Romania's labour market faces shortages, emigration - think tank

The demand for highly specialised workers in Romania is expected to soar, with an estimated 624,000 additional positions needing to be filled by 2030, CES Bucharest said on Tuesday. However, only 1% of the population aged 25-64 participates in vocational training courses, compared to the European average of 9.1%.

The demand for people with medium and low level of qualification will rise by more than 400,000 people by 2030, according to data reviewed by the think tank.

Additionally, the aging population is expected to triple the number of active people over 65 in the next decade, with a 10% increase in this demographic reducing gross domestic product (GDP) growth per capita by 5.5%.

Also, the labour market is witnessing a decline in the number of young active workers, with projections indicating a potential 3.5% decrease in the age group of 20-34 by 2035 compared to 2020 levels.

At the same time, Romania's education system is underfunded, receiving only 3.2% of GDP compared to the European average of 4.8%. Furthermore, there is a shortage of investment in training programmes, with only 21% of Romanian companies investing in employee skills training.

Migration is another significant factor impacting the labour market. Romania ranks 17th globally in terms of population migration, with over 5.7 million Romanians opting to work abroad. Meanwhile, the country imports labour, particularly from Asia, to meet workforce demands in sectors such as construction, hospitality, and retail.