Romania case study: a SWOT analysis of the Romanian labour market

Abstract

The Recovery and Resilience Plans of the Member States will focus on the development of green energies, digitization, robotization, and artificial intelligence. It will determine the reform of the labour market and constructive the change of the employment structure. It will not be neglected that any process of industrial restructuring and modernization of the economy is accompanied by social costs such as layoffs or increased inflation, which will require the development of social policies for the social inclusion of vulnerable groups. The most important challenge regarding the labour markets in Romania and other states from Central and Eastern Europe is the labour market deficits. The labour force shortage affects the efficiency and business opportunities in Romania. The main target, assumed by the Romanian government through the Strategy for Employment for 2022-2024, is to achieve an employment rate of the population aged between 20-64 of 75%. This paper’s research objective is the analysis of the strengths, opportunities, weaknesses, and threats of the Romanian labour market. A SWOT matrix is designed as a useful instrument in socio-economic impact qualitative analysis and employment strategy development. The results focus on the best measures for increasing better-paid jobs, educating a qualified and flexible labour force, reducing the social exclusion of disadvantaged groups (youth, women, minorities, or migrants), and reducing territorial economic disparities (between the urban and the rural area).