Employment situation in Romania

The labor factor

The general condition of any activity – is ensured, like other factors of production, through the market.The labor market is also based on meeting and confronting demand with the offer.It works in every country, on different groups of countries and on the world scale.

Any activity that initiates or exists in society generates the need for work. This is the total amount of work required for activities in a country over a given period. But it is not entirely a demand that expresses itself on the labor market. The general condition for the need for work to take the form of labor demand is its remuneration, its salary. That is why, the demand for work does not include activities that can be done by housewives, term wizards, students, other non-salaried people.

Demand for work

Is the need for wage labor that is formed at a time in a market economy.

Demand to express through the number of jobs.

Satisfaction with the need for work is done on the basis of the use of the available labor availability in the society, ie the volume of labor that can be earned by the working population of that country in the given period. And in this case, we must keep in mind that not all job vacancies constitute the offer, but only those to be remunerated, paid.

The job offer

Consists of the work that the members of the company can make in wage conditions. Therefore, the job offer does not include domestic women, students, term soldiers and other non-salaried people.

Methodology of calculating labor resources

The work resources existing at one time in the society express the number of people capable of work, that is, that part of the population that possesses all the physical and intellectual capacities that allow them to carry out a useful activity.

Measuring the degree of vacancy of the workforce

One of the main objectives of economic policy in any country is to ensure full employment. The issue of employment is one of the important concerns of the macroeconomic analysis. In the case of macroeconomic analysis through full employment, there is a situation where the unemployment rate has a certain acceptable level (about 4% is considered the natural rate of unemployment). Therefore, it is considered more appropriate to have the term of high employment in place of the full occupation (total).

In national and international statistics, there are several indicators on the number of unemployed and the unemployment rate.

Regarding the number of unemployed, the most used indicators are:

The number of unemployed in the sense of ILO – the International Labor Office – (or the standard definition of unemployment) is made up of all persons aged 14 and over who, during the reference period, simultaneously fulfill the following conditions:

  • not working, not having a job
  • It is possible to start work immediately
  • I am looking for a place to work
  • As a consequence, unemployed people are considered:
  • dismissed persons
  • people looking for the first job (graduates of secondary, vocational, university)
  • people (usually women) who, after a voluntary interruption of their activity, request their resumption
  • Part-time, temporary or seasonal employees looking for a full-time job
  • people who have lost or renounced their previous status (self-employed, patron, unpaid family worker) and are looking for the first time job seeker

The employment rate reached 66% in 2015, below the EU average of 70%

The employment rate of the Romanian population aged between 20 and 64 reached 66% in 2015, slightly increasing compared to 2014 (when it was 65.7%), but still far from the average record. The level of the European Union states, of 70.1% in 2015, shows data published yesterday by Eurostat.

The distribution of employment by sex shows that men in the 20-64 age group registered a higher employment rate of 74.7%, while the employment rate among women in Romania was 57.2% last year. Although this indicator has increased in recent years, Romania needs to increase its employment rate for the population in this age category by another 4 percentage points over the next five years, given that 70% is the target set for Romania in the Europe 2020 strategy. Instead, countries such as Germany, Estonia, Lithuania or Sweden have already reached their target of employment by 2020. Thus, in Germany the employment rate reached 78%, in Estonia 76.5% in Lithuania 73.4%, and in Sweden it reached 80.5% (this being the highest level among EU countries).

The opposite is the situation in countries like Greece (where the employment rate is 54.9%), Croatia and Italy (with a 60.5% employment rate) and Spain (62%).

The employment rate is the share of the employed population (all persons who paid work during the survey) in the age group 20 and 64 in the total population of the same age group (20-64).

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