Abstract
The economic and political changes generated by the reforms after 1990 have had consequences on the labour resources. In such context, there have been several structural and functional changes on various segments of the labor market. However, the instability at the level of this market can be also seen as a result of the impact of the global crisis on Romania’s economy. The negative demographic tendencies had direct consequences on the labor market, such as the lowering of the percentage of employed population following the small birth rate, high general and infant mortality rate, the deterioration of the population’s biological potential of, the decreased life expectancy rate, ageing population, especially in the rural environment, a high rural-urban migration as a result of the necessity for survival, as well as the intensification of the qualified workforce migration from our country. The purpose of this paper is to highlight some policy measure to counter the disfunctions existing on the labor market in our country.
Highlights
Economic and political changes resulting from reforms after 1990 led to a dynamic labor market in Romania, with restructuring, professional development, technical changes in the provision of labor, in line with the strategic objectives of economic reform
Employment rate decreased in Romania from 59.6% in 1998 to 51.0% in 2003 increasing to 59% in 2008, and dropping to 58,6%, in 2009, along with demographic decline in Romania’s population combined with continued restructuring of the industrial sector in our country, with the loss of breadth and depth varying from one region to another, from one district to another
After 1990 the evolution of employment in Romania the been influenced by several factors such as decrease in the country’s total population, the emergence of foreign investment flows which generated new jobs, extention of the working life from 57 years to 60 years for women and 60 to 65 years for men, small and medium enterprise development and the expectation that it will make a positive contribution to increasing employment, especially in terms of non-wage labor
Summary
Economic and political changes resulting from reforms after 1990 led to a dynamic labor market in Romania, with restructuring, professional development, technical changes in the provision of labor, in line with the strategic objectives of economic reform. The main problems encountered in the labor market are related to the relatively low participation, from certain social categories, high unemployment among certain population groups, low internal mobility, high tax revenues from the use of work force, the limited relevance of education to the labor market’s needs and the existence of administrative and legal barriers that affect the functioning of companies and create jobs. These are the causes that reduce employment opportunities for the working age population and contribute to the encouragement of foreign migration
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