mission of the Council  is to ensure the synergy between VET, labor market and national economy. The Council has to meet at least four times a year or whenever necessary and has the following powers:

-    coordinates the process of developing, implementing, monitoring, evaluating and reviewing reform policies;

-    makes recommendations on strengthening the partnership, modernization of TVET institutions and content of study programmes, the system for evaluation and certification of qualifications;

-    promotes collaboration between ministries, other central administrative authorities, employers and trade unions;

-    perform and monitor the reforms of VET;

-     contributes to increasing the transparency and relevance of reforms, etc.

Although the Council contributed to a better cooperation between the key VET, there is still a deficit of active business involvement in TVET and the dialogue with social partners cannot be classified as being strong. The existing 6 SC have a limited role due to the lack of capacities. The collaboration between VET stakeholders lacks coordination, systematic and systemic approach because there is no entity that would fulfill the role of the Secretariat of VET NCC, to facilitate the relationship between the key stakeholders.

 

In 2018, in order to motivate economic agents to provide apprenticeship places and to train apprentices in dual programs, changes were made in the fiscal legislation, namely by Law no. 172/2018, the Tax Code was adjusted, and by Government Decision no. 693/2018 defined the expenses related to the organization and carrying out of the dual programs as tax deductible.

In order to improve the regulatory framework for SMEs, for 2019, the Ministry of Economy and Infrastructure has planned the elaboration of a Government Program for the approval of measures to support and encourage social entrepreneurship.

This program aims to create conditions and facilitate the development of economic activity aimed at improving living conditions and providing opportunities for people from disadvantaged categories of the population.

In order to strengthen the economic and social cohesion, including at the level of the local communities, employment and the development of social services in the community interest, including the increase of social inclusion, the Law no. 223/2017 for the amendment and completion of some legislative acts, which recognized the social entrepreneurship activity.

At the same time, in order to achieve the objectives set in this field, when developing the Sectoral Medium-Term Expenditures Strategy, new actions / policy measures on the private sector development sector, estimated financial means for the period 2020-2022 amounting to 30,000 , 00 thousand lei, for the implementation of a social enterprise support program (Article 365 paragraph (2) letter c) Law no. 845/1992 on Entrepreneurship and Enterprise).

In order to support the economic agents implementing the dual education, facilities have been approved for the deductibility of the expenses incurred by them in the field of practical training at the workplace, see the link: https://chamber.md/facilitati-for-agentii-economici.

 

TVET institutions are public law institutions whose financial activities are based on the principles of the Public Finance Act and the fiscal-fiscal responsibility no.181 / 2014. Thus, according to its provisions, the main stages in the process of budgeting are:

- Development and approval of the medium-term budgetary framework (hereinafter MTBF);

- Issuance of the annual circulation on the drafting and presentation of the draft budget;

- Drafting and presenting the draft budget;

- Organizing consultations on the draft budget with PCA;

- Presentation of the draft state budget law to the Government;

- Examination and approval of the draft law by the Government and submission to the Parliament for approval;

- Adoption of the Annual Budget Law by Parliament.

The provisions of Article 48 of the Prenotated Law stipulate that the CBTM is developed by the Ministry of Finance jointly with the specialized public authorities (hereinafter CPA). Until May 15, CBTM will be submitted to the Government for approval, the deadline being June 1.

In the process of drafting CBTM, the central public authority (CPA) i s responsible for developing and presenting sectoral spending strategies. At the same time, in the process of preparing the sectoral spending strategies, the CPA specializes with other CPAs, which manage budgetary resources within the respective sector. Sectoral spending strategies ensure the correlation of policy priorities with the volume of planned / sectorally planned budget resources at sector level.

According to the timetable of the actions for the elaboration and approval of the state budget for the following year, the Ministry of Finance issues the circular on drafting and presenting the draft budget, the term being 1 June, which is transmitted to the CPA. Based on the circulation of the Ministry of Finance, PCAs issue their own circular institutions that set specific requirements and spending limits on institutions.

Subordinate budget institutions therefore draw up and present budget proposals within the limits set by the hierarchically superior authority and product and program performance indicators. The CPA organizes and conducts the process of examining and consulting budget proposals with the subordinated institutions, then aggregates them, evaluates output indicators, and prepares the budget proposal, which it submits to the Ministry of Finance by 1 July.

Consultations on budget proposals with the CPA are organized on the basis of a schedule established by the Ministry of Fine Arts between 1-15 August and the annual state budget bill and social partners will be consulted by 1 September.

The Ministry of Finance presents the state budget bill for consideration and approval by the Government until September 15. Following the examination of the draft law at the Government meeting, the Ministry of Finance adjusts the draft, after which the Government issues the decisions approving the draft annual budget law and presenting them to Parliament until October 15.

The draft law is first scrutinized in parliamentary committees and later in Parliament's plenary sessions, after which Parliament ensures the adoption of the annual budget law by 1 December.

Following the publication of the state budget law, the Ministry of Finance communicates to the PCA the annual approved budget allocations, which are then allocated to the subordinate institutions. The budgets allocated to the budgetary authorities / institutions serve as the basis for initiating budget execution.

It is also noted that the general resources of TVET institutions are calculated on the basis of the standard cost per pupil, including personnel costs, goods and services expenses, stocks of commodities, commodities, according to the provisions of the Government Decision no.1077 / 2016 "On cost-per-pupil-based financing of public institutions of vocational technical education".

In addition to the costs included in the cost of training per pupil, the institution also benefits from scholarships and social scholarships, the maintenance of dormitories, the maintenance of orphans and those under guardianship, as well as the expenses for the institution's development, according to the performance indicators respecting the limit of the allowances planned budget.

During the budget year, TVET institutions can collect revenues from the provision of services and the execution of works, according to the Service Nomenclature, approved by the Government.

In addition, it is mentioned that according to art.61 of the Law no.181 / 2014, the annual budget law can be changed no more than 2 times, which is submitted to the Parliament, not later than 1 July and no later than 15 November, and according to the provisions of art. 63, the receipts and payments of the budgets of the budget.

 

Building on the ones outlined in the "Expenditure planning, budgeting and budgeting in TVET", a solution to improve spending and budget planning in the TVET system would be the decision-making freedom of TVET institutions by modifying the method of management and management of funds budget and own accumulated.

As a result of these needs, as of October 1, 2018, TVET institutions operate under financial and economic self-management, hold accounts in the treasury's single account of the Ministry of Finance, and the provisions of the Government Decision no.1077 / 2016 are modified in this context. Thus, TVET institutions benefit from allocations from the state budget for the execution of the state order, and their financing is based on a service contract.

Prior to these changes, the revenues accumulated by the TVET institutions were distributed and reflected in the State Budget Law and the cash balances formed at the end of the year were paid into the state budget in order not to generate the increase of the budget deficit which threatens the stability of the budget .

Thus, in the State Budget Law 2019 no.303 / 2018 financial allocations were provided only for the execution of the state order within the TVET institutions. The mode of planning, training and execution of expenditure from general resources is described in code E3.1. The basis for the calculation of these allocations is the volume of general resources approved in the previous year, adjusted with existing policies and normative acts (baseline) and other factors that influence the volume of expenditures as well as new policy measures (eg increase of the reference value on calculation of base salary, exchange rate, etc.).

The bookkeeping of TVET institutions will be made in accordance with the overall chart of accounts in the corporate system. In this context, through the Order of the Minister of Finance no.28 of 12.02.2019, the Methodology for the passage of the Accounting Accounts Plan in the budgetary system to the General Chart of Accounts in the Corporate System was elaborated.E.4 Mobilisation of resources for VET.

 

The funding sources of TVET institutions are:

- general resources (allocations from the state budget according to the State Order approved by the Government);

- own income;

- the resources of projects financed from external sources;

- other revenue allowed by law.

The general resources of VET institutions are allocated from the specialized CPA budget, based on the cost per pupil and other expenditures, according to the provisions of art.145 of the Education Code no.152 / 2014 and the Methodology of financing based on cost per pupil of public institutions vocational education, approved by the Government Decision no.1077 / 2016.

The revenues of the VET institutions include income from the provision of services and the execution of the works, according to the Service Nomenclature, approved by the Government. These income consist of study fees, services provided and works executed, rental, rent or lease of public patrimony, donations, sponsorships and other money means legally entered into by VET institutions.

Estimates of incomes are carried out and confirmed by calculations in strict accordance with the fees for services rendered, approved by the Board of Directors.

Income from tax-based studies and incomes from training, staff training are forecast based on the average student, auditor / listener quota established at the beginning of the study year and the amount of study fees approved by the Government.

The amount of study fees should represent the actual cost of training of specialists in educational institutions by specialties and training fields. Thus, according to the provisions of the legal framework in force, the amount of the study fees will be approved by the Board of Directors.

Income from accommodation fees in hostels is estimated according to the provisions of the Government Decision no. 99/2007 "Regarding the accommodation fees in the homes of state institutions of secondary technical education, post-secondary technical and higher education and in the field of science and innovations".

Revenues from the lease of public property were projected according to the number of contracts concluded and on the basis of the regulation on the lease arrangement approved by Government Decision no. 483/2008 "On the approval of the Regulation on the way of leasing the unused assets".

Resources related to projects financed from external sources shall be administered in accordance with the provisions of those agreements within the limits of the approved budgetary allocations and unused money means by the end of the budgetary year shall be available for the same purposes in the following budget year, budgets.

Other revenue allowed by law includes, for example, income from entrepreneurial activity, which is accrued and managed separately from other income, donations, sponsorship, etc.

Money obtained from entrepreneurial activities can now through the modification of government decision Nr. 1077, 23.09.2016 (modification Nr.844, 12.09.2018), allowing for financial autonomy of VET institutions, be accumulated over the years and used for the institution’s development. 



 

Budget allocations are broken down into functional groups, by sub-programs, economic activities and categories.

Financial resources in economic terms are:

-    Staff expenditure

- current expenditure (goods and services, social benefits)

- capital expenditures (fixed assets and capital investments)

The staff costs are estimated according to the provisions of the Government Decision no.1234 / 2018 "On the conditions of remuneration of the staff of the educational institutions functioning under the regime of financial and economic self-management". They are calculated on the basis of updated structures, taking into account the possible changes in the staff structure over the respective years and based on the rights of the persons actually employed (length of service, degree / category of qualification, salary level, didactic degree, scientific degree, etc.) .

Current spending is estimated according to previous years' consumption and adjusted prices for the current year. When estimating capital repairs, CPA / Institutions will focus financial resources to complete the work on the ongoing objectives.

In preparing capital expenditures, the CPA is to be governed by the provisions of the Government Decision no.1029 / 2013 "On public capital investments", the Order of the Ministry of Finance no.185 / 2015 "On the approval of the Instruction on the management of the capital investment projects "And subchapter 4.7" Particularities specific to the capital investment planning "of the Methodological Set approved by the Order of the Minister of Finance no.209 / 2015.

At the same time, the transition of TVET institutions into the economic financial self-management regime changed the way of reflecting the expenditures in terms of the economic classification. In this context, budget allocations, funded under the Education Service Contract for State Order Execution, are reflected in the economic codes as follows;

- 2812 "Scholarships", which include the costs of paying scholarships and social scholarships;

- 2818 "Financing of self-education institutions", which includes expenditure on the activity of the institution, provision of students' food, maintenance of dormitories, etc .;

- 3912 "Capital investments in current assets".

At the same time, the institutions benefit from the state budget and allowances for the maintenance of pupils with orphan status and those under guardianship.

In conclusion, the transition of TVET institutions into a financial and economic self-management regime gives TVET institutions greater freedom in the management of financial resources, their accumulation and distribution, respecting the basic principles and the provisions of the normative acts in force.