OECD (2022), OECD Economic Surveys: Romania 2022, OECD Publishing, Paris, https://doi.org/10.1787/e2174606-en

Chapter: Klein, C., & Lesuisse, P. (2022). Improving labour market conditions for stronger and inclusive growth.

A large share of Romania’s population is detached from the formal labour market and does not have the skills needed to adapt to the fast changing environment. This results in large income and regional inequalities, with some groups – low educated, women, youth, and Roma – remaining at risk of poverty and social exclusion, especially in rural areas. The COVID-19 crisis has aggravated barriers to the labour market integration of vulnerable individuals. At the same time, skill mismatch on the labour market undermines Romania’s capacity to grow and to adapt to technological progress. Improving matching to support the recovery and making it more inclusive requires a vast range of measures. First, barriers to participation should be addressed, especially for disadvantaged groups, through more effective active labour market policies. Second, youth unemployment should be tackled by addressing the high level of early school leaving and strengthening employers’ involvement in training. Finally, offering reskilling options to Romanian workers is urgently needed and requires developing adult education. Doing so will involve increasing financial incentives for workers to train and improving guidance services, especially for the low skilled and in small firms.