Employment and the unemployment rate in

ROMANIA

• Employment and the unemployment rate in Romania is hard to understand if not related to the general employment structure and other labor market indicators such as the occupation and activity rate or the role of (short term) migration.

• Even during the hard recession and their aftermath official unemployment rates in Romania were relatively low when compared to other Eastern European countries

Participation on the Romanian Labor Market

Romania/Year Unit 2008 2009 2010 2011 2012 2013 2014Occupied Persons  1000 9,369 9,092 9,185 9,250 9,330 9,420 9,520Growth % 0.2 -3 1 0.7 0.9 1 1.1Unemployed Persons

1000 575 838 770 745 705 670 635

Unemoyment Rate % 5.8 8.4 7.7 7.5 7 6.6 6.3

Romania: Unemployment Rate, Occupied Persons – Forecasts 2008 – 2014

2008 2009 2010 2011 2012 2013 20140

100

200

300

400

500

600

700

800

900

Unemployment - occupied persons

Unemployed Persons Occupied Persons 

2008 2009 2010 2011 2012 2013 20140.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Unemployment Rate

Employment Structure in Romania by Sector

• A somewhat puzzling evolution is that of the immensely growing importance of the agricultural sector for employment, which in turn follows an opposite pattern. “Employment” in agriculture rose during the recessions of the nineties from 28.18 % to nearly 41.4 % by 2000 and decreased during the following growth period from 2000 onwards only relatively few by nearly 10 % until 2005.

From the analysis of the regional economic surroundings we can observe the diversity of the economic activity, the latest advance of services towards industry, higher moderation of agriculture and constructions, a lower agricultural output or agricultural resources that are not capitalized.

As a conclusion, there can be seen a growth in the number of firms and IMM personnel, an encouraging dynamics on foreign direct investments, especially up until 2008 and a slight decline of the economy starting with the year 2009, as a result of the economic crisis.

Adjacently with all the reorganization from the industry that have affected the big companies, there was a massive growth of personnel in the smaller companies.

Employment and the unemployment rate in Neamt county

Total population. General dynamics

• Total population. General dynamics

• According to the statistics given by the DJS Neamt, on the 1st of January 2010, the number of the population of Neamt County was about 563.000 inhabitants, representing aproximately 15% of the population of the North-East region and 2,5% of the population of the country.

• Source: PRAI (INS, renewed data)

Steady population on the 1st of January 2010

Total

(nr. pers.)

Women

%

Men

%

Urban area

%

Rural area

%

România21537563 51,3 48,7 55,2 44,8

North-East Region

3726642 51,0 49,0 43,65 56,35

Neamţ County563392 50,77 49,23 37,82 62,18

România

North-East Region

Neamţ County

51.3

51

50.77

48.7

49

49.23

Steady population on the 1st of January 2011 Men % Women %

România

North-East Region

Neamţ County

55.2

43.65

37.82

44.8

56.35

62.18

Steady population on the 1st of January 2011

Rural area % Urban area %

• There can be seen a constant decrease of the inhabitans in Neamt county just by analyzing the evolution of its inhabitants between 2000-2011. But a growth in the number of population will be possible and will be constant until 2025.

The evolution of population between 2000 – 2012, Source: DS Neamt County

Companies from the county. Dynamics, regional distribution, sizes

• According to the previous table, in Neamt county in 2011, there could be observed that most of the companies activate in services, especially in commerce, real-astates, constructions and processing industry.

Number of local active units Totalfrom which: sizes

0-9 10-49 50-249 >250

Total/County 9970 8912 870 166 22Total/County 27 21 6 0 0Extractive industry 1543 1215 234 79 15Processing industry 9 3 3 2 1Electrical and thermic energy, gas, hot water and aer conditioning 40 30 4 5 1

Water distribution, salubrity, toxic waste management, decontamination activities 1032 884 124 23 1

Constructions 3780 3488 268 24 0Commerce, auto repair 619 570 40 7 2Transportation, depositing and courier activities 652 609 39 4 0Hotels and restaurants 192 174 16 2 0 Information and communications 1202 1143 47 11 1 Real-estates tranzactions, renting, services 60 54 6 0 0Education 108 99 8 1 0Healthcare and social assistance 240 224 16 0 0Collective, social and personal services 466 398 59 8 1

Labour work

• Between 2002 – 2009 there was a drop down of the active population: from 206.300 persons in 2002 to 188.300 persons in 2009. Agriculture was mostly affected with 20000 persons, but with a significant increase in the services area, with 12.000 persons.

Main indicators regardin labour work according to BFM

Neamţ County 2002 2003 2004 2005 2006 2007 2008 2009

Persons – by thousands Active population - Total 230.9 220.9 214.8 212.8 206.1 204.2 202,0 199,6

Occupied population – Total 206,3 202,8 199,4 200,9 196,0 196,4 193,8 188,3

ProcentsActivity rate 66,5 62,7 59,8 58,6 56,8 56,6 56,5 56,7

Masculine 67,1 63,6 60,7 59,8 57,5 57,1 57,0 56,9

Feminine 65,6 61,0 58,6 56,3 55,1 55,5 56 56,6

Occupation rate 59,4 57,6 55,5 55,3 54,1 54,5 54,0 54,1

Masculine 58,8 56,8 54,6 54,5 53,4 53,8 53,3 53,8

Feminine 60,1 58,1 56,2 56,4 55,2 54,7 54,2 54,4

2002

2003

2004

2005

2006

2007

2008

2009

0 10 20 30 40 50 60 70

Activity rate

Feminin Masculin Rata de activitate

2002 2003 2004 2005 2006 2007 2009 20110

50

100

150

200

250

Activity rate

Activity rate Masculin Feminin

2002 2003 2004 2005 2006 2007 2009 201150

52

54

56

58

60

62

64

66

68

Masculin

Masculin

2002 2003 2004 2005 2006 2007 2009 201148

50

52

54

56

58

60

62

64

66

68

Feminin

Feminin

Neamţ County 2002 2003 2004 2005 2006 2007 2008 2009

TOTAL 206.3 202.8 199.4 200.9 196 196.4 193.8 188,3

Agriculture and sylviculture 102.2 97.80 89.9 90.7 85.5 83.9 82.2 82,5

Industry 44.60 41.90 40.0 39.0 36.4 35.9 36.0 32,7

- Extractive Industry 0.4 0.50 0.4 0.4 0.3 0.4 0.4 0,5

- Processing industry 41.3 39.00 37.2 36.4 34.3 33.7 34.0 29,2

- Electrical and thermic energy, gas, water 2.9 2.40 2.4 2.2 1.8 1.8 1.6 3

Constructions 6.6 7.20 7.9 8.0 8.3 9.0 9.1 8,2

Services 52.9 55.9 61.6 63.2 65.8 67.6 66.5 64,9

- Commerce 19.1 21.30 23.1 24.6 26.0 26.6 24.7 25

- Hotels and restaurants 1.9 2.00 3.7 4.0 3.7 4.0 3.8 2,1

- Transportation, depositing and courier activities 5.5 5.60 5.9 5.2 5.9 6.5 6.6 6,7

- Financial exchanges 1 1.00 1.2 1.3 1.3 1.3 1.5 1,4

- Real-estates tranzactions 3.8 4.90 5.8 5.1 5.9 6.4 6.3 0,8

-Public administration and defence 2.7 2.60 3.0 3.4 3.8 4.1 4.8 4,7

- Education 9.1 9.10 9.4 9.3 9.2 8.9 9.2 8,7

- Healthcare and social ensurance 7.8 7.70 7.5 8.1 7.5 7.5 7.8 7,9

- Others 2 1.70 2.0 2.2 2.5 2.3 1.8 7,6

20022003

20042005

20062007

20082011

0.00

20.00

40.00

60.00

80.00

100.00

120.00

The structure of occupied civile population based on the main activities of our national economy

Constructions Education Healthcare and social ensurance

Industry Services Agriculture and sylviculture

Series1

0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00

Industry

Constructions - Electrical and thermic energy, gas, water - Processing industry- Extractive Industry Industry

Service

s

- Commerc

e

- Hotel

s and re

stauran

ts

- Tran

sporta

tion, d

eposit

ing and co

urier a

ctivit

ies

- Finan

cial e

xchan

ges

- Rea

l-esta

tes tr

anza

ctions

-Public

administ

ration an

d defence

- Educa

tion

- Hea

lthca

re an

d socia

l ensu

rance

- Others

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

Services

20022003200420052007200820092011

The situation of the unemployment – vacant jobs

• Agriculture – 374 unemployed people (from which 35 graduates) and 61 vacant jobs;• Chemistry Industry– 263 unemployed people (from which 5 graduates) and 65 vacant jobs;• Commerce – 2183 unemployed people (from which 86 graduates) and 2607 vacant jobs;• Constructions – 1503 unemployed people (from which 47 graduates) and 1147 vacant jobs;• Electricity – 451 unemployed people (from which 43 graduates) and 161 vacant jobs;• Electromechanics – 412 unemployed people (from which 20 graduates) and 139 vacant jobs;• Electronics and automation – 145 unemployed people (from which 32 graduates) and 15 vacant

jobs;• Aesthetics – 65 unemployed people (from which 3 graduates) and 52 vacant jobs;• Wood manufacturing – 1193 unemployed people (from which 106 graduates) and 439 vacan jobs;• Food industry – 344 unemployed people (from which 40 graduates) and 167 vacant jobs;• Textile and leather industry – 1361 unemployed people (from which 76 graduates) and 628

vacant jobs;• Building materials – 124 unemployed people (from which 1 graduate) and 38 vacant jobs;• Mechanics – 4761 unemployed people (from which 116 graduates) and 2390 vacant jobs;• Sylviculture – 273 unemployed people (from which 9 graduates) and 168 vacant jobs;• Polygraphic techniques – 34 unemployed people (from which) and 21 vacant jobs;• Tourism and food industry – 787 unemployed people (from which 39 graduates) and 820 vacant

jobs.

AgricultureIndustrial chemistry

CommerceConstructions

ElectricityElectromechanics

Electronicts and automation Aesthetics

Wood manufacturing Food industry

Textile and leather industry Building materials

MechanicsSylviculture

Tourism and food industry

0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000

The situation of the unemployment – vacant jobs

vacant jobs unemployed people

• The dominant profile at a regional level regarding labour work seems to be given by the following domains: commerce, tourism and food industry, economy and electric. The most requested jobs: constructions, installations, public works, economy.

Unemployment structure –

Analyzing the unemployment structure for 2002-2010, we can observe a decrease in the number of the unemployed people;

for 2002-2008, the rate actually decreased; but this

process is not available anymore, since during

2008-2010 the uneployment increased

because of the economic crisis.

The unemployment structure on age category:

Total unemployedUnder

25 years old

25-29 years old

30-39 years old

40-49 years old

50-55 years old

over 55 years old

average 15-24 years old

unemployed

Neamţ County 15928 2644 1082 3591 4403 2528 1680 16,6%

Women 6756 1179 488 1604 1934 1064 487 17,5%

50%

8%3%

11%

14%

8% 5%

The unemployment structure on age category

Neamt county

under 25 years old25-29 years old30-39 years old40-49 years old50-55 years oldover 55 years oldaverage 15-24 years old unemployment

under 25

years

old

25-29

years

old

30-39

years

old

40-49

years

old

50-55

years

old

over 5

5 yea

rs old

avera

ge 15-2

4 yea

rs old unem

ploymen

t0

5000

10000

15000

20000

25000

30000

35000

Unemployment rate - 2002-2011 on age and sex category

women men Neamt county

Recent evolutions of unemployment and vacant jobs enlistet at AJOFM (Regional Agency for Labour Market

Occupation).

• The main profile for labour demand seems to be the following domains: mechanics, textile and leather industry, constructions, commerce, wood manufacturing, tourism, food industry, electricity

• Food industry – has a stationary tendance of vacant jobs and number of unemployed people in the field, with a deficit in the entire county.

• Mechanics – is the main field that enlists a significant number of vacant jobs but also a significant number of unemployed people.

• Electricity and electromechanics also enlists a significant number of vacant jobs and a drop down of unemployed people.

• Textile and leather industry seems to be confronting with contradictory evolutions; there is a decrease of both the number of vacant jobs and of the unemployed persons.

• Wood manufacturing – also meets the requirements of poor vacant jobs as well as of unemployed persons.

•  

Conclusions of labour market analyses.

• The following conclusions may be drawn from an elaborate analyses:

• The unemployement rate kept its tendancy of dropping down both regionaly and nationaly until 2008 and grow after.

• Undergraduated people occupy the highest level in the population structure, both urban and rural.

• There is also a positive dynamics for services and tourism with a decrease in the number of unemployment. The latest evolutions have also shown that there would be higher demands in constructions, commerce or food industry.

•  

• The reduction of population and population occupied: much higher than in the women in the men. "

• People active and busy population have increased in urban areas, but decreased significantly in rural.

• The rate of activity and employment rate: decline rate of activity and especially the rate of employment at regional level, with major disparities by sex and residential environments.

• Dropping an alarming phenomenon of continuous affecting particularly female population in rural environment, combined with a quality reduced to the employment in rural areas

• Unemployment - In the fall, compared to previous years, the unemployment rate remains higher than national.

• Highest unemployment rate in rural areas, significantly higher than the national unemployment rate areas;

• Unemployment is slightly higher for men;• High unemployment (15-24 years):• High rate of youth unemployment (relative to population,

15-24 years): 16.6%, below the national level (19.7%) and European (EU-27: 18.6%), but higher for women (17.5%).

• -Relative to the entire population of 15-24 years group, 6.5% of young people are unemployed (6.9% in rural).

• Regional unemployment rate for people with low education level is double than the national level

• East employment opportunities are much lower than the national level personal training low (no more than secondary education).

• The regional employment rate of women with low education level is two times lower than for men

More important than the protection of the unemployed is to reduce unemployment, and the most important ways are:

• To stimulate demand, while the supply may increase. There is a danger of inflation, the measure can be applied especially in conditions of deflation.

• Harmonization of education plans in proportion to the structure of supply and labor market needs - as follows: increase of the share in services and technical and resource reduction. Making local analysis to define more specifically offer tuition plan and consultation structures involved in regional and local development.

• Qualifications and Curriculum Update - dynamic economy requires appropriate skills and competencies with greater occupational mobility and flexibility of labor.

• Establish partnerships - with high adaptability of the workforce at different workloads.

This goal can be achieved by: -Development of CDL schools in partnership to meet the needs

of local employers. - Upgrade skills in line with economic development and labor

market. - Development of skills that can provide search and / or create

your own job. - Promoting lifelong learning. - Strengthen training in active partnership, employment

agencies effectively.

• Development of rural and mountain areas - given that most rural population included in subsistence agriculture (weakness), but correlated with the potential geographical mountain area (strength) is necessary to achieve a coherent program of education and training measures professional, the following directions:

• Initiation / development of pilot schools agromontan profile, equipped with adequate material: teaching farm, school workshops and laboratories - organized and properly equipped in terms of mountain agriculture - campus facilities.

• Filling / adaptation training at secondary level in mountain areas by introducing the general concepts and practical mountain rural economy and food household.

• Promoting their products through the use of logos accepted by the UE