External migration is a serious problem for Romania, our country ranks 17th in the world, with more than 5.7 million Romanians who have decided to work and settle abroad. The ratio between the number of Romanian emigrants and foreign immigrants who settled in Romania is 6 to 1, according to data from the World Organization for Migration, presented in an analysis by CES Bucharest (Bucharest Center for Economy and Society).

Short:

• By 2030, Romania will need more than 600,000 people to occupy highly skilled jobs, and at the same time, the aging phenomenon will intensify in the next decade: our country will have a triple number of active people over 65.

• By 2030, the local labor market will need more than 600,000 people to fill high-skilled jobs. In Romania, only 1% of the population aged 25-64 participates in vocational training courses.

• In the next 10 years, the number of active people over 65 will triple in Romania.

• A 10% increase in the share of the active population over the age of 60 reduces GDP growth per capita by 5.5%.

• Romania ranks 17th in the world in terms of the phenomenon of population migration.

• A 10% increase in the share of the active population over 60 reduces GDP per capita growth by 5.5%

According to data from the National Institute for Scientific Research in Labor and Social Protection (INCSMPS), analyzed by CES Bucharest, by 2030 the demand for occupations requiring highly skilled labor will increase by 624,000 people (an average of 100,000 people). / year ), in conditions in which specialized faculties in the country provide only 40,000 of their graduates annually, according to an estimate made by CES Bucharest based on data from the National Institute of Statistics.

At the same time, by 2030, the demand for people with medium and low-level qualifications will decrease sharply, by more than 400,000 people, reports INCSMPS. In order to remain competitive in the labor market, they must undergo re-specialization either at work or through vocational retraining courses to acquire new skills adapted to current market demands – digitalization and automation, sustainability or human resource management.

The phenomenon of population aging has intensified in recent years, between 2012 and 2022, according to data from the National Institute of Statistics, the average age of the permanent population in Romania increased from 40.8 to 42.3 years.

A 10% increase in the share of the active population over the age of 60 reduces the growth of GDP per capita by 5.5%, according to the report of the Institute of Research and Development.

At the same time, the number of young people active in the labor market between the ages of 20 and 34 may decrease by 3.5% in 2035 compared to the level of 2020, CEDEFOP reports.

Only 21% of Romanian companies invest in employee training

According to the World Bank, in Romania only 1% of the population aged 25 to 64 participates in vocational training courses, compared to the European average of 9.1%.

On the other hand, only 21% of Romanian companies invest in training employees in skills adapted to labor market demand, the same data show.

In Luxembourg, by comparison, companies can request subsidies from the state to cover 15 to 20% of annual employee training costs. According to OECD analysis, learning support is limited to 7 skills, including digital, foreign languages, management or business training.

Romania is among the 20 countries in the world in terms of population migration rates

Another big challenge for the labor market in Romania is the phenomenon of migration. Our country ranks 17th in the world, with more than 5.7 million Romanians who have decided to work and settle abroad. According to the World Organization for Migration, the ratio between the number of Romanian emigrants and foreign immigrants who have settled in Romania is 6 to 1.

At the same time, Romania has been importing more and more labor in recent years, especially from Asia. In 2023, almost 30,000 people from Asia worked in Bucharest and Ilfov County alone, most of them from Turkey, Nepal, Sri Lanka, China, India or Bangladesh, according to official data from the General Inspectorate of Immigration. According to open data analyzed by CES Bucharest, most of them work in areas such as construction, HoReCa, transport or retail.

On the other hand, official figures from the Ministry of Foreign Affairs show that most of the 5.7 million Romanians who have gone abroad live in countries such as Italy, Spain, Great Britain or Germany and work mainly in fields such as agriculture , sales, construction, medical or IT system. Among the main reasons for the outflow of Romanians are higher wages in other countries, a highly efficient health care system, developed educational infrastructure, mentality or more favorable climatic conditions.

According to another report by the OECD (Organization for Economic Co-operation and Development), education contributes to increased productivity, the growth of the national economy, as well as the identification and promotion of innovation, which brings with it the development of new, better-paid jobs. , one of the most important intergovernmental forums, to which Romania is officially applying from 2022, but the accession process could take even 4-5 years, according to information appearing in the public space.

For example, in Belgium, the contribution of education to the economy is 14%, according to a study by the International Journal of Science and Research. In practice, education and permanent specialization of the active population in accordance with economic and technological development is the basis of a healthy and efficient economy.

Romania also has one of the lowest sources of financing the education system in Europe at 3.2% of GDP compared to the European average of 4.8%, and this is reflected in the decreasing number of undergraduates and masters studying in higher education. study at the country’s universities. According to the National Institute of Statistics, from 2020 to 2022, Romanian faculties registered a decrease of almost 22,000 young people.