Romanian Labour Market Research Articles

Responses to the jobs crisis. Digital transformations of the Romanian labor market

The present article presents a sociological analysis of the sources of crisis in the context of the Romanian labour market, compared to post-socialist and post-Soviet countries. The study examines the labour market changes over the past two decades, from the economic crisis of 2008 to the COVID-19 crisis. The article shows how socioeconomic vulnerabilities during crises interacted with the transformations caused by employment policies, technological transformations of work and neoliberal measures on the labour market in Romania.

Long – Term Distribution of the Job Offer in Romania and Job Polarization

In the case study we aim to analyse the long-term distribution of vacancies on the Romanian labour market. This approach allows us to identify one of the long-term consequences of the digitalization of the economy, namely polarization. Polarization can be viewed from several perspectives, but here we are only referring to the polarization of the job supply. The phenomenon implies a significant reduction in interest in mid-level jobs. Thus, to identify the probability that this phenomenon will already manifest itself in Romania, we carried out an analysis with the help of Markov chains. In this way we will identify the occupations that could be the most numerous in the long run in Romania. Even if Romania does not indicate an obvious polarization of the labour market, in the long run, clues in this regard can be identified. There is a system of vocational training at national level, but it does not cover the prospects of the labour market.

Determinants of job insecurity during COVID-19: quantitative insights from the Romanian labor market

PurposeFollowing the COVID-19 pandemic, the issues related to job insecurity became even more prominent than before. This paper sets out to identify the determinants of job insecurity in the context of the COVID-19 pandemic among Romanian workers, a topic than was scarcely addressed in previous studies.Design/methodology/approachBased on a representative sample at the national level (N = 744), the authors performed a multilinear regression analysis that pinpoints the factors predicting job insecurity.FindingsThis study findings indicate that high-skilled workers employed on permanent arrangements, having higher workloads, who had received organizational support, and managed to harmonize work demands with family responsibilities experience the lowest levels of job insecurity. In this study, teleworking does not influence the level of job insecurity. Gender (being male), working in the public sector and approving the political management of the COVID-19 pandemic also count in securing the feelings employees have about their job.Originality/valueBesides filling a geographical gap in the literature, another innovative contribution of the paper is the emphasis on the importance for the employees of how public authorities manage the public health crisis. Also, this study explores the workload as a factor of job insecurity which was unaddressed previously. Implications for research and practice are emphasized.

The Entropy of Romanian Economists into the Labour Market

The rate of unemployment for higher educated people has increased in Romania in the last few decades. The aim of this paper is to analyse survey data from master’s students in Economics from some private and public universities in Bucharest. The study uses ANOVA/linear Dependent Dirichlet Process mixture model to explain the scores from these surveys. The results suggest that the causes of interview rejections for master’s students are due to gender, work seniority, type of university attended, and the requirements of employers in the field. In addition, a rank ordered probit model is used to assess the importance assigned by managers to recommendations to improve university education. The results confirm the rigidities of the Romanian labour market and the necessity to design more and better internships that support policy recommendations for better school-to-work transition.

Occupational strategies of third country migrants on the Romanian labor market

The article analyzes how third country migrants in Romania make use of occupational strategies to access the domestic labor market. The analysis develops around formal and informal occupational strategies, the latter ones further divided according to Granovetter’s (2018) ‘strong ties’ and ‘weak ties’. Empirical evidence has been collected from the narratives of twenty oral history interviews with migrants in Romania. Results indicate a reliance of third country migrants on formal and informal occupational strategies for securing employment, especially there where the public sector or private businesses fail to create the adequate employment opportunities. Both kinds of strategies are used alike, with the formal strategy strongly depending on education, hard work and free will, while the informal strategy mainly depending on the ‘ties’. Moreover, findings indicate that ‘weak ties’ tend to push migrants towards the secondary labor market of part-time and poorly paid jobs. In addition, research results also spot a tendency of male migrants to easier engage into creating and using either ‘strong’ or ‘weak ties’, while female migrants struggle to secure personal connections with the domestic population that might help them find a (better) job.

Wage Rigidity and Labour Market Changes in the Context of the Pandemic – The Case of Romania

Abstract The COVID-19 pandemic has impacted all economic sectors, and the shocks have been felt strongly in the labour market. The objective of this paper is to identify the trends on the Romanian labour market, to approximate and evaluate the impact that the COVID-19 pandemic has had on the sectors of activity and, implicitly, on the employees of these sectors. In order to carry out this analysis, relevant indicators are used for the evolution of the salary and the number of employees, for the period January 2016 - October 2021. After this section, the analysis is focused on the period 2020-2021, when the entire society faced the negative effects generated by the COVID-19 pandemic. In this paper, the disproportionate impact of the crisis at the level of the labour force is highlighted, the employees working in the Manufacturing sector being the most severely affected, almost half of the jobs lost during the lockdown period being in this sector. Another sector that was strongly impacted by measures to prevent the spread of the virus is Accommodation and food service activities. However, in this case, the number of employees returned in 2021 to the value recorded in the pre-pandemic period.

Philosophical counseling: a new profession in Romania

The first step towards recognizing a new specialization, philosophical counseling, was made in Romania by setting up the professional association of philosophical counselors, being the effect of the appearance on the Romanian labor market of the first specialists in the first series of master's degree graduates. philosophical counseling program. Prior to this recognition, they could pursue other occupations, based on their initial training, reflected in their bachelor's degrees. The develop the new profession of philosophical counselor was more than necessary, being intended for specialists trained in Romanian university. The highlighted solution supports the training of practitioners and specialists in the philosophical counseling master's or postgraduate programs wich will be developed in Romania. The new specialization, given by califiquation for philosophical counselor, has a real chances to be a new profession who can take a place in the Romanian society.

The Insertion of Economic Cybernetics Students on the Romanian Labor Market in the Context of Digital Economy and COVID-19 Pandemic

The purpose of this paper is to provide evidence of the insertion of Romanian students of economic cybernetics on the labor market by connecting business environment expectations with the goals of a competitive digital economy. The research is organized around three hypotheses to address the issues of both non-employed and employed economic cybernetics students. A rank-ordered probit choice model was estimated to compute the probability that a certain skill requires improvement. The empirical results showed that the COVID-19 pandemic stimulated more cybernetics students to get a job in this period. Moreover, these students present the necessary level of digital skills to be employed, but other skills need improvement: skills of analysis and synthesis, adaptability in handling crisis situations and creativity. This research reveals the lack of working experience as the main cause for rejection after an interview and the students’ tendency to overestimate their salary. This study also identified barriers of the insertion on the labor market for these students with digital skills that were not the subject of previous studies. Moreover, the impact of the COVID-19 pandemic on their decision to get a job in this period is assessed and a few recommendations of skills improvements are provided. These results present practical implications for educational policies and the business environment in the context of achieving a competitive European digital economy. The limit of this research is given by the sample representativeness for cybernetics students only for Bucharest, but a future paper will ensure a representative sample at the national level.

Job Attribute Preferences of Incoming University Students and Newly-Hired Employees in the Context of the Romanian Labour Market

The purpose of this study is to investigate which job and organisational attributes incoming first-year students prefer in a job, and whether their preferences differ from those of newly-hired employees. Factor analysis of the job attributes reveal four underlying factors: job itself, firm attributes, compensation and rewards, and supportive work environment. Results show that students’ perceptions differ from those of employees only with regard to the importance of firm’s attributes. This study also examines whether preferences for job attributes differ when students’ growth need strength, academic achievement, and gender are taken into account. Results indicate that students with high growth needs place greater importance on job attributes centred on job itself, but lower importance on job attributes concerning supportive work environment. Furthermore, female students rate job attributes pertaining to supportive work environment significantly higher than male students.

East-West Disparities on the Romanian Labor Market under the Influence of Globalization and Entrepreneurship

The East-West Romanian labor market disparities occurred and have been amplified by the rapid regional economic progress based on entrepreneurial spirit, corroborated with specific market opportunities. The end of the second millenium marked the liberalization of the Romanian labor market due to the transition from the planned economy to the open economy. As a result of this transition, the economic globalization phenomenon occurred and shaped Romania, both positively and negatively. However, at the beginning of the twenty-third century, some Romanian economic sectors are facing serious issues as far as the labor force is concerned, or rather the lack of labor force. The objective of this research paper was to explore the EastWest Romanian labor market disparities under the influence of globalization and entrepreneurship through the lens of socio-economic indicators. Results confirm that the Eastern Romania is encountering serious labor issues with direct effect on particular economic sectors.

Forecasting the Romanian Unemployment Rate in Time of Health Crisis-A Univariate vs. Multivariate Time Series Approach.

Economic crises cause significant shortages in disposable income and a sharp decline in the living conditions, affecting healthcare sector, hitting the profitability and sustainability of companies leading to raises in unemployment. At micro level, these sharp decreases in earnings associated with unemployment and furthermore with the lack of social protection will impact the quality of life and finally the health of individuals. In time of crisis, it becomes vital to support not only the critical sectors of the economy, the assets, technology, and infrastructure, but to protect jobs and workers. This health crisis has hit hard the jobs dynamics through unemployment and underemployment, the quality of work (through wages, or access to social protection), and through the effects on specific groups, with a higher degree of vulnerability to unfavorable labor market outcomes. In this context, providing forecasts as recent as possible for the unemployment rate, a core indicator of the Romanian labor market that could include the effects of the market shocks it becomes fundamental. Thus, the paper aims to offer valuable forecasts for the Romanian unemployment rate using univariate vs. multivariate time series models for the period 2021–2022, highlighting the main patterns of evolution. Based on the univariate time series models, the paper predict the future values of unemployment rate based on its own past using self-forecasting and implementing ARFIMA and SETAR models using monthly data for the period January 2000–April 2021. From the perspective of multivariate time series models, the paper uses VAR/VECM models, analyzing the temporal interdependencies between variables using quarterly data for the period 2000Q1–2020Q4. The empirical results pointed out that both SETAR and VECM provide very similar results in terms of accuracy replicating very well the pre-pandemic period, 2018Q2–2020Q1, reaching the value of 4.1% at the beginning of 2020, with a decreasing trend reaching the value of 3.9%, respectively, 3.6% at the end of 2022.

How Effective Was the Romanian Labour Market After 2008?

The efficient operation of the labour market is a matter of high stake for every state, considering that it reflects the balance between supply and demand. The extent to which such balance is achieved is highlighted by the Beveridge curve. This paper examines the efficient operation of the Romanian labour market, as measured by the relevant indicators of labour demand and supply. In order to capture the evolution of these indicators across the three target sub-periods (the crisis, the rebound and the resumption of an upward trend), the timeline subject to survey was 2008Q2-2016Q3. The survey conducted for this purpose revealed fluctuations in the number and rate of job vacancies, respectively in the unemployment rate. However, in the last part of the surveyed period, the trend of such indicators was downward for the unemployment rate and upward for the number and rate of job vacancies. Even so, these indicators failed to match the levels recorded before the outbreak of the economic crisis. Due to such evolutions, the Beveridge curve presented shifts of direction specific to the three sub-periods. Throughout the last part of the surveyed period, the curve seemed to recover slightly towards the top-left direction at national level. However, regionally, the evolutions of labour supply and demand varied, and the Beveridge curves varied accordingly. Surprisingly, it was not Bucharest-Ilfov, considered the best economically developed area in Romania, which reported the best correlation between labour supply and demand, but the Central region.

Impact of the COVID-19 Pandemic on the Romanian Labor Market

The present research aims to establish the impact that the current crisis situation the planet is facing, namely the COVID-19 pandemic, has had so far on the Romanian labor force market. In this context, given the lack of information and information regarding this pandemic and its effects, the administration of a questionnaire among the population was considered to identify the research results. The method of semantic differential and the method of ordering the ranks were used for the interpretation of the results. With the help of this questionnaire, it will be possible to answer the question of the research in this study: What are the main effects of the COVID-19 pandemic on the Romanian labor market? The main results showed that the COVID-19 pandemic affected the Romanian workforce; the respondents of the applied questionnaire claimed that they obtained better results and maintained a similar income, but the health crisis also influenced the mentality of employees, with respondents stating that in the event of changing jobs, they would consider it very important for the new employer to ensure the conditions for preventing and combating COVID-19, as well as complex health insurance. However, analyzing at the macroeconomic level, it was found that the COVID-19 pandemic induced an increase in the number of unemployed people in the Romanian labor market.

Labor force shortage analysis in Romania - size, impact and measures

Abstract Under the impact of unfavourable demographic developments, some existing imbalances on the Romanian labor market have worsened. Thus, in 2019 the labor force shortage was estimated to 300000 persons, while in the last ten years the number of vacancies has exceeded 60,000 places, more than double the level at the beginning of the period (2010). This phenomenon may have negative social and economic effects. In this context, the present paper aims at analysing the labor shortages in Romania, at identifying its main determinants and the most important social and economic consequences and recommends a series of measures to mitigate the negative effects of this phenomenon.

Labor force shortage analysis in Romania - size, impact and measures

Abstract Under the impact of unfavourable demographic developments, some existing imbalances on the Romanian labor market have worsened. Thus, in 2019 the labor force shortage was estimated to 300000 persons, while in the last ten years the number of vacancies has exceeded 60,000 places, more than double the level at the beginning of the period (2010). This phenomenon may have negative social and economic effects. In this context, the present paper aims at analysing the labor shortages in Romania, at identifying its main determinants and the most important social and economic consequences and recommends a series of measures to mitigate the negative effects of this phenomenon.

The Labour Market Crisis in Romania Causes, Effects and Potential Solutions

Abstract We are going through troubled times, with worldwide pandemic crises affecting us altogether: citizens, companies and states. This article presents analyses and solutions to the workforce crisis of December 2019 and the workplace crisis of March 2020. Things have escalated from a workforce crisis to a new stage, namely an accelerated loss of workplaces and to a workplace crisis. In a matter of weeks, the labour market has moved from one extreme to the other extremely fast because of a very rough natural phenomenon which could not have been predicted, i.e. the global pandemic crisis caused by the COVID-19 coronavirus. It goes without saying that we all wish to achieve a relative balance on the labour market. This study puts forward concrete solutions adapted to the situation of the Romanian labour market at the end of 2019, when we saw a significant workforce crisis which severely affected companies’ business development objectives. At the same time, it introduces 11 solutions to the new job crisis, which is quickly expanding as a result of the global pandemic caused by the COVID-19 virus and by the declaration of a state of emergency in Romania. In a few weeks of crisis, Romania went from minus 1 million workers to plus 1 million workers. This is an extremely difficult situation. However, I believe that it is temporary and that after the pandemic crisis both the economy and the labour market will gradually recover.

Green Procurement Implications on the Labor Market in the Context of the Transition to the Green Economy

The adoption of green procurement has implications on the labor market because of the changes that occur in the economic structure. The purpose of the article is to contribute to a better understanding of the concept and policies regarding green procurement as well as the implications on the Romanian labor market of the transition to the green economy through green procurement. In this regard, several analyses have been made; an analysis of the current situation, a forecast, on secondary data, of the main trends of the Romanian labor market, compared with those of the EU28, a regression between the number of green jobs and the environmental protection expenditure as well as a cluster analysis in EU 28 countries to capture SMEs' perceptions of resource efficiency and green markets. The analysed data comes from official statistics of EUROSTAT, to which we have added the data from CEDEFOP and those collected within Eurobarometer 381. From the analysis of the data it turned out that there are certain structural imbalances in the labor market in Romania, which could be accentuated by implementing green procurement; a positive relationship at EU level between environmental protection expenditure and green jobs and insignificant differences between countries on green markets and resource efficiency.

The Influence of ICT Sector on the Romanian Labour Market in the European Context

The ICT sector, as the backbone of the fourth industrial revolution, has major implications for labour markets. Assessing its effect is crucial for the development of policies that support the labour markets, bringing many benefits for workers, organizations, the economy, and society as a whole. The purpose of this paper is to analyse the level of digitalization of the Romanian economy in the EU context, as well as the impact of the ICT sector on employment and skills. The results of the comparative analysis at the EU level show that there are significant negative gaps between Romania and the EU average, as well as between Romania and Visegrad countries, in terms of Digital Economy and Society Index (DESI), the contribution of ICT sector to employment and GDP, employed ICT specialists (as % of total employment) and the impact of ICT on tasks and skills. A strong positive correlation was identified between the level of digitalization of economy and society (expressed by DESI) and the labour productivity in the EU countries. Therefore, in order to reduce these negative gaps and to create an inclusive digital economy and society, a higher level of digitalization of work is required, especially in countries (like Romania) where there is a low level of digital economy, as well as low labour productivity. At the same time, it is essential that the EU labour force develops the necessary digital skills so that workers win the race of digitalization of jobs.

Ocuparea pe platformele digitale în contextul crizei COVID-19: Studiu de caz asupra personalului de livrare

The article intends to critically analyse the implications of economic precariousness integrated into the platform work of food-delivery sector. The recent context of labour market crisis caused by the COVID-19 virus and assisted by the labour policy changes have brought recently on the public agenda the subject of digital employment. However, at the academic level, this subject has been sporadically analysed, marginalizing the dimensions related to the risks and vulnerabilities associated with the precarization effect on digital work. Therefore, by combining different analytical angles, focusing on the socio-economic conditions and vulnerability of workers from the food-delivery sector, the article aims a synthetic analysis of the association between precarious work, the accelerated digitization of work caused by COVID-19 and the phenomenon of flexible employment. Thus, there are two approaches in the proposed article demonstration: first, the article will provide information on the political and economic context of the Romanian labour market before the COVID-19 pandemic crisis and will present the current situation of precarious employment and minimum wage policy. Secondly, the analysis will be focused on digital employment in the platform-based food-delivery sector in Romania, with a case study on the delivery staff situated in the first line exposure to the COVID-19 virus. Keywords: precariousness; platform work; flexibility; COVID-19 virus; minimum wage.

What does a non-shifting Beveridge curve tell about Romania’s labour market?

ABSTRACT Unlike for many developed and developing countries, for Romania, the Beveridge curve has not shifted during the current economic cycle. Our analysis reveals a labour market in transition towards a service-based, knowledge-intensive economy, where inward shifts of occupational Beveridge curves observed for Professionals, and Service and Sales workers, reflecting an increased matching efficiency for these occupations, were offset by outward shifts experienced by Technicians and Elementary occupations workers, leading to an aggregate non-shifting Beveridge curve for Romania. The flat Beveridge curves for the total labour market, and for most occupations, observed since 2016, could precede a future inward shift of the former, indicating an increased matching efficiency similar to the ones observed for Hong Kong in the 80s, and for Germany after the Great Recession. Results could inform future developments of the Romanian labour market, against a background of existing and potential future labour shortages.