Labor Force Participation in Romania
Selected Issues Papers, December 13, 2023
Source details
- Canonical URL
- Labor Force Participation in Romania
Other formats
Bibliographic details
- Authors: Florian Misch, Alexander Pitt
- Published: December 13, 2023
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798400263651.018
Summary
- Labor force particiaption (LFP) in Romania is—at 66.8 percent in 2022—significantly lower than the EU average, especially among women and less educated people.
- With a declining working-age population, rasing LFP could yield signifcant benefits including by boosting long-term growth, mitigating the fiscal impact of an ageing society, and reducing inequality.
- Key policies to boost LFP include provision of affordabel high-quality childcare, and improving education standards.
Key findings
- Current LFP level: 66.8 percent in 2022.
- LFP is notably lower than the EU average, with particularly large shortfalls for women and less educated people.
- Demographic pressure: a declining working-age population makes raising LFP a priority to support growth and fiscal sustainability.
- Distributional effects: raising LFP can help reduce inequality.
Policy recommendations
- Expand provision of affordabel high-quality childcare to increase female labor force particiaption.
- Improve education standards to raise participation among less educated groups and support long-term labor supply.
Thematic tags (as listed)
- Aging, Education, Gender, International organization, Labor, Labor force participation, Monetary policy, Population and demographics, Women
Labor Force Participation in Romania, Selected Issues Papers, December 13, 2023.
Content in this bundle
- Labor Force Participation in Romania; Selected Issues Paper No. 2023/062; November 16th, 2023